Every wholesale and distribution business requires business management software to run operations – from receiving inventory to picking, packing and shipping product to then invoicing the customer and everything in between. For small and start-up businesses, introductory accounting software and a combination of manual processes and spreadsheets are frequently used. However, for large organizations with a high order volume, industry-specific software provides additional functionality to better manage operations. This is where cosmetics management software comes into play. Although salon and cosmetic distribution businesses operate like any wholesale and distribution company, subtle differences in processes require specific functionality. When looking for cosmetics management software, what you really want to find is an all-in-one ERP solution with specific functionality for the distribution of cosmetic and salon products. ERP or Enterprise Resource Planning software includes functionality for inventory management, accounting, order entry and processing, warehouse management, contact management and more, and all information is maintained in a single database. However, keep in mind some of the features below which are unique to the industry.
- Point of Sale
- CRM and Contact Management
- Landed Cost Tracking
- B2B Online Order Portal
- Reporting & Analytics
- Lot Tracking
- eCommerce Integration
Point of Sale
Many salon and cosmetic distribution companies sell product through multiple sales channels, including some form of retail operation. This includes selling product through membership only brick and mortar locations, cash and carry storefronts within a warehouse space, and at tradeshows while interacting with customers. Whichever combination of retail sales strategy is in use; point-of-sale software helps process orders at the source. When built into an ERP system, POS functionality means information across all channels is maintained in a single database so that inventory, order and sales information is accurate and up-to-date. POS functionality enables businesses to place orders and process payments while with the customer and then inventory can be taken at the same time, or delivered at a later date.
CRM and Contact Management
Maintaining good relationships with customers is imperative to garner repeat business, find new customers and grow your company. Regular communication and the ability to easily look-up important customer information such as sales history, shipping preferences, and billing addresses will enable you to process orders and ship inventory more quickly. Built-in contact management functionality enables businesses to store customer and vendor information including bill-to and ship-to addresses, follow-up dates, customer-specific notes and more. With advanced CRM or customer relationship management functionality, employees can better manage lead and prospective customers. Look for features such as the ability to set next action dates, assign sales reps, record notes, look-up sales history, manage marketing lists, view sales dashboards etc. CRM functionality is great for sales reps on the road and in-house customer service teams.
Landed Cost Tracking
Landed cost tracking functionality is an important part of managing cosmetic inventory as it allows you to track all costs associated with getting inventory into your warehouse. These costs typically include freight, import fees, taxes, etc. The ability to automatically calculate landed costs allows you to accurately price items and helps assign costs accordingly.
B2B Online Order Portal
As a cosmetic distribution company, you potentially have hundreds of customers in the salon and spa industry which means you need an easy way for them to place orders, 24/7. A B2B online order portal allows you to provide your customers with access to a secure online website for placing orders, reviewing sales history, paying invoices and more. When your online store is integrated into your ERP system, it means that all orders flow through the same database to help with inventory management and accounting.
Other notable functionality important to the salon and cosmetic distribution industry includes credit card processing, easy order entry and invoicing capabilities, and warehouse management. To find the right cosmetics management software for your business, start with ERP software and then look for vendors who have experience working with other salon and cosmetic distribution businesses.
Reporting & Analytics
Depending on the nature of the information required, having a system where a user can subscribe to reports that show on their dashboard provides real-time visibility into the status of accounts, orders and more.
Sample Reports: Profit by Customer/Product report, Sale by date report, Top Inventory Sales by Unit Report and more!
Lot Tracking
You may have heard of a not-so-small company called Proctor & Gamble. P&G is the biggest consumer goods company in the world mainly manufacturing cleaning supplies, but also have products in the cosmetics and personal care sector.
eCommerce Integration
It’s no surprise that small to medium sized businesses including wholesale and distributors have some kind of presence online and it’s clear that more and more Salon & Cosmetic distributors are trusting the eCommerce space to sell their products. Two-way integration with your existing B2C and B2B eCommerce webstores such as Magento and Spotify allows for up-to-the-minute live updates between the software and your webstores including inventory, orders, shipments, and payments. If you are an omni-channel business, all orders –including phone, online, retail, wholesale, tradeshow etc. –are all accounted for in the same system. You can rest assured that all information is always accurate and up-to-date.
In November of 2021, P&G recalled 18 antiperspirant products from multiple brands due to unexpected levels of benzene contamination. While P&G is a global giant, small distributors of salon and cosmetic products still need the right software in place that can handle product recalls should the company have to pull products off shelves. Proper traceability software tracks inventory across all sales channels and throughout the entire supply chain. Although these types of systems are not cheap, the time and cost savings your business will find from managing a recall when you have a proper solution in place, far outweigh the actual system costs.
Lot tracking is a core component to help your business with product traceability and keeping track of which customers received specific shipments of items and when they were received. Lots are also tracked from the supplier, so you have all the information from supplier, to your warehouse and ultimately to the customer.
Other notable functionality important to the salon and cosmetic distribution industry includes credit card processing, easy order entry and invoicing capabilities, and warehouse management. To find the right cosmetics management software for your business, start with ERP software and then look for vendors who have experience working with other salon and cosmetic distribution businesses.
