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What is store management? Explaining issues and points for improving efficiency

Store management operations include a wide range of tasks such as sales management and human resources management. In order to increase sales, all of these operations must run smoothly at all times, and improving the efficiency of store operations is a particular concern for managers. In this article, we will explain the contents of store management operations and points to improve efficiency.

What is store management?  Explaining issues and points for improving efficiency

Sales management work

Accurately understanding sales information is an essential process for expanding store management. The basics of sales management begin with checking for discrepancies by comparing the total amount of the cash register and POS system records with the invoices after the store closes.

However, counting money is not the only important aspect of sales management. It is meaningful to analyze sales information to understand recent trends, implement new measures based on the results obtained, and actually achieve results. Utilizing sales data makes vague problems visible through numbers, making it possible to identify issues that are difficult to see with the naked eye.

Additionally, analysis activities need to be carried out quickly in order to allow time for planning and implementing measures.

Inventory management operations

Inventory management refers to appropriately managing products and materials procured from suppliers and supplying the necessary types and quantities of products to the necessary locations at the necessary timing.

Inventory is in a state waiting to be converted into cash, so if there is too much inventory, the amount stored in the warehouse will increase and profits will be squeezed. On the other hand, when inventory is insufficient, stock-outs occur and sales opportunities are lost, leading to a decline in sales.

In order to always maintain an optimal balance between these factors, it is essential to accurately understand the purchasing and sales lead times for each product. To achieve this, the person in charge must centrally manage information from purchasing to sales and thoroughly manage inventory.

Purchase management operations

Purchasing management operations refer to a series of operations related to purchasing, such as checking products, parts, materials, etc. delivered from suppliers with order information. Also, part of purchasing management is negotiating and coordinating how to purchase products at a low price and in time for the required period.

In purchasing management, it is common to unify suppliers and increase the absolute number of products in order to gain an advantage in price negotiations. However, with this method, the purchasing price is not stable because it is influenced by the asking price of the supplier.

Furthermore, when suppliers have difficulty supplying products, inventory becomes insufficient, leading to missed sales opportunities. In order to avoid such risks, it is important to develop multiple suppliers on a daily basis and diversify the risk.

Human resources management operations

Human resources are essential to operating a store. Human resource management refers to all efforts to utilize human resources efficiently. The elements that make up human resources management include a wide range of tasks such as employee shift management and attendance management, as well as appropriate allocation of human resources, recruitment activities, training and education, development of evaluation systems, and welfare benefits.

In workplaces where there is a shortage of manpower, it is easy for work to become individualized. However, there is a possibility that business operations will be disrupted due to an employee’s retirement, leave of absence, or transfer, so it is necessary to hedge risks in preparation for such situations.

Unbalanced workloads on certain employees can lead to higher turnover rates, so it is necessary to improve the workload of employees and constantly manage their motivation.

Table of contents

  1. Sales management work
  2. Inventory management operations
  3. Purchase management operations
  4. Human resources management operations
  5. Issues in store management operations
  6. Issues faced by stores
  7. Issues facing the headquarters side
  8. Key points for streamlining store operations
  9. Introduction of ECRS to eliminate all waste
  10. Introduced store management system
  11. summary

Issues in store management operations

What challenges are companies that operate stores and their managers currently facing? Here we will explain the problems that tend to occur when operating a store from both the store side and the headquarters side.

Issues faced by stores

If you can manage the four tasks introduced so far without any hitches, your store operations will run smoothly. However, in reality, stores face a variety of issues, and there are cases in which they are unable to carry out management tasks as expected.

The biggest reason for delays in management work is that store managers are so busy with customer service and administrative work that they are not able to focus on their primary management work. In most cases, store managers receive daily work instructions from the company’s headquarters and manage the store, creating a daily report at the end of the day and a weekly report at the end of the week, and reporting to the headquarters.

In addition, there are tasks such as confirming sales and recording them in ledgers after the store closes, and administrative tasks such as analyzing sales data have to be postponed. In order to overcome the situation where appropriate customer attraction measures are not being taken, improving the efficiency of administrative work will be an issue.

Issues facing the headquarters side

The current situation is that not only store managers but also the head office are facing problems.

In the case of a company with multiple stores, the headquarters must understand the sales and inventory levels of each store and provide consulting to improve sales accordingly. If each store is poorly managed and problems occurring on-site cannot be identified, it will be difficult to find areas for improvement.

Additionally, companies with too many stores are often unable to catch up with each store’s best sellers. If you don’t know what products are selling and what aren’t, it will be impossible to plan sales promotions such as campaigns.

Key points for streamlining store operations

First, it is effective to review whether the existing business processes are truly the best and whether there are any tasks that can be omitted.

Introduction of ECRS to eliminate all waste

A framework called the “ECRS Principles” is useful for improving operational efficiency.

ECRS is a set of elements necessary to improve business efficiency: “Eliminate,” “Combine,” “Rear range ,” and “Simplify.” It is an acronym that also indicates the order of actions to be taken.

It was originally devised to improve complicated business processes in the manufacturing industry, but it can be applied to all types of jobs, including sales, office work, sales, etc., and can be expected to be effective .


Eliminate means looking at the entire business from the perspective of “Is the task really necessary?” and eliminating the task itself if it does not interfere with other tasks.

For example, if your boss rarely looks at reports such as daily reports, one option might be to eliminate the task of creating daily reports from your duties. Additionally, in the retail industry, eliminating excessive services that customers do not perceive as valuable will lighten the burden on employees, allowing them to spend time and effort on more important services.


After Eliminate is Combine. This refers to increasing operational efficiency by linking tasks of similar nature or separating tasks that are becoming more complex. By consolidating tasks, tasks that were previously performed by two people can now be handled by one person, which will also lead to cost reductions such as personnel expenses.

Rearrange (replacement and substitution)

Rearranging and substituting means trying to rearrange the order of tasks in order to find a more efficient way of doing things. For example, in the past, you would have created a plan properly and then obtained approval from your superiors, but if you seek your superior’s opinion first when you have an idea, you will be able to reduce the number of revision orders that come later.


The final step is Simplify. We will reanalyze the operations that we have reviewed so far, identify lines that will not have a negative impact on sales or quality, and then consider whether there are any areas that can be further omitted. Simplifying operations that are difficult to completely abolish can be easier, potentially reducing labor hours and costs.

Introduced store management system

Even if we try to increase the number of employees to reduce the workload of store managers, the current situation is that there is a shortage of human resources in every industry. Even if we recruit, it is difficult to attract talented people, and increasing the number of employees is not an option in reality. Therefore, the introduction of a store management system is recommended.

Store management systems are equipped with essential functions for store management, such as sales management, inventory management, and attendance management. Additionally, since work instructions and reports are formatted, creation time can be shortened and information can be shared smoothly. Not only can you analyze POS data and take necessary sales measures, but the headquarters can also understand the sales of each store in real time.

One of them, ” Microsoft Dynamics 365 “, is a CRM application provided by Microsoft. It centrally manages customer information from all departments, including sales, marketing, customer service, product development, and corporate planning, making it possible to share information company-wide. It is also possible to analyze data and create instructions for sales and marketing. It easily integrates with Office apps and Microsoft groupware, and supports optimization of store operations .

If you are a company that is thinking of introducing a store management system, why not try using Microsoft Dynami CS 365?


The labor shortage is becoming more serious, and store managers, who are supposed to be in charge of store management, are overwhelmed with work and are unable to handle administrative tasks. What you want to use is a store management system. Once introduced, you can perform tasks such as analyzing POS data, checking sales in real time, and creating instructions. Why not consider making your store operations more efficient?


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