Phocas business intelligence software helps Hairhouse style new profits

3 mins to read

Hairhouse salons consolidate data, run stylish reports, and trim dead stock from their warehouse with easy-to-use Phocas business intelligence software. Hairhouse is an Australian based beauty salon and retail chain that offers hair-dressing services and hair and beauty products across 140 salons in Australia.

Business intelligence software helps leverage data across all platforms

Terry Fagan, the ICT Operations Manager for Hairhouse has had much experience with Phocas BI software. The business intelligence software was initially used to manage the company’s data when transitioning from a legacy ERP to NetSuite.

In 2016, Hairhouse embraced Phocas as its BI solution. Phocas provides a consolidated view of old and new data and became the single source of truth for company-wide analysis.

“For a period of time, we had half of our stores running on the old system and half running on the new system, NetSuite. Without Phocas, we would have had to run separate reports and consolidate that data manually,” said Fagan. 

Since adopting Phocas’ business inteligence software, Hairhouse has been thrilled with the seamless way Phocas achieved data consolidation and the fact that it facilitated the successful migration while making its data accessible to every store.

Fast forward to today, and Fagan manages the flow of data from NetSuite into Phocas business intelligence software and all the platforms that tie into the ERP are functioning well. Fagan must also make sure that all employees can make full use of the information gathered across different platforms. Fagan says, “When we’re trying to transfer that amount of data through an ERP system, it doesn't handle it particularly well. Whereas, if we use Phocas it’s very quick for us to twist and turn data along longer time ranges so we can get a really clear picture of what’s going on.”

Fagan loves the sophistication of the software and the ability to view sales from any perspective.

He says, “I really enjoy the matrix mode.” The ability to pivot on a different dimension, sort by product classes, and by region allows Hairhouse to see which regions are selling more salon services or retail products.  Fagan uses this data to inform Hairhouse marketing campaigns. For instance, the sale of Redken’s product line might fall below target. Hairhouse can run a promotional campaign for Redken products and track its sales history afterward.  


Business intelligence software helps manage stock

Instead of relying on the old method of purchasing based on what stock is on the shelf and hoping for the best, Hairhouse now uses Phocas to make purchasing and buying decisions. Phocas helps companies uncover unique opportunities to succeed in purchasing and inventory in ways that aren't possible with just an ERP system.

For instance, Hairhouse uses Phocas to monitor and prevent dead stock. Dead stock can be the result of poor purchasing decisions. It's difficult for companies to avoid a warehouse full of dead inventory if they don't have business intelligence software in place to monitor their inventory purchasing process. Not only does dead stock create a graveyard of products that can no longer be sold, but it also reduces cash flow that could be used to purchase new revenue-generating stock. Eliminating dead stock begins with prioritizing inventory by investment value, shelf life, and turnover to identify surplus inventory. Knowing which products are at a surplus allows Hairhouse to make more efficient use of the stock on hand.

The ability to see stock turns, inventory-to-purchase ratio, slow-moving stock and gross margin return on investment by manufacturer, product group, product, branch and store leads to accurate forecasting, even short-term supply needed to satisfy unexpected orders. Fagan can now see “what our quantity buying needs to keep up with the sales stream.” Armed with data Hairhouse can recommend repurchases.

To learn more about how retailers use business intelligence software, download the eBook, The keys to retail success: Critical metrics every retail chain must monitor and measure.

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