Why Every Retailer Needs Enterprise Resource Planning (ERP) Software?
Enterprise Resource Planning (ERP) has become an inevitable requirement for the retail industry, regardless of the size of the business. ERP solutions have become crucial for brands to sustain and keep up with changing customer demands and increasing competition. ERP is a suite of customizable applications that enables retailers to integrate and manage all major operations smoothly, including handling multi-location stores, frequently moving stocks, pricing changes, discount offers on products, and much more. These operations could be lengthy and complicated if done manually; however, ERP software provides quick, simple, and reliable management solutions needed to run businesses more efficiently. The following are the top ten key benefits of ERP software in a retail business.
Top 10 Benefits of ERP Software in the Retail Industry
1. Real-time information
Every retail business relies on information that comes from inventory sales, purchases, and other subdivisions. Businesses need this information to be very relevant, accurate, and real-time, as it can help them make the right decisions at the right time. All the data gathered by the ERP system is stored in a single database, enables easy accessibility to the data, and helps retailers plan better to overcome different challenges. Moreover, this ERP software can pass on relevant information to sub-divisions to avoid any delay in critical operations.
2. Point-of-sale system data integration
Point-of-sale (POS) system is relatively new compared to traditional sales methods, but it has become increasingly vital in the retail industry. POS machines are a system that oversees the transactions happening in any retail outlet. A significant benefit of the POS machine is that it automatically feeds the transaction details into the system eliminating the need for extra effort and the risk of human errors.
ERP tools are now integrated with POS machines (both hardware and software), which is a big reason behind real-time data. In simple words, ERP takes advantage of POS machines one step further: all transactional data is reflected immediately in the retail outlets and the central ERP tool.
3. Employee management
ERP systems help save costs and reduce employee repetitiveness while increasing efficiency. ERP software also allows retailers to manage human resources. ERP makes it easier for employees to rectify their daily operations and avoids repetitive tasks. As a result, it enhances the operational efficiency of employees to achieve the goals on time, thereby generating more revenue for the company. The ERP system is a convenient tool for officials as it helps them assign new tasks, track goals, and many more.
4. Customer management
Every retail business strives to treat shoppers better to ensure maximum customer satisfaction. Satisfying the customer’s needs and requirements increases the company’s brand value and keeps them returning to the stores when they are ready to make new purchases. ERP system allows retail enterprises to store the customer’s purchase history so that retailers can understand their customer’s interests and maintain stock accordingly. Retailers can also use purchase history information to create coupons or deals to increase their sales within a given time frame
5. Inventory management
Inventory management plays a crucial role in improving retail profit margins. The retail industry primarily consists of fast-moving consumer goods (FMCG). The demand for these products can fluctuate daily. Having out-of-stock inventory or excess stock would probably lead to severe financial losses. To avoid these disasters, retail industries have started integrating ERP software to track inventory movements and alert employees in case of shortages. In addition, it can also assess the previous consumption trends and customer interests to forecast a rise or fall in demand.
6. E-commerce data integration
In today’s retail sector, no one can doubt the value of e-commerce. Some may argue that e-commerce has become the face of the retail industry. In either case, e-commerce is critical for retail; that’s why many ERP software packages now provide e-commerce integration. Ecommerce integration, like point-of-sale devices, gives the ERP tool real-time transaction data. This information can then be used to control inventory, forecast demand, etc.
7. Sales analytics
After all, sales and revenue are the essential attributes of any retail business at the end of the day. All changes implemented in the retail industry aim to increase sales to drive additional profits. ERP systems also help organizations identify crucial products in maintaining revenues. Once businesses can identify such products, they can ensure stock availability to grab maximum sales.
8. Integrating Multiple Channels
Retailers often need multiple channels to keep all operations running smoothly in their stores. An ERP system integrates all retail channels into a single platform, allowing departments to share information in real-time. One department no longer needs to inform another department every time there is an update. Employees have access to the data whenever they need it. This modern ERP solution allows businesses to communicate more efficiently.
9. Enhance Operational Efficiency
Retail ERP software enables businesses to capture, store, and manage information through an automated system to organize and simplify daily operations and reduce the tedious manual efforts required to perform repetitive activities. The solution helps companies increase efficiency to ensure targets are met on time, resulting in lower operating expenses.
10. Effortless Pricing and Discount Management
The nature of retail business requires a dynamic pricing system. However, keeping track of it manually is quite a time-consuming task. So, you need a robust ERP solution that can automate the process of recording the price of products and discounts available on them, thus making the process flexible and effortless.
It would not be an exaggeration to say that using an ERP system is inevitable to sustain the fierce competition today. The application includes features that can improve the operational capabilities of a retail business, bringing an edge over the competitors.
ChainDrive ERP software suite has the built-in capacity to address fashion, apparel, and footwear companies’ fundamental needs in core management, planning, design and product development, sourcing, manufacturing, logistics, and sales functions. These end-to-end capabilities enable brands to efficiently manage the entire concept-to-consumer process for improved speed to market and enhanced competitiveness.
Request a free demo to see how ERP software facilitates the flow of retail processes and helps bring real-time visibility to the retail business, enabling success in a competitive environment.