Role of ERP in Improving Retail Business Processes

As it is around for a long time now, most people know that Enterprise resource planning (ERP) has the potential to improve business processes. But are they aware that there exists something like retail-specific ERP? Just like other ERP systems, it collects and use data to automate processes but is designed in a much more specific way for use in the retail industry. Take a look at some of its advantages to see how it can improve retail-specific business processes.

Advantages of Using a Retail ERP Suite

Retail ERP suite has retail specific components and is customizable to meet the specific requirements of a retail organization in an effective and efficient manner. It is so designed that it has provisions to meet the varying needs of the different segments that vary in their nature and scope of operations, within the retail sector. Besides, it offers support for the store systems that execute the critical functions including – keeping track of the inventory, ordering and renewal, loss prevention and task management and form the fulcrum of a retail business. All this and more makes retail ERP system suited to the specific needs of a retail organization.

Other Advantages:

Easy Configuration, Scalability and Usage

A modern retail ERP system grows with the organization and allows a high degree of scalability to attune itself to the size of the organization and its level and scope of operations. Such configuration and scalability proves to be a boon in managing the retail operations across an enterprise besides providing support for phased implementation. If phased implementation (step-by-step & incremental) occurs, it makes the transition to an ERP system a lot easier allowing even the users to acclimatize, for whom it might initially have been complicated to use.

Support for Advanced Functionalities

There are “n” decision making processes in retail business that the modern retail ERP systems lend support to by supporting advanced functionalities. This not only helps in formulation of business strategies to introduce efficiencies in the critical business processes but also lets the top management set the benchmarks and achieve the desired results.

The ERP systems support advanced functionalities such as inventory optimization, pricing schemes, stock planning, and store execution.

Integration & Automation Support

Technology and application integration provides the enterprise-wide view to the management by allowing a seamless transfer of processes across different modules running on different technologies that may include interaction with legacy systems and external entities such as the suppliers and the customers.

Similarly, these ERP packages allows monitoring and tracking of the workflow by automating it and making it seamless across the entire enterprise. This allows the management to identify and remove, if there are any inconsistencies in the business process.

Meet Compliance Requirements

In much the same way, ERP can help an organization to use the collected data to meet all the regulatory guidelines or report any discrepancies immediately. That means that problems are addressed more pragmatically, reducing the likelihood of failure to meet compliance requirements. Additionally, it gives visibility to an organization into the development or acquisition process and the sales process. The insights so gained by seeing both the current and historical picture — can help organizations better plan for more effective and accurate forecasting and planning.

Process Management

Retail is a tough business to manage. It has a lengthy chain of processes (a moving one) as compared to any other type of business —literally. It requires that a product is manufactured and moved from one location to another, until it reaches a store where it can be purchased by a customer. Even after the purchase, processes and data that may be related to accounting, customer service, or from some other area, keep moving.

And as it is moving, an organization cannot really pinpoint the product’s movements from the point of acquisition to the point of sale and beyond unless if the right data is fetched using ERP software. Only that information can be used to improve the processes associated with the flow of goods through the organization and only if that is done, a retailer can trace every aspect of the journey from manufacturer to final customer.

Also, business can analyze it and put it to use to improve the business processes associated with that journey. Results could later be also used to combine shipments to reduce the price of products, predict their demand and even determine where the quality issues exist and where they might have originated.

Conclusion

There isn’t a doubt now that ERP is a useful tool and that it has the potential to solve ‘n’ number of problems for retailers by enabling them to improve business processes through efficient flow of goods, enhanced regulatory compliance, and accurate planning and improvements.

Top Reasons Why Every Business Must Be ERP Ready

There is no organization that is ever 100% ERP ready but ERP readiness helps greatly. It mitigates some of the most common risks, such as budgetary overruns, operational disruptions and misalignment with business needs. But most importantly, it increases the efficiency of business operations by exterminating hassles like those discussed below.

Access to Business Data Information
There are business processes and practices that have become obsolete and need a major overhaul. This is the key to doing business faster and for that you most certainly need immediate access to key business data. So if your company is still relying upon spreadsheets for key performance metrics like orders per day or sales to date or is doing manual reconciliation of data, it is time that you do away this practice or update it.

ERP could be your best friend. It gives a holistic view of business operations at any time and furnishes all the information that is required to do a job more effectively. For example, sales representatives should be able to view a customer’s full transaction history and more proactively improve renewal rates while increasing upsell and cross-sell opportunities.

Dealing With Complex IT Systems
It takes time and money to update business software. So it’s no surprise many businesses run outdated versions of their business software. The IT management could be nightmarish or even more worsened if you have multiple systems across your business. Moreover, customizing these systems, integrating them and maintaining them with patches and upgrades can be complex and costly.

ERP technology can give you the agility to respond to changing business needs rapidly. That’s why selecting the right ERP provider is critical.

Inventory Management (if you have any)
It is imperative that staff has easy access to sales, customer data all the time as it ensures smooth business operations and that the right amount of products is in the right location at the right time. Otherwise, it can create serious problems across your company, for instance, if a customer calls to inquire about an order and employees can’t track it to see if it’s been shipped—or if it’s even in stock—your company will start to develop a poor reputation for reliability and service.

An ERP system empowers the staff in every department, gives access to up-to-the-minute information and most importantly the confidence while answering any of the customer queries regarding order, shipping status, payment status, service issues, etc., without checking with any another department.

TRAITS TO LOOK FOR IN YOUR ERP PARTNER
While a good ERP systems could provide a strong foundation for industry-specific and vertical customization and ensure optimization for your industry’s unique requirements, challenges, and quirks, only a good ERP partner could provide it.
So you should be looking for an experienced & knowledgeable ERP PARTNER with a strong technical support team. Your ERP partner should have a deep understanding of your business needs and should be willing to help you with the following:

Map out the ERP implementation process
Maps out the process for complete business optimization and to ensure the alignment with a proposed business solution that addresses your business’ key challenges.

Maximize its value
Understands your business requirements and help you customize your ERP solutions to help you get the most out of your investment.

Stay involved
Help the employees with better managing organizational changes that come with implementing an ERP application. They train them to take advantage of the benefits of having a fully functional ERP solution.

Emerging Trends in ERP

Is your organization using ERP? Most likely, “Yes” – so the transformations in its use, implementation and market dynamics are surely going to impact you. In 2015, you must watch out for these emerging trends that will most likely influence how your company uses ERP – whether you are implementing it for the first-time, upgrading it, or opting for a complete makeover.

The main drivers of ERP’s transformation will be cloud, social, mobile and big data technologies. These will most likely morph Enterprise Resource Planning (ERP) into on-premises and cloud-based business applications with built-in analytics providing mobile access.

Highlighting a few trends that point out to the “ERP of Future”, starting 2015–

ERP Will Go “Social”
Social media data helps in understanding customer preferences and product improvement. Besides, much could be gained from the type of customer engagement and retention that comes from social media integration. Consequently, ERP will go social, a trend that we are already witnessing.

IoT, Big Data Analytics & Wearables Will Hugely Impact ERP
While Internet of Things (IoT) will minimize human interaction and transfer data over a network feeding it into a cloud-based ERP applications for analysis, big data analytics tools will help reap actionable insights from that data. As these technologies will integrate with ERP systems, businesses will make better use of under-or-un-utilized data besides analyzing new sources of data.

Also, wearables focused on a host of applications in the workplace are expected to be available. For instance, Augmented Reality enabled Google Glass will enable hands free operations for the benefit of both techies and tech corporations.

Availability of Mobile and Cloud-based ERP Products Will Surge
At present, not all ERP buyers have moved to the cloud.  A recent Gartner survey found that a whopping 79% of ERP buyers are not likely to move to cloud in the near future, indicating that at present there is not much traction for the cloud. And though it is taking time, ERP will continue to “deconstruct” into a dispersed environment of loosely coupled applications that run mostly in the cloud. Consequently, ERP vendors will have to add web, mobile and cloud functions to their products to keep pace with market demand and so, more such products will be available.

Verticalization Will Surely Thrive
Businesses need solutions on a more personalized, individual basis that includes industry-specific functionality. It calls for verticalization – wherein ERP products tailored to the unique needs of specific industries will have to be created.

First, it will bring down the cost of ERP software because ERP products will be most appropriate for specific verticals. Second, it will minimize the need for third-party customization solutions. It will also help ERP vendors design ERP products with more user-friendly interfaces, easier implementation and simplified screens.

ERP Buyers (Smart & Informed Buyers) Will Increase
With respect to ERP software, why vendors are quickly adapting to changing technology and user-requirements?

Primarily, because ERP software is no longer exclusive to larger corporations. Small and mid-size businesses are also implementing ERP platforms to ensure operations run smoothly right from the beginning. Though it is because of the growing influence of cloud-based ERP systems, these buyers know that this is for their good in the long run.

They know, for example, core ERP user features like dashboards and reporting tend to work well ported to mobile devices and so want to have those tools available as key to achieving the desired return on investment (ROI) for their ERP implementations. Keeping in perspective their future business growth, buyers will increasingly be engaged in the software selection process more deeply than ever before.

Consolidation Will Continue
Enterprises have turned more sophisticated. Keeping up the pace, ERP technology has evolved. So while earlier it was a single, on-premises system for tracking, manufacturing resources, orders and finances, in future – it will explode in an array of applications and the trend will continue.

As technological advancements continue to affect ERP, we will be witnessing a major revamp in the architecture of the ERP software system and its delivery models. So ERP vendors, owners and businesses will have to boost up the efforts to adapt to these changes quickly making informed business decisions and remain – competitive and profitable.