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.
Aequor 