Importance of Retail ERP systems
- ERP (Cloud) July 24,2020
Before understanding the term retail ERP systems, it is necessary to understand what ERP software actually is. An ERP software is a tool integrated with a set of applications that can be used to manage various tasks of the business such as a collect, store, manage and interpret data from different departments of the organization on a unified database by which different tasks within the organization gets streamlined.
ERP solutions for retail are software that caters to the requirements of the retail industry and comprise of functionalities related specifically to that industry. Nowadays, most of the traditional retailers work on limited margin and have to face increased competition from the new retail formats such as e-commerce and web stores. Traditional store owners have to deal with constant running of stock, have to manage a huge number of employees at different store locations, different pricing and discounts for hundreds of customers, and much more.
Therefore, managing a retail store which comprises of multiple branches is a hectic job. In order to stay in the business, the retailers have to evolve with the advancing technology. All of this can’t be done with traditional manual methods of working. This is where they should adopt ERP solutions for retail. Retail ERP systems make the store processes streamlined, increases overall productivity, and improves the level of customer satisfaction. Following will justify why ERP solutions for retail is important for this industry:
In retail, the customer is always the king, more than any other business. Therefore, it makes sense to have a customer management module in Retail ERP systems. It helps the retailers in overcoming the customer-related challenges and achieves an integrated view of the customer. The module collects the data on the history of customer purchases which allows the retailer to identify the most loyal customers by which afterward different promotions and discounts can be offered to those customers.
Customers are very demanding nowadays and at the same time, they are fickle as well. If their desired products are not available, they wouldn’t mind switching to the competitor. This makes forecasting the demand very important. Tracking past trends for forecasting future demands is a lot easier with the retail ERP software.
ERP software helps the retailers effectively managing the levels of inventory which ensures the constant flow of products, both in and out of the inventory. It also helps in identifying the expiry date of the products by which different promotional packages can be offered to the loyal customers and shelves will get cleared.
Sales Reporting and Analytics:
A retail ERP software assists the retailer with a dashboard of your store, sales, orders, and other data such as how much revenue generated by each product can also get segregated. This allows the owner to identify and focus on those products which are generating most of the revenue. It generates real-time reports by which different things can be identified and rectified before any major loss.