Why ERP needed for retail

Iqra Hussain

ERP stands for enterprise resource planning.The word "enterprise" is oftenused to describe the processes that a business holds and contains all departments or elements of business.When we work with the retail business we must know that with the passage of time it has become more complex through the years. Now, we as a customer expect to shop in physical store locations, on their mobile devices through apps, and even on the web via your e-commerce site. These demands have added outlets and extra complications in our daily operations.

The world is changing rapidly but many businesses are not modernizing with time. Many retailers in business, still use Multiple IT Systems thatdon’t fully meet the different aspects of their business requirement, making their life even harder. If the inventory management system software of your organization is not talking to your point of sale system or your accounting software, there are more chances that you’re wasting your time and money in getting data from one system and inputting it into another system.

ERP systems are comprised of different smaller modules, including point of sale, customer relationship management, and business intelligence. If the retail business is responsible by the people for marketing, having no experience in the software system selection or set-up, often feel frustrated by the technology, fighting to make it meet their business requirement needs. On the other side, when marketing professional are part of the reasons when the company starts investigating the likelihood of a wide-ranging, end-to-end software system to be used by the business, they can help the vendor selectionto drive using concrete business aims.

Three important benefits of an ERP system that a marketing professional will get are:

1) Promotional Offer Management

2) CRM

3)Sales Reporting and Data Mining

If an ERP system is correctly implemented, it offers opportunities for efficiency, data reporting and analysis. You will be able to easily measure and track how your performance against your Key Performance Indicators is, exposes ways to improve profitability, all in actual time.

Combination of ERP and POS system is very compulsory. Ensure that ERP and Point of Sale systems are communicating without disruptions and delays to avoid time spent in aligning the dataand mistakes.

Major benefits of using an ERP system in the retail includes:

·         Graphical User Interface: A GUI is an interface with the help of which, everyone can interact. With the not-so-technical industry users, GUI is difficult to make ERP for retail popular.

·         Utilization of the resources: ERP in retails allows the user to utilize their resources in an optimum way. This afterwards translates it into reduced costs and correspondingly high profits.

·         Reduction in overhead inventory:ERP used in retail system allows the organizations to considerably reduce the excessive inventory and reduce the unnecessary costs of the company.

·         On time Responsiveness: ERP givesthe companiesan opportunity to respond to any business constraints in real time and exceed timely response to customer demands.

·         Integrated work place: ERP offers an integrated environment throughout the organization that can be easily seen and managed.

·         Scalability AND Adaptability: Easy scalability options and smooth integration with legacy systems are another benefits of ERP for retail.

 

An ERP system collects customer’s data, enables you to have valuable informationand data about customer’s purchasing habits. With this type of data, you can easily create special offers for their tastes and precedence. With this you can also offer them a loyalty program that will reward regular customers.

After you have implemented a retail enterprise planning solution, you will wonder how you ever were able to get things done without it.