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How ERP Is Used in Retail

One of the greatest advantages of enterprise resource planning (ERP) software is its flexibility. While you can get a system with essential features right out of the box, you can also tailor it to fit your business based on the industry that you’re in. For instance, consumer product organizations can use SAP Business ByDesign in Retail. This product addresses issues specific to storekeepers, such as needs related to sales, inventory, logistics, warehousing, and e-commerce.

Traditional ERP Versus Retail ERP

A traditional ERP package comes with functionalities needed to integrate key aspects of your business: finance, human resources, inventory, manufacturing, business analytics, employee management, data security, etc. Retail ERPs, on the other hand, are designed with capabilities tailored to the most important needs of that specific industry.

For consumer product businesses, it’s more efficient to choose a retail ERP over a traditional ERP system. You don’t have to deal with additional features that may turn out to be of no use. Additionally, the cost of implementing an ERP system in retail may be less, as there are fewer modules to pay for upfront.

Why You Should Use ERP in Retail

There are a lot of moving parts in retail businesses, and can be challenging to manage every single aspect. The best cloud ERP for medium-sized businesses provides a solution that allows you to better control workflows and data, enabling you to improve your processes, make better business decisions, and scale your organization. 

Here are a few reasons why you should consider implementing an ERP system in the retail industry.

Access to Real-Time Information

ERPs allow you to access data in real time. That means that you can see fluctuations in prices, inventory, sales, and other aspects of the business as they happen. ERPs also centralize data, ensuring that all relevant parties are updated on any changes. This feature is advantageous for retail businesses that need to keep up with trends and respond quickly to customer demand. 

Enhanced Operational Efficiency

Retail ERPs automate workflows, organize, and simplify day-to-day operations. This reduces manual effort, therefore increasing efficiency and improving efficiencies.

Improved Inventory Management

Having excess and insufficient inventory is a serious concern for retail companies, because either situation could cause financial and operational problems. ERPs solve inventory issues with inventory management functionalities that store, track and manage information about product stocks, including quantity and shelf life.

ERPs also have the ability to forecast demands. By analyzing past trends and customer habits, it enables companies to modify inventory to meet predicted demand.

Better Customer Management

A retail ERP with customer management tools helps retailers attract customers and improve retention. The system tracks customer information, which you can use to create deals, promotions, and experiences catering to specific customer needs, providing them with a personalized shopping experience.

Additionally, ERP lets you address customer complaints more promptly and effectively.

Multiple Channel Integration

Retailers often operate multiple channels simultaneously, and retail ERPs integrate these channels into a unified system. Departments can share and access information in real time, improving communication internally between different roles and functions.

Essential Features in Retail ERPs

Most retail ERPs come with functionalities that grant the benefits discussed above. But to successfully modernize your business, you’ll want to find a solution that’s designed to help you scale your operations. Some essential features you need to consider include:

  • Support for multiple countries, languages and currencies
  • Seamless third-party integration capabilities
  • Serialization and warranty management
  • Customer relationship management
  • Marketing and campaign management
  • Service desk functionality
  • Mobile access
  • Powerful analytics

What Is the Best ERP for Retail?

SAP, the leading ERP provider, offers SAP Business ByDesign, a cloud-based ERP solution for fast-growing, mid-market businesses. Retail businesses can also explore SAP Business ByDesign for Retail, which will help handle complex supply chains, meet customer support needs, manage multiple outlets, connect e-commerce channels, and forecast product demand. It contains all the essential retail functionalities needed to improve your day-to-day operations and scale your consumer goods business.

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