ERP for the Retail Industry: An Overview

Customers are the real asset of the retail industry. But if a retail business’s internal processes are flawed, it will inevitably cast its shadow on the customer experience. Without an ERP for retail, companies suffer from various issues, including product wastage, storage issues, flawed pricing, and supply chain gaps. It is no secret that technology is playing a vital role in expediting business growth. This article highlights the urgent need to adopt ERP for small retail businesses.

What is a Retail ERP System?

ERP stands for enterprise resource planning system, and it helps all businesses across different industries streamline and automate their key business process. It is no different for the retail sector. Cloud ERP for retail helps the retailer seamlessly manage front and back office tasks, including accurate tracking, stock keeping, managing purchases and monitoring returns. However, these are not the only capabilities of an ERP for retail. Most software solutions can be integrated with various other tools catering to different business processes to ensure smooth operations.

Core ERP features for retail

An ERP system for retail businesses is equipped with robust features enabling retailers to achieve their productivity and profit goals. The important core features are:

Inventory management

Needless to say, an ERP is incomplete without an inventory management feature. It gives retailers an updated and complete view of stock availability and improves inventory planning accuracy.

Warehouse management

Retailers with multiple warehouses across different destinations can manage the storage units through the warehouse management capability. The ERP will help monitor stock movement and notify managers about order status changes.

Supply chain management

An ERP synchronises warehouse and supply chain data in real-time. The supply chain module gives a clear overview of the goods-in-transit, making it easier to overcome bottlenecks.

Asset management

An ERP software for retail allows the company to monitor and optimally utilise its fixed assets through the asset management module. It includes equipment, vehicle and real estate properties while optimising maintenance costs.

Order management

The order management feature expedites the order-to-cash process. It also syncs and stores product information, stock availability and sales data in real time. Teams can also get order fulfilment visibility.

Returns management

Return and resale is a part of the retail industry simplified by the returns management module. It carefully records all crucial details about returned goods, enters them back in stock and updates the data in the event of a resale.

Business benefits of ERP in retail

An ERP for retail benefits the retailer in the following ways:

Offers better control over the inventory

Inventory management is a crucial yet painstaking task for retailers. An ERP system for retail businesses, such as Odoo ERP, helps them manage their stocks according to demand variations. It also reduces wastage with features like batch tracking and saves the retailer from understocking or overstocking.

Collects and stores data from multiple channels

Retailers use several marketing channels like social media, e-mails, websites, and offline media to advertise to their targeted customers. The best ERP for the retail industry makes a comprehensive repository of customer data. The retailer uses such data to make data-driven decisions and enhance customer experience.

Helps manage customer relationships

A cloud ERP for retail helps the enterprise to respond promptly to customers across various channels. It also assists in curating targeted campaigns using comprehensive customer data. All these benefits help drive engagement and create a loyal customer base.

Enables online payment

Modern customers prefer shopping online, so retailers are setting up online shops rapidly. A retail management ERP supports different online payment gateways and supports secure digital transactions.

Tracks orders and returns

ERP helps the retailer keep an end-to-end track of its orders and vendors. They can also manage order returns smoothly.

Manages merchandise

Purchasing and distribution are two vital parts of a retail enterprise that can be easily managed by cloud ERP software. You can also tackle routined merchandising jobs without hitting a slump.

Why should you use ERP in retail?

The retail sector is no more an unorganised and fragmented industry. It is one of the most significant contributors to the economy. Therefore the sector must be well-regulated and properly managed at all levels. It is the responsibility of the retailers to improve the industry’s well-being as well as their companies. But it is easier said than done. An ERP software for the retail industry enables top players and new entrants to improve their operations, increase productivity and streamline key operations. These aspects will enhance the customer experience for all and ease supply chain bottlenecks.

How to choose the perfect ERP software for your retailing business?

Choosing the best ERP system for retail business is based on a few factors, such as,

Budget

The first and foremost important factor is the company’s ERP project budget, meaning how much money is allocated for licensing or purchasing, customisation, customisation, integration, implementation and the ERP vendors’ remuneration.

Implementation speed

Some ERP implementations can take up to six months. Depending on the urgency of the system, the ERP is selected.

After-sales support

Post-implementation support is vital to a successful ERP project. Before finalising the erp, retailers must read the fine print and gather enough information about the after-sale services.

Scalability of the ERP

Scalability is a big concern for small and mid-level businesses. Most ERPs for small retail businesses are highly flexible and scalable. Therefore the company can add more members to the system as they grow.

You May Also Like to Read: ERP Software for Food and Beverage Manufacturing Industry

Steps for successful implementation of ERP in the retail industry

A successful ERP for retail implementation follows five important steps. However, a few parts can be added depending on the retailer’s requirements. The standard process includes the following essential steps:

Identifying the need for ERP software for retail business

Before starting the ERP implementation project, the company must determine their business requirements and goals. It includes understanding business processes, pain points, and how the ERP will solve them. The retailer can select suitable ERP systems once these points are defined and documented.

Selecting the right ERP system for retail business

The next step in successfully implementing an ERP is choosing the right ERP with adequate capabilities that do not exhaust the ERP project’s budget. The retail company should also look for the right ERP vendor at this stage.

Planning the implementation process

The ERP vendor will help the retailer evaluate alternatives and finalise the best-suited ERP for small retail businesses. They will also help plan and execute the implementation process. It will include customisations, integrations and data migration. Each of these functions will determine the success of the implementation.

Starting the change management process

While the ERP partners design and configure the ERP for the retail industry, the company has to focus on change management and staff training. Before deploying the software, organising comprehensive training sessions for the employees to be well-acquainted with the system can go a long way.

Testing the system and going live

In the final stage, the ERP system has to be tested to find errors and bugs. Once the ERP is flawless, it is ready to go live. Since it can be a stressful phase, preparing a solid plan prior, including user support, data backup and system maintenance.

How is Silver Touch the best ERP solution partner?

Being in the ERP business for several years, Silver Touch Technologies have hands-on experience in customising, customising and implementing business management solutions for clients across various industries, including retail.

Equipped with experience and the requisite sought-after industry skills, our Odoo experts examine the organisation’s readiness to adopt ERP software for the retail industry, offer tailored solutions to manage specific business risks and deploy the ERP software solution. Contact us today to unveil the tech magic for your retail business.

Conclusion

Companies riding the modern ERP wave are destined to enjoy overall success in multiple business verticals. Odoo for retail has become popular amongst future-oriented retailers who readily embrace digital transformation and strive to pave the way toward long-term growth. Ready to improve the transparency and efficiency of business processes and gain greater visibility into the supply chain and inventory management? It is time to shift to Odoo ERP.

FAQs: ERP in Retail Industry