ERP For Retail Industries: Importance, Features And Benefits
ERP For Retail Industry: Why It Is Important To Have?
ERP for the retail industry possesses wide-ranging capabilities that automate navigation between the various channels involved in the omnichannel shopping experience. It facilitates the movement of data quickly to allow decision-makers to reach the best possible outcomes while making well-informed, on-the-spot data-driven decisions.
An ERP software uses a single database that allows different departments to communicate with each other. ERP systems comprise function-specific features that are designed to interact with other modules such as Order Entry, Accounts Payable, Accounts Receivable, Purchasing, etc. Retail ERP software packages have an enterprise-wide reach that offer cross-functional capabilities to the organization.
With retail ERP software, demand forecasting is possible. It can help you to track past trends and see forecasting reports where you can identify future demands easily. Overall, it will also give you accurate figures by using retail ERP software. Consequently, It helps in enhancing customer experience, boosting sales and reducing inventory carrying costs through effective demand forecasting.
Key Features Of Retail ERP System
1. Retail Planning
ERP for retail allows retailers to undertake planning activities as per the need of the situation. It focuses on the different strategies to be employed in order to help a retail store increase sales turnover.
2. Store Operation
ERP for retail helps streamline operations related to the store management function. The store operations are central to retail chains since market basket analysis, merchandising, inventory management, workforce management and much more is part of this.
3. Inventory Management
This component enables retailers of all types and sizes to effectively manage the inventory levels and track goods. Inventory Management is the process of overseeing the constant flow of units into and out of an existing inventory. Inventory often accounts for the highest proportion of the working capital as raw material, WIP and finished goods.
4. Supply Chain Management
ERP for retail manages the end-to-end supply chain for retailers. Shipping of products or materials dealing with potentially massive amounts of data scattered throughout the world, ERP systems can help ensure information stays interconnected and can be easily accessed by all relevant stakeholders.
5. Demand Forecasting
Tracking past trends and forecasting future demands is easier and higher on accuracy with ERP for retail. Maintain customer satisfaction, maximize sales and reduce inventory carrying costs with ERP for retail.
6. Vendor Management
Capture vendor details, lead time, performance and other vendor details. Perform comparison between vendors and choose preferred vendor with ERP for retail.
7. Customer Management
Customer management becomes easy with the automated processes for capturing customer data, preferences and activities with ERP for retail. Track and increase customer lifetime value with ERP for retail. Get new customers, identify your best customers, keep them engaged and build your brand.
8. Finance Management
Retailers can manage their accounting easily with ERP for retail as it provides a comprehensive set of tools required to manage all the financial aspects of your business, while maintaining a high level of regulatory compliance.
9. Database Integration
A comprehensive ERP for retail helps in process management and provides access to real-time reports. ERP makes the required data available to provide insights into the financial health of a retail business. Moreover, this component of retail ERP systems is used for generating specific compliance reports.
Benefits of ERP Software For Retail Industry
These are some other benefits you can get from Retail ERP Software:
- Product planning and inventory cost
- Greater visibility on sales
- Manufacturing or service delivery
- Inventory management
- Shipping and payment