A recent Deloitte report revealed that one could expect a GDP growth of 3.5% in 2022, suggesting rapid growth in the retail industry. The same report found that of the 50 executives surveyed, most were optimistic about enhanced margins and revenue growth. 58% of those interviewed felt that although there was inflation all around, it was an opportunity to strengthen margins and rethink strategies.
These strategies include winding operations in unprofitable locations and focusing on key methods to improve agility. The report stresses the importance of supply chain resilience and digital technologies to offer omnichannel services. In addition, focusing on retail margin erosion and implementing digital consumer analysis is crucial to success. the execution of these four strategies is challenging for most retail companies. However, they can be easily untangled using a dedicated retail ERP solution.
This article takes a quick look at how retail ERP can help overcome some of the biggest retail management challenges.
1. Comprehensive and dynamic digital consumer analysis
Running a profitable retail business depends on several factors, including access to timely and accurate reports & forecasts. An insight-driven business strategy is essential for making retail businesses profitable.
Retail ERP’s customer relationship management (CRM) module helps collect dynamic consumer data, both online and offline, and during customer interactions. These datasets allow you to gather valuable information, comprehensively analyze it and gain deeper insight.
Data from social media, in-store visits, and various interactions with support teams can be analyzed to generate valuable insight-driven reports and forecasts.
2. Implementation of omnichannel services
The Deloitte paper stresses the importance of fusing physical and digital experiences to create unified shopping experiences. They noted that consumers still prefer alternating between visiting physical stores and ordering products from e-commerce stores.
It makes sense to use a tool that helps customers continue their purchase experience from where they left. Retail ERP comes with essential Point-of-Sale (PoS), integrated with e-commerce stores, allowing retailers to adapt to innovative and new ways of consumerism.
For example, when customers choose a product on an e-commerce store, then visit a physical store to evaluate it, and go back to ordering it online at a discounted price. With a retail ERP, you can avoid the loss of these customers by offering similar rates of discount on your website after they visit your store. In other words, retail ERP helps you expand your footprint at any customer touch-point.
3. End-to-end supply chain visibility
One of the biggest challenges of running a retail business is one’s inability to manage stock and inventory in line with consumer demand. It is also difficult for companies to liaise with various stakeholders such as procurement, production line, packaging, delivery, and the warehouse.
Retail ERP comes with specific modules to enable these disparate business processes to help you gain end-to-end visibility of your supply chain, ensuring that your customers rarely see unavailable products or experience delays in deliveries.
4. Prevent and offset retail margin erosion
Margin erosion is the loss of margin that takes place over time and refers to the gradual loss of profits due to internal and external errors, theft and fraud, significant market upheavals, and changes in policies and regulations.
A retail ERP accounts for these different factors that could negatively affect your margins over time. Consequently, you can learn what is causing your retail margin erosion and take the necessary steps to mitigate risks.
Retail ERP is an effective way to tackle operational challenges.
A modern ERP can be easily customized to suit niche online and offline stores and scale up as your business grows. For example, You can initially choose modules that impact your operations most and gradually add features. This allows for quick implementation of omnichannel services, making your business available to your customers across channels, with all data synced in real-time. It also helps to continuously gather essential consumer data, enabling you to implement ongoing digital consumer analysis for better insight.
Retail ERP’s most crucial function is probably to provide you with end-trend supply chain visibility. These factors help you thwart insidious vulnerabilities that lead to retail margin erosion. Contact us today to find out how you can start using retail ERP to tackle modern challenges.