An enterprise resource planning (ERP) software that is tailor-made for the needs of the retail industry is called a Retail ERP. Like regular ERP solutions, Retail ERP helps collect, manage and store data while allowing retailers to automate their business processes from a single interface. What sets a Retail ERP apart from its coequals is its ability to help retailers move stock quickly, manage employees at different outlets, implement loyalty plans, and multiple products, services, and items.
The retail industry faces tough competition from online stores and eCommerce giants, which have better access to automation tools simply due to the nature of their business. A retail ERP factors this in and ensures the smooth functioning of multiple retail outlets from a single interface.
Here are the essential functions of a retail ERP:
- Power backend operations such as warehouse management and stock replenishment.
- Effortlessly manage front-end and customer-facing processes
- Implement brand differentiation and reputation management
- Improve customer experience both online and offline
- Generate valuable retail-specific reports.
Retail ERP is essential for smooth Retail functioning
Most retail businesses find it difficult to manage different organizational functions – such as customer service, liaising with warehouses and employees, managing inventory, replenishing stocks, and enforcing planning and forecasting. A robust retail ERP does all of the above and helps businesses make informed decisions. It eliminates the need to use multiple software programs for different functions and acts as a single point of contact for all stakeholders while saving valuable time and resources.
Retail ERP Case Study 1
Challenge: Company A is a chain of florists specializing in large-scale flower deliveries for weddings, funerals, and other occasions. Most of Company A’s customers preferred seeing the bouquets before placing orders. Company A found it difficult to manage its stock of flowers in prime condition at its outlets. In addition, the company could not make deliveries in time as procuring flowers from different distributors and importers was difficult.
Solution: Company A removed its legacy ERP tool and implemented a Retail ERP with customizations for inventory management and procurement.
Results: As flowers are perishable, it was important for Company A to procure them from the distributors promptly. The Retail ERP helped Company A to move flowers quickly from the warehouse to outlets and from outlets to customers’ locations. This helped ensure that the bouquets arrived at events in prim condition. In addition, a unified point of truth helped the company to learn when stocks arrived at the distributor’s warehouse. Staff could place orders quickly as and when customers requested particular flowers.
Retail ERP Case Study 2
Problem: Company B is a grocer that sells exotic spices and condiments from the Middle East and North Africa. However, the store had substantial competition from online stores that delivered similar products at significant discounts.
Solution: Company B implemented a Retail ERP to bring a multichannel experience to its customers while ensuring that customers remained loyal with the help of coupons and customer loyalty programs.
Results: Company B retained more customers thanks to a robust loyalty management solution within the retail ERP. In addition, the company was able to give online stores a run for their money by letting customers experience freshly imported spices physically. As one customer put it, it is always good to know what the spices smell like before buying them.
Here’s what you should look for before choosing a retail ERP:
1. Does it offer a unified commerce experience?
As retail businesses have disparate processes, working from a single interface is essential. A good retail ERP helps you control all your business channels and operations, online and offline, from a unified interface.
2. Does it offer headless commerce?
Headless commerce decouples backend commerce from the front end. This ensures easy editing of data without interfering with backend processes. Most importantly, headless commerce allows retailers to control different customer touchpoints simultaneously. You can offer a consistent experience, whether offline or online. And if online, customers can expect a consistent user experience across devices. Headless commerce-enabled ERP tools often come with GUI agnostic components such as Priority Retail ERP’s OneCore.
3. Does it protect customer data?
Customer data is often at risk when it comes to retail businesses. A good retail ERP comes with a Customers Data Platform (CDP), which ensures that you comply with all privacy regulations and protect them from spam. An efficient retail ERP provides easy customer registrations too.
4. Is it an end-to-end retail software solution?
Once you invest in a retail ERP, you shouldn’t have to add integrations or use other services in parallel. Your retail ERP should satisfy all your technological needs, allowing you to perform your retail activities holistically.
Why Retail ERP is important
There are true management challenges for Retail Businesses that make an specific Retail ERP a must have.
1. Enhanced features for retail staff
The more outlets you have, the more difficult it is to bring an omnichannel experience to your customers. A retail ERP helps your retail staff to provide seamless service to customers, regardless of the outlet they visit. This is enabled through mobile and conventional Point-of-Sale (PoS) units, unified business logic, a single database, and a standard open interface. In addition, your retail staff gain access to centralized control and monitoring.
2. Frictionless shopping experience for customers
Your customers can visit any of your outlets and receive the same shopping experience. One-time registrations and customer loyalty platforms prioritize your customers’ needs. You can easily give away coupons and cashback and implement promotions. In addition, by ensuring privacy regulation compliance, you can reassure customers that you take utmost care to maintain their safety.
3. Single database with up-to-date information
Retail ERP ensures you access a unified point of truth that contains accurate and up-to-date data. This data applies to all processes and functions and provides robust customer management. Most importantly, this unified point of truth helps you generate accurate reports and forecasts.
Upgrade to a Retail ERP today
Retail ERP is essential for managing retail businesses efficiently. It helps bring an omnichannel shopping experience to customers while ensuring that all backend processes are automated smoothly. Thanks to a unified database that is constantly updated, it is easy for retail stores to liaise with different stakeholders such as distributors, manufacturers, and importers.
Up-to-date information helps retailers to perform complex logistic operations seamlessly, all while maintaining a real-time overview of their business, contributing to enhanced customer satisfaction.