Retail is one of the most competitive and fast-growing industries today. Players in this field are constantly pushed to improve the efficiency of their operations to stay ahead of the competition. The retail sector has seen a trend of fast expansion. To handle the increased business, the retail stores need to adopt new tech-based solutions.
In the past few years, we've witnessed the bankruptcies of retailers that once seemed too big to fail. To withstand the test of time, existing companies must start collecting data and use it to make strategic decisions.
Here are 8 ways ERP systems can transform your retail business.
1. Increase Data Availability
These days, retailers heavily rely on big data and the valuable information that could be extracted from it. The problem is that the large volumes of data from different sources are hard to keep in sync. For example, retailers that don't utilize ERP solutions are unable to make instant data changes. The adjustments take some time to take effect, and in some cases, the information never updates at all.
To make a profit, retail businesses must utilize economies of scale. This task becomes impossible if there are delays in directing the course of action. Unnecessary delays can hinder the mobility of the entire company and the productivity of the employees.
Time management plays a crucial part in any industry and retail is no exception. A robust ERP system helps retailers make the most of their time and gives them valuable insights based on real-time data.
Retailers operate in an environment that is constantly changing. Being quick to respond to challenges is essential to withstand the tests of time. Solutions by ERP companies provide a single platform where high-level managers issue their directives to respective departments. This way, the information changes can reach the lower level employees almost instantly.
2. Increase Customer Loyalty
Modern customers are flooded with options and eye-watering deals, so their loyalty can be hard to retain. With that in mind, building a base of loyal customers has never been as important to success as it is today.
Retailers can use ERP solutions to analyze the behavioral patterns of their customers. What do they look at, purchase, and how do they respond to promotions. Businesses can use this information to alter the positioning and promotional strategies for every brand and product.
3. Manage Employee Retention
High employee turnover can negatively affect any business. Experienced employees perform better than newcomers and they can be an invaluable asset to the company in the long run.
The quality of employees is especially important for retail stores. This involves recruiting and training the best available talent.
Retailers that operate without a specialized worker management system have a much higher employee turnover rate. The only thing worse than a high attrition rate is keeping the employees who are not suited for the job and/or not motivated to perform it.
Solutions by ERP companies can help you maintain high morale and provide the necessary training for your employees. Businesses that invest in their labor force see an increase in revenues and profits. The ERP systems can also streamline the communication to make sure that the worker's needs are met.
4. Integrate Ecommerce
A significant portion of modern retailers’ income comes from online sales. Major retailers are investing millions of dollars to build up their online presence. ERP companies now offer tools to integrate online and offline sales history.
The point-of-sale systems that hold combined sales records are a fairly new invention. These tools automatically collect the information from different mediums to keep the information up to date. This way human workers don’t have to enter the data manually.
Real-time recording of transaction data helps keep the information up to date. Retailers can use these records to make strategic decisions.
5. Stock Products
Many of the products sold at the retail stores can be classified as fast-moving consumer goods (FMCG). Keeping too much of this type of product in stock affects the efficiency of the operations. On the other hand, retailers miss out on potential sales if they don’t keep enough inventory to meet the demand. ERP solutions can analyze past sales records and predict future demand.
6. Introduce Smart Analytics
The 21st century is the era of information. Big data plays an important role in making decisions at the highest level. However, large amounts of numbers can be hard to analyze. The solution by ERP companies was to develop tools that can analyze the data and present the findings. This way, the executives can gain insights into the product performance and make the decisions accordingly. For instance, the data from ERP solutions can influence the decisions about discounts and other promotions.
7. Introduce Automatic Pricing
As previously mentioned, some ERP solutions can offer valuable insights into product performance. The best tools go one step further and use that information to adjust the price automatically. Retail businesses that use automatic pricing systems have a significant advantage over their competitors.
8. Increase Operational Efficiency
Retail businesses with the most efficient operations make the most profits and have a better chance of surviving in the long run. ERP systems can play a significant role in improving the efficiency of the entire organization, inside and outside of the stores. For instance, the analytics included in these tools can keep track of avoidable losses. Minimizing preventable losses is especially important during times of crisis.
Modern retail businesses are made up of many smaller departments that are essential to maximizing profits. Companies can only succeed if they properly manage the operations, warehousing, data analysis, and all the sub-sectors that lie at the heart of the retail business. The interconnectedness between departments is a key prerequisite for maximizing profits and providing the best service. Every link in the chain of operations must be streamlined. Failure of even one link can dramatically affect the bottom line of the entire business.
Large retailers can use ERP software to make sure their operations are running smoothly. Such tools are designed to address the problems faced by retailers today.