The retail industry grows by leaps and bounds these days. The consumer’s changing shopping behaviors and advancing technology are two major reasons behind the exponential growth of this sector. However, it is necessary for retailers to keep the pace with ever-changing demands and expectations of customers to stay firm. Here, ERP for retail industry comes into the picture.

As per the Grand View Research report, the global market size of ERP software was $54.8 billion in the year 2022. All the core sectors including manufacturing, BFSI, retail, and healthcare are big beneficiaries of ERP solutions.

In this article, we will dig deep into the importance and business benefits of retail ERP software solutions. How about starting with an understanding of its role in a thriving retail industry? Here we go!

Role of ERP in Retail Industry

Smartphones and social media platforms have clinched a big chunk of market share from brick-and-mortar stores. As consumers tend to shop using their smart devices and apps, it is of utmost importance for vendors to implement ERP software for retail in their business systems.

Retail ERP solutions can address multiple challenges that retailers face and offer the advantage of automation. These solutions are designed to simplify navigation across multiple channels to offer a seamless experience to your customers. As a result, you can improve the customer service online.

Also, ERP solutions ensure a seamless omnichannel experience for your retail business. You can make meaningful decisions based on actionable insights and reach a huge audience online with a better shopping process. Let’s understand the core features of retail ERP software to know more.

Core ERP Features for Retail

A reliable and robust ERP for retail industry has many features that cover almost all business areas including inventory management, purchase management, and customer relationship management. Here is a brief account of the core features of one of the best ERP solutions SAP for retail.

Master Data

It contains all important information about sites, vendors, customers, and articles including pricing and cycle control. It stores the data as master records in the system.

Strategic Sales

It comprises a number of different functions that are normally used in the headquarter or a main office. For example, assortment management, seasonal merchandise, promotions, pricing, etc.

Purchasing

It supports the daily operations involved in the procurement of merchandise and settlement with vendors. It is useful in handling purchasing processes in the head office and retail stores.

Merchandise Logistics

It forms the link between Purchasing and Sales. It covers the areas like merchandise Distribution, Goods Receipt, Logistics, Execution, Foreign Trade, Inventory, and Valuation.

Sales

It supports different forms of sales. It offers an open POS interface to connect the entire retail system for cash registers. It also manages stores for orders, assortment planning, and replenishment.

Distributed Data Processing

It provides interfaces to get the advantage of distributed data processing (DDP). Another module is data warehousing to enable retailers to collect and analyze statistical data.

Merchandise and Assortment Planning

It facilitates the planning and reporting of all your business activities pertaining to assortments and merchandise. You can plan on a value-basis and a quantity basis using this feature.

All these and other features make SAP ERP solution highly beneficial for the retail sector.

Business Benefits of ERP in the Retail Sector

Here are the top ten business benefits of ERP for retail industry.

• Real-time Data

ERP software for retail is aimed at providing retailers with real-time information about inventory levels, sales, and other key metrics. This information can be used to make better decisions.

• POS Integration

ERP for retail can be integrated with point-of-sale (POS) systems to automatically track sales data. It helps you improve inventory accuracy and reduce errors effectively.

• Channel Integration

You can integrate retail ERP software into multiple channels, such as brick-and-mortar stores, online stores, and mobile apps. This can help you improve customer service and increase sales.

• Customer Management

You can efficiently track customer orders, preferences, and interactions. This information is useful for improving customer services and gaining their loyalty over the period.

• Data Integration

You can easily integrate the ERP retail system with e-commerce platforms to provide a seamless customer experience. You can make accurate reports to make insightful decisions.

• Employee Management

Retail ERP solutions can help you automate tasks such as scheduling, timekeeping, and payroll. This can free up your staff to focus on more productive activities.

• Sales Analytics

ERP systems can generate real-time reports on sales, inventory, and other key metrics. This data is useful in analyze the sales pattern and the customer’s shopping behavior.

• Pricing Management

ERP systems enable you to automate the process of setting prices and discounts. This can save you time and ensure that prices remain accurate and consistent.

• Inventory Management

Best ERP for retail can help you track inventory levels, optimize reordering, and prevent stockouts. You can improve profitability and efficiency with accurate inventory and warehouse management.

• Operational Efficiency

The retail ERP brings automation to repetitive tasks and improves communication between departments. It can reduce operational costs and increase efficiency significantly.

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Selecting the Right ERP for Retail Business

How to find the best ERP for retail business is one of the big questions for retailers these days. It is because we have many options available in the market and most retailers have a little knowledge of the ERP features.

You can use the following step-by-step method to select the right retail ERP for your business-

Step 1: Understand

• Identify the requirement and decide whether you need a new solution or add-ons to your current platform

• Collaborate with a reputed ERP consultant to define your requirements and shortlist some vendors

Step 2: Evaluate

• Send an RFP (Request for Proposal) or EOI to shortlisted vendors

• Justify why you should consider the particular ERP software

• Prove each vendor’s software with demos, use cases, and POCs

Step 3: Select

• Rank your top three vendors based on multiple aspects including TCO and demo scoresheets

• Negotiate terms with the selected vendor

Step 4: Contract

• Review and sign the contract with the vendor

Step 5: Implement

• Train your staff on the new ERP software for retail

• Monitor the implementation process and make adjustments if necessary

It is, however, better to consult an expert and experienced solution provider to choose the best ERP for retail.

How Can Silver Touch Help?

Silver Touch is an official SAP Partner in the USA with a demonstrated history of successful ERP implementation across different industry sectors. Our in-house team of experienced professionals can assist your retail business by integrating ERP into the retail industry. With over two decades of experience and 250+ dedicated resources, Silver Touch is your one-stop destination for SAP for retail.

Conclusion

Higher efficiency, more visibility, and improved customer services are some of the top benefits of ERP retail solutions. You can integrate the retail ERP into your business system to streamline processes and reduce chances of human errors. Be it making a right decision based on real-time insights or tracking inventory, you can always count upon a top-notch solution like SAP for retail.