Enterprise resource planning (ERP) systems were initially designed for companies in the manufacturing industry to manage their production processes and integrate them with the rest of operations. These management integrations, however, are also valuable to other types of businesses so the system has been adapted for different kinds of business operations.
Retail ERP systems are configured to address the particular needs of retail setups, which tend to be more focused on sales and customer management. Retail operations often involve multiple sale locations, a wide inventory of products sourced from different suppliers, and hundreds of customers. Additionally, the popularity of online shopping has further increased the reach of retail operations and emphasized the importance of having adaptable and efficient business processes.
If you have a retail company and are looking to improve your processes, investing in a retail ERP system is the logical next step for your business. To ensure that your choice of software is up to par with retail systems Philippines businesses use, check that it can support these important retail process integrations.
Accounting Software Integration
Accounting is a basic operation in any organization. Its ability to properly manage the company’s books and finances is dependent on access to timely and accurate information on its sales and purchases. Current accounting systems run on software instead of a manual accounting process because this minimizes the margin for errors. A good retail ERP system should be able to integrate with your accounting software so there’s no need to transfer the data from your accounting system to the ERP. This makes the data collection efficient and its reporting accurate. It also enables access to the most up-to-date information as the data is collected from all points of operations in real-time instead of having to wait for the different units to make their reports.
Retail operations usually have a wide variety of products that they may source from different suppliers. Inventory is stored at the main warehouse before being delivered to various retail locations. Apart from physical in-store displays, retail businesses may also have to allot inventory for online selling. Managing stocks can be tricky with a big inventory list and having the products in different locations, so the retail ERP system should be able to keep track of the location and quantity of all retail products. It should also store information about product expiration dates and shelf lives so that store promotions can prioritize these items and ensure inventory movement.
Good inventory management can also help your business identify when stocks are running low or products are high in demand. The retail ERP consolidates this data with sales and financial records so you can forecast demand and adjust supplier orders accordingly.
POS System Integration
In physical stores, these machines are operated by a cashier who punches purchases and collects payments, but an entire point of sale (POS) system is actually triggered by these operations. Most POS systems are fitted with a barcode scanner so that the sold goods can be accurately tracked for price, applicable discounts, and inventory levels. Once scanned, the POS creates a record of the transaction to reflect on sales and removes the purchased items from the store’s inventory. This helps to ensure that the numbers are accurate and are reported immediately to the ERP, as opposed to being manually counted at the end of the day. The retail ERP system also allows the store to better assist customers by being updated on stock availability and resolving issues they may have with their purchases.
Customer Relationship Management
Depending on the scale of retail operations, a single store can have hundreds of customers. A good retail ERP system helps your business serve them better by building a customer database that includes their profiles and purchase history. With this information, you can create relationship programs that reward customer loyalty and enhance their shopping experience. This encourages continued patronage of your business and also gives you marketing insights for your products and services.
Retailers cannot afford to skip having an online sales portal for their operations. These electronic commerce or e-commerce integrations can be hosted on your own platform or as part of a larger online marketplace. Whatever platform you decide to use, your retail ERP software should be able to integrate that into your system so that you can also track online transactions for sales and inventory updating. This also helps you preserve the customer’s positive experience of your brand through different sales channels, which increases customer satisfaction and gives your company a competitive advantage.
Investing in a retail enterprise resource planning system helps your company remain competitive and bring better value to your customers. A good retail ERP system should be able to adapt to your company’s growing needs and provide a seamless solution that makes doing business easier. The key lies in being able to collect all your data in one place, so you can see the whole picture and utilize resources appropriately.
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