The Importance of ERP and How To Successfully Implement It In Your Retail Business

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If you are starting a new business, and looking for a way to streamline your operations and procedures, an ERP system might be the solution for you.

In this day and age, business owners are finding it more and more challenging to expand their business, have a hand in the operations, focus on marketing, and manage employees. This is where automation platforms and tools come in. And luckily, there is a plethora to choose from these days. You are able to pick out precisely what you want and at the budget you have. So, if you have unique needs, you are able to choose an ERP system that works directly for you.

So we thought we would unpack ERP. We found out just what it is, how it can help you, and how you can implement it in your business. We are taking a practical look at retail ERP in particular, and how you can implement it in your retail business.

What is ERP?

What is ERP

ERP is an acronym for enterprise resource planning. In essence, it is a system or platform that integrates every part of the business into one manageable, streamlined operation. So, you are able to have accounting, human resources, inventory management, and purchasing all under one umbrella.

In the system, you are able to conduct all of your activities together in one and have a bird’s-eye view of the standing of the business. You are able to plan, budget, forecast, and accurately report on various sectors of the business. If you’re a fashion brand using apparel ERP, for example, you’ll be able to consolidate all of your products, and purchase raw materials, inventory, finances, and sales in one place.

The Benefits of ERP

1. It Increases Efficiency

Businesses using ERP usually find that they increase efficiency in their operations. This is due to the automation of repetitive actions and operations. Once an action is mastered, it can be automated and you are able to move on to the next process.

Data entry is also radically reduced and access to data and information is vastly improved. The overall collection, management, storage, and use of data and information are made more efficient and straightforward.

2. It Improves Productivity

Productivity is the key to a profitable business. Not only does it increase revenue generation, but it helps them remain competitive in the market. Due to the automation of the process, ERP allows for processes to be quicker and more efficient. Fewer mistakes are made, meaning that tasks and projects can flow without interruption or fixing mistakes.

Because of this, you will find that tasks are more accurately done and there is less necessity to go back and check on projects. This minimizes the number of people on each task and therefore the costs involved.

3. It is Budget Conscious

This shouldn’t come as a surprise after what we have touched on, but it all translates into highly cost-effective processes and operations. The centralized ERP solution is the central source of critical information for the business.

Studies have shown that using ERP actually reduces running costs by up to 23% and overall administration by 22%. Apparel ERP, in particular, assists in inventory management, which streamlines ordering, sourcing, and inventory control. In this way, you will not be overstocking for orders and have excess stock on hand that you are struggling to move. This will reduce your storage as well as any wastage costs that may be incurred.

Overall, costs can be saved by removing the backlogs of requests and approvals for all parts of the business including logistics, stock, supply management, and shipping to the customer.

4. It Improves Planning and Reporting

Because all of your information and data are stored in one place with ERP, you are able to have constant access to relevant reports. With a single, unified reporting system, you can easily pull relevant and helpful reports and be able to actually forecast and plan based on the information.

This usually means that companies can reduce the number of emails, spreadsheets, and lengthy meetings that are highly resource-intensive. You can instead have instant, accurate insight into what is going on in the company.

Finally, How Do You Implement It?

The trick to ERP is finding the right solution for you. While there is a variety on the market, you will want one that caters mainly to retail businesses. Industry-specific ERPs factor in everything from inventory management to customer service with a focus on what the industry in question needs to prioritize the most. So, finding the right one simply means matching it to your unique requirements.

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