ERP in Retail Management

What ERP does..?

ERP systems refer to the software packages that integrate all the data and the related processes of an organization into a unified Information System (IS).

What ERP does..?

In order to achieve a seamless integration, an ERP system uses multiple hardware and software components. Heavily used by larger retail chains. Designed to facilitate the administration and optimization of internal business processes across an enterprise, ERP packages have become the competitive tool for most large retail organizations.

What ERP does..?

Comprise of different modules such as:
Order entry Purchase Sales Finances Inventory management DRP (Distribution Resource Planning) Human resources.

Challenges to the Retail industry

Market competition:
Retailers have to understand consumer demand at the point of interaction and respond to the various inputs in real time across the enterprise. This calls for a proactive approach on the part of the retail organization

Challenges to the Retail industry

Regulatory pressures :
Retailers require an enterprise wide process visibility, data access and near-instant performance reporting Hard to achieve given the existing portfolio of legacy, home grown and packaged software applications used by a majority of the retail organizations.

Enterprise Applications in the Retail sector: Problems

Integration of the various business functions is an essential prerequisite for synchronization Most of the existing retail applications used by the businesses lack an all encompassing approach

Enterprise Applications in the Retail sector: Problems

Outdated architecture:
Legacy enterprise applications in retail have an outdated architecture Inflexible and rigid. This inflexibility and rigidity pose a challenge to the business efficiency.

Enterprise Applications in the Retail sector: Problems

Limited scope:
Designed to take care of specific problems tasks and as a result, lacked an enterprise wide approach Unsuitable for use in the contemporary business environment

Enterprise Applications in the Retail sector: Problems

High maintenance costs:
Legacy information systems are costly to maintain Because such systems are no longer used in the industry and Require specialized personnel for maintenance purposes.

Enterprise Applications in the Retail sector: Problems

Integration and scalability problems : Increased risk to the business

Advantages of Using a Retail ERP

Retail specific components:
Retail ERP suite offers retail centric components that are customized to meet the specific requirements Becomes more suitable to retail organisation

Advantages of Using a Retail ERP

Segment specific expandability option:
Wide variety of different segments that vary in their nature and scope of operations. A retail ERP package has provisions to meet the varying needs of the different segments within the retail sector.

Advantages of Using a Retail ERP

Support for the store system:
Retail ERP suite offers support for the store systems that form the pivot of a retail business. The critical functions include keeping track of the inventory, ordering and replenishment, loss prevention and task management.

Other Advantages
Configuration and scalability Phased implementation support Workflow automation and enterprise process management Technology and application integration