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The retail industry is undergoing rapid transformation due to the covid-19 pandemic. People are not visiting retail stores as frequently as they did in the pre-covid era. Everything is shifting online, and customer preferences are changing at a fast pace. Only those businesses that adopt new technology and monitor customer behavior will survive, and the rest will be thrown out of the competition. This article talks about the future of retail and how ERP systems will revamp the retail experience in the days to come.
In the pre-covid era, businesses with big stores and those that captured the highest footprints led the retail industry. But the covid-19 pandemic has transformed the entire industry like never before. People go out of their homes only to purchase essential items like groceries and sanitization kits. They avoid traveling and using recreational services like visiting water parks or watching a movie in a theater. Moreover, customers are readily using online transaction methods to reduce the risk of contracting the deadly virus. The new-found customer needs and wants have disrupted the retail business landscape forever. Companies that want to ensure their existence should embrace the changes with open arms and start working towards it.
Established companies have information silos that restrict the flow of information from one department to another. ERP systems collect, analyze, and provide access to business-centric details to all stakeholders — C-suite managers, frontline executives, vendors, suppliers, distributors — allowing them to work as a cohesive force. When everyone gets real-time information and updates about the market, it gets easy to make effective decisions that maximize the company’s revenues, increase the customer base, and cut expenditure.
Two of the core functions of ERP systems are materials management and inventory management. Materials management refers to acquiring raw materials when the quantity falls below the set threshold and converting raw materials into finished products. On the other hand, inventory management deals with storing finished products at appropriate places in the warehouse. ERP system tracks the products’ real-time location, making it comfortable to load the products onto your vendor’s/distributor’s trucks.
In organizations of all sizes, different departments use separate software to store sensitive information. For example, consider that the sales department keeps customer details in software A whereas the support service department stores customer feedbacks in software B. It will lead to duplication of work and harm the coordination between both these departments. ERP system eliminates the need for updating the same data in different software over and over again. It creates a single platform that integrates multiple channels so that various departments don’t need to notify each other if there’s an update. ERP systems allow departments to communicate and work as a united force effectively.
Customer management is the boiling topic that every company, especially retail businesses, should focus on. ERP systems monitor the changing market trends and collect customer data points, such as their behavior, preferences, buying patterns, and recent purchases, that help marketers design effective strategies. ERP systems also have a customer relationship module that solves customer queries instantly and gathers customer feedback 24/7.
Automating Point of Sales (POS) is a big boon for retail companies. POS is often done by employees that introduce human errors during accounting and taxing and while creating bills. ERP systems remove all human-made errors and smoothen the billing, accounting, and tax filing procedures. Also, the workforce gets time to focus on other issues that require human ingenuity. Moreover, the ERP systems provide real-time transaction information in the company’s retail outlets worldwide.
The retail industry is going through a massive change. Online platforms like Amazon and Flipkart are taking away the charm that malls and big retail outlets once boasted of. The pandemic has only exacerbated the situation as customers avoid visiting places where people can gather in huge crowds. The future of retail appears to be less offline and more online, and only those companies that transform with the changing market conditions will survive in the long run.
At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at email@example.com
Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.