Let’s face it. Maintaining a competitive edge in today's rapidly evolving landscape is an uphill battle for retailers.
The challenges are endless, from managing complex inventory across multiple channels to delivering seamless customer experiences.
Failure to promptly address stockouts, inefficient operations, and fragmented data can lead to lost sales, diminished brand loyalty, and stagnant growth.
Retailers can no longer afford to operate with disparate systems that hinder visibility, hamper decision-making, and undermine profitability.
The severe consequences of clinging to outdated processes and siloed data include increased costs, customer dissatisfaction, and an inability to adapt to rapidly changing market conditions.
This is where Enterprise Resource Planning (ERP) solutions emerge as a game-changer for the retail industry.
Let’s learn how to gain maximum advantage with ERP features for retail businesses.
Key Requirements for Thriving in Today's Market
To know what ERP features we’ll need for retail, we must understand what functions are necessary for retail and why.
1. Store Management
With technology, managers can streamline efficiency, reduce waste, and maximize profitability by expertly overseeing big transaction data, inventory, and the overall in-store experience.
Activity-based labor scheduling and budgeting also play a big role in improving customer service and employee satisfaction.
Thoughtful store management plays a pivotal role in cultivating a positive brand image and reputation, which creates an inviting environment that keeps customers returning.
2. Inventory Management
Stock-keeping contributes to the heftiest expenditure in a retail business.
Bloomberg highlights that nearly 8% of surplus stock globally ends up as waste, amounting to about $163 billion of inventory tossed annually, underscoring the cost of overstocking and the need for accurate demand forecasting.
In the dynamic retail landscape, strategic inventory management is paramount to meeting customer demands while minimizing costs and waste.
If retailers accurately forecast demand, schedule replenishments, and prevent overstocking or stockouts, they can increase profits, reduce overhead, and improve cash flow.
Additionally, proactive inventory management safeguards against spoilage and other inventory-related losses so your business can run efficiently.
3. Payments and Shipping
Seamless payment processing is related to exceptional customer experience in the retail realm.
In 2022, digital and mobile wallets made up 50% of global e-commerce payments, showing a move towards safer and more convenient payment methods.
By offering a diverse array of secure and user-friendly payment options, from traditional cash and cards to cutting-edge mobile wallets, businesses can cater to various customer preferences while expanding sales opportunities. Furthermore, robust payment systems mitigate accounting errors, bolster data security, and ensure regulatory compliance.
Another significant impact on retail markets today is delivery services, as the growing number of online retailers has forced them to retain customers by improving their shopping experiences.
Poor delivery experiences have impacted sales, as 84% of customers will not return to a retailer after one poor delivery experience.
We are seeing the introduction of diverse delivery methods, such as same-day delivery, store pickup, and transparent tracking. Technology plays a crucial role in minimizing delivery issues with route optimization and predictive analytics.
Sustainability is another focus, with eco-friendly practices gaining traction. In the future, delivery services will continue to evolve, with retailers who innovate in this area gaining a competitive edge.
4. Customer Service
Superior customer service is crucial for retaining customers and building a rapport to gain new ones while earning higher revenue. Acquiring new customers will be more challenging than retaining existing ones.
This is why, by prioritizing attentive, personalized assistance to shoppers, businesses can cultivate lasting loyalty, forge a reputation that sets them apart from competitors, and keep a steady income across all sales channels. Often, customer experience also outweighs price when making purchasing decisions, stating that 64% of people consider customer experience more important than price.
From knowledgeable sales staff to responsive issue resolution, seamless customer service translates into positive word-of-mouth. You’ll want people to speak highly of your business to increase sales and revenue streams.
Key Capabilities to Consider in Retail ERP Systems
Retail businesses face many challenges and opportunities in satisfying the core needs of customer service, store management, inventory management, and payments and processing. How can you leverage the robust retail ERP system capabilities to build on your strengths and overcome our weaknesses in these areas?
1. Seamless POS & Purchase Order Management
Effective store management is critical in the industry. The POS Order Management retail ERP software features can offer you a competitive edge, but there is a catch.
For retail, you’ll need to find an ERP that has efficient order tracking across stores and one that can integrate with other modules related to your POS, such as sales, accounting, and inventory systems.
Automated purchase ordering is also great for consideration since it can ensure timely restocking to prevent putting an “out-of-stock” label on your store shelf for your best-selling items.
Having real-time insights into product sales and inventory levels through the POS system is crucial because you can tailor your orders to high-demand regions and minimize investments in less popular products to optimize profits.
2. Effective Inventory Management
Generally, you want retail ERP software features that allow you to manage multiple warehouses and locations, design your warehouse layout, and automate your receiving, picking, packing, and shipping processes for efficiency.
If you sell perishable items like fruit and vegetables, consider coupling your multi-warehouse feature with barcode scanning, RFID, or IoT devices for lot and serial number tracking.
For instance, the Odoo ERP Inventory module enables you to track your products by lot or serial numbers, which can help you with quality control, traceability, and warranty management.
But aside from that, Odoo’s product tracking feature can track expiration dates, best-before dates, or removal dates for your products and get alerts when they are about to expire. It helps you create promotions to clear out your warehouse before your goods expire and mitigate loss.
Another feature you must look for is retail ERP features with reordering rules in their inventory module. Reordering rules automatically trigger purchase orders or manufacturing orders based on minimum stock, maximum stock, or sales forecasts. You can also use make-to-order or drop-shipping rules to avoid overstocking or understocking.
3. Utilize CRM and Omnichannel
The benefits of customer-centric solutions extend beyond the realm of customer satisfaction. A contented customer base directly translates to a motivated and fulfilled workforce, creating a virtuous cycle that contributes to the business's overall success.
This is why retail ERP system capabilities in Customer Relationship Management (CRM) systems become an invaluable asset.
Unlike rudimentary spreadsheets, an ERP’s CRM module is typically more sophisticated and tailored to address the full spectrum of customer relationship management needs.
As a retailer, your goal should be efficiently managing client interactions from initial contact to long-term retention. To do this, consider finding one equipped with an intuitive interface that can simplify lead generation and customer tracking to solidify brand loyalty.
Odoo's ERP offers omnichannel features that help understand customer behavior across various online and offline touchpoints. This gives a comprehensive view of customers and empowers businesses to tailor marketing strategies for maximum ROI.
Ensure that your omnichannel feature integrates with CRM, Helpdesk, and Inventory modules for data consistency and a seamless customer experience, regardless of the channel they choose to engage with.
4. Create Easy Payment and Logistics Experience
As mentioned, a seamless and secure payment experience is crucial for retaining customers and fostering satisfaction. It is imperative to use ERP features for retail businesses’ payment features that cater to this need.
An ERP system that partners with trusted payment gateways like Adyen, Authorize.Net, Razorpay, and Stripe can also provide diverse payment method options that cater to a wide audience - especially if your retail ships worldwide.
Online security is important in the current business climate. Customers want to be sure that no credit card numbers are stored within your ERP’s servers or databases to provide an added layer of security.
The solution is to find software that complies with and integrates with payment gateways that adhere to the Payment Card Industry Data Security Standard.
When it comes to shipping experience, retail ERP software features can empower businesses with the ability to create custom shipping methods tailored to their specific needs.
Some ERPs are flexible enough to allow retailers to craft a personalized shipping experience - defining rules based on weight, distance, and order value or offering options like fixed pricing or in-store pickup.
Retail ERP system capabilities in the Transport Management System (TMS) app should not be underestimated for comprehensive logistics management. From viewing and adding transport-related information to recording and managing transport routes, assigning transporters to vehicles, and accurately calculating delivery costs, the TMS streamlines the entire logistics process.
Just as significant is for your ERP to integrate with major shipping carriers like FedEx, UPS, and DHL. It will benefit you and your customer by ensuring real-time tracking, label printing, and accurate shipping cost calculations, ultimately smoothening your order fulfillment and giving customers reliable shipping experiences.
All Roads Lead to Odoo ERP Features for Retail Business
Picture this: In the ever-evolving retail landscape, harnessing the power of comprehensive ERP features gives your business a competitive edge in elevating customer experiences, optimizing business operations, and driving sustainable growth.
From seamless payment integrations and tailored shipping solutions to sophisticated CRM and omnichannel capabilities, ERP retail solutions like Odoo can provide you with retail ERP system capabilities that address the multifaceted needs of modern retailers.
By leveraging Odoo's powerful ERP features for retail businesses, companies can foster unparalleled customer satisfaction, strengthen brand loyalty, and unlock new avenues for profitability.
Unlock the full potential of your retail business with Odoo's powerful ERP capabilities – schedule a consultation with our experts today and embark on a journey towards operational excellence and unparalleled customer experiences.