What is Retail ERP
Retail Enterprise Resource Planning (ERP) software is an integrated business management tool which allows retailers to collate, store & manage data from their different functions at a single place. A retail ERP software comes loaded with specific functionalities, making different processes efficient and result-oriented.
Any retail business, be it a brick and mortar shop or an online e-commerce store, has a lot to gain with top retail ERP systems. Retailers who want to keep a track of sales and purchases, manage customer service through a unified platform, and seek further assistance across verticals, can gain a lot with a retail management software. Businesses can use retail management software for managing inventory, account receivables, payments, feedback, online ordering, etc.
ERP in retail industry works for supermarkets, hypermarkets, grocery stores, e-commerce retailers and other similar businesses.
Why You Need Retail ERP
Retail ERP software is a good fit for any and all retail business in verticals such as food, grocery, clothing, etc. For example, a grocery store can use ERP software to obtain transaction data from cash registers. They can forward this data to their employees and let them know of products sold today. Additionally, they can also use this software to let vendors know about stock demand and volumes they have to ship.
Businesses need a retail POS software to: -
- Optimize business workflow & profitability
- Maintain a detailed database with all necessary documents and customer information accessible through one place
- Improve operational efficiency and modernize their inventory management
- Generate extensive reports about sales, purchase and inventory, which help improve strategic decision-making
Modules of Retail ERP
A retail POS software comes with the following modules which help monitor operations effectively, improve efficiency, increase revenue and boost profit. Key retail ERP modules offered are: -
- Inventory Management – This feature enables retail businesses to effectively manage their inventory level and track goods. Inventory management is the process of tracking & managing the constant flow of units in and out of an existing inventory. Inventory for any retail business accounts for the highest proportion of working capital and includes the raw material, WIP and finished goods. With this module, one can easily manage stock, procurement, supply-chain and logistics, warehouse, inter & intra warehouse transfers, stock planning and more.
- Billing & Invoicing- Billing & invoicing is an important part of any retail business. This module automates receipt generation and helps in performing calculations, maintaining detailed financial record for bookkeeping, and registering information about products sold/exchanged. Additionally, the billing & invoicing module helps in maintaining different elements of accounting such as tax registry, ledger, dues tracker, budgeting, bank reconciliation, balance sheet maintenance, etc.
- Sales Tracking & Reporting- A Retail ERP system keeps comprehensive sales records which help retail businesses in understanding sales’ status, demand & supply, products that aren’t selling and the most popular day/time when customers purchase more. This module works alongside the inventory management feature, by updating sales and inventory logs in real time. Sales reports generated by this module highlight products that need to be purchased and products that need to be cleared from the shelf, based on demand forecasting.
- Employee Management- Employee management is an add-on module which helps you keep tabs on your employees. Using this module, you can track attendance and shift timing adherence, as well as, assign tasks to employees. Hypermarkets & large-scale grocery store are particularly benefitted by this module as they tend to hire in dozens and have many employees. Managing such volumes manually can be very tiring & time-consuming. With the employee management module, you can assign shifts to employees, maintain detailed time-sheet, and keep track of employee leaves or absence in real-time.
- Customer Relationship Management (CRM)- CRM is a vital aspect of any retail business. CRM module assists businesses in improving the customer’s journey- informing them about events happening in your store and piquing their interest about your products & services. Using the CRM module, businesses can obtain customer feedback and better understand what customers like and dislike. Additionally, it helps in maintaining constant communication through promotional messages, emails and texts. The goal of CRM, after all, is to keep customers happy, an eventually turn them into loyal patrons. After all, happy customers yield better word of mouth publicity which results in more sales.
- Analysis- The analysis module helps in generating detailed customised reports. The reports generated shows you all the details in a synchronised manner - Product wise sales analysis, purchase analysis, stock summary, sales summary, stock ageing & depreciation, etc. Additionally, these reports can be downloaded in PDF & Excel formats, as well as shared over email.
Features of Retail ERP
Retail ERP software helps businesses improve their overall functioning, creating a streamlined process and satisfied customers. The main features of a Retail ERP solution are: -
- Supply Chain Management – ERP for retail helps businesses manage end-to-end supply chain. Retail software ensures that shipping information of products or materials coming to your store from anywhere in the world, stays interconnected, updated and easily accessible by all relevant stakeholders.
- Demand Forecasting – With retail ERP software hypermarket, tracking purchase trends and demand forecasting is easier and higher on accuracy. Ensure customer satisfaction, maximise sales and reduce inventory costs with retail ERP.
- Vendor Management – – You can use retail ERP software hypermarket to record vendor details, lead time, performance and other relevant information. ERP also lets you perform comparison between vendors, to make informed decision.
- Customer Management – Customer management is easy with retail ERP’s automated processes to capture customers’ data and record their in-store activities. You can track and increase customer lifetime value with ERP for retail. With this software, you can acquire new customers, identify your best customers, build engagement and expand your brand.
- Commission Management- This feature of supermarket retail ERP solution lets you tabulate the amount of money that an employee at your business receives based on the level of sales he/she achieves. The sales person is provided an added sum of money, in addition to their standard salary based on the amount of sales obtained.
- eCommerce- If you run an online store or have plans to launch one, this is a useful feature. In essence, ERP for retail helps you keep a track of online sales and inventory. Products listed online for sale are first checked by the software to ensure that sufficient stock is present for an order to be placed. Additionally, if a product is out of stock, it will inform you of the same.
- Email Marketing- You can store email addresses of your customers using this solution. Once stored, you can use the email database to send promotional mails and, bills & invoices to customers.
- Loyalty Program- Retail ERP can also be used by you to setup a loyalty program for your store. Once customers sign up for the program, the software tracks their purchases and adds points & rewards to their accounts.
- Multi-Location- If you run more than one store, you can use retail software to manage them from a unified location. The data generated (purchase record, inventory, employee information etc) at each outlet can be managed from your main office, through a unified easy-to-use dashboard.
- Order Management- This feature helps retailers place orders with suppliers. You can enter the quantity of each item required in the dashboard and the same is communicated to the supplier for delivery. You can also add delivery address, enter customised requirements and set timelines for delivery, using this feature.
- Returns Management- If you receive defective items from your supplies, you can use this feature to file a return/replacement request with the supplier. Additionally, if a customer returns a product, this feature updates your backend to reflect the cause of return and accordingly, helps you understand customer grievances.
- Finance Management – Retail businesses can manage accounting easily as the software comes with a comprehensive set of tools to manage all financial aspects of their business, while maintaining regulatory compliance.
- Database Integration – Best ERP software for retail industry helps with process management and grants access to reports generated in real-time. It makes the required data available at a moment’s glance, to provide insights into the financial health of a business. Additionally, this feature of retail ERP systems is used to generate specific compliance reports.
Benefits of Retail ERP
Retail ERP software hypermarket is a comprehensive software that helps businesses optimise workflow, enhance productivity and improve sales figures. The key benefits of using best retail ERP system are: -
- Streamlined Store Operations – Supermarket Retail ERP software helps streamline operations related to store management by streamlining merchandising, inventory, employee management, billing and much more.
- Retail Planning – Best retail ERP systems allow retailers to partake in planning activities, as per the store need. It helps businesses focus on different strategies which would help them increase the sales turnover.
- Ease of Product transfer- Retail ERP comes with modules that allow you to transfer goods from warehouse to stores and between warehouses. Using best ERP software, businesses can keep their stock level balanced across locations.
- Easily Manage Customer Data- Retail software can store all the data related to a customer- their name, contact number, address, etc. Additionally, you can use their purchase data to know which products are demanded more by a customer. Is the customer a frequent shopper? What is their average purchase value? Detailed information like this helps you formulate better sales strategies that include a customer loyalty program.
- Simplified Graphical User Interface (GUI) Support – GUI helps users interact with the software easily. Retail ERP’s GUI is critical to make retail management software popular with the not-so-technical industry users.
- Optimum Utilisation of Resources – Retail software helps retailers in utilising their resources in an optimum manner. Optimization subsequently translates into reduced operating costs and correspondingly high profits.
- Reduction in Overhead and Excessive Inventory – Retail ERP system outlines your inventory cost and subsequently, lets you optimise it for maximum utility & minimum cost. Additionally, it can also be used to track additional expenses in your business, like stationary, lighting etc. This allows a business to significantly reduce their overhead and reduce unnecessary cost to the company.
- Timely Responsiveness – ERP software for retail enables retail companies to respond to any business constraint in real time and extend timely response to any customer feedback.
- Integrated Work Environment – It offers an integrated work environment which can be easily monitored and managed. All teams can work in a collaborative manner with the help of network infrastructure.
- Retail ERP software hypermarket- Hypermarkets deal with a lot of inventory spread across categories. Hypermarket retail ERP software helps in streamlining these different verticals effortlessly. The solution can also be used in supermarkets, as a supermarket ERP software, to serve the same purpose.
Q. How can supermarket ERP software help me in generating more sales?
A. Supermarket ERP solution consolidates account and customer information in a unified location, streamlining & accelerating the sales process. From tracking inventory numbers to analysing sales patterns, the software gives you access to all relevant information which helps you form marketing strategies, further helping in boosting sales.
Q. How much does the best ERP software cost?
A. The cost of Retail ERP depends on different factors, so the answer will vary by company. Most ERP solutions are priced on the basis of the number of users/licenses procured, implementation services and deployment method (whether you want a cloud-based or on-premises solution). Depending on the deployment method, there are specific factors that contribute to cost. These include license fees for on-premise implementation & setup, maintenance fees for upgrades, data migration (if any), training and set-up, customisation costs, infrastructure upgrade and other additional costs. In the case of cloud-based solutions, infrastructure fee does not apply as the software is hosted on a server.
Q. How is supply chain management affected by retail ERP?
A. Supply chain management is the key function of any retail business. It’s the bridge between product manufacturing and delivery to customers. Supply chain management helps businesses organise product movement from warehouse to stores, ensuring proper shipment and delivery to customers.
Q. What does logistics mean in hypermarket Retail ERP software?
A. Logistics is used to denote various tasks pertaining to transportation, inventory management, expense management, freight & transport, and more. It includes supply chain management processes which occurs before, during and after products reach a warehouse.
Q. Can I get a retail ERP software with just the customised features and modules that I require, and nothing more?
A. Yes, you can buy a hypermarket retail ERP customised with just the modules & features you require.
Any purchase, big or small, requires a certain amount of deliberation & assessment to ensure that you get the best deal in your price-point. To that end, here are the things you should keep in mind before buying a retail ERP:
Identify Your Need
Identifying your business need is just a fancier way of saying that as a business, you need to find out why you should have a hypermarket retail ERP solution? Are you looking for automation in billing & invoicing? Is the streamlining of inventory operations your priority? Once you know your requirement, you’ll be in a better position to understand how the features of a retail ERP can fulfil those needs.
The retail ERP will be used by you and your employees every day which makes it important to be user-friendly & easy to use. Retail ERP system is supposed to ease your work but if the system itself is complicated to operate, you can’t expect much help from it.
There are several retail ERP solutions available in the market in different price ranges. If budget isn’t a constraint, you can opt for an on-premise solution. But, if your budget is tight, you can opt for a cloud-based solution on a monthly/annual subscription basis. You can also go for a retail ERP system that gives you the option to customise and use only the features you need, significantly reducing the purchase cost.
Request for Demo
Before making a purchase, find out if you can use the product on a trial basis or get a free demo. This will let you get familiarised with the tool and realise if it’s suited to your dealership. Most vendors will be happy to give you a free trial, so don’t forget to ask.
List of Top 10 Retail ERP Software Available
The top retail ERP system in India are quite a lot. To help you get a better picture of what’s the best among all, here’s our list of best-selling ERP for retail: -
- Tally Shoper 9
- HyperDrive HDPOS Smart
- MargERP 9+
- Fusion Retail
- GoFrugal Retail POS
- Logic FMCG (Retail Chain Management)
- Softworld RetailGraph
- Ahead SoftPro Shoppe Pro Retail Outlet Management Software
List of Top Retail POS Software – Online Point of Sale Software Suppliers
4 Ways Retailers Can Generate Revenue Outside of Business Hours
The Trending Technological Transformations in Retail Industry
Top 5 Retail POS Billing Software Solutions for Your Business
5 ways to Improve Your Retail Customer Experience
Top 10 Retail POS Management Software