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How ERP is changing the face of retail

How ERP is changing the face of retail
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Enterprise Resource Planning (ERP) for retail has evolved over a period of time to help
businesses innovate and change in an agile manner. With digital redefining experiences,
need for omni-presence, convenience from order till payment and delivery, insight driven
real-time data for instant decision making, changing market and consumer behaviour,
gig economy etc are some of the factors for new modern ERP solutions. Some of the
capabilities of these modern ERP solutions are 
Cloud and Mobility for improved customer experience: Each Retail business being
unique with its process, ERP should enable It is important for businesses to re-imagine
process and automate their operations adding mobility & thus providing frictionless
experience to customers from ordering to delivery & billing to payment etc. Modern ERP
system focusses on digital transformation to business especially with last mile
experience.
AI and ML driven Supply chain: Retail ERP should enable sourcing, buying i.e From
stocking the merchandise, moving the merchandise from warehouses to stores, stores to
stores and from stores back to warehouse or vendors. Using ML/AL & IOT to drive supply
chain empowers business because as business grows, with data also growing need for
data driven decision making can bring better control for continuous growth
CRM and loyalty with vertical specific ERP features
Helps profile, pull new/repeated customers understanding their preferences and plan on
promotions and margin management 
With high number of SKUs, seasonality of demand and shifting customer preferences, it
becomes difficult to run the business using just spreadsheets and basic accounting
systems.
To run the business optimally, retailers need ERP which are specifically designed for
retail business. Since within retail, there are broad verticals like Grocery, Fashion, Food
& Beverages and other special retail formats, one needs retail ERP software which are
designed for such formats. The taxonomy and KPIs for these verticals vary a lot and
hence ERP platforms built specifically for the purpose are needed.
Security and data compliance: As business grows so are their users. There is a need
for growing businesses to have complete traceability and control on transactional
security. Eg users and their control with role bases access, biometric or 2-factor
authentication, notification and exception reports on suspicious activity and
complete traceability. There is also a need for modern ERP vendors to provide a
autonomous back-up recovery control with solutions like BaaS. 

Drivers for digital transformation into Modern ERP
Drivers for this digital transformation into Modern ERP include Digitization of Supply
Chain, Transformation from Physical Retail to Omnichannel, Continuous and Complex
Promotions, Consumption driven by Digitally aware consumers, Shrinking Margins and
high growth, Changing customer habits and preferences, Higher regulatory oversight and
compliances and Increased competition from online players
Roadmap to success
1. ERP should simplify business processes rather than making them complex : ERP
made Easy 

2. ERP should reduce cycle time and reduce data entry requirements across the
value chain : Minimal Staff 
3. ERP should be easy to learn and should not expect any educational qualifications
from the users : Least skills 
4. ERP should increase the accuracy and timeliness of information leading to better
decision making: 100% Accuracy & Reliable solutions 
5. ERP should be flexible to address changing business needs in agile manner
: Transformation is made simple, small steps

– Kumar Vembu, Founder and CEO, GOFRUGAL

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