Unlocking ROI: The power of ERP for retailers in today’s market
As a modern retailer, navigating the challenging economic landscape is essential for business survival. The retail sector is under immense pressure because of a combination of rising costs, inflation, global economic recession, and increasing interest rates. To remain resilient, it is imperative for retailers to invest in smart and sustainable solutions that go beyond traditional cost-cutting strategies. One of the most effective ways to achieve this is by investing in capable technology that empowers the organisation and provides insight, data – as well as functionality – to identify trends, revise strategies and engage with customers.
Enterprise resource planning (ERP) platforms have evolved from overly complex solutions that inhibit business processes to modular and intelligent toolkits delivering immense value. ERP functions – such as finance, inventory management and sales, and supply chain – offer retailers invaluable visibility into the business. ERP assists in streamlining processes, improving operational capabilities, and saving on costs. However, ERP is an expensive investment into a comprehensive ecosystem that requires careful consideration to ensure that it delivers on the anticipated return on investment (ROI).
To achieve ROI, it is crucial to unpack precisely why an ERP system is in place as well as how it aligns with business strategies and infrastructure. Retailers require efficiencies across all areas within the business.
Three steps can be taken to ensure that ROI is achieved on this investment:
- Training – Ensure that users understand the system and have the understanding they need to leverage it correctly. Without their buy-in and skillsets, the system won’t be used to its full potential and there is the risk that it won’t be used correctly because of employee resentment and distrust.
- Ensure that there is buy-in from every individual in the business, across all employee levels. If everyone understands the ‘why’ of your ERP investment, then they will be more committed to the training and using the system efficiently.
- Create a cycle of constant evaluation and assessment. This ensures that if the system isn’t 100% tailored to your business, you constantly rework and tweak it until it is.