ERP retail industry what is? The optimal solution operation & sustainable growth for retail business

The article below Lac Viet Computing will help the business to have a comprehensive view of the ERP for retail industry, from concept, math fact to the ERP support optimal operation, creating the foundation for sustainable growth.

1. ERP retail industry what is?

ERP for retail industry is a systems management software, overall, is designed to connect as well as sync the entire operation important of business, including:

• Sales: recorded transactions at the point of sale (POS), on the website, online sales, or the sales channel, multi-channel other.
• Inventory management: track the number of goods in the store, central repository, the status of goods in real time.
• Purchase – supply: source management plan order, track receipt of payment with suppliers.
• Accounting – financial: revenue recognition, expenses, debts, and the other financial standards accounting of the business.
• Customer (CRM): monitor purchase history, customer behavior to support care, as well as program building customer loyalty.

Important differences of ERP in comparison with the individual software is a comprehensive data link. Data from each array services do not exist in isolation, which is shared, constantly updated in the system to help leaders and hr information capture, instant, accurate decisions.

Illustrative example: To easily visualize, imagine a situation often met at the shop: A customer purchases a product at the counter. Employees perform transactions on the POS system. Now then:

• The system automatically subtract the number of unsold products at the location of this store.
• Transactions are recorded in the book, the sales revenue of the day.
• If buyers in the form of pay back or have the debt, the information is immediately updated into system public debt customers.
• The data is aggregated reports in real time to the leader board can monitor business results of the store immediately.

No need to enter manually, no need for synthesis in Excel, and can't wait to report the end of the day this is how ERP for retail industry to help businesses operate faster, more accurate.

2. Business retail industry is having problems?

In practical operation, retail businesses are facing a four team challenge, featured, each challenge is not only technical problem that directly impacts profitability, cash flow and ability to expand the chain.

2.1. Inventory management complex losses, high

Inventory is the total number of goods business holding, including items in the shop, warehouse center, restaurant are on the shipping... When inventory management less effective, businesses will bear the consequences as:

• Goods are not sold in time, leading to out of stock at the point of sale, although the total stock still
• Expired goods, damaged, decrease the value
• Costs of storage, which is standing stretching

This condition is surveyed extensively in the retail industry globally. For retail business, has revenue of hundreds of billions to trillions per year, just a percentage of loss is so small well enough, “corrosion” portion of the profits are very slim that this industry often put out.

Wrong number of inventory reflects management process also craft data, lack of synchronization between sales, inventory and accounting. When incorrect data plan purchase additional goods prone to deflection. As a consequence, inventory excess or deficiency, directly reduces business efficiency.

2.2. Sales data dispersed, difficult decisions

In many retail business, sales data is recorded in many places: system sales at the counter (POS), an Excel file of the shop, accounting software separately for each branch. This makes:

• Data is fragmented, not being focused
• Synthesis report becomes the delay or incorrect
• The strategic decisions based on data, not properly reflect the “picture” to operate

In fact, if the data is not aggregated timely, accurate management can not:

• Get to know items sell well or poorly
• Reviews effective promotion in real time
• Profit margin analysis by product or point of sale

When the decision is based more on sentiment, business easily lead to the strategy ineffective, wasteful operating costs as well as miss market opportunities.

2.3. Hard open wide chain stores, sales, multi-channel

Retail business in the growth stage tend to open more stores or sales on the website, platform e-commerce. However, the expansion raises the problem operate as:

• Every store operating as seen private
• Process integration – sale – recorded inventory is cloning the
• A new take much time to grasp the process

As a result, risk of errors increases with scale, causing operating costs, increase customer experience between the channel is not uniform. Many businesses realize that when expanded, the costs to remedy flaws even higher benefits open point of sale new.

2.4. The pressure of competition & the profit margin on the lower

In the context of retail today, global competition aimed requires optimal costs, forcing companies to tightly control every element from inventory to operate. Data of ERP retail industry, ERP for retail business plays an important role to help businesses meet these requirements in a basically transparent.

• The rate of loss of inventory in retail: the Rate of loss of inventory in the retail industry global about 1.3% of revenue each year, damaging tens of billions of DOLLARS of false data, theft, and manage manually. This increases the costs of storage, further eroding the profit margin is inherently low of retail business.
• Investment trends ERP/BI in retail: shows more than 80% of businesses in the market development are priority deployment, BI, automation supply chain. In it, ERP role platform, help to integrate centralized data mining information in real time executive service.

Application ERP/BI help retail business, reduce deviations inventory, optimal capital turnover, as well as control costs more effectively. ERP for retail business data connectivity sales – inventory – financing on a unified platform, create a basis of trust and reliability for leadership, timely decision-making in competitive environments.

3. ERP system solve the problem what to for retail business?

The retail market requires businesses sell fast efficiency, while the data is often scattered between sales, inventory, and finance. This slows down decision-making, reduced accuracy in operation. ERP for retail industry to help connect the entire operation on a platform, centralized data updated in real time.

3.1. Retail management set the whole chain

In the model of traditional retail, data is often fragmented between the store and the sales channel, offline & online do not contact information. This makes business difficult to get the picture overall business, particularly when chain scaling.

ERP for retail business sync sales data from stores, channels online on a central system in real time. Each transaction is recorded at the same time, revenue, inventory, liabilities and customer data. Thanks to data is concentrate, instant updates, board of directors and operating departments can:

• Track revenue by each store, each region or each sales channel in real time, instead of waiting to report the end of the day or the end of the month.
• Comparison of results of operations between the point of sale to make timely adjustments in policy rates, promotions or allocate goods fit.
• Early detection of signs of abnormalities such as revenue declines, transactions decreased abruptly at a specific store to take measures to handle right now.

When data is centralized management, the enterprise no longer dependent on a report or review sentiment. The entire chain is operating based on a source data consistency, transparency. This is the foundation to ERP retail industry develop effective management in business expansion.

3.2. Control inventory accuracy, reduce inventory costs

In a retail business, inventory is capital “frozen”, false data can lead to lack of cargo or residues lasts. Both increase costs, reduce the efficient use of capital. ERP retail industry to help businesses control, inventory accuracy, have the system through tracking inventory at many different levels:

• In each store, each central warehouse or storage area, helps to know exactly your customers are located.
• According to product attributes such as batch, expiry date, age of inventory, especially important with industry short-life or requires control term use.

Data inventory real-time to help businesses avoid virtual inventories, sales more accurately. Track the age of inventory lets handle soon the slow, reduce the costs of storage improved capital turnover. ERP for retail purchases support active, stable operation of the whole chain.

3.3. Increase the speed of decision making thanks for reporting real-time

In the retail environment fast, slow decision makers to make businesses take the opportunity and increased cost. ERP for retail business, overcoming this limitation by system management reports in real time. Thanks to that, the data always reflect the true situation in operation at the time of the decision.

With ERP for retail business, data is updated as soon as transactions, and enables leaders to track:

• Revenue by each store, each product group or each sales channel (offline, online) at the same time.
• Gross profit by SKU (item code) you a clear view products which are creating real value, which products sell more, but the profit margin is low.
• The effectiveness of the promotions, marketing campaign through comparison of the before – during – after deployment.

Report real-time to help businesses respond promptly ago fluctuations in revenue, inventory, and effective promotion. Thanks to early detection of problems, the leader can adjust the sales policy, as well as operate right in the business process. This is the foundation to ERP retail support administrator based on data, instead of feeling.

3.4. Enhance customer experience

In modern retail, customer experience is determined by speed, consistency with the level of personalization. ERP for retail industry business support to improve these factors through connecting data, processes operating behind the counter sales.

• Transactions are processed quickly, more accurately: when information, inventory, sale price with promotion display, instant-on system. Employees don't need to check or input many times, help shorten the waiting time to reduce errors in payment.
• Price policy & promotion applies sync on all channels seller: ERP for retail business enable setting, as well as control deals according to the customer group or campaign, ensuring a consistent experience between stores and online platforms.
• Customer data is centralized & extraction efficiency: through CRM integration. Business can be classified groups of guests, personalized deals and take care of the right time, thereby increasing the rate of return build files loyal customers.

Businesses are learn ERP retail industry, this is the obvious benefit most easily recognizable: customer experience better, direct support for revenue growth as well as competitive advantage long-term.

4. The analysis erp core for the retail industry

An ERP system retail industry really effective not only focus on functions individually as sales or accounting, which should connect the entire business operation to create a consistent data to support timely decision-making. Below are the core values that each subsystem bring.

4.1. Retail management (POS & store chain)

This module direct processing sales transactions at the store, connect to the data focus of the system.

• Selling fast & accurate: POS software (stands for Point of Sale or point of sale) help sales staff processing transactions quickly, whether they are payment-cash, card or e-wallet. Sales process rhythmic contribute to reduce the waiting time of customers.
• Sync data: When a transaction is made, the data is immediately updated into system center. This helps managers track sales of each store in real time, instead of having to wait for general craft at the end of the day.
• Price policy & promotion flexible: lets set up the campaign price according to each moment, events, customer group to help businesses react quickly to market movements in order to optimize revenue.

Overall, management, retail (POS & store chain) not only helps to increase the pace of sales in the touch point with customers, but also create data platform focus for revenue management and business policy. This is vital to help retail business control operating sequence a proactive, consistent.

4.2. Inventory management, multi-dimensional

The lack of precision or lack of information about inventory is one of the main reasons why retail businesses have difficulty in managing capital, to meet customer needs.

• Track inventory by multiple levels: the System allows for tracking inventory not only at the depot, but also by each store, each item and each plot. This helps businesses know the exact amount of remaining where, for any product in the condition as how.
• Order management characteristics: the product has a shelf life systems to help track your pov date to prioritize sale by priority, avoid waste.
• Inventory safety & maximum – minimum: ERP retail industry allows to set the inventory levels to ensure adequate service to customers, at the same time not holding too much capital in inventory.

In summary, the inventory management multidimensional help retail business, strictly control the flow and capital flow restrictions deficiency or residues not necessary. This foundation is important to balance between the ability to meet customer, effective use of capital in the operation of retail chains.

4.3. Management, purchasing & supply

Purchase process effectively help businesses to keep input costs low, ensuring the availability of continuous service retail needs.

• The proposed auto purchase: Instead of relying on experience or spreadsheet manually, the system can plan proposal order based on the data existing inventory, as well as forecast demand sales. This limit order status, excessive or lack of goods.
• Process control: All steps from making a purchase request, approval, receipt of goods to payment are saved and tracked. This helps to reduce the risk of errors, losses and to ensure transparency in procurement – a key factor to control costs.

Thanks to that, the management purchasing & supply help retail business actively source, control input costs reduce our dependence on processed manually, create a platform operated, stable, more efficient in the long term.

4.4. Finance and accounting for retail business

Financial management in retail requires high accuracy, properly reflect the activity't store the entire system.

• Recorded revenue & cost in stores: System ERP retail industry to help splitting the revenue as well as costs in each retail location to help leaders understand the effect of each of the points, have decided to adjust the fit.
• Integrated accounting standards in Vietnam (VAS): to Ensure business compliance with the requirements of the law in recognition, accounting, financial reporting and tax declaration.
• Data real-time: Every transaction, sales, warehousing costs incurred are immediately updated into the accounting system, reduce errors when entering data to create reports more accurate.

Director of finance will no longer have to wait until the end of the day or the end of the last week have combined data, which can monitor the financial situation at any time to make the book timely.

4.5. CRM & customer analysis

The customer is the focus of retail. Understand customers not only know they buy something that is know they purchase how, when and why.

• Track purchase history: this information helps business understand the habits of each group of customers, thereby building the right program.
• Analyze consumer behavior: From purchase data, the system can determine what products are favored time shopping rush and the average expenditure.
• Support customer care: leveraging data to personalize promotions, gifts special deals for loyal customers, helping to increase the level back on every purchase.

Thanks to CRM & customer analytics, retail business, moving from sales according to the sense to management based on data, enhance customer experience, increase value life cycle as well as build files loyal customers in a sustainable way.

4.6. Reporting & management for leadership

Report management is an important tool for leaders to grasp the business situation, make a decision strategy.

• Revenue according to several criteria: revenue can be analyzed by store, region, product, and time. This helps identify trends rise – fall clear.
• Compare operational efficiency: Businesses can compare the actual results with plans, accurate assessment of the difference to adjust strategy.
• Base strategic decisions: The composite index is presented in the form of easy to read, easy to understand help leaders do not take the time to translate complex data, from which focuses on the development orientation.

Thanks to the administration report from the ERP system, leaders can reduce the time of synthesis, as well as collated data from several days down to a few hours, even minutes in some cases.

5. Selection criteria of erp retail fit

The selection of ERP for retail business decision is strategic, not only on technology but also on efficient operation long-term. In the context of multichannel retail and chain stores, businesses need to weigh the criteria focus follows:

• In accordance with the characteristics of Vietnam retail: ERP need support retail, multi-channel pattern small shops along the payment method popular. Data each store is managed detailed but still general focus for leadership decisions.
• Scalable according to the model sequence: the System must allow for expansion point of sale, quick sync instant data to maintain operating procedures uniformly. Thanks to that, the business efficiently control the inventory, revenue and cost when extended.
• Ease of use for store staff: intuitive interface, process, sales, inventory management close to the work habits that help employees easily accessible. This limits the disruption of the transaction, affects customer experience.
• Management reports strong data realtime: Data updated as soon as they arise, help with leadership sales tracking inventory in a timely manner. The parts, which use the same data source for effective coordination.
• Unit deployment reputable, knowledgeable retail industry: partners need to have real experiences, advice right process and support long after go-live. Choosing the right partner decided to direct effective ERP in operation.

Selecting ERP for retail industry fit helps business reduce costs, better control inventory, improve efficiency sales to make decisions based on data, create the foundation for sustainable growth.

6. Lac Viet ERP – ERP Solution for comprehensive retail business

The problem of many retail business lies not in the lack of software, but in the lack of a management platform seamlessly when data is fragmented between many systems. Lac Viet ERP was developed as an ERP solution for retail business, help to integrate operate in sync to create a foundation for sustainable growth.

LV ERP is ERP system due to Lac Viet research and development, is designed in accordance with the peculiarities commissioning of Vietnamese businesses, especially the retail business, according to the pattern string, multi-branch. Instead of using many individual software for each professional, LV ERP allows businesses to:

• Retail management, inventory, purchasing, accounting, and customers on a single platform: data is synchronized throughout.
• Operating system most chain shops: from small shop to headquarters, the center helps leaders have the overall picture instead of the report discrete.
• Easy to expand according to the scale: in accordance with the business is growing the number of stores or to open additional sales channel, new.

LV ERP focus on standardizing the process control operation based on actual data instead of just additional feature. All sales transactions, import – export warehouse and the cost was recorded instant help enterprises manage data clearly. This is the background to the ERP industry, retail, real service, not only in accounting or final report states.

In the context of the retail market fluctuations quick and businesses that need a management platform powerful enough to control current and ready to expand. With the approach taken operated centered, LV ERP role is operating tool for effective leadership retail business. Detailed information about the solution may refer to: https://erp.lacviet.vn/

ERP retail industry is management platform to help businesses control over operating decisions based on data, adapt flexibly to the market. When sales, inventory, financial as well as customer data is connected unified business reduce costs and optimize resources. At the same time, customer experience is enhanced thanks to data throughout. Investment in ERP in the right direction is the foundation for sustainable growth, scaling the long term.