The retail industry is undergoing a massive transformation. Customers nowadays prefer shopping through multiple retail channels. Many physical shops have started establishing a virtual presence. The eCommerce boom has started transforming how consumers shop. Retail stores have been trying to integrate online and offline shopping.
However, integrating different processes seamlessly has posed numerous challenges. Major reforms in the manufacturing sector have caused a significant impact on how retailers operate. Though many retailers have adopted new technologies to improve efficiency, most still lack an integrated ERP system to help them manage their business.
These are the seven key manufacturing issues retailers face today that Ginesys retail ERP software can help solve:
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Lack of Transparency in your Supply Chain and Inventory
The supply chain is the backbone of any business. When it comes to retail manufacturing, the complexity of your supply chain can impact your business.
You are often faced with questions such as:
● What if suppliers are not providing the necessary information on time?
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● How to ensure that the right products arrive at the warehouse on time?
● How do I know when a new shipment is coming in, or when I need to reorder certain items?
Retail ERP software can help find answers to these problems. With an integrated supply chain management system, you can gain greater visibility into your entire network of suppliers and customers. An ERP solution lets retailers track their inventory across multiple locations. You’ll be able to see where products are being stored or transported, who’s ordering what, and when they’re going out for delivery. This reduces waste and improves efficiency throughout the supply chain and individual departments within your company.
Inefficient Order Management
In the retail landscape, it’s easy to get bogged down by the sheer number of orders coming in. You may find yourself with a huge backlog of orders that you can’t keep up with, and this can hurt your business.
Retail ERP software can help you streamline your operations and make sure that every customer gets their orders on time. It also allows you to manage orders more efficiently by providing real-time information on shipments, delivery times, and costs so you can make informed decisions about how much stock to keep on hand at any given time. With more efficient order management, you’ll be able to reduce your cost per item and increase your profit margin.
No Single Source of Data
Multiple spreadsheets and databases create silos of information. Retail managers often need to examine heaps of data to analyze and make informed decisions. This cumbersome process can lead to errors and time delays, which ultimately impact the bottom line. Research by Cardiff University states that 60% of the stock-keeping units analyzed face inventory record inaccuracies.
Rectifying such erroneous reporting results in a 6-8% increase in sales. With a retail ERP solution, retailers have a central database that stores all their data and provides real-time access from anywhere in the world. ERP helps manage the entire lifecycle of products and reduces errors in reporting.
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Lack of Collaboration between Departments
One of the biggest challenges for retail heads is finding a way to collaborate between departments and improve efficiency. This is especially true for companies that have grown rapidly over the last few years and now operate in multiple stores across the country.
Ginesys Retail ERP software allows members from different functions within an organization to work together more efficiently, leading to better collaboration. For instance, merchandising teams can collaborate with inventory control teams to ensure that their products are always available in stock when customers need them. Sales teams can also collaborate with finance teams so they know how much cash is available for new orders.
Not Reengineering Business Processes
With ever-increasing customer demands, companies must upgrade to advanced technologies and transform their mundane processes. With an ERP software solution in place, retail heads can easily identify key areas of improvement in their current business process. For instance, it can help them identify those products that are selling well and those that aren’t selling at all. This helps them understand what they need to focus on while designing new product lines or creating marketing campaigns.
Poor Customer Experience
Most retail stores use a manual point-of-sale system that makes it arduous for employees to perform tasks quickly and resourcefully. Customers also end up waiting longer for their purchases and may not be happy about their experience with your company overall.
By implementing an ERP solution into your store’s operations, you’ll be able to completely restructure payment processes. You can improve your customer experience and minimize employee workload.
Shrinking Profit Margins
Manufacturing has long been a profitable business for retail managers, but profit margins in recent years have been plummeting. The main reasons include rising raw material costs, labor shortage, and increased competition from online retailers. The only way to survive in this environment is to operate with as little waste as possible and eliminate unnecessary expenses.
Ginesys Retail ERP software assists by providing a centralized automated system for all inventory, financial, and operational data. This gives retail heads the ability to track down inefficiency and redundancy to boost their profits.