The retail industry is extremely fast-paced. Businesses leverage multiple channels to increase their revenue. These often include online stores, websites, mobile apps, and even physical stores. While operating from multiple channels bring a lot of benefits to the table, it also incurs challenges, especially in management. Without proper technical infrastructure, maintaining efficiency becomes next to impossible. To top it off, it also takes a toll on the customer experience.
This is where an omnichannel distribution software comes into play! Consider it as the ERP tool, which integrates all the store channels on a unified platform. Whether it’s in-stock transfer or vendor order placement, every operation becomes streamlined. That being said, today we will unearth the role of the ERP software in an omnichannel retail business.
Unified inventory management
Most omnichannel businesses struggle with having end to end visibility of the inventory. As a result, they often face problems like overstocking, delayed stock replenishments, and improper vendor management. Warehouse operations also take a negative hit in several cases.
That’s why integrating an ERP software with the core business infrastructure has become a necessity. It can help in ways like:
- Complete visibility of all stocks across the entire inventory
- Higher precision and accuracy in stock levels for multiple warehouse and distribution units
- Reduced events of overstocking and under stocking
- Efficient reordering and restocking without delays in replenishment orders
Businesses can distribute the inventory using the ERP software more efficiently. The tool will help them too take into account several parameters including seasonality, channel performance, and historic revenue.
Integrated order management
An omnichannel business receives orders from multiple channels, like mobile apps, websites, and physical retail stores. Managing bulk orders simultaneously using conventional practices will introduce delays and inefficiencies. That’s why using a distribution software like the ERP becomes a tangible solution. Here’s how!
- It consolidates all the orders received from different channels in a unified platform. Businesses will have direct visibility into the number of orders, expected delivery timeline, and other important variables.
- The tool will automatically route the orders to the nearest fulfillment center having the necessary stocks and capacity.
- With external integrations, it can notify customers in real time about the order status.
- It also supports multifarious fulfillment methods, like doorstep delivery and in store pickup.
Consistent customer data and experience
Due to the involvement of so many channels, businesses often struggle in maintaining consistency in customer data. For example, let’s suppose a customer has updated two different addresses for the website order and physical purchase. A conventional system won’t be able to track these two different record versions for the same customer.
On the contrary, the WMS software will become a single source of truth. it will update the records synchronously across all the systems. This will further reduce discrepancies and ensure that customer profiles remain consistent throughout. Businesses can also make personalized shopping journeys for their customers by pulling in the updated records, thereby delivering an omnichannel experience.
Optimized supply chain and logistics
The lack of transparency in the supply chain creates a lot of hurdles for omnichannel retail businesses. Quality issues, delayed procurement, inaccurate product traceability matrix are a few to name. Given how important the supply chain and logistic department is for running a smooth omnichannel business, integrating an ERP software is the ultimate solution.
Following are some of the benefits it will bring to the table.
- Businesses can track all the shipments and deliveries while they are in transit through the ERP tool.
- Managing reverse logistic operations for returns and exchanges will become smoother and hassle free.
- There will be better coordination with the suppliers and vendors, thanks to the availability of a single contact platform.
- Businesses can also predict certain supply chain disruptions due to changes in the customer preferences or market shifts.
Data-driven decision making
Unhindered access to real time analytics is the key for unlocking success for an omnichannel business. With an ERP software implemented at the core infrastructure, businesses will gain a lot of advantages. These include:
- Understanding performance of every channel
- Profit margin based on a product or geographic location
- Inventory turnover rates
- Customer buying patterns and their preferences
Having accurate data sets in hand will help businesses by what quick strategies as and when required. It will also help them adapt to the market changes while ensuring customer experience is not at all hampered.
Automation and efficiency
Lastly, the ERP software will help streamline repetitive tasks by automating the workflows. This can include:
- Invoice generation
- Payment reconciliation
- tax calculation
- Shipment tracking
Automating the workflows will reduce the error margin by eliminating manual interference. This will improve the overall accuracy and process efficiency across all the channels involved.
Conclusion
Integrating an ERP distribution software with the existing framework will help an omnichannel little business become more adaptable to the future. However, the tool needs to have features that can be aligned with the core operations without any cohesion. Only then 1 make the best use out of it.
