How Can Small Retail Shops Benefit From an ERP

Posted by Arif Rashid on October 28th, 2021

Let’s break a myth today. ERP software is as important to small businesses as it is to large ones. In fact, the smaller the business, the more benefit it will get when it implements an ERP. In this article, we’ll talk about how small retail shops can benefit from ERPs. Retail shops are the backbone of a country’s economy. An ERP solution company can help these retail shops grow phenomenally.

An ERP Can Support a Small Retail Shop in a Wholesome Way

Small retail shops in India don’t generally have too much workforce. In many cases, the accounting department, the purchasing or sales department are not separate. The job of one department often spills over into another department. With a limited workforce, it becomes difficult for employees to manage everything in such a haphazard way.

When a business owner adopts a small retail shop ERP software, the shop becomes agile. Even if the retail shop has less than 50 people, the ERP can keep various aspects of the business separate. At the same time, it gives a centralised way to manage the processes. So, when the shop purchases new items from its vendors, it does not need any manual intervention to update the inventory once the item reaches there. Similarly, when a sale or purchase occurs, the finance records get auto-updated. An ERP does the work of multiple people. Lack of workforce no longer seems to be an issue.

Information at the Fingertip

Another benefit of businesses adopting business retail shop SAP business one software is that the ERP presents all the vital information right when needed. A small retail shop does not have the luxury to employ separate people for different aspects of the business. For example, the person in charge of purchasing might themself need to manage the inventory. In that case, if they get timely notification about an item reaching the minimum quantity threshold, they can order it right away and avoid stockouts.

A Small Retail Shop ERP Software Automates the Business Process

A lot happens in the back-end of a small business. Without an ERP for retail shops, businesses have to manually manage all the back-end processes - from accounting to inventory management. An ERP automates these processes so that businesses can focus on growing.

Effective Cash Flow Management

Small businesses might not have the luxury of having a dedicated accounting department. In such cases, these businesses have a hard time tracking exactly where the money is going. With an ERP for retail shop that monitors all the transactions, opens A/R and A/P invoices, and auto-updates the GL accounts, a business can keep track of the cash flow.

Dynamic Pricing & Discounts

Small businesses need to woo their customers with discounts. However, giving random discounts can hurt businesses. With an ERP for Retail shops, businesses can set up rules that will make the system apply discounts based on quantity. The system can also be set up to apply a specific discount rate for a specific customer.