Ways to increase sales and profitability using an ERP - Alfa Software

Effective ways to increase sales and profitability using an ERP

Effective ways to increase sales and profitability using an ERP

Sales ERP

Today, customers are more informed than ever and have plenty of options to choose from. These issues offer customers a decisive role in the buying process and have changed their buying habits. Precisely for this reason, retail companies must find ways to meet customer needs. But how can a retail company adapt to changing behaviors? The answer is simple: finding new communication channels, offering competitive prices and good experiences and implementing loyalty and marketing policies. For all this, an integrated information system can become an absolutely necessary tool.
Here are a few elements that an ERP can change and thus enhence sales in retail companies:

  • Software integration with dedicated equipments for retail

    POS, cash registers, barcode readers, scales, etc.
    Dedicated ERP systems for retail companies are usually integrated with hardware devices needed in a store. Integration facilitates efficient management of inventories and provides customers with a positive experience. Employees receive the right tools to focus on the sales process leaving the primary accounting operations occur automatically. An example would be using a barcode reader to reduce the time identification of an item. By scanning a label with the reader all information related to that article ( price, features, promotions, etc.) are available.
    An ERP system connects all the retail functions which increases the speed in the sales process.

  • Eliminating redundancy in recording client or product information

    Information recorded in a single system, such as an ERP, is unique and can be accessed and modified from any location. All users have the same interface for data imput and updating information about certain products or customers involves the same steps / fields for anyone using the computer system. Once entered into the system, the data is automatically available to other applications such as warehouse management and logistics or supply, etc.
    Through standardization, increases the quality of information about products that are being sold. Product names, price lists, attached barcodes, descriptions for the online / e-commerce module, photos represent the elements that make up the complete picture of a product. This eliminates the risks that might arise in the sales process: for example, to sell a product at its lowest price, to provide false details about a product, to specify a delivery deadline impossible to meet.
    ERP information can be controlled and therefore invariably imposes a set of rules for the organization.

  • Efficient use of multiple sales channels

    An ERP system can integrate multiple sales channels for retailers and bring in one place information from the entire sales process, financial, accounting and stocks modules.
    Lately, retail requires using the following sales channels in order to be present in the market: online shop – through the e-commerce platform, field representatives/sales agents -through mobile applications, partner network – through B2B platform. Although it may seem a paradox, keeping all information about products centralized in an ERP allows decentralization of stores (from the same chain), without losing control of the business.

  • Stock optimisation for sale processes

    Inventory optimization refers both to acquisition of stocks by applying the ABC principle and to their rapid retrieval in the warehouse. ASiS ERP allows categorization of stocks (ABC principle) to separate those with a high rotation speed from those that are less profitable. ASiS ensure the traceability of goods and monitors parameters like expiration date, which considerably reduces the risk of depreciation.
    Inventory optimization also refers to the correlation of customer orders with the supply management. Using ERP, orders can be taken from customers (traditional or online) even in the absence of the necessary stock, giving the customer a waiting time for his order. Knowing at all time the necessary stock, correct purchase orders can be generated to the suppliers.

  • Customers retention through pricing policy / discounts and quality services (transport, parcel packiging, etc.)

    The companies are seeking effective customer retention because it is well known that keeping a customer is much cheaper than attracting new ones. To fulfill this goal, companies are turning to new channels of communication and various retention strategies. An ERP system can help companies implement numerous marketing and loyalty policies: discounts in certain periods of time, providing free products to a certain volume of sales, discounts depending on volume of sales, special prices for corporate clients / loyalty points, granting credit limits, etc. Related services are also important when selling a product (transport, repairs, etc.) and they can be controlled via a CRM module integrated with the selected ERP system. A CRM system keeps track of interventions and services provided for customers who have purchased products from the company’s stores and can be a starting point in attempting to develop new marketing policy. Benefits of using appropriate marketing tools are easily shown in increasing sales, improving customer satisfaction and transferring the image of the company in the sphere of profesionalism.

  • Generating automatic accounting documents

    An ERP system increases data accuracy and optimizes financial and accounting processes by automatic processing of the accounting documents. Bringing the information in a single database, reduces document processing costs and the accounting and financial operations have greater visibility. The purpose of accounting automation is to get in a short time a true economic image of the company. ASiS ERP automatically generates accounting documents and stores them on the central server, providing access to them from any location of the company.

  • Tracking performance through Business Intelligence tools

    Understanding the functioning of a retail company is largely based on the cost benefit analysis and on the use of financial KPIs. Sales management analysis refers to understanding each sales channel, monitoring profitability for each product. Analyzing customer buying trends can help retailers to be better prepared and know what products will encounter a sale growth in different times of the month or depending on the season. Identifying these trends can help companies organize inventory by location so that some stores do not have an overstock compared with others that might have an undersize stock.

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