How does an ERP System help Trading Companies?
by Admin Kripaa | 2 min read
When you walk into the neighborhood retail hypermarket, have you ever imagined how the entire operation works? How is it that the store manager is able to keep a track of inventories that are flying of the shelves and those which are not selling? How it is that retail stores across can reach out to warehouses in time such that they can deal with sudden demands? It all requires not only a robust supply chain eco-system but also technology on a dashboard which gives you a perfect picture of your entire stock and sales cycle.
Trading companies are unique because they follow the “stock and sell” concept. They require robust planning and optimum stock levels, because this directly impacts profit margins and customer service levels. Also, multi-location billing makes real-time data updation a prerequisite.
This is where an ERP solution becomes a necessity. An ERP solution helps trading companies to efficiently handle Multi-location Setup Management, given that stores today are located across the country following the same business model.
It also helps in Franchisee Management since today many big retail chains especially those coming in with foreign disinvestment, go in for the Franchisee model and in this model it is necessary to keep track of how all your franchisees are performing.
Given that your dealers are located across the country and you need to reach out to them in time for stocks to move in and sell out, with an ERP system you can do so easily as you get all your information on one dashboard.
An ERP Solution also helps in Stock Replenishment Management, in that you need real-time accurate data from stores across locations to replenish your stocks at the right time, since your profit margins would depend on such data management.
Any business, especially in the trading sector is dependent on sales agents. However, Sales Agent Management today is a much more automated process with the same processes applying to the entire sales agent workforce across the country. It is here that an ERP solution helps trading companies to manage their sales workforce and automate processes quickly.
No trading business would be successful today without a functional and working Warehouse Management system where the flow of goods from the warehouse to the store is not only simple but also seamless.
There is a realization that integrated enterprise solutions actually help Companies reduce their inventory, control costs, increase revenue and improve customer service. They continue to do what they were doing in the past, only more efficiently.