Many retail companies run them as a chain business. It is a result of market segmentation, targeting, and positioning. They have branches in different locations that offer products based on the income of the surrounding population. In most cases, these stores deal in home commodities assisted by system software. With their locations widely scattered around, they use enterprise resource planning to manage their activities.
Furthermore, a chain store is a retail outlet with several locations that share a brand, central management, and standardized business practices. They dominate the retail and dining markets in many parts of the world. For example, Walmart is the world’s largest chain store in terms of gross sales.
What is enterprise resource planning (ERP)?
ERP refers to a process used by companies to manage and integrate parts of their businesses. Many ERP software applications are significant to companies because they help them implement resource planning by joining all of the processes needed to run their companies with a single system. An ERP software system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.
4 four roles of business resource planning software in chain stores
Business operating system plays the following four roles as discussed below:
The first role of business resource planning software is enabling the chain stores to centralize their management. It is important for chain stores to centralize their operations under one management since they run many and scattered stores. Without an ERP application, each store will have its system optimized for its specific tasks. With ERP software, each store will still have its system, but the system access is through one application with one interface.
Besides helping chain stores to centralize their operations, system software promotes flexibility. There is high flexibility among chain stores that have adopted system software. The store has the ability to transfer an employee from one store to another with no need of induction training since the software is similar in all stores.
In addition, the right ERP system is scalable and flexible enough to meet the company’s needs today and for the foreseeable future. It also offers the flexibility to support unique processes and objectives. The system gives managers the ability to build out company-specific workflows and create automatic reports important to different stores.
3. Improvement in efficiency
Last but not least, system software increases efficiency in chain store activities. The value proposition of ERP systems saves the company money in several ways. By automating many simple and repetitive tasks, it minimizes errors and the need to add employees.
Cross-company visibility makes it easier to spot inefficiencies that drive up costs and lead to better deployment of all resources, from labor to inventory to equipment. And with cloud ERP, companies may quickly see incremental value from the software, over and above what they are spending.
4. Information consistency
Finally, system software enables the chain stores to improve the degree of similarity between perceived information. It assists chain stores to operate smoothly as there is clear communication from the store to the top management. ERPs help different departments coordinate their efforts and share information more easily. It leads to more streamlined communication between stores and management.
In summary, the above roles played by enterprise resource planning in chain stores make it significant for all chain businesses to adopt it. It eases chain store management. For example, the SaaS (software as a service) business model keeps startup costs and maintenance costs low. This is because the chain store does not need to handle the software itself but rather pay a software company to manage the store’s system.