In an ideal world, your omnichannel eCommerce operation runs like clockwork. Inventory levels are always on point, orders are fulfilled quickly and correctly, and customer satisfaction is at an all-time high. But for many retailers, achieving this level of operational perfection is just not possible.
While there may be many blockers to becoming a high-performing retail organisation, the root cause can be traced back to the systems running behind the scenes. Or rather, the many disconnected systems in use across a retail company.
To overcome these challenges and achieve the ideal omnichannel operation, modern retailers are focusing on data unification and system integration through the adoption of cloud ERP solutions.
Let’s explore the many knock-on effects of siloed systems and how a cloud integration strategy can mitigate the negative effects to support industry-leading growth.
Operational inefficiencies are the silent killers of growth
Whether you are a small, mid-market, or large retailer, you need business solutions that help manage day-to-day operations and processes more efficiently. It’s no surprise that many of the strategic business leaders that we engage with to evaluate their cloud infrastructure involve operational, financial, sales, and marketing leads in the selection process. Efficiency matters across all business units, and integrated ERP stacks deliver it in bucketloads.
Yet, 61% of retailers report struggling with efficiency issues such as lack of operational efficiency, inefficient supply chain practices, complex business systems, and manual processes.*
It’s clear a more streamlined approach is needed.
The cost of mismanaged inventory
Inefficiencies will quickly surface when you are running on multiple systems. An over-reliance on spreadsheets and manual data entry is a big one. But there’s also the challenge of fragmented data across multiple platforms, a slippery slope to avoidable inconsistencies and errors. Mismanagement of inventory sets up a direct pipeline to costly stockouts or overstock situations. A lack of real-time visibility into operations delays response times and the time it takes to update customers. Collectively, these inefficiencies impact the overall agility and responsiveness of any retailer, regardless of size.
Case study – Cargo Crew’s inventory visibility transformation:
Cargo Crew’s fragmented systems had led to significant inefficiencies in inventory management and fulfillment. After adopting NetSuite cloud ERP, they have the capabilities to manage inventory with real-time visibility, reducing stockouts and improving fulfilment speed, while significantly lowering costs.
Tech-driven precision for modern inventory management
Seamless information flow across the tech ecosystem is the ideal antidote for these issues. With a core cloud ERP system that centralises and coordinates operations and data, you can start to build out value-adding automations and process standardisations.
For retailers, this might start with integrating eCommerce platforms to synchronise online and offline sales, ensuring real-time inventory updates, accurate order processing, and valuable insights into sales trends and inventory needs.
Case study: Eco Outdoor’s global inventory transformation
Eco Outdoor was struggling with inefficiencies and data silos due to disconnected systems. Implementing NetSuite enabled them to manage their global inventory and order fulfilment with real-time data integration, supporting their expansion into the US market.
Finance teams might be the biggest winners
Finance teams, often bogged down by transactional tasks, can now automate budgeting, forecasting, real-time financial analytics, and more. This shift from manual drudgery to strategic activities also means better compliance tracking and cash flow optimisation, making finance one of the biggest winners when it comes to cloud ERP.
Case study: Finance function modernisation with cloud ERP
Life-Space Group, previously burdened by disconnected financial data, now benefits from real-time financial insights, enabling faster closes, better cash flow management, and more accurate forecasting with NetSuite.
Achieving new efficiencies for operational teams
Operational teams, too, find new efficiencies. From real-time shipment tracking to optimising procurement with vendor performance analytics, a connected cloud ERP system enhances supply chain visibility and efficiency. Warehouse management becomes a breeze with automated inventory control and advanced demand planning, ensuring you meet customer needs precisely when and where they’re needed.
Case study: Operational efficiency in action
T2, dealing with fragmented data during their global expansion, now manages large volumes of transactions with real-time data accessibility across all regions thanks to NetSuite.
Empowering customer-facing teams
The value keeps flowing for customer-facing teams. On the shop floor, sales staff benefit from immediate access to accurate inventory levels, product locations, and detailed item information. This instant access means they can quickly check stock availability, provide up-to-date product information, and even place orders on behalf of customers if an item is out of stock. Customer service representatives gain a complete history of interactions, purchases, and preferences, allowing them to resolve issues quickly and personalise the customer experience.
A big boost for promotions and loyalty programs
Promotions and loyalty programs gain the advantage of integrated data, enabling targeted campaigns and seamless application of discounts and rewards. Meanwhile, POS systems integrated with the ERP ensure real-time financial data sync, simplifying reconciliation processes and providing valuable insights into sales trends and customer preferences.
Advanced inventory strategies
Moving inventory isn’t what it used to be. Technology can substantially help with maintaining accurate stock numbers and delivering the right products to the right customer at the right time. From barcodes and readers to RFID and warehouse automation, there’s a lot of ways to ensure that orders are filled accurately and quickly, when cloud ERP is the engine powering your operations.
But again, if you’re relying on separate systems to manage slices of the product lifecycle you will suffer from misaligned inventory levels, delayed order processing, and a poor experience for your customers.
Integrating these systems through a unified cloud ERP solution provides a single source of truth, keeping all aspects of your inventory management synchronised and efficient.
Real-time data sharing is key here. Because when your eCommerce platform, warehouse management system, and supply chain solutions are all interconnected, you can see what’s happening in any given moment and respond to changes in demand instantly.
If a supplier is delayed, your system can automatically adjust reorder points, notify relevant stakeholders, and even suggest alternative suppliers to prevent disruptions. Or, if a store is running low on a popular item, the system can automatically transfer stock from another location where it’s in surplus.
The benefits of this interconnected approach extend to your sales channels as well. Accurate inventory data means that your online store always reflects real-time availability, reducing the chances of selling items that are out of stock.
Integrated systems also support advanced inventory strategies such as just-in-time (JIT) inventory, drop shipping, and omnichannel fulfilment. For instance, JIT inventory reduces holding costs by ensuring that products arrive exactly when they are needed, while drop shipping allows you to sell products without holding inventory, as your suppliers ship directly to your customers.
And of course, all those essential key KPIs like inventory turnover, order accuracy, and fulfilment times are completely trackable via customised dashboards, reports, and alerts.
Case study: Advanced inventory strategies in action
Linen House reduced the time required to launch a new store from two weeks to just 10 minutes after implementing NetSuite.
Let data be your foundation of profitable decisions
When retailers consistently make profitable decisions, you can bet there are teams constantly pouring over data to understand supply chains, sales forecasts, process efficiencies, and customer trends. Collecting good, timely data with careful analysis to guide proper business decisions is critical to thriving in business today. And we’re not just talking about enterprise-scale companies. Every company can, and should, collect data to inform business decisions.
But if it’s not all readily accessible and in real-time, you’ll quickly fall behind.
If you don’t have a good handle on forecasting, other problems follow. From allocating shelf or warehouse space to ordering new stock or raw materials and subassemblies, everything hinges on accurate forecasts. But you can’t forecast with confidence or at speed if your data is inaccurate or scattered throughout multiple systems.
By bringing all your best-in-class systems together into a unified cloud ERP solution, you break down those silos with a comprehensive view of your business. Your data is not only accurate, it’s instantly available across your entire organisation so departments – everyone from sales to operations – can collaborate and make data-driven decisions on the fly.
Australian and New Zealand retailers are increasingly recognising the need for better systems, especially given that 99% plan to invest in innovation within the next year.
Adopting unified cloud ERP solutions gives retailers the integrated compatibilities needed to streamline operations, enhance customer experiences, and stay ahead in a competitive market. If you’re eyeing up an investment in integrated systems to address your current inefficiencies and set the foundation for sustained growth and resilience, Annexa is here to help you.