Annexa recently hosted a roundtable with finance leaders from Australia’s retail sector, creating a space for meaningful dialogue on the industry’s biggest challenges and opportunities. We sat down with some of the sector’s most forward-thinking finance professionals to dig into how they’re managing the pressures of a rapidly evolving landscape, where AI, technology integration, and strategic collaboration are key to staying competitive.
Here we distil the key takeaways and actionable strategies discussed, offering a glimpse into the shared experiences and innovative practices driving change in the finance function at fast-growing Australian retailers.
The power of core systems
A common theme across many companies was the importance of a robust core system—particularly ERP—as a foundation for everything else. The message was clear: get the core right before investing in add-ons. This principle reaffirms the idea that tech stacks should be built on stable, adaptable systems that allow for scalability without constant rework.
Actionable tactics and recommendations shared:
- Invest in foundational technology, like ERP systems, that offers scalability and strong integration capabilities. Ensure it can handle essential tasks before expanding with additional tools.
- Audit your tech to identify where existing systems fall short and need replacement or optimisation. Look for tools that reduce redundancy and encourage smoother processes across the board.
- Choose systems that easily integrate with new applications, simplifying expansion and allowing for future add-ons without disruption.
AI holds promise but requires structured planning
While there’s plenty of interest in AI, few businesses have clear, structured plans for its use. Companies recognise its potential for efficiency, customer insights, and planning, yet finance leaders are cautious—largely due to governance, data quality, and integration issues. This suggests that while AI can offer real value, there’s a need for foundational work before AI’s true impact can be realised.
Actionable tactics and recommendations shared:
- Begin with a basic strategy that outlines where AI can most effectively drive value (e.g., demand forecasting or real-time customer insights). Don’t aim for broad implementation; target areas that offer quick wins.
- Before scaling AI, focus on data cleanliness. Develop standardisation practices to avoid data discrepancies and ensure AI insights are accurate and actionable.
- Implement strong governance for AI tools to align with data security and ethical standards. An AI policy should guide usage, especially in finance and customer interactions.
The finance evolution to strategic partner
Finance teams are no longer just crunching numbers. They are actively involved in strategic decision-making. COVID accelerated this shift, pushing finance into the spotlight to manage cost structures, collaborate on product development, and guide planning processes. This change highlights the new strategic dimension of finance, where insights from finance are actively driving organisational growth and resilience.
Actionable tactics and recommendations shared:
- Set up regular check-ins between finance, marketing, and operations teams to ensure alignment and share insights.
- Finance teams should offer a broader organisational view through accessible, consumable dashboards. Invest in tools that offer real-time data visualisation, allowing finance to support decision-making with current, actionable insights.
- Free up finance resources by automating routine tasks like reconciliation and reporting. With more time, finance teams can focus on advising and guiding strategic decisions.
The quest for seamless data and unified views
Companies are investing in systems that create a “single source of truth,” especially in inventory and sales. There’s a drive toward unified data sources that allow for real-time, actionable insights across the business. This shift from fragmented data towards consolidated data systems signifies the value placed on consistent, reliable insights in complex, growing operations.
Actionable tactics and recommendations shared:
- Consolidate data across sales, inventory, and customer service to create a “single source of truth” that all departments can access.
- Use tools that allow for real-time data tracking and make insights immediately available across teams to support quick, data-informed decisions.
- Invest in user-friendly business intelligence tools that make complex data accessible to all team members, even those without technical expertise. This approach supports collaborative decision-making and minimises siloed data.
Customer-driven innovation and flexibility
Customer expectations are driving many retail innovations. Business leaders recognise the need to be flexible and customer-focused, delivering products and services that align with changing consumer behaviours. As a result, businesses are investing in innovation to anticipate customer needs rather than react to them—a strategy requiring forward-thinking and operational adaptability.
Actionable tactics and recommendations shared:
- Use real-time analytics to understand shifting customer preferences and adjust products, pricing, and marketing strategies accordingly.
- Invest in inventory management solutions that allow for rapid stock allocation across online and physical channels, maximising customer satisfaction and sales potential.
- Use pilot programs to test new services or product lines before a full rollout. For example, trial a subscription model or flexible payment options based on consumer demand.
Sustainability as a competitive advantage
Sustainability is no longer just a checkbox; it has become a core part of business strategy. Retailers see sustainability as integral to growth, understanding that customers expect it. Businesses face a balancing act between sustainable practices and cost efficiency, with companies seeking to integrate both for a holistic approach that appeals to environmentally conscious consumers.
Actionable tactics and recommendations shared:
- Identify achievable short-term and long-term sustainability metrics, such as reducing packaging waste, using recycled materials, or sourcing responsibly.
- Use digital tracking tools to monitor and report on the sustainability of each product’s journey, building customer trust by openly sharing environmental impact.
- Showcase sustainable practices in brand messaging to attract eco-conscious consumers, including metrics that demonstrate commitment, such as CO2 reductions or resource-saving initiatives.
Navigating market uncertainty through resilience and adaptability
The economic environment is challenging businesses to rethink priorities. In sectors facing softening demand, companies are diversifying to maintain resilience. Others focus on proprietary products and market share. These strategies highlight the importance of agility and readiness to adapt to shifting market dynamics.
Actionable tactics and recommendations shared:
- Diversify offerings where demand is high (e.g., value-based products) and focus on cost-saving measures in more affected sectors. Invest in areas like automation to reduce operational costs.
- Focus on cash flow management and identify contingency measures to adapt quickly to market shifts. Use dynamic pricing and flexible supply contracts to reduce exposure to sudden cost fluctuations.
- Use customer sentiment analysis tools to gauge economic shifts in real time, allowing for timely adjustments to product lines or promotions.
Investing in tools that enhance collaboration and reduce complexity
With a wide array of digital tools in play, simplicity and collaboration are essential. Businesses that have audited and streamlined their tech stacks report improved efficiency and teamwork. The lesson here is that fewer, well-integrated tools with clear purpose and accessibility can drive productivity more effectively.
Actionable tactics and recommendations shared:
- Choose one primary collaboration platform to reduce tool fatigue and simplify access to information. Encourage consistent use of this tool across teams.
- Regularly review and streamline collaboration tools to ensure all are necessary and effectively used. Look for tools that combine functions, reducing the need for multiple apps.
- Provide hands-on training for any new tools or updates to ensure they’re fully adopted, helping employees understand how the tools improve their day-to-day workflows.
Leapfrogging legacy with strategic innovation
Many organisations are transforming entrenched processes. For example, one brand explored OCR and voice-to-text, illustrating a way retail businesses can reduce costs and errors by adopting modern tech. This approach allows companies to jump ahead by strategically adopting tech that adds immediate value rather than piecemeal upgrades.
Actionable tactics and recommendations shared:
- Identify and target time-consuming manual processes for automation, such as data entry or customer inquiry triaging. Consider using AI for basic but labour-intensive tasks like data extraction.
- Embed process innovation as an ongoing practice, where teams regularly assess workflows for efficiency improvements.
- Optical character recognition (OCR) was highlighted as a popular way to streamline documentation-heavy tasks, reducing errors and freeing staff to focus on higher-value work.
Future-proofing with an eye on scalable growth
Younger businesses are aware of the need to plan for both present and future. Companies are choosing adaptable systems to maintain flexibility, encouraging tech adoption that won’t prevent but rather support growth when it arrives.
Actionable tactics and recommendations shared:
- Opt for modular systems that allow expansion as the business grows. Ensure your current tech choices are adaptable, enabling easy add-ons without needing a complete overhaul.
- Regularly review the tech stack with future needs in view. Avoid customisations that may lock the business into one approach; instead, favour flexible options that can evolve with market demands.
- Form strategic partnerships with tech providers who can support growth through consulting or by offering compatible solutions that integrate with your existing systems.
Thank you to all who joined us at the roundtable. For retail finance leaders facing similar journeys, we hope these actionable strategies provide inspiration and practical steps to drive their brand forward too. At Annexa, we’re excited to continue supporting the sector’s progress and look forward to further conversations that push the boundaries of what finance in retail can achieve.
Grow your retail business with NetSuite and Annexa
Annexa, as a trusted NetSuite partner, has helped many retailers prepare to enter new markets as smoothly and simply as possible through smart, agile and practical systems.
We can help your business navigate the new technologies needed to support growth and global success. We also have expert knowledge on international business and growth strategies, helping align your business with a solution to meet your goals while leaving room for future growth.
From streamlining processes to enhancing operational efficiencies, reducing costs to improving business visibility, a NetSuite ERP is consistently the preferred platform for businesses looking to grow, expand globally, and power-up their retail success.
To learn more about our end-to-end NetSuite retail solutions and how we can support your expansion goals, contact Annexa today.