Odoo for Retail: Why Is It a Great Fit for Your Store? (+ Solutions Package)
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Marcie Nguyen
Marcie is a skilled writer at Havi Technology focusing on creating content for marketing, eCommerce, point of sales, and ERP solutions. With over 8 years of experience in the retail, eCommerce and ERP technology sectors, Marcie is dedicated to providing insightful answers to business owners of all scales.
Balancing stock, managing customers, or navigating online sales channels may leave even the most experienced retailers feeling overwhelmed. Odoo for retail, by seamlessly integrating core functionalities like inventory, finance, or multiple channels control, enables you to exploit hidden values and achieve retail success.
Are you ready to simplify your daily operations and see your business flourish? Discover the need for ERP adoption and how Odoo can transform your retail operations.
ERP adoption in retail
The retail sector has seen a dynamic shift due to the implementation of the robust Enterprise Resource Planning (ERP) system. The global ERP market for retailers was valued at USD 9650 million in 2022, and by 2031, it is projected to have grown at a CAGR of 9.9%. This growth rate highlights how crucial ERP is in offering retailers the adaptability needed to thrive in changing market conditions.
Why are traditional retail operations moving towards ERP-powered solutions?
First of all, a cohesive approach is necessary due to the complexity of modern retail demands. The days of having separate systems handle various business areas are long gone. Customers demand smoother omnichannel experiences, so you must track customer interactions, manage inventory, and analyse data from multiple touchpoints. This interconnection is simply too much for traditional organisations to handle.
Second, the constant quest for personalisation demands a more thorough understanding of customers. Retail now requires customisation to individual interests and behaviours, surpassing generic offerings. ERP systems generate customer data from several sources to give you a 360-degree picture of your customer groups. This information helps you customise loyalty plans, product recommendations, and marketing efforts to build better bonds with customers and increase revenue.
Finally, ERP has many advantages beyond efficiency and competitiveness, which we will discuss in the next section.
Benefits of ERP for Retailers
1. Seamless omnichannel selling
In today’s connected world, customers expect a seamless shopping experience across all channels, including online websites, marketplaces, mobile apps, or in-store. ERP solutions ensure that product availability is consistent and purchase fulfilment is accurate on all channels. This is achieved by centralising inventory data and providing real-time visibility across channels, regardless of where the orders were placed. This streamlined approach makes it easy to confirm orders, manage shipments, and handle returns efficiently through simplified order administration.
Especially, businesses listed the top three benefits of using ERP as having a centralised data system. Through the system's consolidation of client data from many touchpoints, all sales channels may offer tailored recommendations, promotions, and loyalty programmes.
2. Optimised inventory control
Knowing where your items are is only one aspect of inventory visibility; another is proactive risk management. ERP provides real-time updates on the tracking of items from suppliers to your business, providing you the end-to-end visibility. By identifying and working with dependable partners, the system’s vendor management feature guarantees constant quality and on-time delivery.
In particular, 48% of businesses use ERP to enhance supply chain operations, which lowers the cost of carrying inventory and improves order fulfilment procedures. This increased visibility gives you and other merchants a competitive edge by boosting operational effectiveness and enabling informed decision-making.
3. Efficient point of sales system
Customer satisfaction can be severely impacted by delayed transactions and lengthy checkout lineups. ERP facilitates quicker, more accurate transactions by smoothly integrating with POS systems. It automatically applies discounts and promos, increasing the efficacy of your marketing effort. Furthermore, with an ERP, valuable customer data and purchase trends are captured at your point of sale (POS), offering valuable insights for more strategic decision-making. This power allows you to offer a frictionless and personalised shopping experience, leading to increased sales and customer loyalty.
ERP also provides comprehensive reporting and analytics derived from your POS data. Robust insights into sales patterns, consumer conduct, and the success of marketing initiatives will facilitate data-driven choices about product allocation, pricing, and advertising efforts. Many organisations see a 15 - 20% gain in sales revenue as a result of ERP adoption due to improved sales.
4. Employee management
Simplified processes are necessary to oversee a sizable shop staff. Employee data like pay stubs, benefits, leave logs, and performance appraisals, are all automatically stored in ERP systems. To complete duties like payroll, time tracking, shift scheduling, and attendance, your team just simply access this data. This gives them more time to work on other crucial projects.
In addition, the time-tracking and personnel scheduling features of an ERP will optimise your workforce levels regarding demand. The system’s performance management capability assists you in tracking KPIs, giving feedback, and fostering personal growth.
5. Enhanced operations
ERP has an advantage that goes beyond functional improvements to improve overall operational effectiveness and efficiency. All your departments benefit from real-time data, which facilitates informed decision-making and optimises resource allocation, marketing initiatives, and retail strategy. Having a better understanding of the whole company will enable proactive problem-solving and identification for more efficient operations. Furthermore, the ERP also enables flexible scaling to support your shop’s expansion and adjust to shifting market trends.
Read how an ERP system helps improve efficiency and gain visibility into retail operations.
Modern solutions of Odoo for Retail businesses
1. Purchase management
To ensure efficient purchasing in your retail store, it's important to keep procedures up-to-date. Purchase requests should be sent to vendors based on stock levels of products. If you work with one vendor, you can utilise the Odoo retail purchase management feature to automate restocking based on inventory levels. This system also allows you to manage and categorise multiple vendors, helping you choose the best one for your requirements. Moreover, the system enables you to generate and pay vendor bills directly.
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2. Inventory & stock management (barcode)
For a retail store, keeping track of product inventory is critical, and Odoo inventory management can help you configure operations to meet the store's standards and operating principles. The Odoo retail inventory module can efficiently manage product transfer, warehouse location storage, stock management, and a variety of other functions.
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3. Sales management & Point of sales (POS)
For the retail operation, Odoo Retail enables a point of sale (POS) module to ensure effective operations. The module is seamlessly integrated with the sales and inventory modules, allowing you to work with real-time stock and commodities. It can also be used with a smart touchscreen system, which will be quite useful for the cashier at the sales counter. Furthermore, the cashier has login and log-out capability, which may be managed using a biometric device.
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4. Finance management
Finance management is a critical part that requires the greatest effort to operate in the case of retail. Odoo's accounting module lets you identify the essentials of localisation, such as taxes, fiscal users, accounts chart, etc. In addition, all sales invoices and purchase bills are generated using the Odoo retail accounting module. This gives you complete control over your retail store's operations, including capabilities for down payments, payment acquisitions, follow-up activities, asset and liability management, and more.
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5. Production management
The manufacturing module is packed with useful features and tools to ensure your production runs smoothly. You can effectively prepare bills of materials and handle production orders, track job progress in real time, and assure quality control throughout the process. Odoo also helps you optimise your inventory throughout the manufacturing process, reducing waste and guaranteeing that completed goods are available on time. Furthermore, its cost analysis tools provide valuable insights for improving pricing strategies.
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6. Human resources management
Odoo's employee module provides you with tools to successfully manage your employees. The module covers everything from improved recruitment and onboarding to effective payroll processing and performance management. Automated tasks save time and reduce errors, but transparent performance tracking encourages staff growth and motivates peak performance. Additionally, the module promotes open communication and feedback systems, resulting in a healthy work environment and employee engagement.
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7. Marketing & E-commerce
Odoo's marketing & e-commerce solution helps you acquire and convert customers with targeted email marketing and a user-friendly online store. You can craft personalised emails, build high-converting landing pages, and manage social channels all from a single dashboard. Retailers, in particular, can centralise customer data to boost advertising and loyalty programmes. All is done with real-time insights to help you make data-driven decisions.
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How to adopt the Odoo retail management system
Simply put, Odoo for Retail is an exceptional retail management solution that enables retailers to manage everything from a single source of truth. It significantly helps you by connecting various company technologies such as sales, accounting, CRM, inventory, websites, and so on.
At Havi Technology, our skilled team of Odoo experts specialises in business consulting and implementation services. Whether you want to integrate Odoo with your existing e-commerce system or launch a new Odoo-powered business, contact us for prompt assistance.
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