Why small businesses need an ERP solution? (to spell out what ERP is, then put its acronym)

Why small businesses need an ERP solution? (to spell out what ERP is, then put its acronym)

ERP systems have been popular for large multinational businesses for several years, but many smaller organizations do not believe that such support is necessary for their needs. Some of this is to do with cost, ERPs are traditionally focused on large enterprises and have a price tag to match, but some may not appreciate how much a fully integrated ERP solution can help the business to be more efficient and profitable. We see more new products entering the market that are focused  on smaller businesses in functionality and cost, such as the 3C ERP by  ZOTTO which is fully configurable for Online and Offline  retail businesses.

Consumer behaviour and the growing adoption of a multichannel strategy by retailers.

To appreciate why the ERP solutions are being adopted by businesses of all sizes, it is important to think about the way retail has changed since the introduction of fast, affordable internet connectivity. Traditionally, marketing may attract a consumer to a particular product or brand, but it is the tactile nature of holding the product in store that  made the decision to buy.

Today, there are still products that need that tactile experience. Jewellery is a good example, feeling the weight, seeing the sparkles, the same is for Perfumes as this is all about the its fragrance,  these things are not easy to replicate online with the present technology. For these kinds of products, retail sales will continue to rely on a physical store presence, at least for an initial sale. Convenience says that in the case of perfume, once someone knows the fragrance and likes it, future purchases can be made online.

There are some products that don’t have that tactile connection, your food, vitamin pills, or alternative medicine like the CBD oils and so on. The benefits of those products only come once you actually try them, and in the main, you won’t be doing that in-store, and so an online purchase is as effective as one in a physical store. As more and more purchases are made online, this online approach even for the first sale is becoming more common, and here is where an ERP solution can help even smaller retailers.

Many wholesalers or  retailers, (whatever is their size) are adopting ‘multiple channels sales from websites  such as Amazon and eBay to physical stores too. The more sales channels there are, the more challenging it is to manage the sales processes. Everything from stock control, to  returns & Refunds and shipping becomes complex when the business needs to manage sales across different platforms.

ERP for SME’s

This multi-channel sales situation is particularly common within the CBD industry. Here there are a number of producers, who sell onto wholesale businesses, who then  creates products to differentiate their own  brands and marketing.

These wholesaling businesses have a diverse distribution model that features a website, sales through multiple online websites or sales portals and often a physical store too. In addition, they often supply smaller local retailers who offer mostly online sales for a specific area, Those retailer sales may also come from multiple channels, including websites and online stores on various platforms.

Together this creates a significant challenge, as managing multiple sales channels affects inventory control, logistics, returns and so on. Every aspect of the sales process is more complex, and this is where a tailored product such as 3C ERP by ZOTTO can make all the difference, because:

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