At Shippit, we often get asked by retailers whether they should integrate with an Enterprise Resource Planning (ERP) system or connect with multiple systems. 

When used correctly, ERPs can be incredibly powerful. The idea of replacing multiple disparate systems in your tech stack with a single integrated solution can be very appealing. 

Is it right for your business to integrate an ERP? Start by considering these 7 reasons and ask yourself if these are a problems you need to solve:

1. Streamlined Operations

An ERP system centralises various business processes into a single integrated platform, eliminating data silos and reducing manual errors. For retailers, this means smoother transactions, faster order processing, and a more efficient supply chain.

2. Enhanced Inventory Management

ERP systems provide real-time inventory tracking across multiple locations and channels, ensuring accurate stock levels. This reduces the risk of overstocking or stockouts and helps retailers implement effective inventory strategies based on data insights.

3. Improved Financial Management

Integrating financial management with other business processes, an ERP system offers real-time financial data, automated accounting, and enhanced reporting. This leads to better financial stability and informed decision-making.

4. Better Customer Experience

An ERP system provides a unified view of customer data, enabling personalised marketing, tailored promotions, and superior customer service. It also streamlines returns and exchanges, enhancing customer satisfaction.

5. Scalability and Growth

Designed to scale with the business, an ERP system supports increased transaction volumes and additional locations. This scalability ensures that the system remains effective as the business grows and adapts to market changes.

6. Data-Driven Insights

ERP systems offer powerful analytics and reporting tools, helping retailers identify trends, uncover inefficiencies, and make data-driven decisions. These insights inform strategic decisions and provide a competitive edge.

7. Regulatory Compliance and Risk Management

ERP systems help ensure compliance with industry regulations through automated record-keeping and accurate reporting. They also enhance risk management by providing visibility into the supply chain and identifying potential risks.

Integrating an ERP system offers numerous benefits for retailers, including streamlined operations, enhanced inventory management, improved financial management, better customer experiences, scalability, data-driven insights, and regulatory compliance. In a competitive retail environment, adopting an ERP system is one way retailers can achieve efficiencies that create long-term success and growth.


Counterpoint: When an ERP isn’t right for you.

For some retailers, an ERP solution is overkill when considering what problems you are actually trying to solve. You need to make sure the cost benefit makes sense, which can sometimes only add up if you utilise multiple components you may not need. 

And while the idea of a single system to manage all aspects of your operations has administrative and process benefits, the trade off you make can be in the quality of the integrated solution. You may prefer 5 different vendor solutions because they are each best fit for your business, and better all around solutions.  The work to integrate them together can be challenging, but it may be the best outcome.

If you are struggling with this decision, our team at Shippit are happy to help you through advice and connections into our partner ecosystem to help you make an informed decision.