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Implementing an Enterprise Resource Planning (ERP) system can be a hefty investment if you are a small to midsize retailer. Oftentimes it makes sense to stay with a smaller scale Retail Management System (RMS) instead. That being said, it is possible to outgrow your RMS without realizing it, especially if you have been steadily increasing the size of your operations and revenue. There are a number of signs that a full-scale ERP would be a better fit for you. Here at Indusa, we’ve compiled a list of warning signs to look out for that indicate you’re outgrowing your RMS:

RMS To ERP Retail

E-commerce: If you’re looking to expand retail operations onto an e-commerce platform, then you’ll need contemporary software to back you up. Most ERP systems are fully equipped with capabilities to manage your e-commerce ventures. If your RMS system doesn’t fully support an e-commerce platform, or you find yourself needing additional software in order to do so, then investing in a full-scale ERP might be a viable solution.

Too Much Data: If your employees are finding themselves bogged down by too many spreadsheets, pen and paper processes, or data entry tasks, then you might be outgrowing your RMS, especially if they are constantly importing and exporting data across multiple programs and databases. Not only is this tedious and time consuming, but it increases the chance of an error in your business critical data. Ideally, an ERP system would be able to integrate all of your data – whether it be from supply and inventory management or financial and accounting – and then process it within a single, unified system.

Not Enough Data: On the opposite side of the spectrum, not having enough data is also a sign of outgrowing your RMS. An integrated ERP system will allow you to accurately forecast demand, allowing you to better predict and manage inventory. If you’re consistently finding yourself with too much or too little of a product, or are unable to meet demand during peak ordering periods, then better demand forecasting will significantly streamline and improve your organizational efficiency. In addition to forecasting demand, ERP systems also provide organizations with transparency. If your warehouse is difficult to manage and monitor, then it will be difficult to get an accurate count of your inventory.

That being said, every retailer is different – each business has their own individual needs, strategies, and goals. There is no “one size fits all” when it comes to enterprise software and each organization should evaluate their needs on a case-by-case basis. If you’re experiencing any of these signs, however, it may be an indication that you’re starting to outgrow your RMS. If you’re looking to upgrade to a full-scale ERP, keep your organizational needs and goals in mind to decide if it’s the right fit.

integrating ERP and CRM

Sarah Van Wambeke
About the Author – Sarah Van Wambeke

Sarah is an avid writer and digital media enthusiast. Here at Indusa, she primarily focuses on content creation and social media management.


Topics: ERP