• Elisabeth Nebster

Retail Back Office Solutions. 2021 Guide. Part 2

Importance of Retail Back Office Systems

Digital solutions increase retail back-office productivity and reduce maintenance costs by 10%.

Previously, XME.digital has told about what a retail back office is and how interaction within the internal system occurs. Today we will consider what benefits the business receives from the usage of up-to-date software. It's time to find out why retailers are actively updating existing digital solutions and rushing to try fresh approaches.

Retail Back Office Software: Which Benefits Does Business Get?

Retail Back Office Software Business Benefits

Automatization and optimization of manual processes

Unfortunately, most of the internal procedures related to accounting, logistics, and product information are still handled by employees manually. An outdated approach reduces efficiency and carries the risk of making serious data errors. One of the priority retail back-office software focuses is processing automation. It ensures the correctness of working with data and the safety of their storage. It allows employees to spend their work time on higher priority tasks and minimizes the possibility of identifying inconsistencies.

The role of optimization boils down to the fact that effective digital solutions can significantly reduce the time and amount of human resources spent on process maintenance.

Price Management & Control

Chain stores face pricing challenges around the world. The difference in value can be significant due to the exchange rates, general economic condition, etc. Back office digital technologies help to avoid confusion. Due to them, it’s possible to create a unified price list and control pricing effectively.

High-Quality business analytics

One of the reasons for the business's inability to achieve aims is the wrong information base. First, management uses non-actual data to set goals. Then it cannot determine how close the company is to reach them. It doesn't matter what key performance indicators (KPIs) the retailer have chosen to track its growth.

Approximate data distort results. Modern solutions for the retail back office eliminate this problem. They allow monitoring the state of each business system in real-time, making reports, and generating analytics based on a variety of accurate information.

Increasing profitability

Retail profit largely depends on several factors: the process's speed, the coherence of all back-office systems, the data relevance, and safety, as well as smart investment. Thus, the digital approach to the internal organization makes it possible to improve all the above aspects. It will positively affect the level of sales and goods turnover, therefore increase the volume of profits.

Staff comfort and Personnel cost Decreasing

It is the last but not the least indicator that any organizational approach works. The efficiency of all systems is primarily dependent on people. Implementing software doesn't mean firing employees. Moreover, in some cases, they have to be hired additionally. But the bottom line is that workers perform their functions quickly due to digital solutions. They are gradually moving away from routine processes. It gives an impetus for proactivity and professional development.

However, before making the employees' life better, prepare them to work with new systems. In other words: teach and explain all the benefits that an alternative method can bring. The perception of innovations will be positive, and the percentage of staff, which use them would be higher.

Why & Where Do The Main Retail Systems Need Back Office Solutions

Why & Where Do The Main Retail Systems Need Back Office Solutions

Financial Area

The financial back office system is one of the most stable and protected in the company. To manage it retail usually either buys licenses for the use of ready-made digital solutions or develops them from scratch only for its own business. An Enterprise resource planning system (ERP) is the main component of this area. In many companies, ERP is too clumsy and over-regulated. It slowly reacts to changes in a customer's order, for example. If the client decided to add something to his order, it could be difficult for the ERP to generate a payment without up-to-date information. Here, the usage of an order-management system is needed. XME.digital developed a similar solution for a national retailer with a 27 million customer audience. This system can update order information in real-time mode and send renewed data for ERP processing. High scalability allows working with a countless number of orders at the same time.

Thus, because of software, the retail financial system gets the flexibility it lacks. It makes the processes associated with the movement of funds easier.

Logistics & Distribution

The main task of the retail business is to maintain a stable and fast goods turnover, scalable enough to fit constant growing demands. It's a holy truth. Ensuring this process is impossible without proper inventory management and keeping the balance in warehouses. Digital technologies help to control the movement of products at all stages and provide up-to-date information about each specific process. It expands logistics capabilities, makes the delivery faster, and the customer experience better.

Marketing & Sales

Marketing becomes effective when the actual information from different sources is used in the right way. Back office software provides marketers with these data and allows them to determine how best to dispose of them. But let's remember the selling process.

Sales managers must monitor the situation, switching between a dozen tabs at the same time. A specially designed joined window or "one-stop-shop" system can save their efforts.

A unified interface pulls up all programs, channels, and other resources required for the manager's work. Besides, the employee has access to management data within this system. It allows to track, which products are on sale and which are not, or to identify new customer behavior trends. Thus, technology makes work convenient. It is a great opportunity to both increase sales and saves resources.


So, what is retail back office software and why is it needed.

It is a set of programs, which help to organize sales business activity from scratch and keep it further. The advantages of *retail back-office software* functioning are obvious. It ensures the harmonious operation of all systems, optimizes processes. And most importantly, it allows getting the maximum result using a minimum of human and time resources. Thus, in a competitive environment, retail requires urgent actions to organize internal processes due to digital transformation.

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