Many companies in the retail sector have achieved more efficient and agile business operations through the use of cloud-based ERP. The following study looks at the operational challenges that today’s retailers face, and explains how a cloud-based solution (namely NetSuite) has helped them to dramatically improve the retail KPIs that are most important to them.
In this article, we provide you with some of the highlights from the retail KPI study titled ‘Research Study: Cloud-Based Business Solutions Suite Delivers Key Performance Improvements to Retailers‘, carried out by market research company, SL Associates. You can download the full report here.
Challenges in the retail industry
Retailers – whether then are selling in-store, online, or both – must manage complex supplier relationships with wholesalers and distributors at the same time as catering to the needs and wants of their end customers.
As friction-free online shopping options become the norm, maintaining customer loyalty as well as profitability is proving increasingly difficult. Among the operational challenges retailers face:
Product availability and pricing: All but the largest of retailers are at the mercy of their suppliers, who can set prices close to retail selling prices and whose products may not always align with changing customer demands.
Incoming inventory management: Retailers need to maintain inventory levels and mixtures aligned with current and forecasted consumer preferences, which aren’t always the same as the suppliers’ preferences and product lines.
Outgoing inventory management: Retailers must have good visibility into inventory levels and purchasing trends to ensure that inventories are stocked to meet both current and future demands, while limiting overstocking and forced discounting.
Customer satisfaction: In addition to ensuring that they have the right product selection and price points, retailers must work to improve customer loyalty while also increasing the number and value of products each customer buys.
eCommerce operations: As higher percentages of retailers enter the online selling realm, they must deal with everything from basket abandonment rates to rapid and accurate processing of orders shipments and returns.
Successful retailers require real-time data, accurate forecasting and efficient operations. All of this comes from a 360-degree view of their suppliers, customers and the business processes that connect them.
Improve the retail KPIs that matter
By interviewing and surveying representative NetSuite customers in the retail sector, market research firm SL Associates identified which KPIs these companies track as well as the improvements they’ve experienced by basing their core operations on NetSuite’s integrated cloud-based business suite.
Download the full research study here.
Here is just a snippet of the KPIs that these retailers improved:
These KPIs represent just some of the business processes and measurements that can help retailers determine how well they’re performing. And, as shown by representative NetSuite customers, having a comprehensive and fully integrated business solution on which to conduct a wide range of business operations can greatly improve the efficiency and effectiveness of many KPIs that are critical to retailers of all types.
If you’re interested in seeing the other retail KPIs that were improved, and reading some real-life NetSuite retail customer experiences, then please download the full KPI study here.
NoBlue provides NetSuite’s cloud software to businesses across the UK and Europe, which delivers a great shopping experience by integrating your financials, marketing, customer support and order management with your eCommerce and inventory and warehousing capabilities.
If you would like to discuss how it could benefit your business, please get in touch. Do you have anything to add? Please share your thoughts on this article in the comments below.