ERP systems are game changing for any retail business. They ensure the integration of key back-end functions which are critical to smooth day-to-day operations. In order to reap the benefits of an ERP to the fullest extent possible, it is vital that the foundations are laid correctly during the implementation stage of an ERP. Not doing so can lead to unwelcome and unnecessary growing pains.
Understand where you are now before you decide where you want to be
Before beginning to visualise the ideal future state with a fully operational ERP system, it is critical to conduct a thorough analysis of where you are at now. This involves looking at all your existing systems and software that would fall under an ERP implementation project and understand the processes within each of these from start to end. Undertaking this exercise will help to identify any pain-points and areas for improvement as well as helping to pinpoint any inefficiencies or bottlenecks that can be alleviated through an ERP. This insight further helps you to guide your requirements for a new system and better understand what ‘good’ looks like.
Data – know what’s coming with you and what you’re leaving behind
A crucial step to a smooth transition is managing your data migration effectively. Begin this by assessing your current data. Understand what you have, what needs to be transferred, and what should be discarded. Plan your data migration strategy by choosing the appropriate method for transferring data and establishing governance practices to ensure accuracy and security. Set a realistic timeframe for the migration process to minimise disruptions and knock-on effects to other parts of the project. Additionally, prepare a backup plan to safeguard against potential issues, ensuring that your data remains secure and accessible throughout the transition.
Retail expertise matters – choose the right vendor
When selecting an ERP vendor for your retail business, it’s essential to ensure they have extensive experience and expertise in the retail sector. Conduct thorough due diligence by evaluating potential vendors’ track records, industry knowledge, and ask for references from previous implementations. The vendor must understand your specific requirements, culture and growth ambitions. This will help ensure that they see the unique challenges within a retail environment and can deliver a tailored ERP solution that speaks to these industry challenges and meets your specific, individual needs. Investing the appropriate time to find the right vendor will be more likely to pay off with a smoother implementation and a system that effectively supports your business goals.
Have a solid project team in place
To ensure a successful ERP implementation in retail, it’s vital to set up the right framework from the get-go. As part of this, you’ll want to assemble a strong project team, including a dedicated Project Manager to oversee the entire process from start to end and manage any risks, issues actions and decisions. You may also want to invest in a business analyst to understand your current ways of working (“as-is”) and define your future goals (“to-be”). Having a change manager will also help to focus on the human element of the technical change and support with clear communication, comprehensive training, and addressing feedback to minimise resistance and ensure adoption. Finally, establish a Project Management Office (PMO) to coordinate different workstreams effectively and maintain coherence throughout the implementation. This structured approach will help you achieve a seamless ERP transition and drive your retail business forward.
In conclusion, implementing an ERP system in the retail sector is a complex yet worthwhile transformation, and applying these best practices can significantly enhance your success.
What next?
Nine Feet Tall is here to support you in putting these into action, offering “just enough governance” to guide you without taking over the process entirely. We are not affiliated to any vendors, so we can find the right solution for your unique needs. Our approach ensures that while we manage the critical aspects of your ERP implementation, we also empower your team with valuable lessons and the skills needed for long-term success. By partnering with us, you’ll not only achieve a seamless ERP transition but also build internal expertise that will benefit your business for years to come. Get in touch today.
