Streamlining Retail Operations: The Benefits of POS-ERP Integration

Today's business leaders understand the tremendous value of integrated business processes. This is why more and more small businesses are relying on modern and powerful enterprise resource planning (ERP) systems like EPOS Direct ERP.

ERP is designed to improve business management and increase productivity. ERP integrates all of a company's back-end business processes (finance, accounting, purchasing, inventory management, supply chain management, human resources, etc.) into one comprehensive system, giving companies granular control and visibility across their operations. It allows them to process orders faster, move products more quickly, manage inventory and employees more efficiently, and handle finances and accounting more effectively.

Data from all departments are tightly integrated and easily accessible across the organisation, business leaders are equipped with better business intelligence to make better business decisions faster.

It’s no wonder that 96% of leading start-ups in their respective industries rely on some form of ERP solution. SMEs choose ERP systems over standalone platforms. The reason is that ERP systems help standardise back-office operations, minimise total cost of ownership, improve real-time visibility into the status of all processes, and improve a company’s ability to forecast and plan for demand.

Despite the enormous benefits that drive the adoption of ERP systems, many companies omit or separate one of their most important business processes: point of sale (POS).

Why ERP/POS integration is important

Today, businesses that directly handle sales from customers, such as retailers and e-commerce companies, rely on POS systems.

POS systems are the primary access point to critical business data, including sales transactions, customer information, and real-time inventory adjustments as products are sold.

But when a company's front-end epos system, which manages customer transactions, is disconnected from the back-office ERP system that manages key business processes, it results in missed opportunities that can hurt the business.

A POS that isn't integrated with a company's ERP creates many problems. These include gaps in inventory tracking and reordering, duplicated processes (such as the need to update inventory and prices in both systems), wasted time and resources, and the inability to keep customer information up to date in the two systems (such as payment information, contact information and transaction history).

Integrating the two systems solves these challenges. Businesses that run ERP and POS as a single, seamlessly integrated system can easily streamline their operations. It is especially beneficial for organisations with numerous physical locations, those expanding into E-commerce, or those that are online-only retailers.

Benefits of Fully Integrated POS and ERP System

POS software and integrated ERP systems streamline operational workflows and maximise sales productivity. By integrating real-time sales transactions and customer data with inventory, purchasing, accounting, and employee management data, businesses gain greater control over operations across multiple locations. At the same time, centralised data allows for improved data reporting and more efficient processes, both of which lead to better decision-making.

Central to the integration of the two systems is the synchronisation of POS retail data with ERP. It ensures that sales transactions and all other customer data captured by the POS software are automatically synchronised with back-end systems, including the accounts receivable module. Conversely, all stock levels entered into the ERP system, along with any product details or price changes, are automatically transferred to the POS system in all locations, including online. In this way, the retail business keeps inventory data in both systems up to date at all times, and data entered into one system automatically updates the other at the same time.

Such seamless and complete integration of ERP and POS brings many benefits to companies.

Real-Time, Accurate Data

One of the most important benefits of POS/ERP integration is ensuring that all business data is up-to-date and accurate. This integration eliminates the chance of human error in manual data entry across all functions of the business and also avoids delays in updates.

Inventory Overview and Improved Distribution Management

By integrating POS and ERP systems, businesses can have a complete view of their entire operations, including sales, stock, inventory, budgets, etc. It means that managers can make informed decisions based on the data they receive. For example, when several sales are made on the POS system at a particular location (physical or online), the information in the back office ERP is automatically updated in real-time. Managers can then make decisions about whether to place orders and replenish stock based on accurate, up-to-date figures.

Improved Forecasting and Workforce Management

ERP and POS integration also means that the combined system can be effectively used as a tool to forecast and improve seasonal inventory ordering based on historical data. It means that you can always ensure adequate supplies of high-demand items during key sales periods. What's more, you can also schedule extra staff for times when sales are most likely, all within the same system.

Improved Customer Satisfaction

Another benefit of integration is that it gives businesses a better understanding of customer buying behaviour, which can lead to a better experience and ultimately increased sales. Moreover, as retailers begin their digital transformation journey to move towards E-commerce, POS/ERP integration allows the company to offer a wider range of purchasing options to its customers. In addition to in-store purchases and online ordering, customers also have the option to buy online and pick up in-store (BOPUS). Meanwhile, the two integrated systems ensure the company can keep track of all its important data.

ERP and POS Integration with EPOS Direct

ERP and POS integration offers retailers many valuable long-term benefits. However, companies must choose a powerful, modern, and flexible ERP solution that ensures easy and seamless integration. Older epos systems have limited integration capabilities with external software and may have limited integration functionalities.

EPOS Direct allows you to integrate any third-party software. It allows you to create a comprehensive, fully integrated system so you can fully enjoy the benefits of having the front- and back-office tools that are essential to your business working together seamlessly.