Now is the opportune moment to utilize and expand upon the features of ERP solutions that are available locally

The Indian economy is thriving, and so are Indian businesses. To stay competitive in a fast-paced market, many companies are turning to enterprise resource planning (ERP) systems. The demand for ERP solutions in India is increasing at a rapid pace, especially in the hyper-competitive retail industry. Both Indian and global ERP solution vendors are competing to meet this demand by offering retail ERP solutions tailored to the needs of the retail industry.

Inventory management is a critical aspect of retail operations. According to IBM research, inaccuracies in inventory record keeping have become a major concern for retailers, with 56% of retail business leaders reporting that their inventory information is not accurate. Accurate inventory valuation is essential not just for boosting sales, but also for preventing dead stocks or out-of-stock scenarios. By streamlining inventory through valuation, retailers can get a comprehensive view of their company’s financial position.

As companies expand, the workload on administrators increases significantly. While spreadsheets and email can initially suffice, the tedium of manual logistics eventually catches up with businesses. During a critical growth phase, failing to meet client demand can lead to a company’s failure.

Global Retail ERPs have been in the market for a long time, but they come with a set of limitations when it comes to serving Indian companies. Finding an ERP system that can manage operations in several nations, each with its own distinct laws, regulations, and business practises, has proven to be one of the biggest hurdles for multinational corporations. This is especially true for businesses doing business in India, where it can be challenging to understand and comply with local rules and regulations.

Some of the common drawbacks of global ERPs for Indian companies include minimal local language support staff, a lack of compliance with Indian laws and regulations, restricted integration with Indian banks and local payment gateways, and challenges with pricing and customization. Due to these limitations, it may be challenging for Indian businesses to utilise global ERP systems to manage their operations effectively. However, many Indian businesses have begun turning to local ERP vendors to deliver solutions tailored to their unique needs.

Locally developed ERP solutions are designed to cater to the specific requirements and challenges faced by Indian organisations. They offer better-localised support, including specialised customer care and support for specific languages. They are created with the country’s tax structure in mind and include built-in capabilities that assist firms in adhering to the most recent tax laws, such as GST (Goods and Services Tax). Indian ERPs make it simpler to guarantee comprehensive compliance, which is essential for enterprises operating in India.

In addition to these features, locally developed ERP solutions have additional characteristics for Indian retail, including built-in tools for managing consumer data, promotions and discounts, and inventories. Indian ERPs also assist merchants in managing their supply chain, from tracking deliveries to managing vendors. Well-known Indian payment gateways like Paytm, Razorpay, and Instamojo are already built into Indian ERPs. This makes it simple for businesses to accept payments both online and offline, which saves time and work when handling payments. Popular Indian e-commerce websites like Flipkart, Amazon India, and Snapdeal are all compatible with Indian ERPs, allowing businesses to automate their online sales process, including inventory management, order fulfilment, and payment processing.

In conclusion, locally developed and customizable ERP solutions are essential for businesses to manage their operations effectively in a rapidly evolving market. While global ERP systems have been around for a long time, they come with limitations when it comes to serving Indian businesses. Indian ERPs are designed to cater to the specific needs of Indian organisations and provide better support, compliance, and integration with Indian payment gateways and e-commerce websites.

This article is authored by Rohit Khetan , Head of Marketing and Strategy at Ginesys

 

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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