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How ERP Tools Help in Strategic Business Management

The modern world requires businesses to make decisions quickly and execute tasks with precision. The accuracy of execution defines the company’s success in the market. 

Automation has become a critical condition for business survival. If a company relies only on manual processes, it loses time, resources, and competitive advantages. Automation not only optimizes operations but also opens the way to scaling and innovation.

When choosing automation solutions, it is important to ensure they cover all business processes. This is exactly what ERP systems are designed for — enterprise resource planning systems.

ERP is software that manages a business in a single environment. ERP transforms process management, systematizes access to operational, financial, logistics, and analytical information, increases productivity, resource management, and reduces risks.

Key Advantages of ERP

• Reduced operational costs. ERP automates routine processes. This reduces manual labor and minimizes the impact of human errors on business process management.

• Unification of business processes: thanks to ERP, all processes are integrated into a single system. This ensures transparency, simplifies training for new employees, and allows management to stay informed about every business direction.

• Effective collaboration: company departments interact in a single information space and have access to all data necessary for joint use. 

• Compliance with legislation: large ERP systems provide financial control and reporting: automated generation of documents, receipts, and reports in accordance with legal requirements.

• Human resources management: ERP systems may also include settings for different levels of access to business information, manage time tracking, and payroll calculation. 

Given the advantages, it may seem that ERP modules have no drawbacks. However, this is not the case. Since the primary purpose of ERP is to cover all company processes, universal systems are usually quite cumbersome and overloaded. This can hinder their implementation for small and medium-sized businesses that are just developing. 

In addition, the cost of such systems is high, and implementation requires staff training, prior business analysis, and possibly changes to some work algorithms.

“Implementing an ERP system is not just installing software. It is a change in the foundation of the company: standardization of regulations and processes, transparency, and a clear definition of employees’ duties and roles, complete business information. Therefore, a properly chosen and integrated ERP in the company’s ‘fabric’ will become a reliable foundation for business growth and process optimization,” — Anna Prykhodko, Deputy Head of the Programming Department at Torgsoft.  

ERP for Retail 

The use of software in retail provides many advantages. 

On the example of Torgsoft software, one can see how properly selected and adapted ERP for retail business solves the problems that enterprises face every day.

Torgsoft integrates all information flows of a retail store, retail chain, and online trade into a unified structure. The program automates routine and core operational processes, forming a complete management culture of the company:

• Financial accounting. In Torgsoft, the owner sees the actual cash flow, cash desk balances, and bank accounts, understands the difference between gross income and profit, can plan future expenses, and prevent cash gaps. 

• Inventory accounting. The entrepreneur can track the current warehouse status across the entire retail chain: information about stock quantity and movement. Conduct inventory in real time.

• Sales of goods and services. The program organizes retail and wholesale sales accounting, sales of services and complex services; creation of invoices, waybills; shipment control, cash and non-cash payments, printing fiscal receipts.

• Work with suppliers and intermediaries. Accounting of supplies, settlements, supplier orders, and price list imports. 

• Product accounting. Managing nomenclature, barcode accounting, articles, manufacturers, sizes, materials, and individual characteristics for each product group.

• Pricing. The program supports wholesale and retail prices, markup, currency and individual price lists, sales price control, and discount calculation. Repricing by exchange rate and markup, from supply prices, or equivalent currency price.

• Marketing and CRM. In Torgsoft, you can maintain client lists, addresses, and contacts. Discount programs, bonuses, promotions, SMS, Viber, and e-mail mailings can be set up. Binotel IP-telephony is supported. 

• Online trade. Centralized storage of all product information in the product card, current warehouse status, export of products and their characteristics from the accounting program to the online store and marketplaces Rozetka.ua, Prom.ua. The program imports orders and updates statuses, creates waybills for Nova Poshta and Ukrposhta, and allows tracking parcels. 

• Production management. Full production cycle: description of the technological card, labor and material consumption norms, production act, actual labor costs, product manufacturing, and product sales.

• Analytics and statistics. Analysis of trade results, assortment and stock balances, markup efficiency, success of promotions, employee performance summaries. More than 50 different reports. 

• Personnel management. Time tracking, payroll calculation, evaluation of personal and collective sales performance. Goals, motivation, and rankings, sales plans for various results and product group combinations. More than 15 types of payroll calculations.

• Information security. Torgsoft protects business information: employees see only what the business owner allows. The program automatically archives the database and logs user actions with warehouse and financial documents. 

• Taxes and reporting. Torgsoft generates information for export to accounting software M.E.Doc and ArtZvit, prints tax invoices, works with fiscal and non-fiscal goods, prints fiscal receipts through a fiscal registrar or software ECR.

• Scalability: Torgsoft is designed for retail business and considers the needs of both the smallest outlets and developed retail chains. 

Without overloading small shop owners with unnecessary options, Torgsoft is a solid foundation for business development and gradual expansion by comfortably combining online and offline trade processes.