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ERP – Enterprise Resource Planning for Retail with PIM

In the business world it’s almost become a cliché — the large organization struggling to upgrade from a legacy software system gets bogged down in the process and sees its productivity and bottom-line performance struggle as a result. Some never manage to get through the process, instead retaining those legacy systems longer, compromising their organization’s operational capacity and competitive standing, while opening the door to increased risk in areas such as security.

This challenge is felt even more acutely by organizations attempting to upgrade their enterprise resource planning (ERP) software.

ERP systems help organizations manage core business processes from marketing and inventory control, to human resources and accounting. They are often huge, lumbering programs that provide businesses across sectors with real-time data and predictive analytics that help them formulate important operational decisions. Because ERP platforms are so integral to the operation of successful corporations—due in large part to the fact that they can effectively integrate and share information across various applications—downtime is not an option.

Nowhere is this more important than in the retail sector. To be truly competitive, medium to enterprise-level retailers need robust ERP systems to keep a step ahead of rivals. Without a flexible ERP solution, retailers often struggle to implement and maintain effective omnichannel strategies. With industry-wide consolidation the trend as the market share-gobbling growth of powerhouse retailers such as Amazon.com Inc. continues almost unchecked, a lax approach to technology upgrades can pose a significant threat to organizational success.

Retailers & Legacy Systems

Because legacy systems aren’t always sufficient in helping retailers manage sales across channels—after all, many of these systems were built before the explosion of digital retail—software makers such as Bristol, UK-based Brightpearl gained traction by developing software-as-a-service ERP systems tailored to the retail industry. The aim was to simplify implementation, maintenance and improve performance for retailers who struggled to manage their rapidly evolving multi-channel operations with legacy systems produced by industry giants such as Oracle Corporation.

So, does that mean that retailers should scrap their legacy ERP systems? Absolutely not. On the contrary, those systems are still critical to the smooth functioning of any organization. ERP makers continue to innovate and update their software to deliver value to clients across industries. But they can’t do it all. Brightpearl, for example, excels in helping retailers in areas ranging from resource planning and accounting, to fulfillment and reporting. Where virtually all ERP software falls short is in product data enrichment—or the structuring, categorization, publication and aggregation of product and order information across multiple retail platforms.

PIM – Product Information Management

Enter product information management (PIM) software. PIMs are supplementary middleware that allow retailers to combine information from an ERP platform to create a comprehensive master system capable of handling all product merchandising. Integrating a PIM with an ERP platform is one of the simplest and most cost-effective ways for eCommerce retailers—not to mention manufacturers and distributors—to manage product across channels, while also handling core business operations in a single platform and offsetting any legacy ERP shortcomings.

When global adhesive manufacturer Avery Dennison Corporation, reached out to our team for help, they faced a common systems-integration problem.

Avery Dennison’s printers, fasteners and solutions division had been utilizing a legacy ERP system by Oracle that was still delivering impressive results. But when they needed to develop a new BigCommerce Enterprise storefront, integrating the two systems posed a major challenge. The company needed a system that could scale and grow over time, providing it with the flexibility needed to expand global eCommerce sales.

We provided the necessary consultation and insight to understand the challenge and coordinate an action plan, then worked with a partner to design and develop the new digital storefront, integrating a custom payment gateway into the BigCommerce platform. The result: our customer now has a nimble B2B website with easy-to-use payment and has the added advantage of being able to manage product information and tie in relevant data to its ERP system.

This was also a more cost-effective approach than attempting to swap out their legacy ERP software, which would have been prohibitively expensive and time consuming.

We can’t underestimate the importance of that last point.

Choose PIM for your Retail eCommerce system

With the advent of online marketplaces and electronic data interchange (EDI) feeds between smaller retailers and their enterprise trading partners such as a Wal-Mart and Home Depot, it’s often far too costly for an ERP firm to develop one-off PIM solutions for a single client — not to mention the fact that ERP software firms may lack the technology needed to match the offerings of PIM-specific providers. Factor in the critically expensive implementation costs, and it’s clear why third-party PIM software makers are often the choice for everyone from budget-conscious enterprise-level retailers to their growth-hungry, medium-sized competitors.

Once integrated, a robust PIM system brings more value to ERP systems because the retailer can publish to channels and marketplaces, but aggregate all order information back to the PIM and flow data to ERP or accounting systems. That alleviates the need to export data to an eCommerce financial or accounting system. This dramatically improves order fulfillment time and simplicity, particularly when managing orders across multiple warehouses.

Even the largest ERP firms are leveraging third-party PIM systems because they need to provide the most robust solutions possible to their customers and would rather outsource that responsibility by working with the very best service providers in the industry, rather than investing the capital to develop a competitive product that may well prove inferior. Developing those partnerships only helps deepen the ERP firm’s relationship with their customers, drives client retention and expands the scope of their product offerings.

Retailers should remember that competing in the age of digital retail doesn’t mean jettisoning legacy ERP systems. The more effective strategy is to find a complementary system that helps them achieve game-changing results for less. It’s an approach that not only makes sense, but could provide the competitive advantage that organizations such as yours need to be successful as digital retail continues to dominate the market in the years ahead.