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Why Retailers Need ERP POS Integration

Ensuring retail data accuracy is critical for operational efficiency, making ERP POS integration essential. Connecting your ERP and POS systems aligns accounting, inventory, and logistical data for seamless management.
Integrating ERP and POS system, cloud ERP integration

What is an ERP POS System?

An ERP POS system merges the features of a Point of Sale (POS) system and an Enterprise Resource Planning (ERP) solution. This creates a single platform that simplifies transactions and offers insights for the entire business

 

 

Integrating ERP and POS Solutions

Whether shopping in a brick-and-mortar store, online or over the phone, customers in today’s digital economy anticipate a seamless engagement with each channel. (This is what is known as an omnichannel retail experience.)

Effectively managing these rising expectations requires retailers to implement Enterprise Resource Planning (ERP) and Point-of-Sale (POS) systems. Synchronizing accounting, finance, inventory, pricing, shipping, and logistics data between different systems is extremely hard. Therefore, integrating ERP with your retail POS systems is essential.

To see why connecting the two systems is important, let’s look at what each system can do. We will also explore how their abilities grow when they work together.

The Role of a Retail POS System

A POS system facilitates in-store and online transactions, allowing businesses to process payments, monitor sales, and manage inventory. Modern systems enhance this functionality with advanced reporting and integration capabilities.

Selecting the right POS system involves doing some homework. Retailers must check if a potential POS system can handle many types of digital and physical payments. They should also see if it has enough computing power.

They will also need to check if the system can be customized for their needs. It should be user-friendly and secure for them and their customers. Most importantly, it must effortlessly integrate with a cloud-based ERP solution.

 

 

Understanding the Potential of ERP Solutions

To see how ERP and POS integration improves retail operations, we must understand ERP solutions in today’s business.

An ERP (Enterprise Resource Planning) solution is essential for every department in a company. This includes finance, accounting, sales, supply chain, inventory, human resources, and customer management.

Each department collects data in the ERP system. This gives team members a central database with real-time information for the whole company.

An ERP solution provides access to both native and external business intelligence tools. This allows companies to analyze accurate, real-time data. They can use this information to make forecasts and plan for demand.

Designed to integrate seamlessly with third-party applications, an ERP solution can be effortlessly linked to most retail POS systems. Introducing an ERP solution to your POS system creates a complete ERP POS solution. This gives you the data to make decisions. It also provides your team with the information they need to do their jobs well.

Finally, it offers your customers a positive experience. This helps them become loyal, returning buyers.

The Importance of ERP for Retailers

An ERP system integrates finance, supply chain, sales, and other functions into a single platform. Linking this system to a POS solution through ERP POS integration changes retail operations. It automates workflows and boosts accuracy.

A cloud-based ERP serves as the backbone for data management, and its connection to a POS system through ERP POS integration ensures seamless data flow across operations. Business data from all parts of the organization flows into and out of the system. This includes finance, accounting, sales, supply chain, inventory, human resources, and customer management. This process removes informational silos. It also provides complete visibility into business operations.

Critical information is accessible at any time, from anywhere via a web-enabled device. Additionally, a comprehensive cloud ERP solution allows businesses to automate manual tasks, streamline workflows, track resources, and utilize built-in business intelligence.

Point of Sale (POS) systems are ubiquitous in businesses that sell products directly to customers. Traditional POS systems help track financial transactions. They calculate product prices and taxes and print receipts.

Modern POS systems do these tasks too. They also help businesses manage inventory. Additionally, they gather important sales and customer data. Both regular and advanced POS systems help retail businesses a lot. However, they do not give retailers the important information they need for smart decision-making.

To solve this problem, a business should link its retail POS system to a modern ERP solution. This connection will help improve operations. This will provide them with:

  • Streamlined data integration across platforms.
  • Improved accuracy and reduced risk.
  • Easy customizations.
Dave Munson
"Prior to Acumatica, our IT developer kept saying we should wait until the next upgrade and things would get better...but it was always a downgrade with NetSuite."
Dave Munson, Founder and CEO
Saddleback Leather

Benefits of ERP with POS Integration

 

Improved Data Integrity

After an ERP with POS integration, data synchronization ensures seamless sharing between systems, reducing manual errors and improving accuracy. This bi-directional synchronization means, when a sale is made, your data flows directly from the customer through the POS system to the ERP system, where it can be accessed by the sales team, the accounting team, etc.

Data from every department goes straight to the POS system. This way, all team members have accurate and current information. Human errors and delays from double data entry are removed. You have real-time data available right away.

 

Higher Forecast Accuracy

An ERP and POS solution provides unified data visibility, enabling accurate forecasting and resource allocation. You now have the information to make smart choices for your customers. This includes what to order, future costs, and how to use your funds and resources.

 

Built-In Customization

As customer needs vary, so, too, do their customer journeys with your business. Your organization’s needs, and the needs/moves of your competitors, also fluctuate.

You need to create a solution that can be tailored to your specific needs. It should meet the changing demands of your customers. It must also stand up to the changing strategies of your competitors. Modern ERP solutions, like Acumatica, deliver flexible and scalable architecture, making ERP POS integration adaptable to changing retail needs.

 

Keeping Your Front and Back Office Connected

Retailers need updated and synchronized data. This helps them get the information and insights they need. With this data, they can serve their customers better.

This means that the store or online sales team must share sales information with accounting, finance, marketing, and other parts of the business. Simultaneously, the back-office teams must communicate data, such as inventory availability, to the front-end teams.

When this sharing occurs, every team member has access to actionable, accurate data—data they can use to confidently process orders, sell products, respond to inquiries, and more.

 

Receive Reporting in Real-Time

Another advantage of ERP POS integration is real-time reporting, offering instant insights for informed decision-making.—a feature that doesn’t exist with separate systems. Instead, reporting requires manual intervention, which can result in:

  • Human error
  • Delayed data input
  • Dissatisfied customers

Automatically transferring the data between the connected systems removes double-data entry, thus saving time and reducing errors. And real-time reporting can lead to an improved customer experience.

Improved Customer Experience Through ERP POS Integration

Providing updated, accurate information through a connected POS ERP system boosts customer satisfaction and loyalty. Real-time inventory updates and seamless transaction experiences position retailers as reliable and customer-focused. Customer satisfaction is the ultimate indicator of success, and an integrated ERP with POS system ensures superior CX.

One method of ensuring customer satisfaction is by providing customers with detailed information throughout the buying process. For example, retailers can inform their customers of item availability. If an item is out of stock, they should be able to say when the item will be available (which may need to include a discussion on the current supply chain disruptions). And if a customer purchases a product that is to be delivered, the retailer must provide a seamless delivery experience, informing the customer when and how it will arrive.

Ultimately, ERP POS integration offers retailers accurate, real-time data to enhance customer experiences and foster loyalty. As a result, their customers have confidence in the retailer, the retailer’s product, and the retailer’s business.

See what’s possible when you have a future-proof ERP platform that truly puts customers first.

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