For businesses involved in retail and distribution, it is essential to have solutions which can trace products across the entire value chain, guarantee accurate data collection and analysis and adapt to sudden changes from suppliers and manufacturers. Read how Infor CloudSuite provides a perfect solution.
We might not always consider the extensive requirements necessary for stores to be well-stocked with all kinds of goods, whether it's groceries, clothing, sports equipment, or other specialised items.
Most industries will suffer if logistics aren’t in place. Construction projects come to a halt if tools, machinery and materials aren’t available. Restaurants cannot serve their customers if ingredients and kitchenware are out of stock.
Goods must arrive at the right place, at the right time, without waste, errors, or deficiencies.
It may seem simple, but in a value chain with mutiple stakeholders in countries around the globe, it’s like solving a puzzle with many complex pieces. That’s why having an ERP system specifically designed for retail and distribution offers significant advantages.
At the same time, it’s important to have a partner with detailed understanding of retail and distribution, such as Columbus.
But first, let’s consider the important trends in retail and distribution
The pandemic has shown that significant and unexpected changes can occur at any moment, impacting logistics and commerce worldwide.
While such extensive crises are fortunately rare, more often, new requirements emerge from regulatory authorities or consumer demands. Additionally, trade boycotts or the necessity to sever ties with suppliers can arise and changes can also result from competitive situations or market shifts.
“These significant and rapid changes place high demands on business systems, specifically Enterprise Resource Planning (ERP) systems," says Per Christian Øen, Business Solution Director at Columbus.
Large, unpredictable and rapid changes in the value chain are just one of the trends in distribution and logistics. Others include:
- Increasing automation
- Increased use of sensors and the Internet of Things (IoT)
- Data capture and analysis using Machine Learning (ML) and Artificial Intelligence (AI)
- Let’s take a look at each of these in more detail:.
Automation
Automation of previously manual processes can offer benefits such as:
- Lower costs
- Faster processes and administration
- Fewer errors
- Increased accuracy
- Improved control
IoT and RFID
After the pandemic, the use of sensors throughout value chains accelerated. This includes both RFID tags (Radio Frequency Identification) and sensors connected to the Internet of Things (IoT). While both technologies have been in use for several years, they are becoming increasingly affordable and their use more widespread.
RFID is an ideal solution for quickly gaining insight into the contents of packaging such as pallets and boxes, as well as monitoring conditions during transportation. When this data is synchronised with the ERP system, users gain real-time insight into what is happening in the value chain.
Here are some examples:
- Using RFID, you can receive alerts related to the status of inventory before problems, such as high or low temperatures, escalate
- Inventory and supply status are automatically updated in the ERP system, reducing manual work and minimising errors. The time saved on stocktaking can be used by employees to further improve the flow of goods and optimise the value chain
- RFID technology enhances the tracking and control of goods flow and helps mitigate shrinkage. This information can be used to provide better customer service and predict demand.
Data capture and data analysis
Just like RFID/IoT, Artificial Intelligence (AI) and Machine Learning (ML) are technologies which are being increasingly utilised by businesses.
With greater opportunity to gather data across the value chain, tools like AI and ML which can analyse and transform this information into valuable insights are becoming ever more important.
"In an increasingly volatile world, it becomes more important to make decisions based on facts, not gut feelings or assumptions. Steering based on data-driven decisions is key if a business is to operate profitably and ultimately survive in an industry with tough, global competition," emphasizes Per Christian Øen.
So, how can AI and ML be useful?
With the help of AI, your business can analyse large amounts of data and lay the foundation for forecasts, predictions and calculations which would otherwise take employees significant time to put together. ML, a subset of AI, further enhances this capability.
Together, AI and ML can help companies in commerce and distribution with:
- Predicting demand and laying the groundwork for more accurate decisions
- Speeding up order placement and increasing efficiency
- Optimising routes for faster deliveries
- Uncovering supply problems and potential inventory issues before they arise
By leveraging these opportunities, your business can unlock significant benefits for both employees and customers.
Listen to our podcast to learn more about the transformation of the distribution industry. We share a wealth of actionable business tips.
Specialised industry solutions
Infor delivers market-leading business systems for a number of industry sectors, spending $3million annually developing solutions tailored to specific micro-verticals.
"For example, in retail and distribution, there are specific adaptations for sales, omnichannel planning, inventory management, wholesalers and component distribution," says Per Christian Øen.
For wholesalers, features such as currency management, adaptations to different countries' regulations, and customs documentation are crucial functionalities in the ERP system. These functionalities are built into Infor CloudSuite. Therefore, during implementation, it becomes a configuration task rather than ERP system development.
Shorter implementation time
With some competitors, it is the partner network which is expected to handle such functionality. This can lead to varying levels of customisation tailored to each industry. Infor’s feature-rich industry solutions contribute to significantly shorter implementation times.
Infor has developed a 60-30-10 methodology, where 60% of the solution is delivered ‘out of the box’, 30% of the delivery consists of configurations tailored to the industry and vertical, while the remaining 10% of the ERP implementation focuses on development and integrations specific to each company.
"One of the major advantages of Infor's cloud platform is Infor OS. It supports development and customisations with minimal need for coding," says Per Christian Øen.
Integrating solutions from other vendors is often a significant and challenging task in ERP projects. However, with Infor CloudSuite, most integrations become simpler with the ready-made APIs.
Lower implementation and operational costs
An increasing number of businesses are concerned about avoiding long, resource-intensive and often risky IT projects.
It has, therefore, become more important for IT projects to start quickly and for companies to reap the benefits of their chosen systems early on. By opting for a multi-tenant cloud solution, these needs can be met.
The trend of moving heavy systems to the cloud has intensified and, in recent years, has also encompassed the mission-critical ERP systems that manage finance, production, logistics and most other parts of the value chain.
However, there are significant differences among ERP systems in terms of how far they have progressed in becoming a fully-fledged, multi-tenant cloud platform. Multi-tenant means that a single software solution and its surrounding infrastructure serve multiple customers. Customers share the software and database, but each client's data is isolated and invisible to others.
The major advantage is that integration with other systems becomes easier, and the overall operating cost is low compared to single-tenant set-ups.
"Infor CloudSuite is somewhat of a hidden gem. Right now, Infor is several years ahead of competitors when it comes to multi-tenant cloud solutions. On the path to developing a true cloud platform, Infor has focused on developing integration interfaces and APIs with the best and most widely used IT solutions in retail, distribution, and logistics," says Per Christian Øen.
Infor's cloud platform also offers the flexibility to easily adopt solutions and add-ons, such as integration with apps and mobile devices. The system is specifically designed to harness advanced analytics (a form of AI) for streamlining the value chain, enabling predictive maintenance, and making forecasts related to market developments and demand within selected market segments.
Monthly updates
Infor CloudSuite is updated every month, providing a range of benefits compared to traditional on-premises ERP systems. This eliminates the need for large and costly update projects, increases flexibility and scalability and allows quick adaptation to change from the manufacturer, the market or the industry.
The monthly updates of Infor CloudSuite encompass everything from solution optimisation to the development of new functionality that supports best practices in the industry and addresses emerging market trends.
With a modern, cloud-based ERP platform specifically designed for the needs of retail, distribution and logistics, your business has the opportunity to make significant advancements in automation, better data utilisation and gain valuable insights throughout the supply chain. The result is increased innovation, higher revenue, improved profitability and enhanced competitiveness.
A remarkable cloud transformation at Jernia
Now, let's take a closer look at our customer Jernia, which has not only embraced the cloud but also established itself as one of the leaders in its sector. This Norwegian distributor offers an extensive product range, including household goods, kitchen equipment, hardware, tools, paint, grills and interior furnishings.
Recognising the need to stay ahead of its competition, Jernia took a bold step. In partnership with Columbus, it decided to replace its outdated ERP system with an industry-specific cloud platform, Infor CloudSuite.
This project wasn't just a software switch; it was a significant transformation, and Jernia executed it with remarkable efficiency.
Achieved benefits:
So, what has Jernia gained from this cloud journey? Benefits have included:
- Efficiency and punctuality: Jernia not only met the project's timeline and budget but also maintained top-notch quality standards.
- Prepared for tomorrow: Jernia now has a modern ERP platform, perfectly prepared to adapt to the new requirements of the retail industry.
- Beyond expectations: Infor CloudSuite went beyond meeting Jernia's tough requirements for uptime, scalability and security. This strong foundation allowed for further refinement of the company’s omnichannel strategy, ensuring excellent customer service.
- Minimal downtime: Jernia's strategic decision to reduce operational risks and ensure stability with minimal downtime became a reality thanks to Infor CloudSuite's technology.
- Alignment with commercial ambitions: The project seamlessly synchronised with Jernia's business aspirations, strengthening its ability to innovate and revamp operations.
"Our goal was to create a solution where most processes relied on standard functionality. We achieved this with less than 5% requiring customisations. Columbus provided valuable input on how to address and implement these changes in our system," says Stian Nybro, Business Systems and Project Manager at Jernia.
Jernia's success story is a powerful illustration of how Infor CloudSuite becomes a valuable resource for businesses seeking to adapt to market changes, streamline operations, and maximise cloud capabilities.