Many modern businesses benefit from Enterprise Resource Planning (ERP) and point of sale (POS) systems. Both terms are so widely used that they are often mistaken for being interchangeable. But there are key differences between the functionality of these different systems, though they are both powerful for improving efficiency and productivity.
In this post, we will look at the things that differentiate ERP and POS systems and make a case for why you should consider integrating them to get the most out of both.
What are ERP systems?
Enterprise resource planning is a cutting-edge business management system that allows organisations to manage and integrate all the disparate facets of their business from a single, centralised position.
Without ERP, companies frequently have to use multiple separate systems and applications that do not communicate seamlessly with one another. With ERP, you have a common thread that unites the entire business, helping to improve efficiency with a number of powerful functionalities like:
- Analytics and reporting.
- Software integrations.
What are POS systems?
Point of sale systems are hardware systems that process card payments at brick-and-mortar retail locations. They incorporate hardware with software that can read the chips and magnetic strips on credit and debit cards, enabling the processing of in-person transactions.
A POS terminal is a step-up from a traditional credit card machine, as it offers more customisation capabilities. With a high-quality POS system, you get:
- Powerful hardware.
- Software that collects and stores data from transactions.
- A user-friendly interface.
- The ability to customise systems for different functionality.
So what are the benefits of integrating ERP and POS?
Now that we understand the distinction between ERP and POS, we realise that they are both valuable resources for modern businesses. But they can both be made even more useful by combining them through integration. Let’s look at some specific benefits of doing this.
You Create a Centralised Hub for Your Business
The collection and organisation of data is very different today to what was done 20 years ago, but they are still important considerations. One of the biggest challenges for modern organisations is the decentralisation of software.
If you combine your POS and ERP systems, there will be a central database at the core of all your software systems, so everything will work in harmony.
You Get Consistent, Consolidated Reporting
POS systems are excellent at capturing accurate transactional data in exceptional detail. ERP systems, meanwhile, are excellent for storing, organising and analysing the collected data. Essentially, information is abundant, but organised and analysed information is extremely valuable for your organisation.
You Improve Your Business Efficiency and Forecasting Capabilities
The general concepts we have discussed can yield specific benefits for your bottom line. By integrating ERP and POS systems, you can see significant gains in profitability. Increases in efficiency and your ability to create accurate forecasts for revenue, industry management, customer trends and more can enable you to make informed business decisions and see improved results.
Enhancing Experiences for Customers
The satisfaction of your customers is one of the biggest indicators of success. When customers are happy, they become loyal and recommend your business to other potential customers.
One thing that helps enhance the customer experience is having detailed information throughout the process of making a purchase. Things like item availability are really good to know from the customer standpoint, along with accompanying information like when an item will become available.
By integrating cloud ERP with a POS system, you maintain accurate, real-time information that you can share with your customers. This helps inspire confidence in your brand.
You Get Full Inventory Awareness
When integrated, your POS and ERP systems provide total visibility over your entire operations, including:
- Inventory levels.
With this information at your fingertips, you can make key decisions based on real-time data. For example, when a certain location makes a number of sales of a certain item, the POS system will update your ERP instantly so that you can see it happen and assess the impact on your inventory levels. This enables informed decisions about placing orders and replenishing stock based on up-to-date figures.
Consider Integrating Your ERP and POS Systems to Access These Benefits
As you can see, ERP and POS integration can yield valuable, long-term benefits. But it is crucial to combine the most suitable platforms for your needs, and have them customised to serve your business requirements as effectively as possible. Some ERP systems are limited in their integration capabilities, while others offer diverse integrations and customisations to go with them.
Contact us for assistance in finding how to take full advantage of this type of integration. As IT specialists and ERP software consultants, we can help you find the right solutions and assist with making them happen.
Why choose Eventura as your ERP implementation partner?
Eventura has been providing robust business solutions to countless organisations for over two decades. We are ERP experts and can identify all of your business needs, and deliver a comprehensive ERP solution that works for you.
As Sage 200 Partners and NetSuite Solution Providers, we can help you identify which solution will fit your business needs the best. Our expert team of business analysts, developers, consultants, technicians and support staff can guide you through your entire project, from initial scoping through to implementation and on-going support.
We’re also managed IT service providers meaning we can help you identify your entire IT infrastructure requirements from day one. If you would like to speak to one of our ERP experts, you can request a free call back here.