Jun 30, 2022

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Differences Between Traditional ERP and Retail ERP Systems

Enterprise resource planning (ERP) systems are software applications that help organizations manage their business processes. ERP systems integrate different organizational functions, including finance, human resources, manufacturing, supply chain management, and customer relationship management. Retail ERP is a type of ERP system specifically designed to meet the needs of retail businesses. Retail ERP systems offer many of the same features and benefits as traditional ERP systems, but they also include additional functionality to support the unique needs of retailers.

In this article, we will compare and contrast traditional ERP systems and retail ERP systems. We will discuss the key differences between these two ERPs and explore why a retail business might implement a retail ERP system.

Traditional ERP vs. Retail ERP

There are several key differences between traditional ERP systems and retail ERP systems:

Functionality: Traditional ERP systems offer a broad range of functionality that can be customized to meet an organization's specific needs. Retail ERP systems also provide a wide range of functionality but include additional features and modules specifically designed for retailers.

For example, retail ERP systems typically include features for managing inventory, point-of-sale (POS) transactions, customer data, and promotions. Some retail ERP systems also have eCommerce capabilities.

Deployment: Traditional ERP systems are usually deployed on-premises, which means they are hosted on the organization's servers. On the other hand, retail ERP systems can be deployed on-premises or in the cloud.

Cloud-based retail ERP systems are becoming increasingly popular because they offer greater flexibility and scalability than on-premises ERP systems.

Pricing: Traditional ERP systems are typically priced based on the number of users or the amount of data processed by the system. Retail ERP systems are usually priced based on the number of transactions processed by the system.

Implementation: Traditional ERP implementations can be complex and time-consuming, often taking months or even years to complete. Retail ERP implementations are typically shorter and less complicated than traditional ERP implementations.

Support: Traditional ERP systems typically require a large amount of technical support, which can be costly. Retail ERP systems often come with built-in support from the vendor, which can help reduce the overall cost of ownership.

Why Choose Retail ERP?

There are several reasons why a retail business might choose to implement a retail ERP system:

Improved Efficiency: A retail ERP system can help improve the efficiency of your organization by automating and streamlining key business processes. For example, a retail ERP system can automate inventory management tasks such as reordering and tracking stock levels. This can free up time for employees to focus on other tasks.

Increased Sales: A retail ERP system can help increase sales by better understanding your customers' buying habits. Retail ERP systems can also help you manage promotions and loyalty programs more effectively.

Improved Customer Service: It gives a better view of your customer data. This information can be used to improve the way you interact with customers and resolve issues more quickly.

Lower Costs: It helps to lower the overall cost of ownership by reducing the need for technical support. It offers built-in support from the vendor.


Traditional and retail ERP systems offer a broad range of functionality. This system supports the needs of an organization. However, there are several key differences between these two types of ERPs, including functionality, deployment, pricing, and implementation. Retail ERP systems offer specific features and modules designed for retailers, which can help improve the efficiency of your organization and increase sales. Retail ERP systems are typically deployed in the cloud, which offers greater flexibility and scalability than on-premises ERP systems. If you're considering implementing an ERP system in your retail business, a retail ERP system may be the best option for you.

Suggested blog: https://www.cyberium.info/how-to-build-an-erp-for-agricultural-business/




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