In this post, we will explain the ERP concept with Retail store as an example. Questions such as how retail store functions and how retail store functions are related to ERP are answered.
Let us consider initially important components in a Retail operation. The components such as Warehouse, Storage location, Shoe retail store, Billing and procurement of shoes play a crucial role in Retail operation.
We will consider shoe sales in a retail store.
The shoes are sold in various locations such as chennai, Bangalore, Delhi. These retails stores can be uniquely identified using shop_no_001 etc. The shoes in the retail store are stocked initially in a warehouse center. This warehouse center can be within the shop or at a remote location. Within each warehouse centers, there are different storage locations, in order to store shoes of different types and brands.
Lets now move to the other side of the retail operation. The shoes can be purchased by two set of purchasing groups such as office employees and college youth. we can classify these groups as formal and informal shoes.
The shoe sales is figured out using the POS (point of sales) system.
The following table of data are critical in such an ERP system.
| Shoe data | |
| Material | Shoes Bata |
| Material number | SHOES_BATA |
| total shoes | 200 |
| unit of measure | Pieces |
| Available from | 1st January 2020 |
| Net weight | 10 kg |
| processing time | 1 hour |
| Shoe shop list | ||
| material | shoe shop store | shoe store location |
| SHOES_BATA | 001 | Chennai |
| SHOES_BATA | 002 | Bangalore |
| SHOES_BATA | 003 | Delhi |
| Warehouses for shoes | ||
| material | shoe store | warehouse number |
| SHOES_BATA | 002 | WAREHOUSE_NO_001 |
| SHOES_BATA | 002 | WAREHOUSE_NO_002 |
| Storage locations for shoes in Warehouse no 001 in bangalore location | |||
| material | shoe store | warehouse number | storage location |
| SHOES_BATA | 002 | WAREHOUSE_NO_001 | S_L1 |
| SHOES_BATA | 002 | WAREHOUSE_NO_001 | S_L2 |
| Purchasing group for shoes | |
| purchasing group number | purchasing group description |
| P001 | Office employees |
| P002 | Informal shoes for youth |
For a small presentation about this content, please see this youtube video.
https://youtu.be/wNeOwXrZfng
Image Source : Google Images directory