How SAP Industry Solutions Help the Retail Sector Thrive

Silver Touch Technologies Canada
  • Date Published
  • Categories Blog
  • Reading Time 6-Minute Read

Retailers need help to cope with challenges in marketing, delivering, ordering, and selling goods in a highly competitive business scenario.

It is necessary for retailers, irrespective of their business models, to improve sustainability and transform processes to efficiently address the challenges they face.

Thankfully, emerging technologies such as AI, IoT, VR and AR can help retailers offer rich and personalized shopping experiences to their customers. In discussing the role of SAP industry solutions for retailers globally, we can mention the SAP Retail system.

This post will discuss the benefits of using SAP for the retail industry, as well as a case study. But before digging deep into the SAP retail solution, let’s get its brief introduction.

SAP Retail is an integrated retailing system that maps the complete set of various business processes. It covers all the operations necessary for competitive assortment strategies and ECR-driven logistics and distribution. What’s more, it offers all the functions required for handling complex operations in a retail company.

SAP Retail is designed to manage the full ‘value chain’ ranging from the consumer to vendors. It makes it possible for retailers to optimize the array of business processes and control various points. It enables retailers to manage the merchandise flow across vendors, consumers, and other retailers.

It is fair to mention that retail operations are different from operations in other industry sectors. An innovative retail solution like SAP Business One can handle these operations efficiently. It is an integrated system categorically designed for supporting various strategies in a highly competitive retail sector. Be it customer-oriented distribution or sales variables, SAP Retail or SAP Business One systems can assist retailers to offer a fast and easy shopping experience to their customers across all channels.

Let’s understand the top benefits of using SAP Retail for your business.

What are the Benefits of Using SAP in the Retail Industry?

SAP industry solutions are capable of handling complexities and repetitive processes. Talking about the retail sector, SAP Retail or SAP Business One solutions can offer multiple benefits.

An SAP Retail solution is useful for streamlining the ordering process and managing head office operations effectively. It also assists retailers to connect POS operations for simplifying the sales process. Retailers can automate merchandise planning, forecasting, and supply chain management operations. Anywhere and anytime transactions, as well as stock maintenance, are possible with an SAP Retail solution.

SAP Business One solution is also helpful in improving stock levels and enabling retailers to make informed decisions based on real-time reports. Here we explain some of the key benefits of SAP Retail for your business.

Planning for Replenishment

SAP Retail considers gross requirements based on the product quantity in stock, open sales orders, open purchase orders, and minimum order quantity. As a result, retailers can forecast better and plan for replenishment more effectively. With an SAP Retail solution, you can get the benefits of automated forecasting, optimization, and replenishment as and when necessary.

Forecasting for Sales

SAP Retail helps retail companies make informed decisions based on real-time reports on inventory, cash flow, and pending orders. It also assists retailers to predict demand on the basis of various reports. This sales forecasting can enable retailers to get rid of situations of overstock and out-of-stock.

Managing Stock

Stock management is one of the primary features of an SAP Retail solution. It enables retailers to manage inventory and good receipt PO, along with shipment and other related processes. It facilitates retail users to save receipts for orders, shipment, and sales. As a result, every member or a stakeholder can stay in the loop of a retailer’s network.

Controlling Inventory

Stock-out situations can be quite awkward and challenging for retailers. SAP Business One can provide them with complete visibility across the range of products or items. It shows the entire stock across different distribution centers and the main warehouse for making instant decisions. What’s more, if a stock-out occurs, SAP Business One can put items immediately on order and fulfill them from other stores or a distribution center.

How to Choose the Right SAP Solution For Your Business

Every business has unique requirements and different objectives, and retail businesses are no exception! These days, a range of SAP industry solutions are available, and it is imperative for your business to select the right solution to drive growth.

Here are some useful tips to choose the right SAP solution for your company.

1. Business Requirements

It all starts with making a list of requirements that you want to meet with the help of an SAP solution. You can consider your business goals and other aspects including competition and market trends while making a list of business needs for an SAP solution.

2. Security

Another top priority for any business is the security of data or confidential corporate information. You need to check the security measures offered by a cloud SAP partner and find the inbuilt security features in the SAP solution.

3. Scalability

You can consider the scalability of an SAP solution along with the flexibility of the cloud platform to meet the ever-changing needs of your business. Though SAP industry solutions offer high scalability, it is necessary to check the nature of your business before selecting the right one.

4. Features

You need to ensure that the SAP solution you are selecting has all the necessary features for your business. A reputable SAP Business One consultant can help you get detailed information about the features of various SAP solutions.

But that’s not all! You need to find the best SAP Business One partner to get timely support and excellent after-sales service.

Case Study – How One Retailer Used SAP to Increase

A US-based subsidiary of a global trading company that is engaged in importing, exporting, and distributing a range of products and services wanted to automate processes and gain more visibility across the company.

Before Integrating SAP Business One

The company was handling processes on a custom software platform that was hard to use and getting reports with a basic accounting tool.

  • It was difficult to get meaningful insights, as the legacy system was operated on DOS-like screens.
  • Management found it extremely time-consuming to get reports and exports them using Excel with manual column-by-column copy/paste

Why SAP Business One?

SAP Business One is a feature-rich solution for bringing automation and increasing scalability in retail businesses. The company can have the advantage of SAP Business One for handling tedious manual processes and getting real-time reports.

After Integrating SAP Business One

  • Easy-to-use reporting based on Excel, which is integrated into the system
  • Improved customer service based on the client base
  • Higher visibility of the open quotations and outstanding requests for specialized items’ quotes
  • More accuracy in inventory management
  • Automation in updating vendor costs and customer price lists
  • Automation in daily ACH payments to each vendor


It is fair to mention that SAP industry solutions can reshape retail businesses by offering many benefits. You can find the right partner to leverage the benefits of SAP Business One for your retail business. Hopefully, this concise guide has helped you get insights into SAP Retail’s importance and benefits.