Hypermarket!!! It is a large form of the all-in-one store which offers a wide variety of products that are well organized into aisles. In the hypermarket business, investors and stakeholders face a bevy of challenges on a day-to-day basis. Accurate inventory management, satisfactory customer services, maintaining a well-equipped workforce, visibility into business standing, real-time communication, business management, implementing latest technology and the like are some of the challenges that plagues the functioning of a hypermarket. Inept technology can wreak havoc in the hypermarket business.
Enterprise Resource Planning (ERP) software is a time-tested technology solution that offers multifold advantages to the hypermarket business. A customizable ERP suite will be able to expedite operations, integrate processes, optimize costs, reduce wastage, provide 360-degree visibility into business insights, enable seamless communication, integrate a diverse workforce employed across different business sites with a single digital platform, enhance performance and productivity as well as increase profitability of the enterprise.
Hypermarket is one of the latest business trends that is raging like wildfire across the globe. A business of incredible magnitude that generates staggering revenue encompassing several departments and employing a substantial workforce, it needs end-to-end technical solutions to meet its daily dynamic needs and requirements. To improve the entire business processes, a hypermarket requires a complete solution so every department can be under a proper management. Management is the backbone of the business, having a strong management helps in making a business stand through the sands of time, hence it is important to focus on a good management that will run and improve your business. ERP software assists the investor to get all information about the sale, purchase, demand, and finance with a mouse click. It helps him to ensure productivity and profitability in business by optimizing resource utilization and minimizing wastage.
The Orion™ ERP Hypermarket Suite is a cutting edge and cost-efficient option that effectively caters to the hypermarket business with smart industry solutions and advanced functionalities.
1. Inventory management
In a hypermarket, it is a challenge to manage an inventory to keep a check of your inventory level, so you never go out of stock suddenly. Inventory is an important area of business production or the staging area for a hypermarket business. It is a very usual thing to come across the news “out of stock” in any kind of markets or showrooms, etc. If a customer does not find a particular item in a hypermarket, it is not their loss as they will find the same item elsewhere. If this occurs too often then customers will stop expecting and move to other options.
2. Supply chain management
Stakeholders of hypermarkets experience myriad hurdles with regards to the management of the supply chain involved in the full-fledged operations of a hypermarket. First and foremost, they struggle to transform a stable supply chain into a cost-effective as well as an efficient reactive supply chain in the hypermarket business. Lack of visibility and no ensured viability in the business make it utterly difficult for the stakeholders to make informed decisions and devise business strategies favoring their enterprise. This implies stakeholders cannot forecast demands as well as will not be able to analyze prevailing market trends to drive business plans accordingly. Moreover, no real-time communication between vendors and investors hinders quick delivery of goods. Furthermore, managing different temperature zones for various types of items ordered and managing on-time deliveries have emerged as major challenges for a hypermarket.
3. Supply chain optimization
A hypermarket is a massive business both in terms of size and scale. It encompasses myriad operations, processes, and practices. Moreover, things tend to get further complicated and complex if a hypermarket functions in a chain of business outlets across geographies. This scenario means a range of factors from workforce, finance, sales to customer services that must be integrated and streamlined. Such business scenarios unfold numerous challenges like optimizing business process from receiving the order to delivery at customer doorstep, to deliver on time at minimal cost to the company. Moreover, bringing investors, raw material suppliers, manufacturers, and end-users on a single platform for better resource and cost optimization, is yet another obstacle in the hypermarket business.
4. Optimization of resources
There is an increasing difficulty in maintaining a skilled technical workforce. As the current workforce ages, technical experts are harder to find, and concerns arise around workforce costs.
It is even more important for hypermarket retailers to create the right environment for employee engagement and satisfaction. To better support associates, who are already managing multiple tasks, management need to adjust. By making facility tasks repeatable, simplifying the content, and supporting their workforce with intuitive technology, retailers can redeploy their associates to focus more on enhancing their professional profiles as well as on customer service, and less on operational tasks or equipment maintenance.
Moreover, with limited capital, it is vital for the hypermarket management to minimize the resources without compromising on the level of services in the competitive market.
5. Requirement of one system for all
Stakeholders of hypermarkets have begun to realize a hypermarket will benefit multifold from a one-stop and comprehensive technical solution that will effectively cater to various business functional areas of an enterprise, instead of implementing separate software suites for each realm of a hypermarket. Management of hypermarkets know their business can be run more profitably by acquiring and deploying a cutting edge and centralized software for streamlining operations end-to-end for all units of the company to function as a single machine in a clockwork fashion with all pieces of the software perfectly integrated.
6. Customer Satisfaction
A hypermarket is a store of large magnitude and enormous capacity that shelters a wide range of products. With increasing customer demands the products being sold increase in numbers with every passing day. More people prefer to shop in hypermarkets as they can pick up every item on their list at the same place instead of procuring different products from different shops. These aspects increase the complexities with respect to the way customers are served or in the way the customer services are being offered. With limited workforce, showering personalized attention to every customer at any point of time is almost impossible. Meeting customer demands with on-time delivery, great services and high repeat rate are some of the other challenges stakeholders of hypermarkets face in their attempts to create a loyal customer base and retain their customers.
7. Convergence of concepts driven by convenience
Driven by the consumer’s demand for convenience, food retail concepts, formats and locations are converging. Today’s shoppers are pushing retail businesses to expand, invest in fresh foods and offer a consistent brand experience.
Consumers expect retailers to fit more – and in some cases, everything – in one location. Flexible infrastructures are needed to adapt to changing store concepts. It is no longer surprising to see hypermarket chains with small format stores that offer the quick, convenient, or niche within their brand. Convenience stores are beginning to look more like restaurants. And, we are seeing quick serve restaurants integrate refrigerated cases, like those found in grocery stores.
As stores become more complex, scalability is the key. Hypermarket retailers need comprehensive facility solutions that fit a variety of formats, new technology and equipment. This convergence also opens the opportunity to explore flexible, wireless facility solutions.
8. Demand of extreme transparency
Hypermarket retailers are under pressure to improve transparency. WHERE a product is made and WHO makes it matter to consumers. Both the brands and retailers need to be connected to their community and honesty and authenticity still rule supreme. Consumers are demanding much more information about products than retailers have historically had to give in the past. There will be major innovation in the coming years to improve traceability in supply chains and it is a unique opportunity to communicate the value of food from farm to fork. However, many business insiders still feel that labeling every aspect relating to transparency on a product is highly infeasible.
TRENDS & OPPORTUNITIES:
1. Need of reliable business information
Business information should be retrievable from various subdivisions such as inventory, sales, purchase, and other business processes. Real-time, accurate, and relevant information is the key for the management to make business decisions quicker.
Integrated applications that make it easier to plan and control are required. Every data stored in the centralized database helps the management to face competition or change in demand flexibly.
2. Intelligent inventory management
A hypermarket ERP software can manage your inventory to keep a check of your inventory level, so you never go out of stock suddenly. It allows you to set a warning level and alerts you when it reaches the minimum level so you can restock your warehouse beforehand. It can track what is going out and what is coming in; hence you can keep a track of products in demand and stagnant products leading to less expenditure. It also organizes and optimizes the warehouse.
3. Provide better customer experience
ERP solution for hypermarket can help a hypermarket business owner make the customer’s experience better. An ERP system can track the customer purchase history and tell you about who are your loyal customers. Hence you can allow them to collect the points for whatever they are purchasing and then let them exchange it with whichever purchase they want in the future. The customers do not have to wait for long to get their items billed as ERP contains a billing module so that you do not have cope with angry customers and stressed-out employees.
A hypermarket ERP can also come with the facilities like bulk SMS and email. This enables you to keep your customers updated about upcoming offers, sales, new products, etc.
4. Plan and forecast business with report generation
Foreseeing business trends and preparing a budget to effortlessly propel your business to greater heights has evolved as a business practice today. It can help the allocation of funds for product purchase, introduce innovative sale mechanisms, include new products and the like. Implementing cutting edge technology, such as an ERP will help you generate reports and analyze business for any period to give you the right direction while planning. Product-wise analysis and list preparation of dead stock or fast stock can improve business.
More and more hypermarkets across the globe are offering people a greener way to shop, selling food without packaging to reduce the toll of plastic on the environment. Customers bring their own containers from home and simply weigh the goods they want to buy. The Guardian estimates that over the past two years, well over 100 of these stores have sprung up across the United Kingdom (UK) alone – a response to growing concerns from the consumer about the amount of waste we generate from single-use plastic. While most of these stores are independently run, larger businesses are now exploring the idea of selling packaging-free products. Europe’s first plastic-free hypermarket aisle debuted in 2018 in Amsterdam, where shoppers can choose from more than 700 plastic-free products, all available in one aisle.
6. Amenities of home delivery
The ability to order online and have a customer’s weekly shop delivered at his door is an increasingly attractive proposition for time-pressed consumers, and many hypermarkets now offer this option. According to a recently concluded study, consumers worldwide prefer to reside within a 3-km radius of any popular hypermarket, so that they can have their groceries delivered to them within 30 minutes if they so wish. But for many companies, home delivery is a cost-intensive business that eats into profit margins.
It has come to light that most grocers end up paying far more than the delivery fee they charge customers.
Grocery stores are exploring different ways to overcome the problem. The biggest challenge lies in trying to increase drop density. There are many business models assisting hypermarkets’ stakeholders in this initiative, of which the milkman model seems to be the most feasible one, which has proved to be ideal for small companies, by offering only two slots per week to the customer instead of the typical 24 or 32.
7. Authenticating the fresh foods story
‘Fresh’ is at the forefront throughout the hypermarket business. We are seeing an increase in the overall offering of fresh products as retailers are displaying fresh foods to meet the expectations of today’s consumer.
What is needed now is for hypermarkets to prove “fresh.” As the focus on freshness continues to evolve, grocery retailers need to tell – and validate – their fresh foods story. Soon, retailers will likely begin to use available and new data to transparently authenticate that message.
With intelligent facility technology, retailers now have more information available to help substantiate how foods remain fresh along the journey from “farm to table.” This data can be used to create a competitive advantage in building the authenticity of their brand. Future technologies, regulations and cold chain management will create an even more transparent route for fresh foods, and leading retailers will transform this data into their marketing messaging to foster loyal customers.
8. Emergence of e-commerce
E-commerce has been a disruptive force in hypermarket retailing, taking market share from traditional brick-and-mortar retailers.
Consumers worldwide anticipate continued online growth opportunities across mature global markets. Market share growth will be supported by advances in technology improving the shopper experience and fulfillment capabilities. Next generation technical advances will be crucial for the development of new e-commerce models. Warehouse automation and artificial intelligence (AI) allow stakeholders to envision new e-commerce models which are more relevant than ever in the online world, exactly because of the nature of the business. New technologies are therefore disrupting the online space by allowing for new propositions and sustainable business models. E-commerce has become absolutely necessary to march ahead with, if hypermarkets must enhance their presence across the globe, especially in the post COVID-19 era.
The Orion™ Hypermarket Business Suite, specially tailored for the hypermarket management and business, gives you the competitive advantage.
This integrated IT solution from Azentio addresses the needs of brand analysis, product listing, pricing strategies, customer loyalty, competitor analysis, online retailing, logistics and distribution. The solution’s high functional product fits the hypermarket industry and focuses on the hypermarket retailer in distributor and warehouse management, customer service, collaborative forecasting, procurement, distribution logistics, financial and business intelligence. The ability to link customer to supplier contracts, to capture and analyze demand at the retail level, and to aggregate this information back to the regional and national level for production and replenishment, can improve national and regional sales performance.
Additionally, closer alignment of global supply contracts tied to Forex contracts guarantees margins and ensures that currency cash flows are aligned with purchasing commitments.
The OrionTM Hypermarket Business Suite is designed to optimize business operations and analysis, helping you to maximize profits by focusing on:
- Increased customer awareness and personalized services
- Optimized warehouse utilization
- Reduced costs
- Improved productivity
- Optimized supply chain collaboration
- Closed loop batch control and ‘best by date’ handling
- Automated decision support
- Enhanced profits and measurable ROI
The Orion™ Hypermarket Business Suite incorporates advanced customer-oriented functionality that focuses on performance and service. Designed in collaboration with world-leading hypermarket investors, the solution meets critical requirements such as processing high order volumes; EDI, XML or Web services communications; and delivery of pallets or cartons in-sequence with extremely short lead-times. The software supports rapid identification of products with supporting specifications and pricing, online availability checking, original manufactures’ recalls, and product sales restrictions – translating sales demands directly to suppliers’ products. All applications come with multi-language, multi-currency, and multi-company features.