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Technology

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Technology

Nowadays retailers heavily use different types of software applications to manage the

flux processes and increase the consumer engagement. The three types of systems most used by

retailers are Advanced Planning and Scheduling, Customer Relationship Management, and

Enterprise Resource Planning. Each of these systems caters to different sets of services and it

provides a set of benefits tailored to the requirement of the retailers. In this discourse, we will

disentangle the similarities and differences between APS, CRM, and ERP systems and identify

which one will be the most preferential for a retailer who economically cannot afford to apply all

three simultaneously.

APS systems are made to maximize the productivity and the distribution processes by

effectively managing the resources like materials, equipment’s, and personnel (Wang et al.,

2021). These systems are based on modern algorithms and modeling techniques, so they can

predict the cuts precisely, make the production plans, distribute the resources efficiently, and

order the inventory in the most appropriate manner. APS systems simplify the retailers'

processes, lower the production expenses, rise productivity, and create happier customers

through on-time delivery of the products.

Customer Relationship Management (CRM) systems are built to handle interactions and

relationships with customers in the whole customer life cycle. CRM systems constitute Customer

databases that are gathered from various sources, for instance sales, marketing, customer service

and social media, and are consolidated into one central unit (Petrović, 2020). Moreover, retailers

can get a united view of their customers' data that brings insights into customer's interests,

tendencies, and purchases. The most important advantage of CRM systems is that they can tailor

the marketing campaigns to the specific needs of customers using this data.. Through customers’
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information, retailers can personalize offers and tailor promotions for individual customers,

leading to more positive responses eventually. These individualized techniques not only enhance

the effectiveness of marketing campaigns but also results in stronger customer bonds and

relationships. Moreover, CRM systems allow retailers to offer excellent customer service

(Petrović, 2020). Customer service representatives will use the purchase history and preference

insights to help them to offer personalized assistance and solve the problems fast and effectively.

This individualized service can result in the rise of customer satisfaction and loyalty.

ERPs provide an integration point for all the primary business processes and functions so

that modules for finance, human resources, supply chain management, manufacturing, and sales

are all housed on a single centralized platform (Faccia & Petratos, 2021). These systems give a

retailer the ability to streamline operations, automate recurrent tasks, guarantee the authenticity

and harmony of data, make real-time resolutions, and develop the productivity and efficiency of

an enterprise. ERP systems enable retailers to have a complete view of their entire business

operations, from start to finish, and thus better allocate resources, manage costs, and plan

strategically.

A retailer dealing with financial limitations and hence cannot afford to implement all the

three systems can opt to begin with a CRM system (Petrović, 2020). Through CRM systems,

retailers can immediately derive value by knowing their customers better, personalizing

marketing initiatives, and conducting customer service of higher quality, which all lead to strong

sales and build customer loyalty. Through the CRM system, the retailer will be able to focus on

building strong customer relationships, improving customer satisfaction, and maximizing

revenue without the need to spend a huge amount of money on the complex ERP or APS

solutions.
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In summary, APS, CRM, and ERP systems are meant to fulfill different tasks in the

process of running retail operations improving business performance. Innovation APS systems

allows for optimization of production and distribution processes while ERP systems unifies core

business functions, and CRM systems are oriented on client relationship management. For a

retailer with limited financial resources, the best choice would be to implement a CRM system

first, as it would immediately bring value in terms of better customer engagement, more sales,

and higher profitability. With wise CRM system investment, the retailer is ready to cope with the

competition and to be a durable business.

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References
Wang, L. C., Chen, C. C., Liu, J. L., & Chu, P. C. (2021). Framework and deployment of a

cloud-based advanced planning and scheduling system. Robotics and Computer-

Integrated Manufacturing, 70, 102088.

Petrović, M. (2020). Data quality in customer relationship management (CRM): Literature

review. Strategic Management, 25(2), 40-

47.https://scindeks-clanci.ceon.rs/data/pdf/1821-3448/2020/1821-34482002040P.pdf

Faccia, A., & Petratos, P. (2021). Blockchain, enterprise resource planning (ERP) and

accounting information systems (AIS): Research on e-procurement and system

integration. Applied Sciences, 11(15), 6792. https://doi.org/10.3390/app11156792