Finance transformation in the consumer sector

By Varun Prabhakar and Nick Kolbow

Talking points

• With an evolving consumer landscape and emerging technology, it can be challenging for finance leaders to know the most effective areas for finance transformation.
• New advances in enterprise resource planning (ERP) systems can allow organizations to control, monitor, and coordinate activities more effectively.
• The latest ERP systems can play a strategic role in finance transformation by allowing organizations to analyze business processes and data to drive enterprisewide effectiveness.

It feels like daily something new is happening to reshape the consumer industry. As finance professionals, we know that these changes bring about opportunities with the potential to modernize industries, organizations, and the roles we play. In this shifting environment, the role of finance transformation in the consumer sector is becoming more and more important.

As a finance leader, you may find it challenging to determine where to begin when responding to pressures. But what if there were a tool for transformation that not only addressed these challenges, but also provided insights to your retail organization? Enter enterprise resource planning (ERP) systems. A new generation of ERP systems is being used by consumer businesses in a way that’s reshaping the industry.

Keep reading for the role they can play, what to look for, and a few questions to consider when choosing or upgrading yours.

The evolving consumer landscape

The current consumer landscape is accelerating the need for enterprisewide transformation as consumer companies respond to shifting market dynamics, including supply chain disruptions, changing consumer behaviors, and the growth of e-commerce.

Global supply chain disruptions continue, with both companies and consumers affected by product availability and shipping delays. At the same time, consumers themselves are growing wiser and more demanding. The rapid expansion of e-commerce has revealed the importance of web design and management, as buyers expect an effective, content-rich experience.

Companies continue to feel the organizational impacts of these shifting consumer standards. Cost management, margin, and other pressures have highlighted the need for real-time financial insights and other sophisticated financial management tools. For many retail organizations, these rising challenges have created a new sense of urgency that today’s modern ERP systems may address.

The role of ERP in finance transformation

Enterprise resource planning systems are software applications that integrate an organization’s business processes more efficiently by controlling, monitoring, and coordinating cross-organizational functions as diverse as finance, human resources, and operations.

By enabling greater accuracy, transparency, and accountability, the latest generation of ERP systems can play a role in finance transformation. By incorporating cloud technology, modern data analytics, and artificial intelligence capabilities, these integrated tools may allow organizations to adapt more agilely to a changing business environment and improve the cost-efficiency of their financial management processes.

Other benefits of ERPs include:

• Streamlined financial processes;
• Enhanced data accuracy and reporting;
• Improved compliance and risk management; and
• Scalability and flexibility for growth.

By coordinating analyzing financial operations and facilitating modernization, ERP systems may transform not just the finance function, but an organization’s broader strategic approach.

Why prioritize ERP implementation?

We’re familiar with the varied landscape of ERP products currently available for consumer companies. The latest ERP systems allow for updated business processes and may drive enterprisewide efficiency, positioning your organization for sustainable growth and effectiveness.

ERP systems can enhance the establishment of efficient financial and IT governance controls, which are important for meeting both internal and external audit requirements. They standardize processes, assist real-time reporting, and maintain audit trails, thereby enhancing transparency and accountability. For fast-growing startups, implementing an ERP system is a key step in preparing for acquisitions or going public, as it assists with compliance, operational efficiency, and scalability. Leveraging a cloud-based ERP system can provide other significant advantages for consumer companies, including:

• A unified business management suite;
• Real-time visibility into financial performance;
• Streamlined operations;
• Integrated inventory and order management; and
• Enhanced customer relationship management (CRM) capabilities.

Considerations for CFOs, CIOs, and COOs

Maybe your organization has already decided to implement an ERP system, or perhaps you’re still in the evaluation stage. No matter where you are on your journey, the decision can raise questions for leadership, particularly CFOs, CIOs, and COOs.

These considerations can include:

• Strategic alignment: Does our ERP implementation plan align with our overall business strategy?
• Change management: How do we effectively manage organizational change to discuss smooth ERP adoption and utilization?
• Data migration and integration: What steps can we take to migrate our data effectively and integrate it with our existing systems?

Future-proofing finance

Beyond the potential benefits that a cloud-based ERP system offers for current operations, savvy organizations may consider the future. How could your market change? Could your organization be able to respond with agility in the face of industry challenges, ESG drivers, and continuous innovation? ERP implementation on an organizationwide scale can offer resilience and improve coordination, ultimately driving sustainable growth and operational efficiency.

What role can Deloitte play?

Deloitte has experience implementing and integrating cloud-based ERP insights, offering services that include strategy, implementation, enhancements, upgrades, integrations, and maintenance. We can provide guidance on how to leverage ERP in your response to changing market dynamics and financial pressures. For more information, visit our self-assessment tool on our Finance Function SelfAssess page. And don’t hesitate to reach out to us with any thoughts or questions.