For companies in retail and consumer goods, the choice of an ERP system is a strategic decision with far-reaching implications. These industries are experiencing rapid shifts—consumer expectations are rising, omnichannel sales have become the norm, and supply chains are under constant pressure. In this environment, ERP is not simply a back-office tool. It is the foundation for agility, transparency, and growth.

Selecting the right system requires a careful balance between immediate operational needs and the long-term ability to adapt. The following nine criteria outline what retail and consumer goods companies should prioritise in 2025.

1. Industry-Specific Capabilities

Generic ERP systems often lack the depth required for complex retail and consumer goods operations. The right solution should include integrated modules for inventory and supply chain management, point-of-sale synchronisation, financial controls, and omnichannel operations. Features such as demand forecasting, consistent pricing across channels, and unified customer views help companies optimise resources and deliver seamless customer experiences. Product lifecycle management and advanced analytics are equally important for managing new launches, ensuring compliance, and generating insights that inform strategy.

2. Compliance and Security

With heightened scrutiny on data usage and privacy, compliance is a non-negotiable. A strong ERP system should safeguard sensitive data while ensuring adherence to evolving regulations across geographies.

What to Look For

• Multi-layered security frameworks
• Continuous monitoring for anomalies
• Regular audits and patch updates
• Role-based access control and encryption protocols
• Incident response and recovery mechanisms

Beyond operational resilience, robust compliance strengthens customer trust and brand reputation—critical assets in consumer-focused industries.

3. Operational Agility and Scalability

Retail and consumer goods are industries defined by change—whether it is a surge in demand, the emergence of new channels, or global supply chain shifts. ERP systems must be able to scale seamlessly and adapt to these dynamics. Cloud-based solutions with modular architecture offer businesses the flexibility to add or adjust capabilities as needed, without costly overhauls. More importantly, scalable systems can accommodate higher transaction volumes, expanding product ranges, and integration with emerging technologies such as artificial intelligence and IoT.

4. User Experience and Adoption

ERP adoption often fails not because of features, but because of usability. For frontline employees and managers alike, a system that feels intuitive drives faster adoption and reduces resistance to change.

Best Practices

• Intuitive, role-based dashboards
• Customisation of workflows to reflect business priorities
• Self-service analytics and reporting
• Comprehensive training and onboarding programs
• Ongoing support through help centres or chatbots

A user-friendly ERP bridges the gap between technology investment and real business impact.

5. Reporting and Decision Support

ERP reporting should extend far beyond basic data aggregation. Companies require real-time dashboards, predictive analytics, and the ability to drill down into performance across multiple dimensions—finance, operations, customer behaviour, and supply chain efficiency. Effective reporting equips leaders with insights to identify trends, address risks, and make faster, more informed decisions. In a sector where margins are thin and competition is fierce, the ability to act on data-driven intelligence is a critical differentiator.

6. Interoperability and Integration

ERP should serve as the central nervous system of a company’s digital ecosystem. To achieve this, systems must integrate seamlessly with e-commerce platforms, logistics partners, marketing tools, and other enterprise applications. An API-first approach ensures smooth communication between platforms and avoids the creation of data silos. The result is greater accuracy, improved workflows, and an organisation that operates with a single source of truth across departments.

7. Total Cost of Ownership (TCO)

Upfront licensing fees often obscure the true cost of ERP ownership. A holistic TCO evaluation should factor in:

Cost Elements

• Initial Costs: Licensing, implementation, hardware upgrades
• Ongoing Expenses: Annual maintenance, updates, customisations
• Indirect Costs: Training, productivity shifts during adoption, data migration
• Vendor Support: SLA coverage, cost of additional support services, vendor reliability
• Future Considerations: Scalability, integration with new technologies, efficiency-driven savings

Understanding TCO ensures you avoid cost overruns and assess long-term ROI with greater accuracy.

8. Vendor Expertise in Retail and Consumer Goods

Not all ERP vendors understand the nuances of retail and CPG operations. A proven track record matters. Look for vendors who can demonstrate success in areas such as:

• Advanced demand forecasting
• Multi-channel sales management
• Supply chain optimisation
• Integration of AI and IoT into retail operations

Selecting a partner with industry experience helps align ERP capabilities with strategic objectives—reducing risk and accelerating time-to-value.

9. Future Innovation and Roadmap

Finally, ERP selection should not be based only on present capabilities. It is essential to evaluate the vendor’s innovation roadmap and commitment to future developments. Leading providers are embedding artificial intelligence for predictive analytics, leveraging IoT for real-time monitoring, and delivering continuous updates through cloud-native platforms. Retail and consumer goods companies should look for solutions designed not just to meet today’s challenges but to evolve in step with future market shifts.

Making the Right Choice

In 2025, selecting the right ERP system is more than a technology decision, it is a business-critical strategy that underpins resilience, agility, and customer-centric growth. By focusing on these nine criteria, retail and consumer goods companies can cut through complexity and choose solutions that align with their operational realities and long-term vision.

ERP selection is a defining moment in the digital journey of every organisation. Approached with clarity and foresight, it can become the foundation for operational excellence and sustained competitive advantage.