Table of contents
Frequently Asked Questions
ERPs and why you Absolutely Need it for E-commerce
Although e-commerce and ERP systems are linked, they do not perform the same functions. Enterprise Resource Planning (ERP) software integrates a company's various processes and procedures into a single integrated system. This platform enables the collaboration of several business management apps.
ERP systems convert client orders into shipment requirements, which include products, inventories, supplier relationships, outstanding payments, and a great deal of information about requirements and delivery. They may also keep track of consumer information and the methods by which new customers are gained. Your e-commerce website will be more managed and organized with a simple singular system and procedure after you use ERP software. And that's only one of the many benefits you can potentially get from ERP integration. Here is a comprehensive list of the positive opportunities ERP and ecommerce integration can provide:
Accessible by Most Business Types
Enterprise Resource Planning systems were formerly only utilized by large worldwide retailers dealing with many channels, multiple suppliers, and multiple staff. But in today's competitive e-commerce climate, even a small store may find itself in need of a system that can consolidate data from each of these sources and enable the kind of fast, automated operations they require.
You're missing out
Now, you may be concerned about possible business disruption or excessive expenditures, yet Enterprise Resource Planning is now easier to adopt and more cost-effective than ever before. In fact, if you don't incorporate ERP solutions into your company, you'll be missing out on greater customer service as well as more control over your sales and marketing tactics.
Better Customer Experience and Relationship Management
Customer service concept
CRM elements are built immediately into ERP solutions, offering you a complete picture of your business. The provided information can include a customer's order history, contact information, feedback, prospect status, and purchase history. E-commerce organizations may use these features to create a single repository of consumer information, allowing your personnel to better tailor sales leads based on previous sales and demographics.
Automated process visibility
Some ecommerce ERP integration applications also automate the process of tracking shipments and notifying customers when a product has arrived at its destination. By optimizing these processes, your business can leave a more favorable impression on customers, resulting in a higher customer retention percentage in your ecommerce platform.
Smooth customer relationship management
Even the most time-consuming buyers can usually answer their own questions if your e-commerce and ERP systems are integrated. So that your customer service personnel doesn't get bogged down, the system delivers the level of detail required for most day-to-day questions.
When a problem must be escalated to a customer care representative, that representative can use the system to provide even more detailed answers to customers' questions. Clients are happier, and so are your staff. All these factors contribute to a successful ecommerce business.
Inventory and Supply Chain Management
One of the main reasons why many businesses mix their e-commerce and ERP systems is inventory management. Inventory updates are continually happening when the two systems share information. There is never a time when something is out of stock. You will not have any surplus inventory. From the receipt of raw materials to the delivery of the finished product to the consumer, each product is traced throughout its entire life cycle. Everything works together in a unified manner.
No more chaotic supply lines
This eliminates inventory management issues like shortages, outages, mix-ups, and a lack of communication. Your company's inventory management is transparent from beginning to end. Any problem that emerges is simple to recognize and overcome.
Inventory management is also one of the most important components of ERP e-commerce solutions. E-commerce ERP may help you gain vital insight into the effectiveness of your supply chain by tracking inventory, demand, transportation, and distribution automatically.
You may also leverage the reports and real-time data to better your inventory control by having it recommend work orders, purchases, and transfer orders among your locations.
ERP system provides accurate inventory levels
The volume of sales and the number of products offered through online enterprises are two elements that distinguish the needs of e-commerce businesses from those of brick and mortar retail sites. As a result of the large volume at which e-commerce businesses operate, it's easy to make mistakes.
This necessitates the accuracy of inventory levels. In this type of business environment, speed and accuracy are critical. So, an ERP system that provides real-time data is essential for a successful e-commerce business.
Real-Time Data and Insights
E-commerce ERP can help with reporting, which is one of the most important components of any organization. ERP modules compile data about a company's operations, allowing management and other key stakeholders to make better decisions, improve processes, and spot threats and problems.
Your software solutions will operate in a vacuum if you don't have access to real-time, accurate financial data. This is why E-commerce ERPs include financial management and accounting capabilities as a basic feature.
Centralized data migration and distribution
Financial data is essential for centralizing processes and establishing effective forecasting models, so you can prepare for material reorders and delivery lead times.
Web sales order processing and inventory control will be combined with reporting and financial management in the most advanced e-commerce and ERP software.
Information may flow easily between an SME's team members by centralizing all transactions and procedures within a single system, ensuring that everyone has access to the same, accurate, and up-to-date information.
There are numerous accounting and ERP systems available, but not all of them are created equal. Some simple bookkeeping systems, for example, allow users to keep track of stock items and figures but do not link with a website or e-commerce platform. Small businesses must look for a fully integrated e-commerce and ERP software system.
Stabilize Your Scalability
A successful business will naturally expand as long as it can handle higher amounts of traffic and sales while maintaining the same degree of efficiency. This can be accomplished by putting in place the appropriate scalable e-commerce solution.
A company with poor inventory control would normally be strained by a sudden influx of orders. However, once your combined system is in place, you'll be able to take advantage of the opportunity to complete every order, even during the busiest season of the year.
It will be simpler to expand the company as a whole. When demand is high, scale up the business, and when demand is low, scale back.
Reduced Operational Costs
Operational costs are greatly reduced when ERP ecommerce integration occurs. You can automate numerous manual operations and decrease human errors by integrating your e-commerce platform with an ERP solution. There's no need to engage additional workers to change items, prices, or photos on your e-commerce site.
Automate back office processes
Without any close human intervention, automatically download orders, update fulfillment information, and charge the customer's credit card. This integration not only lowers labor costs but also lowers the hidden costs of human errors.
Web orders, shipping and payment information, and customer information can all be integrated into your ERP system. With real-time data on inventory management, this lowers information redundancy, human involvement and error, and unnecessary costs.
You can also simplify your HR operations. ERP solutions can handle payroll, track the hiring and onboarding process, measure timekeeping, and keep track of vacation accrual and days taken. You can also automate your tax and benefits deductions with some more advanced ERP solutions.
Minimize Human Error
Employees find mistake
Redundancy and mistakes can emerge when data is dispersed across multiple systems and networks that are unable to communicate with one another.
It's tough to have workers update the same file for each network system over and over again because there could be multiple versions of the same file with different information.
Virtually no errors
ERP, on the other hand, consolidates all data into a single, centralized system that can be accessed across the organization. Orders and customer information are promptly linked into the ERP thanks to the linkage, which includes payment and shipping information. Database information and inventory are also immediately transferred from the ERP solution to your system.
As a result, human involvement is considerably reduced, as is the possibility of entering duplicate data or inaccurate information by accident. Employees obtain the information they need to be more productive with their work when data is updated in real-time. Furthermore, accountability is now a factor because any changes can be documented and monitored.
Improved Communication and Information Flow
ERP solutions have interactive features and tools enable easier communication within the firm and within project teams, ensuring that no one gets left behind. Employees can quickly access the information they need to complete their responsibilities, reducing knowledge-based errors.
Furthermore, when it comes to modifying corporate regulations or resolving challenges, employees and managers have more control. They can communicate these modifications to the entire workforce, reducing rule-based errors.
Faster data sourcing
Connecting your ecommerce business to your ERP solution also allows you to collect all data in one location, eliminating the need to acquire data from numerous sources. This provides a major benefit in terms of advanced analysis and reporting, which leads to better forecasting, consumer comprehension, and data-driven marketing strategies.
Have complete control
You may also create a balance sheet on your profitability or product cost pricing more easily and clearly. In other words, you have more control over your business processes. The e-commerce ERP solution allows you to develop your business more efficiently and provide better customer service by tracking and automating the interactions between your data flows.
In a nutshell, it aids in the development of customer loyalty and the maintenance of record-breaking online sales.
As discussed earlier, ecommerce businesses face major issues without integration, such as error-prone data entry, out-of-stocks, and delayed fulfillment. Poor customer experiences will result in lower ratings, bad reviews, and fewer sales as a result of these difficulties.
On the other hand, you may automate your business operations by combining diverse cloud applications and data sources. This means less overhead, higher conversion rates, faster processing, and real-time financial and order data insight.
Integration of an e-commerce ERP system also aids in the expansion of a business. You can reduce time-to-market by creating a system architecture that combines your ERP solution with your expanding e-commerce sales channels and warehouses.
How to Start E-commerce ERP Integration
When you have data in an ERP system, you'll often want to push data from the ERP to your website, as well as transfer data back from the ERP to the website.
Determining the exact data points you want to send in both directions at the start of the project will not only make it simpler, but will also allow you to get an accurate price quote.
Consider getting a partner
Certain data points will necessitate not just data transfer but also logic and business rules to process the data. Before you start throwing data around from one area to the next, think about all of the potential issues and business regulations you'll need to consider. An ERP integration partner that has worked on these integrations before will be able to point out the common pitfalls.
Talk to the Right People
Now that you know what data you'll be dealing with, the following step is to figure out how the data will be conveyed technologically. ERPs can frequently send and receive data in a variety of formats. The easiest way to figure out what technology to utilize is to hold a conference call with your staff and the ERP solution business you plan to hire. With the appropriate individuals on the phone asking the correct questions, a lot can be determined!
Running an ecommerce business store may appear simple at first, but as your business grows, the challenge can become more difficult and time-consuming. Small details start to slide between the cracks, and it's aggravating when you lose consumers due to avoidable errors.
You can quickly take your ecommerce business to the next level by integrating your e-commerce system with ERP software. You can view everything in one spot since all of the info you need is linked together.
You're ready for an ERP if you've progressed beyond the 'packing orders in your living room' stage of your firm. You may focus on product development and business growth with all of the extra time you'll soon have.