The Relationship Between ERP and eCommerce

Many organizations are modernizing their eCommerce processes by implementing more strong eCommerce features and integrating them with their ERP system if they are not already built-in. As an outcome, organizations are capable of transforming their ERP system into a more multi-faceted tool.

Today, we’re taking a closer look at how ERP and eCommerce are associated. We’ll also share ideas for selecting an eCommerce solution.

What eCommerce Functionality may be Integrated With ERP Software?

Enterprise software service providers provide a wide range of applications and features that are related to eCommerce companies. You also can purchase a separate eCommerce platform, but performance shall be restricted unless you combine the platform along with your ERP.

Let’s evaluate which ERP eCommerce features to prioritize:

1. CRM

A customer relationship management (CRM) platform permits eCommerce retailers visibility into each side of their sales cycles. This allows them to offer more focused and customized customer support, which may enhance satisfaction levels and retention rates.

A CRM system provides eCommerce corporations insights into the behaviors, preferences, and interests of their customers. The tool provides a 360-degree view of the customer’s buying habits and search inquiries.

The top 10 ERP systems featured in our latest report include CRM performance that’s directly related to eCommerce retailers. Learn more by downloading our report.

2. Finance

Accurate, up-to-date financial data is vital for enterprise decision-making. This is why most ERP software incorporates financial management and accounting tools as their core components.

Centralizing retail processes and developing forecasting models require financial insight. This helps them plan for vital reorders and anticipate supply lead instances. It additionally provides them entry to monetary knowledge that helps them decide which distributors they need to work with, or which customers nonetheless hold a balance on their accounts.

For this reason, many retailers already use some type of accounting software to assist them sustain with the monetary aspect of working their firm. If this is the case, it’s good to integrate this performance with an ERP platform. This way, the data may be shared throughout departments with ease.

3. Inventory Management

As retailers proceed to grapple with the realities of a post-pandemic financial system, they are finding that inventory problems are among the most outstanding of their considerations. Even top names in the industry have discovered themselves with inventory ranges that often exceed sales positive aspects.

Online corporations are in a very sticky spot, as eCommerce companies usually have increased volumes of sales and a greater variety of products available. Mistakes are more likely to occur when operations are so fast-paced.

This is why, from a functionality standpoint, order management and inventory management are the most important capabilities for an eCommerce owner. They need the ability to satisfy orders as quickly as a buyer purchases an item from their website. Their inventory levels must be fully visible in order to achieve this balance.

In this highly aggressive area, velocity wins. Companies that can rapidly complete and ship orders are favored over those with process inefficiencies.

4. Shipping and Distribution

Many online corporations have an enterprise model known as drop delivery. In brief, which means that the retailer first sells a product online. Then, they order that product from a third-party vendor, and the seller is liable for delivery the merchandise to the client.

Over the previous few years, this has turn out to be a well-liked different to conventional stock administration. It permits retailers to supply a bigger number of gadgets to their prospects without having a bigger warehouse.

When organizations integrate ERP and eCommerce, they’ll improve this process. The ERP perform provides visibility into present inventory levels and permits retailers to trace their shipments to make sure immediate delivery and customer satisfaction.

How to Select an eCommerce System

If you already have an ERP system but need a dedicated eCommerce system to increase the present eCommerce-related features of your ERP, here are a few areas to ask about when you meet with each vendor.

1. Scalability

When working with organizations through the software selection stage, our ERP consulting services concentrate on software scalability. This is because the ERP solution you choose should have the ability to develop as your enterprise grows. This is true of eCommerce solutions, as properly.

Many retailers are choosing software-as-a-service (SaaS) eCommerce solutions for this very reason. These subscription-based platforms let you buy a base package deal whenever you just beginning out, and then improve to more enhanced features as required.

For instance, you may decide you need to enable customers to trace the delivery status of their orders. You can simply add this performance to a scalable eCommerce solution.

In a SaaS solution, all hardware and infrastructure are housed by the provider. This lowers your inside working costs so you’ll be able to concentrate on rising your enterprise.

2. Accessibility and User Friendliness

Customers will access your eCommerce website from a variety of totally different gadgets. The user interface (UI) must be cohesive and user-friendly on each of them.

We suggest testing the UI yourself to see how easy it’s to use. You also can access a demo version and try it on varied gadgets to make sure all of the features and capabilities look and operate as they should.

3. Payment Processing

Most eCommerce programs don’t process customer payments at checkout. Instead, many come out-of-the-box with payment gateways that connect your system to a serious bank card company.

While most programs have this feature, it isn’t common throughout the board. Ask every vendor about available payment gateways. While they may be slightly higher-priced, it’s usually more expensive to construct your individual customized cost connector for every cost methodology you need to accept.

4. Multi-Channel Capability

Is eCommerce only one part of your higher retail technique? If you add function to a brick-and-mortar retailer or promote by means of social media, you want a system that may deal with all of it.

Ask concerning the multi-channel capabilities of every system you take into account, particularly in case you plan to combine it with ERP performance. The answer ought to can help you look up stock, recall orders, and edit capabilities throughout channels.

The Relationship Between ERP and eCommerce

By combining ERP and eCommerce functions, retailers can optimize their operations and achieve higher visibility into every facet of their enterprise.

On the eCommerce aspect, retailers have the instruments they should promote their products, settle for payments, and process orders. On the ERP aspect, retailers have the executive capabilities that many eCommerce systems lack, together with cross-department communication, inventory management, supply chain management, and more.

Now that you know how ERP and eCommerce are associated, contact our ERP implementation consultants beneath to debate your strategy and objectives earlier than you start software program choice.