Does an e-commerce solution require an ERP connection

Every company struggles with the same problem – many departments only do their day-to-day business with an eye on their own work item. Especially companies that rely on e-commerce and have built an important pillar there are dependent on being able to access the latest developments and information promptly.

In the e-commerce sector in particular, company sales often grow very quickly and it is important to keep track of things. Once a certain sales volume has been reached, many companies reach their limits and find out about the connection of ERP systems to their online shop solution.

What do you need an ERP system for?

An enterprise resource planning tool (ERP) is required if individual business areas want to gain a better overview of business activities. An ERP system can centralize individual departments and each individual employee can call up the information they need for their business activities.

With quick access to all information, all departments can study and evaluate individual components of the e-commerce business area and draw conclusions. An ERP system centralizes the departments of marketing, purchasing, sales and inventory management and allows important business decisions to be made through the information content.

Why is an ERP system particularly important in the area of ​​e-commerce?

For an e-commerce shop to be a successful basis for business, it must keep growing and attracting new groups of buyers. At a certain point, however, the question arises within the company whether all processes are really efficient and a successful workflow is in place. If the processes are not precisely defined, financial losses will occur, which will inevitably arise from a lack of communication and incorrect resource planning.

The entrepreneur has to question whether data still has to be entered manually into the shop, whether current information is laboriously obtained and thus a time problem arises, or whether the reporting cannot be kept up-to-date. An ERP system supports an e-commerce company , to keep an eye on current developments within the shop and to be able to react immediately to any bottlenecks. Processes and workflows in the area of ​​e-commerce are decisively improved by the ERP software. In particular, the inventory is optimally managed in an ERP system. Stock levels can be called up in real time and any product bottlenecks can be noticed and compensated for immediately.

If the desired goods are available, this is registered in the system as an order and the goods are thus marked. The shipping address, the individual packing slip and the shipping label are then generated automatically. After the successful order from the online shop, the ERP will reduce the inventory. If the inventory has dropped to a defined level, the purchasing department receives an automatic message and can check and carry out new orders.

If an e-commerce company works with several shops, an ERP system is usually unavoidable, as the complexity of the order processes prevents a precise overview.

What other advantages can my e-commerce shop gain from an ERP?

An ERP system is not only an overview tool that warns and informs purchasing and sales about desired ordering processes – the ERP software also serves to secure customer data, which can be managed centrally. By connecting to a CRM tool, customer data can be used in various ways. By using the ERP solution, many processes within the ordering process are automated, which leads to cost savings and relieves employees in the long term.

Better communication between the individual departments improves processes, optimizes workflows and automates some workflows. In particular, the effective cooperation of the workforce is promoted and the tracking of orders, the control of stock levels and the evaluation of sales are made possible from a central system. The controlling department benefits from a central ERP, as all company processes within the e-commerce shop come together here. This makes work easier and reports and analyzes can be requested directly from the system.

In this way, across departments, all employees receive all internal company information from a central system. Through this simplification and automation, new requirements can be scaled better and the shop can grow steadily with the ERP system.

ERP implementation – what do you have to consider?

If the introduction of an ERP system is planned, there are a few things to consider. It is important that the shop allows a connection to the ERP. Systems such as Magento, Shopware or Shopify offer these interfaces and work together with the most common ERP systems.

If there is no IT department, you should seek advice from a specialist who will also take care of the maintenance and support of the ERP software in connection with the shop.

Security standards with regard to the GDPR should also be observed here. Of course, the financial aspect must also be taken into account, but in a successful e-commerce shop, amortization will be achieved relatively quickly with an ERP.

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