ERP and Ecommerce: The Perfect Match

The world of retail is changing. The internet has made it easier than ever for consumers to shop from home, and ecommerce keeps growing. Here is how an ERP system fits in.

It All Starts with Data

One of the most important things to remember about ERP is that it is first and foremost a data management tool. You use it to collect and store information about your business.

This is essential for making smart business decisions, because it lets you access important information on demand.

ERP also helps you organize and analyze data so you can make better use of it in everyday operations. For ecommerce, this might mean using ERP software to:

• Manage inventory more effectively and reduce waste
• Improve customer service by responding quickly when a customer has an issue or question

ERP Is the Key to Integrations

ERP systems have a wide range of features that can be customized to fit your needs. They are built on a structure that makes it straightforward to integrate with third-party logistics (3PL) providers.

ERP Systems Help You Improve Your Business Processes

ERP systems can help you automate business processes, reduce errors, and improve the customer experience.

They can also help you increase productivity. Everyone wants to get more done in less time with fewer resources. ERP software supports this goal by letting you manage many parts of your business in one place and by presenting real-time data so you can make informed decisions quickly.

Above all, ERP systems help companies raise customer satisfaction by improving the quality of their products or services while cutting the costs that come with poor service delivery.

Retailers Who Sell Through Multiple Channels Get Better Inventory Visibility with ERP

Because ERP is so versatile, you can use it to see inventory across all of your channels. The system tracks and manages sales across each channel and shows the inventory that is available in real time.

Inventory visibility matters for retailers who sell on multiple channels, because they need to know what they have in stock at any given time. They also need to know whether there is enough product for fast shipping or immediate customer pickup. With ERP, you can use data analytics and business intelligence tools to make sense of your data and get a clear view of your product inventory.

ERP Integrates with Third-Party Logistics for Order Fulfillment

If you need to manage inventory and fulfill orders, ERP can help there too. As mentioned above, ERP integrates with 3PL providers. When you sell a product on Amazon FBA or another ecommerce platform, your ERP system updates its inventory to reflect that sale. The same goes for shipments: when a carrier picks up an order and sends it to the customer, the event is recorded in your ERP system.

Beyond integration with 3PLs and ecommerce platforms, an efficient ERP system can help your supply chain in many other ways related to inventory management and fulfillment. Whether you use automated purchasing tools or a warehouse management system (WMS), having all of this data in one place helps every part of running a larger business, especially one that both manufactures and retails goods through multiple channels like Amazon FBA (Fulfillment by Amazon).

An ERP System Gives You Insight into Inventory, Processes, and More

If you own an ecommerce business, you have a lot on your plate. You need to run the business and keep up with customer demands. Your ERP system can help you understand where your inventory is, how much you have, and how long it will take to get more.

ERP can also show you how long it takes to fulfill orders. When customer service and support demands rise, for example during the holiday season, part of that problem is already solved, because ERP already knows how long each step in the fulfillment process typically takes.

Conclusion

If you are in retail, you know what it is like to have orders flowing through multiple channels. ERP can help you streamline order fulfillment by integrating with 3PL providers and providing real-time visibility into inventory levels. Paired with an integrated ecommerce system, ERP becomes a strong tool for increasing efficiency and reducing costs. Parsimony runs managed ERPNext hosting for retailers who want that setup without running the servers themselves.