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 businesses now sell through more channels than ever. An ERP system gives that business one place to run from. Here is how the two fit together.

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. That matters for making smart decisions, because it lets you get at important information on demand.

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

• Manage inventory more effectively and reduce waste
• Respond quickly when a customer has an issue or question

ERP Is the Key to Clean Integrations

ERP systems have a wide range of features that can be configured to fit your needs. They are built on a structure that makes it straightforward to integrate with a variety of 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 and with fewer resources. ERP is designed to support that goal by letting you manage multiple parts of your business in one place and by presenting real-time data so you can make informed decisions quickly.

Above all else, ERP helps companies raise customer satisfaction by improving the quality of their products and services while reducing 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 gain better inventory visibility across every channel. The system tracks and manages sales across all of them and shows what inventory is available in real time.

Inventory visibility is critical for retailers who sell on multiple channels, because they need to know what they have in stock at any given moment. They also want to know whether there is enough product on hand 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 what is happening with your 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 noted above, ERP integrates with 3PL providers. When you sell a product through Amazon FBA or another eCommerce platform, your ERP system updates its inventory status to reflect the sale. The same goes for shipments: when a carrier picks up an order and sends it to the customer, that is recorded in your ERP system right away.

Beyond integration with 3PLs and eCommerce platforms, an efficient ERP system can benefit your supply chain in many more 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 run every part of the business, especially one that both manufactures and retails goods through multiple distribution channels such as Amazon FBA (Fulfillment by Amazon).

ERP Gives You Insight into Inventory, Processes, and More

If you own an eCommerce business, you probably have a lot on your plate. You need to run the business and keep up with customer demand. An ERP system can tell you where your inventory is, how much of it 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 demand rises, during the holiday season for example, 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 streamline your order fulfillment by integrating with 3PL providers and giving you real-time visibility into inventory levels. Paired with an integrated eCommerce system, ERP becomes a strong tool for raising efficiency and cutting costs. If you want ERP without running the servers yourself, see our managed ERPNext hosting.