What to consider when integrating an online shop with an ERP platform

In life, as in business, making decisions becomes more difficult because the scope of action is large, and the choice is not easy. 

Therefore, when running an online store, you should think about the ERP system. The operation of companies depends on the implemented systems and their functioning.

However, the most important thing is that the technologies used complement each other and increase the scope of action in many areas. Integration of systems and tools is undoubtedly the key to success.

What will help in building the success of the company is the ERP system. It has a number of solutions that are adapted to all areas of work and ensure compliance with the law.
 

What is the ERP system?

ERP (Enterprise Resource Planning) is an enterprise management tool. The “Resource Planning” comprises control, and management of resources and processes in many business departments of the company.

ERP allows for coordinating several areas, for instance as accounting and finance, sales, document circulation, warehouse, HR and payroll, reports and analysis, production, budgeting, and planning.

Modern enterprises operating in the e-commerce industry will undoubtedly appreciate the features and stability of ERP software, which organizes the work of individual departments of the company. An integrated ERP system helps in collecting, storing, and analysing data that comes from different areas of the company's operations.

The most important feature is to collect all this data in one database. In addition, the software can be expanded with other dedicated solutions, which gives the opportunity to adapt it to specific processes taking place in the company.

The ERP providers guarantee security in running a business by ensuring compliance with changing legal regulations.
 

Company's ecosystem

The determinant of the flexibility of ERP technology is the modular structure. The system guarantees that components and functions that will be used in each industry are carefully selected.

As a result, it fits perfectly into the individual needs of the company. ERP is a tool that does not disrupt the company's ecosystem but organizes it.

It has the function to integrate and merge data with already existing IT infrastructure elements in the company. The implementation of optimal and effective integration requires a good programming interface (API).
 

Stability and safety

The right ERP programming architecture makes the solution scalable. Thanks to this, it can adapt to the size of the company, the specificity of processes, and the structure of business. The increase in the number of users and the amount of data does not concern its speed and stability.

The ERP system provides full support for the company that comprises ongoing updates, expert consultations, system development, troubleshooting, extension with additional functional modules, maintenance, and backup.
 

Mobile ERP

Mobile devices, such as popular smartphones, cover more and more areas of our lives. Therefore, an important feature of the ERP system is its mobility. Modern projects are available as web apps and cloud technologies.

The use of RWD allows for adapting the user interface on levels of shape, size, and resolution of the screen on which it is displayed. It also provides a possibility of adjusting it to touch screens so that it can be used with the mouse, keyboard, and touch panel.

Some ERP mobile applications can work offline and often use GPS to facilitate work outside the office. ERP, as a complex solution, ensures proper management of the company in many aspects. How does it work in areas that are important from the point of view of product sales?
 

Warehouse management

The implementation of ERP software in the warehouse opens the way to the digital transformation of logistics processes.

The use of this solution in warehouse management brings a number of benefits, such as efficient implementation of dispositions, elimination of mistakes, and control of inventory levels.

Through the logistics module, there is access to such extensions:

• Logistics disposing – supervision of the released products, operating barcodes, and improving the order completion path in the warehouse.
• Quality control – sorting errors in terms of their frequency, printing labels on damaged goods.
• Logistics units – managing receptions, releases, and warehouses, organizing logistics, information on the content, and location of logistic units.
• Mobile warehouse – synchronization with ERP, planning of work time and distribution scope, communication between warehouse workers and managers.
• Releases and receptions – control over receptions, creation of an automatic plan, supervision over releases and receptions of goods.
• Statistics and reports – summaries, detailed statistics, operator work reports.
   

Sales prices and discounts

Companies that operate in markets where there are price changes should implement the assumptions of flexible pricing strategies. This gives them a chance to keep the interest of buyers. The key issue in creating a pricing policy is whether the company offers products and services only to B2C customers or also to B2B ones.

In the ERP system, the entrepreneur can define different sales and purchase prices, and assign a percentage discount amount. An important function is to connect prices and discounts with appropriate commercial, accounting, and marketing processes. This guarantees transparency and consistency of use.
 

Business partners

An important element of any system is data about buyers, which can be stored in ERP. This is especially important in the case of B2B sales, where a given contractor can buy both in an online and stationary store.

If both technologies work based on one ERP system, then this is an ideal place to combine all the purchases in one account. Customers logging into the profile on their store have access to history of all the invoices and payment terms.

On the other hand, accounts with the highest number of overdue payments may be blocked.

This is an effective solution for automating processes, verifying data about customers and their payments, as well as eliminating problems with lost invoices.
 

Orders

Orders in the ERP system comprise data that informs, among others, about commercial documents to be issued, their correctness and availability, the place of origin of a given product, and ways of dealing with sets of products.

However, for everything to work smoothly, the time needed to send the order to the ERP is important. The sooner it is sent to the system, the lower is the risk that the shipment will not be completed in time, which may have a negative impact on the further stages of the process.
 

Invoices

No matter who our customers are or where they buy from, everyone should have access to their transaction history. The online store should become a place where customers are able to verify their orders – purchased products, dates of issuing invoices, due dates, whether the order has been paid, or not.

Integration with the ERP system provides a possibility of verifying the time for payment of documents, and, as it is not made on time, automatically blocking further purchases for B2B. In addition, some ERP systems allow for sending reminders to contractors about the outdated payments based on the dates of the invoice.

Depending on the characteristics of the company and the objectives of the ERP system implementation, the entrepreneur obtains several benefits:

• Automation of mechanical and repetitive activities,
• Time savings,
• Improving customer service and quality control,
• Fast decision making with reports, summaries, and diagrams,
• Increasing work efficiency,
• Easier access to information,
• Automation and unification of procedures,
• Optimization of production processes Improving data security,
• Optimization of inventory.

ERP systems play a key role in ensuring a more efficient functioning of online business. They not only centralize information about resources (products) and sales, but also automate processes taking place in the enterprise, thus increasing the efficiency of all employees.

Sellers, saving time on manual order processing, can give more attention to deepening relations with customers and creating the image of their company.