Benefits of ERP system and e-commerce integration
There are a lot of solutions that e-commerce can implement to increase the efficiency of all the processes related to business management. ERP system is one of the first solutions that can ease the business management while improving the processes operation.
ERP is an enterprise resource planning system that allows for the automation of most commerce processes. It collects, stores and manages data from business activities making the management of the business much easier. Most ERP cover the same functional areas but custom made system allows for modifying all of them to suit the industry and products better. The main modules of ERP include:
- Finances and budgeting
- Human resources
- Manufacturing
- Order processing
- Supply chain management
- Customer relations management
- Data processing
In all these areas the processes could be very complex and a single mistake could cost the business a lot. Therefore the integration of the ERP system can help avoid the risk of error or miscalculation.
Reduction of human error and data redundancy
Managing a business means a lot of complicated and time-consuming processes that involve some level of risk that the data could be handled wrongly. The product could be shipped to the wrong address, the wrong bill could be issued, the product information could be incorrect or incomplete, all this has its impact on the user experience and their trust in the company. Removing the human factor and introducing the process automation makes the data handling much easier and less risky.
Better use of costs
Although the integration of the ERP system could be pricy the automation of most processes allows for the reduction of costs that are otherwise spend on re-shipping products, refunds, and inefficient inventory management. With ERP you could clearly see where the money is going and why it’s going there. You then can re-plan the inventory and human resources organization to make the most profit for minimum expenses.
Scalability
Implementing the ERP system can help to scale and grow the business. Automation shows what works well in your processes and what you can change to do better. Also the available financial and other reports allow you to see where there is the room for growth and how the automation can help to do that.
Increased customer satisfaction
Automation of order and data processes allows you to provide your customers with real-time updates about their purchases and helps to eliminate their dissatisfaction with the company’s services. The availability of relevant information improves the customer experience and builds relationships based on trust and respect.
Better control over business
ERP system gives a clear understanding of all the processes taking place in the company. Furthermore, if your business operates online and offline ERP allows you to manage both sides of your company from one place. Integration with e-commerce processes improves the communication between different departments of the company making it more efficient.
Despite the obvious benefits of integrating ERP system most businesses hold back on introducing the system into their business flow. Due to the high costs of ERP, smaller companies can’t effort the automation it provides. Also, most firms already have their processes systematized, therefore, don’t see the need to implement the new system to replace the old one. However, in the long run, the ERP system can save more money than it costs and speed up different processes related to business resources management.
