Should you add an ERP to your e-commerce?

E-commerce is currently booming. Are you planning to launch an e-commerce site too, and are you wondering whether or not to connect an ERP? To meet your customers’ needs, you need to constantly improve your operations, and that’s exactly what Enterprise Resource Planning allows you to do. So, should you integrate an ERP into your e-commerce? What are the real advantages and disadvantages of this approach? Let’s explore the answers to these questions in detail!

What is ERP and why is it important?

ERP (Enterprise Resource Planning) is software designed to manage an organisation’s various business processes. It covers modules such as sales management, stock management, customer relations, production, human resources and order processing.

All these functions are centralised in a single database, which is updated in real time thanks to the transactions carried out by the users concerned. This means that each department always has access to up-to-date, reliable data. ERP is therefore an effective management solution that boosts an organisation’s workflow, improves data consistency and reduces error rates.

The importance of ERP in e-commerce

E-commerce ERP plays an essential role in coordinating back office operations and online sales. ERP makes it possible to centralise data from multiple sales channels, i.e. physical points of sale and online platforms. This solution also makes it possible to respond to requirements in real time, for efficient workflow management.

There are many different types of ERP, from stand-alone systems to cloud ERP solutions. As a decision maker, you need to assess the specific needs of your business before selecting an ERP. We’ll look at the criteria you need to take into account later in this article!

What’s more, B2B companies can benefit greatly from e-commerce ERP integration: their needs are often more complex than those of B2C companies due to higher transaction volumes and sophisticated sales processes. An integrated ERP can help streamline operations, improve stock management and provide better customer service. 

The advantages of integrating an ERP with an e-commerce site

Speed up workflows and avoid errors

If your e-commerce site is not connected to an ERP system, you will have to manually re-enter orders in your ERP system in order to start preparing orders and generating delivery documents. Similarly, once payment has been made on the site, you will need to re-enter the transaction in your sales management or accounting modules.

Integrating these systems can save you a lot of time by reducing unproductive tasks and avoiding data entry errors. What’s more, information on delivery progress can be automatically fed back to the e-commerce site: a crucial point for increasing customer satisfaction and eliminating the need for them to contact you to find out the status of their order. 

Increase customer satisfaction

Customers now expect to know the availability of products in stock, particularly if they have a choice of delivery methods (including point-of-sale collection). To keep stock up to date and avoid disappointing your online shoppers, it is crucial to connect an ERP to an e-commerce system to optimise stock management.

What’s more, it’s essential that prices and promotions on items are up to date on your website! By integrating your e-commerce site with your ERP, you can automatically update the product sheets with this information, which is essential for customers.

Finally, the customer file also needs to be synchronised so that you can be quickly informed of changes of address, for example, and so that customers can have up-to-date information on the website to track the progress of their orders.

Facilitating customer service

If you’re handling customer requests with dedicated service software, it’s essential to connect it to your e-commerce site, because customers are increasingly demanding and expect you to have access to all the information in real time.

Thanks to an ERP connection to an e-commerce site, you will be able to know the history of each customer. You can also set up a live chat to talk to them and guide them through the ordering process.

Limits and challenges of ERP-Ecommerce integration

Of course, like most solutions, e-commerce ERP also has a few limitations that can slow down its adoption: 

• High initial costs: implementing an e-commerce ERP can require a substantial initial investment. Costs include software purchase, licence fees and integration costs.
• Implementation time: ERP integration and implementation can take a considerable amount of time. During this period, the company may experience disruption to its day-to-day operations.
• Staff training: adopting a new ERP system also requires staff training, which can lead to additional costs and adaptation time.

How do you choose the right ERP for your e-commerce business? 8 criteria

If you’re convinced you need to integrate an e-commerce ERP into your business, you still need to choose the right tool! To help you in this process, here are the 8 criteria you absolutely must take into account: 

1. Your specific needs: identify the crucial functionalities you require and think about the particularities of your e-commerce activity (e.g. whether you operate in B2B, B2C, or both).
2. ERP functionality available: make sure that each solution offers the functionality you need to manage your business effectively and that the solution can be easily integrated with your e-commerce site.
3. Ease of integration: technical compatibility is crucial to avoid problems during implementation and to ensure smooth data transfer.
4. Customisation options: every business has unique needs. Customisation options allow you to adapt the system to your business processes and preferences.
5. Scalability: choose an e-commerce ERP that can grow with your business. If you are planning rapid growth or expansion into new markets, the ERP must be able to adapt to these changes without requiring a complete overhaul of the system.
6. Total cost: take into account the initial purchase cost, as well as licence fees, integration costs, training and maintenance. 
7. The user experience: the interface must be intuitive and easy to use for your teams. A complex solution that is difficult to use can slow down adoption by your employees and reduce operational efficiency.
8. Technical support: reliable technical support is essential to quickly resolve any problems that may arise. Check the support options available (telephone, email, chat), as well as the hours of availability.

How do you connect an ERP to e-commerce?

To ensure the successful integration of your ERP with your e-commerce site, and thus improve the efficiency of your operations and the satisfaction of your customers, here are the steps to follow : 

1. Select a compatible ERP: It’s essential to choose an ERP that integrates easily with your e-commerce site and meets your business management needs.
2. Plan the integration: Define the stages of integration, including the processes to be automated, the data to be shared between systems, and the timescales involved. Will you need to create customer accounts on your B2B e-shop, update customer-specific prices, etc? 
3. Check the quality of your data: before sending data such as the customer base, prices and stock, make sure that this information is correct at the time and reliable over the long term. This way you can avoid sending incorrect information.
4. Configure the integration: configure the e-commerce ERP settings to work seamlessly with your e-commerce site, using third-party software connectors or developing a custom solution.
5. Test the integration: make sure the integration works as expected by carrying out rigorous tests. Test both internally and with a real customer to verify the customer experience.
6. Deploy the integration: don’t forget to communicate the procedures and rules to be followed to your teams to ensure effective management.