Why Is It Key To Integrate E-commerce And ERP In SMEs

Why Is It Key To Integrate E-commerce And ERP In SMEs

The growth of electronic commerce and the appearance of new business models mainly derived from the pandemic are accelerating the globalization of the economy. The integration between ecommerce and ERP helps increase sales and reduce costs basically because the error rate is minimized by automating many tasks, using the single data, and facilitating the two-way exchange of information. 

The integration between ecommerce and ERP helps increase sales and reduce costs. “the interaction between ecommerce and ERP drives the reorganization of business processes, but requires that both solutions be designed to be able to do so.” 

In general terms, the integration of ERP software and e-commerce platforms improves accounting management, cash flow, and, of course, the entire business process – inventories, suppliers, sales, warehouse, etc. But, the key question that SMEs that operate in a digital commerce environment should be asked is the following: why does integrating both systems increase the efficiency of processes?

  • Avoid the loss of information and the generation of silos. Automating functions in an integrated way minimizes duplication of tasks, reduces the margin of error, and shortens the time spent on studies of little value.
  • Allow information to flow freely. For the virtual store to work well, the data must circulate bi-directionally between the ecommerce platform and the ERP.
  • Facilitates order management in all its phases by synchronizing information and making the process faster and safer. All information on stocks and replenishment will be online and visible.
  • Simplifies the monitoring and control of collections and payments. When placing an order on the ecommerce platform, the information on billing and collection is automatically passed to the ERP. There is no need to re-enter the data manually. Receipts and payments can be tracked and workflows set up, for example, to claim outstanding invoices.
  • Optimizes stock management since the ERP updates the availability information in real-time after each order made in the online store. This eliminates the risk of not fulfilling orders due to lack of stock or substantially increasing costs due to accumulating too much inventory.
  • Improves customer relationship management. In this sense, if the organization optimizes, supplier management can offer better prices, promotions, and delivery conditions. The relationship is direct: you can sell at higher discounts and broader margins if you control costs. But, the benefits for the customer are even more significant. With connected solutions, your information is always up-to-date and available by operating with a single centralized database. The contacts created in the e-commerce platform are added directly to the ERP customer base. Therefore, it is easy to modify or consult, for example, the purchase history. And, thus, offer a better service. In short, a better knowledge of the customer, better service, and a more detailed follow-up positively impact their shopping experience.
  • Also Read: Digital Tools To Manage Your E-commerce


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