A One-stop Guide to eCommerce Website Integration with ERP
When your eCommerce business grows, it becomes impossible to manually add the orders received through multiple channels, the shipments sent, and the changes made on product information. When the tasks are done manually, there is a high risk of making mistakes, and it is important to keep the coordination between your eCommerce platform and central data repository. In traditional management systems, every detail needs to be updated manually, and there is a scope of giving or updating errors. Your eCommerce website needs to be integrated with the ERP system to avoid mistakes or errors, and here the information needs to be added only once. ERP integration gives you total freedom, keeps information centralized, and avoids mistakes that happen in different systems of your company. Read the article to know the various eCommerce website integration with ERP and the main advantages of ERP integration.
What Is ERP?
ERP or Enterprise Resource Planning is a simple software that helps combine all the business processes into a single system and allows all the applications to work together. Using ERP, many back-office functions, IT services, inventory software, HR functions, warehouse management, and other functions can be completed easily in harmony. All the inventory is updated accurately in ERP, and all the sale processes are automated. Ecommerce combined with ERP makes the work very easy and eliminates any errors during orders or shipment.
What Is ERP eCommerce Integration?
In ERP eCommerce integration, the front-end of an online store is integrated with the ERP back-end to maximize revenue. Passing on the information from the front-end to the back-end is vital for any eCommerce business, and ERP integration helps in providing a seamless user experience for users. Integrating ERP and eCommerce sites introduces many automated tasks and scheduled data sharing.
ERP Integration Methods
Planning is important while integrating ERP and eCommerce websites. First, it is important to understand how data should flow, build a migration plan, develop a strategy for synchronization, and incorporate contingencies for future growth. Another key issue is identifying which integration method is suitable and implementing them. Here are the most popular integration methods.
1. Point-to-Point or P2P Integration Method
P2P is the most common integration method used, and each application is connected with the other application. While this model can be adequate for simpler integrations, it quickly becomes unmanageable as the number of integration points increases. The integration is easy with fewer applications, but the process gets complicated when many applications are involved. To reduce the complexity, the Middleware integration model can be used.
2. Middleware Integration Model
In the middleware model, a standard method connects entire network applications. In this model, the centralized software integrates the ERP and eCommerce applications. A few technologies that provide middleware capabilities include Mulesoft, Apache Camel, SAP PO (Process Orchestration), SAP HANA Cloud Integration, and Microsoft Azure Logic Apps.
Process of ERP and eCommerce Integration
Here are some of the steps followed in eCommerce and ERP integration
1. Product and Pricing Sync
ERP and Product master of eCommerce site are automatically integrated and synchronized with the back-end, so the data is consistent through all the channels.
2. Checking of Inventory
ERP always handles checking, tracking and always displays the available products list. Real-time inventory checks and display of accurate inventory is possible with eCommerce and ERP integration.
3. Fulfillment Of Orders
The orders in the eCommerce data system will create a pending order with the ERP, triggering work fulfillment with the ERP.
4. Pending Invoices and Shipments
The shipment information is shared with the customer with some of the important details of the customer. The details include the status of the shipment, tracking info, pending invoice information, and payment status if reconciled.
Tips For eCommerce ERP integration
Connecting an ERP eCommerce solution is not an easy task, and you need to take care of everything. Here are some important tips to follow in ERP integration
- Always Look for Complete Integration Process
- Choose a two-way integration
- Consider a SaaS cloud system
- Talk to your partners about integration
- Availability of training and Support
- Plan a testing Phase
- Prepare an Integration framework
Benefits of eCommerce Website Integration with ERP
The integration of ERP and eCommerce has many benefits, and here are some of the main benefits.
1. Enhancements of Functions
The integration includes the benefit of having eCommerce data in the back-end and real-time ERP storefront data. The customers benefit from knowing the information about inventory, order status, and tracking the shipments. And back-end data in eCommerce.
2. Cost Reduction of Inventory
All the information regarding sales is displayed in the ERP system and based on these transactions, and the inventory is also updated. One can track real-time inventory and know the need for inventory in advance.
3. Generation of Financial Reports
ERP software makes it easy to prepare a Balance Sheet, P/L Statement, Trial Balance, Cash Flow, and more. The integration ensures that the financial and online transactions are transparent.
4. Increase in Productivity
ERP lessens the burden of manual updation, and transferring the data by the employees is also reduced. As the data transfer regarding shipments, payments, and other transactions is made automatically, the employees have time to be more productive and help increase the company’s sales and growth.
5. Consistency of Data
With ERP integration, all transactions, customer information, shipping details, and payment information will be transferred and synchronized with ERP software. The integration reduces the involvement of humans, and thus errors are reduced in the manual transfer of data.
Want To Take Your eCommerce Site to the next level?
eCommerce website integration with ERP plays an important role in the growth of your business. The centralized, automated process reduces human errors for giving a seamless experience for the user. It is important to have a flexible eCommerce platform that integrates the data to make the integration a success. If you are looking for eCommerce site up-gradation or development, you can contact our professionals at Ayatas Technologies. For more than 14 years, we have been a top-notch team of eCommerce experts. Contact us for more details.