Why is an ERP integration with an online store crucial?

5 February 2021

The development of an online store is largely dependent on specific tools. One of the most important are ERP systems. What are the advantages of their integration with the store? When should it be done? Just read our article.

What is an ERP system?

To begin with, it is worth answering one of the basic questions: what is an ERP system? Enterprise Resource Planning is a tool which allows you to manage your company in every aspect.

An ERP system usually has a modular design, where each module is responsible for different tasks. There are modules for warehousing, sales, accounting, human resources and even marketing. Today, ERP systems are also being extended with Business Intelligence solutions to provide advanced, multi-level business analytics.

The strength of ERP systems is the cooperation of individual modules with one central database. Thanks to this individual departments of the company are able to work on internally generated documents having access to all necessary information.

When does an online store need an ERP system?

An online store at some stage of development needs an ERP system. Just like any other company leaving individual business tools in favor of a centralized enterprise database.

When does this happen? Most often in a situation when you think about developing other – besides the store – sales channels. Whether it’s an account on Allegro, selling on Amazon or going to another marketplace.

A store on Magento obviously handles omnichannel perfectly, but implementing an ERP system provides far-reaching additional benefits. One of the most important is access to advanced sales process automation.

What benefits does the integration of an ERP system with an online store give?

From a manager’s point of view, ERP systems provide access to a full spectrum of information necessary to make key business decisions. For the employee, on the other hand, they are a tool to facilitate the performance of daily duties.

In case of online stores, integration with ERP also brings numerous advantages, including:

  • faster order processing: the elements of automation allow ERP system e.g. to change the order statuses on their own and generate all the necessary accounting and warehouse documents as well as address labels for shipments, 
  • update of product information: all product information is updated directly from the ERP system, both in the Magento store and offers posted in other sales channels,
  • better control of stock levels: you always have an updated amount of products available in the store and you reduce the risk of selling more than you actually have
  • advanced business analytics: thanks to Business Intelligence modules you are able to generate rapports on the basic of which you will easily make key business decisions. You will know i.a. which products are selling best, what price is attractive for the customer, which sales channels convert best, where you will run out of stock soon and need to order the items from the distributor.

ERP systems in online store play very important role. They not only provide centralized information about products and sales, but also increase the efficiency of your employees thanks to extensive automation. This means that instead of focusing on manual processing of orders, they can be more active in other areas of sales: building relationships with customers or acquiring new ones through well thought-out marketing campaigns.

 

Do you want to integrate your ERP system with your online store? Get a free, non-binding consultation, during which we will answer any of your questions.
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Gate-Software is a team of Magento e-commerce experts. We secure the continuity of online sales in e-commerce through effective technical care and maximize the potential of online stores through modern technological solutions.