How Backend Integration Can Streamline eCommerce Operations

It goes without saying – eCommerce has transformed the way we do business and how we access the products and services we need. While online shopping is not a new concept in this day and age, it’s the purchasing experience that’s changed. Thanks to convenient apps, automated features, and easier ways to pay, eCommerce websites with smart integrations are already ten steps ahead of their competition. Consumers are looking for a smoother, more positive purchasing experience to get their products from the warehouse to their doorstep quicker. Here’s how backend integrations can streamline this process.

1. ERP automates current procedures and processes

ERP stands for “Enterprise Resource Planning.” It’s a form of business management software that companies use to streamline operations and automate processes. While ERP software originated in the manufacturing sector, modern ERP is more flexible. It serves the needs of many different types of businesses, including retailers, distribution companies, law firms, healthcare organizations, and more.

One area that ERP can help both businesses and customers is in the area of eCommerce. Many of today’s B2B buyers have been making B2C transactions online for as long as they can remember. They expect a smooth and easy ordering experience from the moment they search for an item until it lands on the doorstep.

Here are some of the benefits of ERP for eCommerce:

• Real-time inventory tracking

• Real-time inventory visibility on your eCommerce website

• Real-time visibility of business operations

• Provides a better customer experience

• Reduces manual data entry

• Improved customer relationship management

• Automates or simplifies processes

• Improves data accuracy

2. B2B/B2C mobile app allows customers to make a purchase wherever and whenever

You might be wondering, “Why do I need an eCommerce app?” or “Why do I need an app when I have a responsive website?” Those are good questions. First, let’s look at what a mobile app is, and then we’ll look at how it can benefit your business.

According to a Pew Research report, 97% of Americans own some form of mobile phone. Eighty-five percent of Americans own a Smartphone. These Smartphones can perform many of the same functions as a computer, like sending emails and browsing the internet. Mobile devices accounted for 47% of total website traffic in the U.S. during the first quarter of 2021. Mobile devices have accounted for at least 39% of overall web traffic during every quarter since the second quarter of 2017.

While retailers should also have responsive websites that accommodate mobile browsing, mobile apps also have a role in driving eCommerce sales. mCommerce, or mobile commerce, is expected to claim a 15.2% share of total U.S. retail sales in 2021. This is equivalent to 359.32 billion dollars, with annual mCommerce sales expected to almost double between now and the end of 2025. The bottom line is that mCommerce is big business. 

Mobile apps make mCommerce easy. Native mobile apps can take full advantage of a device’s functionality, including the camera and location services.

When you offer your customers a mobile app, you’ll get to enjoy benefits like:

• Push notifications, including location-based and discount notifications

• A new direct marketing channel

• Better customer data

• Increased customer loyalty

3. Better inventory control and management

ERPs help businesses better manage their inventory. Particularly for a business with fast-moving inventory, inventory management can be a huge headache. Knowing what’s in your warehouse is crucial to prompt order fulfillment and provide a good customer experience. It also helps you avoid the costs of inventory mismanagement, such as over-or under-sells; broken, lost, or misdirected inventory; higher costs for parts and storage; and imbalanced maintenance or order scheduling.

Cycle counting can help. Traditionally, companies have relied on annual inventory counts to manage their inventory. This involves stopping production once per year so that employees can conduct the annual inventory count. The annual inventory counting process is costly, inefficient, and often inaccurate. That’s why some companies have turned to cycle counting.

The cycle counting process involves counting a small number of items per day until the whole inventory has been counted. It’s a way of tracking your inventory year-round so that you can identify and fix problem areas in inventory faster.

Your ERP can help you manage your inventory cycle counting process. It will provide a full history of past cycle counts and automatically determine what items should be counted each day.

Cycle counting can replace the annual inventory counting process while providing companies with more accurate, year-round inventory counts. It can also be combined with an annual inventory counting process and be used to validate these annual inventory counts while providing year-round inventory visibility.

The benefits of integrating inventory management tools with your ERP include:

• Increased inventory visibility across the whole company

• Improved inventory management yields better business decisions

• Shorter lead times

• Reduced costs due to fewer inventory write-offs

• Fewer over- and under-sells

4. Link your SAGE database with your eCommerce website 

While ERPs help companies streamline operations, increase automation, and reduce costs, the real ERP eCommerce benefits kick in when companies integrate their ERP with their eCommerce site. Typically, an ERP eCommerce integration involves using middleware to connect the two systems.

Each eCommerce integration will perform differently based on the underlying ERP platform, the eCommerce platform, and the type of middleware used. That said, many ERP eCommerce integrations offer similar functionality and benefits. E-Link, our Sage Adobe Commerce/Magento integration, streamlines the ordering process.

Here’s how it works. E-Link offers a two-way data integration between your Sage ERP and Adobe Commerce/Magento website. It handles all data connection points for business partner portals and other B2B/B2C eCommerce needs, eliminating errors from manual data entry. It also provides real-time visibility into your inventory so that customers know when items are out-of-stock or when inventory is running low.

As an example of how E-Link works, say a returning customer logs into your website and places a new order. Customer information, like their name and address, will flow from Sage ERP into your website to streamline the ordering process. The new order will flow from Adobe Commerce/Magento into your Sage ERP automatically for streamlined order processing and fulfillment.

The benefits of implementing an ERP eCommerce integration include:

• Reduces manual data entry

• Reduces data errors and data redundancy

• Reduces costs

• Provides a better customer experience

• Increases productivity and efficiency

5. Connects finances with business operations 

ERPs integrate different departments across your organization, including finance/accounting, operations, and more. This provides real-time data visibility across your entire company. Every department will have access to, and make decisions based on, the same real-time data. This is a huge advantage for your business.

It allows you to make the best decisions for your business based on real-time data, not the figures from last month or even last week.

Having clear and accurate financial numbers can help you scale your eCommerce business faster. It also makes your year-end and tax-related processes easier by reducing errors and providing an audit trail.

How to decide what type of integrations your business needs

Once you’ve decided to implement an ERP eCommerce integration, you still have several important decisions to make. Different ERP eCommerce integrations offer different functionality, so it’s important to get the one that best fits your needs. You’ll also need to carefully select an integration partner who understands both your ERP and your eCommerce platforms. Often, software requires ongoing support.

Here are some questions that will help guide you along your integration journey:

1. What ERP platform do you use?

2. What eCommerce platform do you use?

3. Where are you and your team currently spending too much time?

4.What are the constraints and bottlenecks that are slowing your current processes?

5. What are your biggest recurring errors?

6. What functions could you automate to yield the greatest amount of time savings?

7. What functionally do you need in an ERP eCommerce integration, and what functionality would be nice to have but isn’t essential?

8. What qualities are you looking for in an integration partner, including their support policies, etc.?

All software implementations take time and a lot of thought. The right partner can help guide you through the process and make your ERP eCommerce integration as simple and efficient as possible. Contact us if you would like to schedule a demo to see how Sage or any of our enhancements could help your business.