How is an ERP system selected?
The e-commerce market has grown strongly since 2020, driven by the COVID-19 pandemic, social isolation and changing consumer habits. In this scenario, it is more important than ever to manage online business, and this is where the benefits of ERP for e-commerce come into play.
According to Statista, the e-commerce market is developing rapidly in Germany:
To make managing your online store easier, in this article you will learn more about the possibilities that an ERP system can bring to your company and how to choose the right ERP system for your company.
Advantages of ERP software for e-commerce
Before you decide on the ERP system for your e-commerce, find out more about this software. The word ERP refers to Enterprise Resource Planning, which is a business management system that automates and integrates work processes with a focus on better business performance.
- Greater agility in sales processes. By automating several work steps relating to ordering in your online store, customers receive their orders faster.
- Automatic issuing of electronic invoices. With the help of an ERP, the sales process is easier with the issuing of electronic invoices. Once the sale is completed and payment is made, the system calculates the required taxes and issues the invoice to the customer.
- Optimized inventory management. With an ERP, you can manage your stock more effectively, as the stock control is updated according to the sales made.
- Integration with other systems. The ERP can be integrated with the accounting system, CRM (Customer Relationship Management), marketplaces, banking and payment systems, etc. There are many possibilities of integration, it depends on the requirements of your e-commerce and the chosen software.
- Strategic financial management. It is possible to collect and manage all financial, accounting and tax information on a single ERP platform. This enables a strategic view of your company's financial processes and better planning. Examples include free shipping offers, changing suppliers, expanding the business or product portfolio.
- Automatic data backup. The software performs an automatic data backup. Customers and the company can rely on the security of their information.
How do you choose the best ERP for your company?
Now that you have familiarized yourself with the main benefits of ERP for e-commerce, you may have doubts about how to choose the most suitable software for your business. To help you with this difficult task, we have prepared some questions to guide your decision-making process according to your e-commerce requirements.
What are your goals?
If your e-commerce has a business plan or strategic plan, it's easy to answer this question. But if not, think about where you want to go with your business. What are your short and long-term goals? Do you want to increase sales by 30% in a certain period of time? Do you want to integrate and automate all processes to optimize sales? These are some examples, you as a business owner need to determine which path you want to take to achieve the expected results.
What are your needs?
Does your company need cheaper shipping costs or faster deliveries? Or a more efficient integration of activities for fast customer service? Do you need integration with accounting, CRM and marketing to increase sales and business efficiency? To answer this question, you can enlist the help of your team. Meet with the departments of your company and analyze the needs observed by the people who carry out the activities and collect the opinions of your customers. Compare these with your ideas and integrate the SAP solutions to meet the requirements of your e-commerce.
What is your investment?
This is the part that torments entrepreneurs the most: investing in an ERP for e-commerce. Easy! There are numerous types of software on the market, and the choice depends on the needs and goals of your business. Therefore, it is important to answer the previous questions. There are options with the simplest features to use ERP in small businesses, to the most advanced for those with a larger investment capital. Cloud data storage is a factor that significantly reduces the maintenance and operating costs of an ERP system.
Most software programs allow a free trial for 7 days or a little longer so you can check if it is the ideal solution for your business.
Functions that an ERP for e-commerce must have
An ERP system offers several modules and functionalities, and since e-commerce has some specific requirements, it is important to find a solution that fulfills basic points to ensure the best management of the company.
Among the main functions that an e-commerce ERP must have, we can highlight:
- Issuing electronic invoices for products and services;
- Financial control (bookkeeping including issuing bank documents, charts of accounts, price management, purchasing management and import of goods);
- Production;
- Inventory management;
- HR;
- CRM;
- Reporting;
- POS management;
- Integration with the marketplaces etc.
By centralizing all information in one central location, the ERP system contributes to the following:
- Control of the sale
- Shipment tracking
- Payment management
- Analysis of goals and performance
- Storage of information from different areas of the company
- Tax obligations
- Simple data exchange between employees
- Agility of the management
- Productivity increase
Conclusion
A good enterprise resource planning system can revolutionize your business. It is important to emphasize that an ERP for e-commerce is the best choice for managing your business! Today's market offers many ERP solutions, for example Navision, Weclapp, Oracle, SAP and many others. As said, the choice of a suitable solution depends on the needs and goals of your company. Our agency Kenner Soft Service GmbH offers you services for setting up and customizing ERP systems as well as integration and synchronization with your Shopware, Magento, JTL and xtCommerce online store. We are happy to support you with the onboarding of e-commerce ERP and help with data migration. Contact us for detailed information.
