eCommerce and ERP integration: Improving your B2B operations
Speed, efficiency, and long term goals – successful businesses in 2019 live by the pivot, and live for the future.
Integrating your ERP (enterprise resource planning) with your eCommerce is both a quick pivot, and a good investment for the longterm – and if your B2B operations lack this integration, now is the perfect time to do so.
Choosing the wrong ERP software, however, can spell doom for your company – many ERP platforms are insecure and pose a risk of data breaches. ERP software is meant to bring extra value to your customers, and increase efficiency in your daily inventory and account management – security breaches will have the direct opposite result.
Let’s get into why ERP is important, and what you need to know in order to effectively implement your own ERP integration with your eCommerce.
What it does, and why it matters
When you integrate your ERP with your eCommerce, you create a system that automatically coordinates your customer-facing storefronts with your backend inventory and accounting management systems.
This is important because it drastically increases the efficiency of your B2B operations – when an item is purchased by a customer through your eCommerce site or app, or even a physical store if you have one, your backend inventory will automatically update itself to reflect the change. At the same time, your accounting system will also update to show the transaction.
Integrating your ERP with your eCommerce creates a bi-directional flow of data – when your backend inventory management system is updated, your customer-facing digital stores will automatically in realtime update as well.
This bi-directional realtime exchange can keep track and manage your main types of data, including order, inventory, item, customer, and shipping and tracking data. For example, if you were to add a new item into the backend of your inventory, all of the information would automatically populate on your eCommerce site and/or app.
If you were to edit the description of an item in your backend to include a sale discount, the frontend would reflect that change automatically as well. As soon as a customer puts that item in their cart, your inventory management system will be made aware. As soon as that item is purchased by that customer, your accounting system will automatically note the transaction.
This saves you time that would be spent manually entering multiple sets of duplicate data – meaning you don’t have to spend as much money on menial tasks.
Integrating your ERP with your eCommerce also increases customer satisfaction and customer loyalty, which ultimately leads to larger or more frequent orders.
A great example of the value add integrating your ERP with your eCommerce brings to your customers is their ability to access their live account info 24/7 – data such as order history, invoices, realtime pricing, and realtime stock can easily be made available to them.
When your customers feel like they’re included in the inner-workings of your business, they’ll feel more in control – which increases their loyalty, satisfaction, and spending.
Even slight increases to efficiency can have lasting impact. Consider the 20 million gallons of fuel that were saved by UPS trucks not taking left turns on their delivery routes. Simple changes can have profound and lasting impact.
The investment required to integrate your ERP with your eCommerce will always be worth it in the long run – and according to Gary Vaynerchuk, CEO of Vaynermedia and Chairman of VaynerX, if your business isn’t thinking about the future, you’ve already lost.
With great efficiency comes great responsibility
When you integrate your ERP with your eCommerce, you’re essentially collecting your business’s most important data in one place – it’s accessible by individual systems, but the data is shared amongst them, and the transfer of data between them can be breached.
If this happens, it can dramatically decrease your customer loyalty – which is the direct opposite of what integrating your ERP with your eCommerce is supposed to achieve.
Due to the tempting nature of this proverbial digital honeypot of business and customer data, it’s less a question of if a cyberattack will happen, and more a question of when. A recent report by Symantec found that this is a problem for companies large and small – 43% of cyber attacks are now against small businesses.
Not only do these integrated hub systems present a tempting target for data thieves, they usually tend to be implemented through third-party software. These integration systems can leave your company open to many vulnerabilities, for a few reasons:
1 – Lack of updates
When you don’t own the software, you’re unable to change the codebase to keep up with new security risks. If your company uses third-party ERP integration software, your data is at the mercy of when your provider updates their security. Lack of updates can leave your systems wide open to data breaches.
2 – Poor configuration
If your ERP system isn’t set up correctly, you’ll run the risk of leaving cracks for hackers to exploit. These vulnerabilities can include open ports, access parameter credentials that are unlocked, or issues that come from vulnerabilities left in the system.
3 – Lack of access controls
If too many people have access to your system, or have the ability to access too much data in your system, you can run the risk of an account being compromised, which would then grant access to your entire system. Use the principle of least privilege wherever applicable.
4 – DOS attacks
If hackers find a vulnerability and gain access to your system, the can use DOS (denial-of-service) attacks to shut down your operations. When all of your operations run off one system, this can bring your business to a standstill.
Due to all of these risks, you’ll want to ensure the highest level of security possible. Custom software development will always be your best option for security because it is tailor-made to your system and specifications. Also, the code is your own, so whenever you need to update your system to defend against a new security risk, you can do so without waiting for another company.
If you’d like to learn more about integrating your ERP with your eCommerce and custom inventory solutions, visit our blog on the topic.
Efficiency and speed are the keys to success
By integrating your ERP with your eCommerce, you can reduce your time spent manually entering data, streamline your systems synchronization, enable auto-notifications for customers, manage price and product changes, and integrate multiple online and offline sales channels. All of this integration is scalable as well – giving your business the ability to not only increase its demand, but handle that increased demand as well.
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