Whether your online business is large or small, there are several ERP benefits that your company can benefit from. ERP software is used to manage a company’s most important processes, such as accounting, procurement, project management, risk management, and compliance, as well as distribution and manufacturing chain operations.
ERP software, in a nutshell, is a tool that centralizes a company’s information database, automates repetitive tasks, and simplifies business processes. In other words, if you want to scale your business, you must consider digitization through automation.
An ERP automation is an integrated Business Management solution whose ultimate goal is to optimize operations and thus increase the company’s productivity.
ERP software is unique, in the sense that it covers many or all of the various aspects of a business, throughout the entire process:
- Accounting
- Customer relationship management (CRM)
- Manufacturing
- Inventory management
- HR management
- Reporting and analytics
How does an ERP system work for an online store?
As simple and useful as possible! It stores all data entered in a single database, allowing all departments to work with the same information. Furthermore, all of this data can be organized, analyzed, and transformed into reports. ERP integrates customer management, human resources, business intelligence solutions, financial management, inventory management, and supply chain management into a single system.
To help you understand what ERP automation involves, we’ve compiled a list of benefits that explain how this software works.
Effective database management
ERP applications’ functions may differ slightly depending on the program but, in general, all of these systems lead to improved collaboration. The centralized database is a critical component of this software.
Regardless of the type of business, it is essential to find ways to serve customers as quickly and efficiently as possible. With an integrated ERP, you will be able to optimize database management in e-commerce. You gain access to real-time integration, allowing you to communicate more effectively with both customers and suppliers. Moreover, thanks to task automation, you can easily collect customer data. This database gives you access to a single, always-available source, which reduces errors caused by working with incorrect data and contributes to smaller costs.
Relevant statistics
A centralized database of information also facilitates the improved performance of analysis and reporting. An ERP is an excellent business intelligence tool because it records and stores all data entered by users. As long as your supplier provides advanced functionality, ERP software makes generating various reports easier and more efficient for your team.
Most ERP solutions include a customizable dashboard, so real-time extracted data generates reports from the moment the system is connected. These reports can cover everything about your company, from income and expense statements to custom KPIs that provide data on specific features. Quick access to these reports enables you to make better decisions with your team in less time. Most importantly, access levels are usually included with the reports, ensuring that only authorized personnel have access to valuable company data.
Invoicing and accounting integration
Another advantage of ERP integration for e-commerce businesses is that it can coordinate two essential financial processes for a business: accounting and invoicing. When you place an order, the system can automatically generate the delivery note, as well as the invoice and accounting elements, avoiding errors and delays.
Basically, all financial aspects are automatable. The delivery note, for example, can be taken over and integrated to automate payments based on the specifics of each order. Simultaneously, you can track all cash flow and use ERPs to send accounting statements automatically.
Lowering operational and time costs
In general, integrating ERP and an e-commerce business helps to save time and money by eliminating repetitive tasks and improving order flows. Furthermore, by eliminating duplicate data entry, commands become significantly quicker and error-free. By automating all management processes, there are also operational cost savings. Automation with an ERP can also be a great way to increase employee efficiency and support the development of their skills.
As a result of correlated data and enterprise processes in ERP systems, online businesses can align their separate departments and improve operational flows, resulting in significant savings for end results.