Top Ways ERP-Integrated Ecommerce Reduces Operational Costs & Data Silos

Businesses today need to streamline their operations to remain competitive and profitable. One way to achieve this is by integrating enterprise resource planning (ERP) systems with ecommerce platform. This integration can help reduce operational costs and eliminate silos by providing a seamless flow of information and processes across departments.?

What Are Organizational Silos & Why Do They Appear?

Organizational silos refer to the barriers that exist between different departments or functions within an organization.

These barriers can take various forms, including different processes, systems, goals, and communication channels. Silos can appear for various reasons, including the following:

????Lack of communication: When departments don't communicate with each other, it can create knowledge gaps and misunderstandings that lead to silos.

????Different goals and metrics: When departments have different goals and metrics, it can create conflicting priorities that lead to silos.

????Legacy systems: When departments rely on legacy systems that don't integrate with each other, it can create data silos that lead to silos.

How Do Organizational Silos Lead to Cost Inflation?

Organizational silos can lead to cost inflation in various ways, including the following:

????Duplication of efforts: When departments work in silos, they may duplicate efforts, resulting in wasted time and resources.

????Inefficiencies: Silos can create inefficiencies by preventing departments from sharing information, skills, and resources.

????Poor decision-making: When departments don't communicate effectively, it can lead to poor decision-making, which can result in cost overruns and missed opportunities.

Now, let's discuss how ERP-integrated ecommerce can reduce operational costs and silos.

Top Ways ERP-Integrated Ecommerce Reduces Operational Costs & Data Silos

??Unified Data and Processes Across the Channels

ERP-integrated ecommerce platforms allow companies to manage their entire business from a single platform. This integration enables a seamless flow of data and processes between departments, eliminating the need for manual data entry and reducing errors.?

It also helps in better inventory management and order fulfillment. For instance, when a customer places an order on the ecommerce platform, the ERP system automatically updates the inventory levels, triggers the picking process, and generates the shipping label.

??Improved Inventory Management

Inventory management is crucial for ecommerce businesses. ERP integration enables real-time inventory tracking, reducing the risk of overstocking or stockouts.

According to a survey, ERP reduces the inventory cost by 11% on average and 80% of organizations say ERP’s centralized data system allowed them to co-create new applications.?

When an item is sold on the ecommerce platform, the ERP system automatically updates the inventory levels across all sales channels. This integration also enables better demand forecasting and planning, leading to reduced inventory carrying costs.

??Optimized Order Fulfillment

ERP integration streamlines the order fulfillment process, eliminating the need for manual intervention. The system automates order processing, picking, packing, and shipping, reducing the order-to-delivery cycle time and improving customer satisfaction.?

Real-time inventory tracking enables businesses to fulfill orders from the nearest warehouse or distribution center, reducing shipping costs and transit times.

??Enhanced Customer Service

ERP integration enables a 360-degree view of the customer, allowing businesses to provide personalized services and improve customer retention.?

For instance, when a customer places an order, the system displays their purchase history, order status, and shipping details.

This integration also enables businesses to track customer interactions across all channels, such as email, phone, and social media, leading to better customer service and support.

??Increased Operational Efficiency

ERP-integrated ecommerce platforms enable businesses to automate routine tasks and free up resources for strategic activities.?

For instance, the system automates financial processes, such as invoicing and payment processing, reducing the workload on the finance team.?

And also enables businesses to track their key performance indicators (KPIs), such as order processing time, inventory turnover, and customer satisfaction, leading to continuous improvement.

??Data-Driven Insights for Continuous Improvement

ERP integration enables businesses to capture, store, and analyze data from various sources, such as ecommerce platforms, point-of-sale systems, and marketing channels.?

This provides businesses with real-time insights into their operations, enabling them to make data-driven decisions and improve their processes continuously.?

For instance, businesses can analyze their sales data to identify their top-performing products, customer segments, and marketing channels, leading to better resource allocation and revenue growth.

ERP's Impact on Bridging Organizational Silos and Empowering Intelligent Technologies

Based on a study by Accenture,

• 79% of organizations either agree or strongly agree that ERP helped them utilize technology from one part of the business to the other.
• Nearly 29% of organizations consider ERP as the "primary" enabler to bridge business and functional silos.
• 74% of organizations state that ERP implementation helped bridge business or functional silos to some level.
• Approximately 85% of organizations claim they are already using or exploring the possibility of using intelligence technologies with ERP platforms to enhance productivity, operational efficiency, and decision-making.
• 9% of organizations report that intelligence technologies like machine learning are already integrated into their ERP systems.

ERP-integrated ecommerce provides numerous benefits to businesses, including the reduction of operational costs and data silos.

By streamlining processes and creating a single source of truth for data, businesses can increase efficiency, improve decision-making, and ultimately achieve higher profitability.?

As businesses continue to adapt to a rapidly changing digital landscape, implementing ERP-integrated ecommerce should be a top priority for those looking to optimize their operations and stay competitive in the marketplace.

Thanks for reading! This Distributor's Newsletter will be back next week with more updates and insights to share.