Warehouse Database Integration Role in ECommerce

Today, even a small store can have its own digital infrastructure. Why?

The answer is simple – it makes processes like accounting, planning, and development forecasting easier.

For medium and large businesses in the E-Commerce industry, technology currently plays a critical role. It allows for rapid collection of large amounts of data, automatic analysis of that data, and decision-making based on analytical insights.

Today, I will focus your attention on a small part of the commercial infrastructure, specifically Warehouse Database Integration and the significance of this process for business in general.

Why Is Database Synchronization So Important?

Imagine a typical commercial business system; it might have the following structure:

• ERP. The core platform focused on the company’s internal operations, task planning, etc.
• CRM. An interface for quick access to client information, possibly with solutions like VOIP.
• Additional Modules. Other systems designed for carrying out external operations or expanding the capabilities of current systems.

Okay, this is fine. But don’t you notice the imperfections of this traditional system? Let’s take a closer look.

Any E-Commerce business is about sales. If ERP covers internal processes, CRM covers external ones, then where’s the connection with the product side? \

For this purpose, there are systems like WMS (Warehouse Management System), IMS (Inventory Management System), and others.

When you sell products, both your own and from third-party manufacturers/suppliers, you must know exactly what you are offering to customers, the quantity of stock, etc. Only then can you plan operations, ensure demand, eliminate dead stock, and generally optimize turnover.

This is exactly why synchronization between the store's database and the suppliers’ product databases is needed.

Improvements from Comprehensive Implementation of Additional Components in ERP for E-Commerce

The key challenge for E-Commerce businesses has been, is, and will be the construction of seamless supply chains. Of course, establishing these processes requires a comprehensive and systematic approach, but with WMS (and other solutions), the organization of product turnover can be simplified and optimized.

If we generalize the advantages of integrating specialized modules and synchronizing databases, we get the following points:

• automation of inventory tracking;
• improved visibility of business status;
• process planning;
• optimization of routine tasks;
• financial benefits.

Let’s take a closer look at all the listed benefits and the role of WMS in each of them.

Inventory Management Automation

Database synchronization between the store's system and the supplier’s WMS is primarily an opportunity to automate your inventory management.

Information exchange between the systems helps address common issues in E-Commerce businesses, such as:

• limited visibility of available products and their quantities;
• correlation between supplier/manufacturer prices;
• demand for items and their turnover with other retailers;
• planning orders for new product batches;
• tracking stock levels in both the store and the supplier’s warehouses.

Note that under normal conditions, a manager often has to contact a supplier representative to clarify most of the mentioned data. It is the synchronization of information between systems that allows automating the exchange of data in real time.

Improved Business Insight

Current sales, prospects, and company performance analysis can also depend on the presence or absence of synchronization between the WMS database and your store's system.

A well-established information exchange allows you to:

• track available stock at supplier warehouses;
• maintain records of products transferred for sale and those sold;
• conduct automated product calculations and payments;
• analyze data over selected periods;
• use historical data for forecasting.

The last point is comprehensive and includes forecasting:

• product demand over a certain period;
• purchases and orders for resale, mitigating liquidity risks;
• expenses and revenue from working with a partner.

Note that for the above processes, in addition to database synchronization, you'll need BI (Business Intelligence) tools and the ability to analyze data.

Process Planning

Data exchange with the suppliers' WMS provides the opportunity to manage information in real time and correlate plans based on changes in market conditions, stock levels, etc.

Add enhanced sales analysis capabilities, and you'll have an almost perfect system that you can manage through the ERP administrative panel.

Optimization of Routine Tasks

How much time does your staff spend confirming the availability of a specific product? It doesn’t matter whether it’s happening in offline sales points or through the online customer service system.

Typically, data updates take a few minutes, right? However, if you synchronize the databases between systems, the information will change instantly, without the need for direct queries from your side. Convenient, and it also improves your customers' UX.

Financial Benefits

Yes, integrations and synchronization might require significant investment. However, the advantages gained are the key indicator of profitability that should be considered.

Synchronized databases speed up customer service, increase sales within a shorter time frame, and bring higher revenue compared to standard processes that require more staff involvement and customer waiting time.

Real-Life Example: AdvantISS Project Results for One Client

If the previous sections seemed theoretical, here’s a real-life example of how an E-commerce Platform with Warehouse Database Integration for both offline and online stores helped their owner.

In this project, we had to implement (and we did) the following:

• A new e-commerce platform based on the client's specifications, namely:
• Integration of the existing WMS with the newly created system
• An administrative panel accounting for all components' features
• Automation of payment requests and invoicing
• Implementation of support for cash register systems and communication channels with suppliers

It wasn't easy or quick, but we managed to deliver on time and exceeded the initial expectations.

Specifically:

• Geographic Expansion: The e-commerce platform facilitated geographic expansion, allowing the client’s company to reach 5 new states.
• Sales Growth: In the first quarter of the platform launch, they increased their sales volume by 1.8 times.
• Operational Efficiency: The implementation of automated inventory management, order processing, and deployment significantly improved operational efficiency.
• Inventory Forecasting: They reduced the likelihood of stockouts to 5%.

Impressive?

Your profit from database synchronization and WMS integration could be even higher.

Reach out to me if these opportunities interest you!