Business Central to Shopify Integration Explained for Manufacturers and Distributors
3 min read ● Silk Team
As many manufacturers and distributors are looking to transition to eCommerce and continue to operate their traditional business models, they can expect to encounter complexities when trying to manage their online sales along with their offline sales. The orders generated from their various sales channels, and the need to have their inventory tracked across their warehouses, can create operational challenges related to the accuracy of their financial data.
Connecting a manufacturer’s or distributor’s ERP system to their eCommerce storefront via Microsoft Dynamics 365 Business Central and Shopify can assist in streamlining the operational processes associated with selling goods online and off-line. These processes include updating the inventory levels of a product based on sales, tracking orders, and synchronizing products across their eCommerce platform.
For companies developing their digital sales channels, the Business Central-Shopify integration has the potential to be a major enabler of their ability to manage their online sales process efficiently.
Overview of Integrating Business Central and Shopify
Microsoft Dynamics 365 Business Central is a cloud-based ERP system which provides manufacturers and distributors the tools necessary to manage the various aspects of their core business operations, including:
- Financial management
- Supply chain operations
- Warehousing operations
- Purchasing
- Sales
- Inventory tracking
Shopify is an eCommerce platform that enables companies to establish a customized storefront to sell their products online.
Once connected, the Business Central and Shopify systems allow the data associated with the company’s eCommerce activities to automatically synchronize with the company’s back-end business systems.
Data that Typically Synchronizes Between Systems
- Product catalogs/SKU
- Inventory levels available for sale
- Customer data
- Sales orders
- Shipping status updates
- Price updates
These two systems provide a seamless method of linking eCommerce sales data with the company’s ERP system.
Why Manufacturers and Distributors are Turning to Ecommerce
Historically, manufacturers and distributors relied on:
- Sales representative
- Wholesale/distribution channels
- Manual order entry
- Offline purchasing methods
However, the growth of digital commerce is transforming the way the industry operates.
Drivers of Ecommerce Growth
- Growing demand for self-service purchasing
- Increased use of DTC (direct-to-consumer) sales models
- Increased operational efficiency through automation
- Enhanced visibility into customer purchasing patterns
By integrating Business Central with Shopify, manufacturers and distributors can accommodate these new sales models while maintaining their current operational processes.
How Business Central and Shopify Work Together
Typically, integration between Business Central and Shopify occur through the utilization of native connectors, APIs, or middleware integration platforms.
Once connected, data moves seamlessly between systems.
Step 1: Inventory Synchronization
Having a clear view of inventory is vital for manufacturers and distributors who have large product catalogs.
Through integration:
- Inventory levels updated in Business Central are reflected in real-time within Shopify.
- Any inventory level changes due to purchase or warehouse updates are immediately reflected in Shopify.
- Inventory at each location in multiple warehouses can be viewed centrally to prevent over-selling and to ensure customers see an accurate product availability listing.
Step 2: Automatic Order Processing
Orders placed by customers through Shopify are automatically sent to Business Central once the integration is established.
Within Business Central, the order can:
- Create a sales order
- Update inventory levels
- Initiate workflows for fulfilling the order
- Generate an invoice
Manual entry of orders is eliminated and processing times are reduced.
Step 3: Automatic Product & Price Synchronization
Manufacturers and distributors utilize complex pricing schemes for their products, including bulk pricing, customer-specific pricing, promotional pricing and price variations for different product configurations.
Products and prices in Business Central can be automatically synchronized with Shopify.
Advantages of the integration include:
- Pricing consistency across all sales channels
- Simplification of product catalog maintenance
- Faster updates to products
Step 4: Automatic Financial Data Synchronization
One of the most significant benefits of ERP integration is the automatic transfer of financial data.
All sales transactions generated by Shopify are transferred directly into Business Central’s accounting module providing:
- Automatic tracking of revenue
- Tax calculation
- Financial reporting
- Reconciliation of sales data
Finance teams gain accurate and timely visibility into how their eCommerce is performing.
Benefits for Manufacturers and Distributors
Integrating Business Central with Shopify can provide numerous operational advantages to manufacturers and distributors.
Operational Control Across All Sales Channels
Business Central becomes the centralized system to track and manage your inventory, products, orders and financial data across all of your traditional and online sales channels.
Accuracy of Your Inventory Levels
Real-time inventory synchronization ensures that there are no discrepancies in inventory levels across your sales channels and provides you with improved efficiencies in managing your warehouse.
Efficient Order Fulfillment
Automated order processing allows your operations team to handle increased order volume without having to add additional staff to manually process those orders.
Scalable Infrastructure for Ecommerce Operations
As integrated systems grow with your business, they also provide you with the means to:
- Expand your product offerings
- Sell through multiple online sales channels
- Support your eCommerce operations globally
This scalability is especially important for manufacturers and distributors transitioning to digital commerce.
Key Factors to Evaluate Before Integrating Business Central and Shopify
Prior to integrating Business Central and Shopify, manufacturers and distributors should review the following factors.
Complexity of Your Product Catalog
If you have a large number of SKUs with variant or customized configuration options, it is possible that a detailed mapping of your ERP system and eCommerce system will be required to ensure proper operation.
Multi-Location Warehouse Inventory Tracking
If you have a multi-location warehouse setup and want to ensure that your integration supports warehouse level inventory tracking, you will want to carefully evaluate the capabilities of your proposed integration solution.
Tiered Pricing Models
If you have tiered pricing models or customer specific pricing, you will want to verify that your integration solution can handle the complexity of your pricing rules.
Method of Integration
There are three primary ways to integrate Business Central and Shopify:
- Native Shopify Connectors for Business Central
- Third Party Integration Platforms
- Custom API-Based Integration Solutions
Your choice of integration method will depend upon the operational requirements of your company and your company’s technical capabilities.
Summary
For manufacturers and distributors moving into eCommerce, the Business Central and Shopify integration provides a robust solution to link their eCommerce storefronts to their core business systems.
By automating the synchronization of your inventory levels, the processing of your orders, the updates to your products, and the management of your financial data; this integration can help eliminate the operational complexities of eCommerce, and ultimately improve your ability to scale your digital sales channels.
As the digital commerce model transforms the manufacturing and distribution industries, companies that can successfully integrate their ERP systems with eCommerce platforms will be well positioned to meet the evolving demands of customers and support their long-term growth.