How Manufacturers Win with Sage ERP and eCommerce Integration
3 min read ● Silk Team
Sage ERP to eCommerce Integration: A Complete Guide for Manufacturers
When ERP systems and online sales platforms are operating independently, there can be a significant disconnect in meeting the increasing demand for B2B eCommerce. In many cases, manufacturers lack the ability to provide their customers with the same level of self-service access to product information as well as timely updates regarding product availability or order processing times as is provided by B2C eCommerce platforms.
In order to bridge this gap, manufacturers need to integrate their ERP systems with their online storefronts. The most common method of accomplishing this is by using an automated data synchronization between the ERP and eCommerce platforms. This means that instead of manually entering and updating information from the back office (ERP) to the front office (eCommerce), the data will flow between the two systems automatically, allowing for up-to-date product information and order management.
For manufacturers, the integration process is typically based on the following elements:
- Inventory availability and warehouse locations
- Orders generated online will be automatically entered into the manufacturer’s ERP system
- Pricing, discounts, and customer specific pricing
- Customers’ account information, invoices, and order history
Ultimately, the goal of integrating an ERP system with an eCommerce platform is to eliminate manual entry and increase the efficiency of order processing and management.
How Integration Helps Manufacturers
As a result of the complexity associated with manufacturing operations, the typical B2C eCommerce setup does not accommodate these complexities very well. However, integration directly addresses many of these issues.
1. Correct Inventory Levels Across All Sales Channels
Many manufacturers have multiple sales channels to which they sell, such as direct sales, wholesale/distribution, and online sales platforms. For example, the inventory levels at a manufacturer may reflect 100 units available at their brick-and-mortar store and 200 units available at the online portal. The integration process allows for all inventory levels to be updated in real-time, eliminating the risk of overselling and stockouts.
Additionally, if a manufacturer has inventory located at a third party distribution center (such as UPS or FedEx), the integration process would allow the inventory levels to be updated accordingly. This eliminates incorrect delivery times and prevents production planning disruption due to incorrect inventory levels.
2. Faster Order Fulfillment and Reduced Errors
The manual entry of orders into the ERP system slows down teams and causes errors. The integration process allows for the automatic entry of orders into the ERP system, eliminating the need for manual entry. Additionally, the integration process provides for automatic application of pricing, taxes, and shipping rules to each order. Lastly, finance and fulfillment teams are able to manage their workflow using the same data set.
This reduces the amount of time required to complete the order-to-cash cycle.
3. Enhanced B2B Customer Experience
B2B buyers desire a personalized buying experience. The integration process allows for contract and tiered pricing, credit limits and payment terms, and easy reordering and tracking of orders. These types of capabilities build customer loyalty and reduce the reliance of sales representatives for routine transactions.
Data Elements That Should Be Integrated First
The focus of any successful integration process is to identify the data elements that affect day-to-day operations.
The high priority data elements include:
- Products/SKUs
- Inventory and Warehouse Quantities
- Customer Records and Pricing Rules
- Orders, Invoices and Shipment Status
By integrating these essential data elements first, manufacturers can achieve quick wins and establish a solid foundation for additional automation.
Typical Integration Approaches
Most manufacturers take one of the following approaches to integrating their ERP and eCommerce platforms:
- Pre-built Connectors: Easy to deploy, low-cost, and limited flexibility
- Middleware Platforms: Scalable and customizable for large-scale manufacturing operations
- Custom Integrations: Highly customized for large-scale manufacturing operations
The most effective integration approach is dependent upon the size of the organization, the number of transactions per month, and the organizations long-term digital strategy.
Guidelines for Long-term Success
In order to optimize returns on investment (ROI), manufacturers should follow the following guidelines:
- Conduct a review of existing ERP and sales workflows prior to integrating
- Define the data ownership and validation rules prior to integrating
- Test the integration process using real-world scenarios, including exception testing
- Develop a plan for future growth in products, customers, and sales channels
The integration process works best when it supports current operations and future growth.
Conclusion
The integration of Sage ERP to eCommerce represents a strategic decision for manufacturers looking to grow efficiently. By linking backend operations with digital sales channels, manufacturers gain greater visibility, faster processes, and a better B2B customer experience.
For manufacturers who are seriously committed to transforming digitally, integration of Sage ERP to eCommerce represents the foundational step towards achieving sustainable growth.