Sage ERP vs eCommerce: Why Integration Is the Missing Link
3 min read ● Silk Team
Sage ERP vs eCommerce: Why These Systems Struggle Without Integration
ERP and eCommerce platforms have come to be an important component of contemporary manufacturing and distribution — but for very different reasons. ERP systems are centered around operational control; eCommerce systems were created with speed and customer experience in mind. Therefore, when these systems function separately, there will naturally be some degree of friction present.
Once you understand why Sage ERP and eCommerce do not work together, then manufacturers can begin to reduce the waste associated with inefficient practices, protect their margin, and create a better B2B customer experience.
Different Systems, Different Goals
On a basic level, ERP and eCommerce are optimized for performing two different functions.
ERP systems manage:
- The management of inventory and production planning.
- Pricing and contractual agreements.
- Orders and invoicing/financial transactions.
- Customer records and terms of credit.
eCommerce systems are focused on:
- Fast search and discovery of products.
- Real-time display of prices.
- Smooth user-experience during checkout.
- Self-service capabilities for customers.
Because of this, when each system operates independently (i.e., un-integrated), each system has limited access to all the same information, resulting in inconsistencies that impact both the operations of the business and the experience of its customers.
Inventory Discrepancies Are Operational Risks
One of the primary failure points is inventory visibility. When eCommerce platforms are not integrated with Sage ERP, customers may purchase items which are not available in inventory (or at least not available until later). Because of the lack of real-time inventory information displayed on the eCommerce platform, the time to update stock availability to reflect the current state of inventory is delayed, creating chaos for the operations team who must try and fulfill customer orders.
For manufacturers that use Sage ERP to track inventory, inventory accuracy resides within the ERP. However, if eCommerce platforms are not integrated with the ERP, the eCommerce platforms have no way of knowing where the true inventory levels are (since the data is either outdated or manually entered) and therefore increase the chances of a customer being unable to complete their order due to backordered products.
Contract pricing, volume discounts, and other customer specific pricing rules are typically found in the ERP system.
When eCommerce pricing is separate from the ERP pricing, customers see incorrect pricing or general pricing for products (not based on their specific contract) and sales teams are required to override the customer’s price in the eCommerce platform before checkout.
Incorrect pricing erodes the margin on every sale that is made through the eCommerce channel and undermines the trust that exists between the company and its B2B customers. B2B customers expect accurate pricing as a result of doing business with a professional organization.
Manually Entering Online Orders Slows Everything Down
The last major area of inefficiency is related to the process of entering customer online orders into Sage ERP. If the eCommerce platform is not integrated with the ERP, customers will typically need to enter their online orders into the ERP, causing additional processing delay, additional data entry errors, and increased operational costs. Manual processes also limit the ability to scale. As more orders are placed online, the time spent resolving problems increases and less time is left to improve services or expand into new sales channels.
Customer Experiences Vary By Channel
As previously stated, disconnected systems cause customer experiences to vary by channel. Depending upon how the customer communicates with the company (sales, customer service, etc.), they may receive varying responses about the status of their orders.
Some common examples of customer complaints regarding the inconsistency of order status updates include:
- Inconsistent order status updates (e.g., order received, order pending, etc.).
- Missing order history.
- Delayed confirmation emails/invoices.
As long as each system maintains its own database of customer information, even trained staff will find it difficult to provide consistent customer service.
Why Integration Creates a Better Equation
By integrating ERP and eCommerce systems, the ERP system manages the operational aspects of the business and the eCommerce system manages the customer experience, each one performing its job well without duplicating data or logic.
The key benefits of integration include:
- Real-time inventory and pricing visibility.
- Automated order processing.
- Consistent customer data across all customer touchpoints.
- Reduced manual effort and errors.
Therefore, instead of having two separate systems working against each other, the ERP and eCommerce systems now work as two components of a single operation.
Conclusion
Sage ERP and eCommerce are not competitors — but without integration, they function similarly to two separate systems that are working to pull the business in opposite directions. Inventory discrepancies, pricing errors, and manual processes are evidence that there is no integration occurring, not because of a problem with the software itself.
Integration is the bridge that transforms the ERP and eCommerce systems into a single, scalable, and customer-centric system for manufacturers and distributors.