Magento ERP integration – connecting processes
Why connect the ecommerce store with the ERP system? Because it is part of the company, a seller on its own, offers and sells products, and because it plays an increasingly dominant role in the hierarchy of sales channels. For this reason, the ecommerce store must be integrated with the ERP system, in the same way as a new retail outlet, shop or warehouse is also connected to these systems.
ERP systems have long provided the highest possible level of system integration, completely replacing island systems in companies. At first, the ecommerce store was thought to be such an island, and companies tried to cover this function outside the ERP systems with their own ecommerce store modules – with little success.
Now, this little island has developed into a continent with increasing sales volumes year after year, so there is no other way but to build a bridge – that is, to create a connection between various sales systems.
An online store cannot sell efficiently without correct inventory and price information. Nor can an operating ERP system provide quality information and maintain an optimal process without serving web-based business processes.
Which processes are recommended for ERP integration and why?
The integration of Magento with an ERP system is a complex development in which the accurate design of the interface is of very high importance. In the following, we describe the processes worthy of integrating:
- Products, Item Master – The ecommerce store has to be served with products and information related to them. The scope of information is determined by the particulars of the industry, but, as a minimum, the two systems must be able to identify products and exchange the key information.
- Inventories – If customers have to wait weeks to receive the goods they ordered the sales figures of the ecommerce store will suffer. Higher conversion can be reached if delivery is made on the following day. This level of service can only be achieved on the basis of quasi-real inventory information, which will have an effect on the offering system of the ecommerce store as well.
- Prices – Pricing is one of the most important sales tools. Therefore, it is very important to coordinate the management of prices on the online and offline channels as well as during specific product promotions.
- Customers – The information related to registered customers of the ecommerce store must be available to the ERP system as well, so that it can supply information for the marketing department, operate billing and, if necessary, various CRM systems.
- Orders – For efficient web sales, the integration of order processing – together with the management of order statuses – into the ERP system is indispensable. Thanks to this integration, relevant information can be supplied for the financial, logistic and purchasing processes.
What are the uses of integrating Magento into the ERP system?
- Efficient and largely automated sales and decision-making support based on real information
- Much higher optimization of logistic and purchasing processes
- Cost-effective operation