How an Ecommerce ERP will Help your Business Operations

People of 2021 are willingly accepting more digital ways when it comes to shopping. Pakistan’s e-Commerce Market has been increasing sales number by 27% per annum from 2019 onwards, according to the report “E-commerce in Pakistan 2020” shared by Ecommerce DB Statista.

What is an ERP?

Enterprise Resource Planning (ERP) is a merchant-friendly software that helps to interconnect the basic e-commerce resources to communicate with each other. These resources keep each other informed of what exactly is going on. ERP helps a merchant to automate, balance and manage meaningful e-commerce operations avoiding human errors. ERP is best to avoid human errors making operational processes more efficient and accurate. Back in the 1960s, the term ERP came into being by Gartner. His idea was first implemented on inventory management and manufacturing processes control. In the 1970s the system was enhanced to Material Requirements Planning (MRP) with the additional features of production process scheduling. Later MRP-II was introduced with further advancements in manufacturing data capture. It further grew by enclosing more features of operations including Customer Relationship Management (CRM) and accounting as well.

So what does ERP exactly do?

ERP glues the basic e-commerce operation fragments and lets them communicate with each other to automate processes for merchant ease. ERP not only help the merchant in smoothing operational tasks but also saves time so that the merchant can pen down newer strategies by sitting with a cup of coffee. ERP helps in automating processes including manufacturing data, processing, sales, accounts, reporting etc. Offering efficient processes for smooth business, ERP channelizes all activities and let the modules keep on communicating and updating accordingly. Whether the merchant is running an e-commerce store or brick and mortar store. All get interconnected eventually managing inventory, orders and other related stuff. Through ERP a merchant can allow automated replies to customers which helps reduce the workforce as well. In short, we can say that ERP is a complete jam-packed economical solution for a merchant. Connecting retail with an online e-commerce store an ERP is a single desk solution for merchant needs.

Reasons which make ERP necessary to have

An e-commerce and retail business must have ERP for the following reasons:

1. The business outgrew the existing software.
2.Multiple app integrations difficult to handle.
3. Failing to meet customers’ demand.
4. Inventory and order management issues.
If you are facing any of these issues then ERP is a must to have for smoother e-commerce operations
Basic components of ERP include accounting software, Customer Relationship Management (CRM), Order management module, inventory management module, logistic management module, BI reporting module, Multi-vendor management module, etc. Multiple types of ERPs are available for the respective type of industries. These industries may include the apparel industry, construction industry, educational industry, etc.

Specific business needs specific ERP solution to keep their business processes inflow. Types of ERPs are mentioned below:

Open Source ERP: Open Source ERP is a sort of freeware whose source code can be accessed and customized for free. Small businesses and startups can make the most out of it by customizing the ERP according to their own needs.

On-premise ERP: To connect people processes and systems within an organization On-premise ERP is used. This type of ERP is specifically designed for a specific company and can develop connections within business premises. Whether they are available at a single place or multiple places, this ERP will connect them all to one system for the best synchronization of activities.

Cloud-Based ERP: As clear from its name, a cloud-based ERP is available via a cloud hosting service. This is Software as a Service (SaaS-based). Usually, companies at the enterprise level make use of it for real-time data sync facilities over the internet. This is more efficient than an on-premise ERP.

Hybrid ERP: Hybrid ERP is developed combining features of on-premise and Cloud-based ERP. This is also known as a tier-two solution that combines features of both ERPs. Making use of the internet, integrations with this ERP is easier than others. Integrated Ecommerce ERP is helping business operations a lot. Here is how:

Smooth e-commerce operations

As mentioned previously, ERP ensures smoother and faster daily e-commerce operations. For this, ERP allows different channels to communicate with each other. For example, when an order is processed, inventory will be updated and ERP will intimate the info to the rest of the modules. All these processes will undergo automatically. No labour or workforce is required to trigger actions.

Centralized Inventory Management

Centralized inventory management is one of the most essential parts of the e-commerce business. Sales depend upon the number of products available. If the inventory is not getting updated timely, it can disturb the processes. ERP is the tool that helps to centralize all operations concerning inventory management by syncing it timely across all channels. Whether it is an online store, brick-and-mortar store or a multi-vendor. The stock gets updated for all. This also serves in reducing overall inventory costs.

Reduction in human error and cost

Human error in daily processes is a natural phenomenon. However, if things are left on bots they do it error-free. Human error may occur due to manual or delayed processes. Combining gradually, human error can welcome huge disasters as well. Automations by ERP allow the system to talk and update each other accordingly bringing internal productivity. When processes get automated, businesses start to grow. For the growing business proper management of processes is highly necessary otherwise business suffers. A growing business demands more workforce for obvious reasons which eventually welcomes human errors again. This automation helps reduce the overall workforce thus reducing cost as well. Suppose you have hired 5 resources for your order management processes worth 2000 USD. Here using ERP worth 1000 USD will be better being cost-effective.

Multi sales channels Management

80% of the e-commerce businesses have their retail stores as well. ERP becomes highly useful when a merchant has to manage multiple channels like an e-commerce store, brick and mortar store or multi vendor’s platform, it becomes highly challenging to manage inventory. Here, ERP becomes extremely essential for a merchant. ERP keeps on updating all channels on real-time sync.

Omnichannel for Better overall business control

ERP is a type of Omnichannel through which a merchant can overview all the business processes. This develops more control over business operations. Once merchants have full control over the business processes they can spend more time on creating newer strategies rather than being busy overviewing each department’s operational tasks. Effortless processes bring competitive advantages for a business. Overall visibility and control over business encourage customer satisfaction as well. Managing multiple apps and integrations is also difficult to operate and overview. It not only consumes time but effort as well. Through an ERP merchants can do and manage multiple integrations.

Business Intelligence (BI) Reporting

Business Intelligence (BI) Reporting is not included in the module set of all ERPs. However, Ginkgo is providing a BI reporting feature for merchants’ ease.

What exactly BI reporting is?

BI reporting is based on continuous data which ERP is receiving from all of its modules. The BI reports that include couriers and orders aging report, Product level, and team level/management level dashboard. Once a merchant has overall reports of these main aspects, he can take future steps accordingly or can indulge time in improving further flaws of business.

Increased customer satisfaction

Customers like to receive their order within time. A parcel if received before time is no less than a gift for them. ERP helps reduce order processing and delivery time. Some ERPs like Ginkgo Retail provides same-day delivery option as well. Digital transformation in retail has increased the demand for automated processes. Proper mechanisms and automated processes develop the brand’s trust thus bringing home customer satisfaction.

Ending up with the ERP selection

Above we have mentioned the reasons for using ERP and its benefits for a specific business. You would surely be wondering how to select an ERP for your business. So here is the answer. Select your ERP based on the following points:
1. Analyze your business
2. Look for what technical features are required.
3. Write down your budget estimate
4. Track benefits it will give to your business.
5. Request a demo
There are some ERP providers which customize it according to the merchant’s needs.
Ginkgo Retail is a complete cloud-based one-stop e-commerce business solution that can be modified according to customers’ needs. In fact, we cannot entitle Ginkgo Retail just as an ERP. it is an omnichannel which provides integration with other ERPs as well as adding value to them with its miscellaneous modules.
It is a merchant friendly solution that helps to manage a multi-sales platform from a single dashboard. An efficient notification system helps merchants to be aware of the business updates on time. It eliminates data redundancies and helps to reduce in-store stock transfers as well. Order management, inventory management, product management, and BI reporting feature is all perfect for the merchant to keep business up.
Currently, Ginkgo is serving 30+ clients and has ensured same day deliveries boosting customer satisfaction and brand reliability. Ginkgo Retail holds the ability to transform according to the merchant and its merchandise. If you are looking for a solution like Ginkgo then request a demo now.