Here at ITQ Solutions, for larger scale web-stores we use the Magento platform, which is a platform for supporting e-commerce retail requiring a greater level of functionality and robustness. SAP Business One is an online enterprise resource planning software package which is functionally-rich for medium to large sized businesses and is the preferred platform that we integrate Magento to most frequently.
SAP Business One integration to Magento would generally be our preferred recommendation for online integration projects. In our opinion, it delivers the best combination e-commerce strategy and performance together.
What advantages are there to companies to integrating the two systems together?
- Speed and efficiency. If you do not integrate your systems then - as your business scales - there is too much manual intervention. This will be required to ensure all your systems - stock ordering, credit, suppliers for example - run smoothly. Manual processes are comparatively slow, introduce inaccuracies and are more costly (in terms of labour). Your standard reports will become disjointed and inaccurate - the most important reports for any internet e-commerce business are the Average Price and Margin reports. Businesses should be tracking these on a continuous basis to ensure they are trading in a proper way for long term profitability
- Accuracy. Integrating front office and back office systems make a great deal of sense because it delivers a much greater level of accuracy. Accuracy in reporting because there are no manual processes introducing errors and delays. You also gain in accuracy in approach because all departments within the business share a single database from which they run the business. And your Finance Director will love this because he has complete visibility of when sales are made and will be able to recognise revenue and build the best tax plan possible based on accurate information.
- Scalable and powerful. SAP B1 and Magento are systems which are built to cope with significant volumes of continuous trading without any reduction in performance. This makes your site much more scalable and your costs of operation will not rise in direct proportion to use. This will then allow you to better manage your cost of goods sold and administration costs - which all lead to greater levels of competitiveness. These improvements can be used in two ways: your can take higher margin or - if you need to - you can lower prices to gain even more volume. Both are extremely useful.
It takes your business to the next level
When front office and back office are not integrated, you can only develop your business so far. There is friction in the system and it will limit what is possible. By integrating, you can take the business to the next level: greater efficiency, greater speed and better use of capital. This greater competitiveness makes your business stronger and you can comfortably cope with higher volumes of business. This allows you to reinvest in better systems and infrastructure, making your business more sustainable.
SAP Accounting software and the Magento e-commerce platform are excellent systems to allow this.
It stops having to manually intervene so frequently
There comes a point with your business when manual intervention just becomes too difficult: they happen too frequently and, as finance staff intervene often, then mistakes start to creep in. There is a financial cost to so much manual intervention. With an integrated system, these changes happen automatically without anything external being necessary.
- Reduces the financial cost of financial staff labour (which is required for frequent manual intervention)
- Reduces mistakes where a manual intervention introduces mistakes into the accounts
- Keeps the accounts consistent and accurate - especially important to keep Margin reports accurate and up to date
It puts power into the hands of your sales, your operations and your finance functions
When you use a good ERP system within your business, then it is not just the accounting function which feels the benefit. ERP systems allow other departments to benefit from the information contained within:
- Operations use it to undertake stock ordering
- Sales use it to run more price promotions
- Customer Service use it to deal with item returns and credit notes
All your departments can work from one database which means there is a coherent approach approach taken.
It releases management time to focus on strategy (not tactics)
Something which is not discussed very much - because it can be quite abstract and difficult to define - is the ability to move from a purely tactical approach to something more strategic. You will be moving from firefighting to being more in control. This allows for better planning, for better execution and better risk management. We have seen this work most effectively in how sales planning can be more more proactive and sales and incentives used more accurately.
It allows you to compete better
All in all, more integration leads to a better, more competitive business which is well placed to deal with operating at a higher volume without its internal systems failing to cope.
Magento cost and SAP Business One cost have to be taken into account but we have found that normally this is quickly recovered by more efficient operations and higher volumes of sales traffic.
If you liked this blog then you might also like this previously published blog too: http://inbound.itqsolutions.net/blog/most-common-online-shopping-objections-and-how-to-neutralise-them