eCommerce has grown into a trillion dollar industry. Moreover, with the help of different eCommerce platforms, many people are joining the online market. However, keeping track of your online store is not easy, especially when your store grows and expands. Then, in this case, you will need a decent backend system, an ERP ( Enterprise Resource Planning). In this blog, we will deliver you sufficient understanding about it and instruction for Magento 2 ERP integration.
What is Magento 2 ERP?
ERP stands for Enterprise Resource Planning. This is one of the effective methods to manage your business process. For example, in back – office work, ERP software helps automate many functions related to technology, service and so on. When it comes to eCommerce, users can effectively track and manage business processes and sales with ERP. Now, we will discuss more about this helpful software
Why do you need Magento 2 ERP integration?
Magento 2 ERP integration can bring you many benefits, but what are they exactly? The following are some outstanding advantages of ERP integration
- As mentioned above, ERP software helps automate back – office work by providing functions related to technology, service, etc. What’s more, it can also automate other processes. For example, inventory status, order history, item categories, etc
- Besides, users will be able to keep track of the business process, from order tracking to available stocks. Thanks to that, shop owners will better manage their business.
- Simplify price and products update
- Moreover, it allows you to add multiple online and offline sales channels without the need of the efficiency of operation. Thanks to this, your inventory costs will reduce
- ERP integration generates automated tax compliance and financial reports. Then, your business will greatly comply with the law. Moreover, with transparent and truthful financial statement, you can gain trust from customers as well as investors
- One of the best things about ERP integration is that you don’t need to add extra cost. As a result, you can keep your customers happy.
Different modules for ERP system
There are many different types of ERP for you to choose. However, most of the ERP system have the following basic modules
CRM stands for Customer Relations Management. As that said, this module helps with sales conducting and interaction with clients, customers and so on. But CRM Module has more benefits than just that. In particular, you can keep track of stages of each contract, history of closed project and so on
Product management module
This module will manage all of your product manufacturing process. It will plan and control the material resources to assure the continuity of the production.
If you want to better manage your employees without hiring more employees, HR – Module is for you. In fact, HR – module is more of a personnel module. Therefore, it can manage sick leave, time off and vacations.
Coming to analytical module. This one helps you with business analytics, indicator visualization, generation of internal reports. Thanks to all those helpful information, Analytical module allows you to come up with effective business strategy
This module allows you to create every financial statement that you need. For example, accounting and invoicing, tac reporting, financial planning, etc.
How to choose right ERP for your business
There are many different ERP out there for you to choose. However, choosing the most suitable one for your business might not be easy for you. Then, in this part, we will deliver you some factors you should consider before Magento 2 ERP integration
Thoroughly understand the need of your business
Needless to say, you have to understand your business to choose the best one for it. First, you must acknowledge the current situation and problems of your business. Then, you will be able to choose the right one for your needs.
Keep in mind that ERP integration will make a major change in your business. Therefore, make sure your business can quickly adapt to those changes.
Make sure the ERP system fits all your current eCommerce system
If you’re having your own eCommerce system at the moment, then you should choose the ERP system that fits it. Otherwise, you need to alter, change a lot of things to go with the ERP systems. Moreover, data should flow smoothly from your eCommerce system to the ERP system. This helps prevent inventory and delivery delays. What’s more, this is such a great way to boost the consistency between systems. High chance is that your customers will have better time browsing through your online store
The ERP system should be able to provide real – time data
One of the basic requirements for an effective ERP system is the ability to deliver data in real time. This allows you to make decision and strategy instantly
Magento 2 ERP integration
Something to keep in mind before the integration
Which data do you want to integrate?
Determine which data you want to integrate into ERP. Most of the time, the data is the product details, inventory and order information. However, this depends on the needs and the goals of your company. For example, if you need, you can integrate customer data into the ERP system.
Get the timing and trigger right
Before Magento 2 ERP integration, you must consider the schedules for different process triggers. To illustrate, let’s consider the following example
Once customers make purchases on your website, and pay for that order, the ERP then gets the order details for generating and tracking ID. After that, it will send it back to the Magento platform. Next, the Magento platform will send it to customers and admin through email and other platforms. Besides, the item availability with verifications needs exchanging quickly between ERP and Magento system before the payment is captured
Take advantage of the automation
The best thing Magento 2 ERP integration can bring to you is the automation. Thanks to this, shop owners can save a lot of time and cost for order entry, tracking ID distribution and so on. Moreover, ERP’s automation can deliver you better ROI as well
Create financial statement and taxation
When it comes to Magento 2 ERP integration, even complex work like taxation will be a lot easier. You can use ERP as a system of records to solve the taxation issues. Also, it allows you to synchronize the sales tax amounts created by the ERP system and user – facing sales portal
Anticipate the change that ERP integration will bring in Customer Experience
Last but not least, you must predict the impact of the ERP integration to end – users. To do this, you not only have to understand about the current situation of your business, but also learn about your customers as well.
Magento 2 ERP integration
Now, we’ll show you to integrate Magento 2 ERP. Here’s the step – by – step instruction for you. However, make sure you accomplish all the following steps before moving to ERP integration.
Understand the workflow of the orders and data setup in Magento
Firstly, you need to know how everything works in Magento 2, from order management to add and manage products.
When it comes to Magento 2, you must know about Attributes – a well – functioning feature. With Attributes, you will be able to not only control product data, but also process other important order information.
Then, the first thing you need to do is understanding how your data is organized or how you want it to be organized.
You can have many different inventory management configuration options during Magento 2 ERP integration.
During Magento 2 ERP integration, you will have multiple options of inventory management configuration. Thanks to that, you will be able to import orders via one single channel as well as separate pathways for online orders
Take advantage of the automation
Yes, we have mentioned this above: You should get the best of the automation when it comes to ERP. During the Magento 2 ERP integration, you can use automation for order entry and tracking number distributions workflow. Thanks to this, you can save a lot of time and cost for other tasks.
In some ERP, there are many helpful features. For example, users can automate the picklist generation process
Define how ERP and Magento should react
Methods for Magento 2 ERP integration
There are many ways for you to integrate ERP to Magento 2. However, we will mainly focus on three methods, including point – to – point, custom – built, multichannel integration
Point – to – point Solutions
If you are running small or medium businesses, this method might be for you. On the other hand, Point – to – point solution is not ideal for bigger ones since it can’t meet the demands for fast – growing enterprises.
In this method, your Magento store and your ERP will connect to each other on both ends. Therefore, this connection allows synchronizing data.
Firstly, connect your EPR to Magento. The price for this is quite affordable, around $100/ month. Moreover, you can find the solution in Magento Extension Marketplace.
However, keep in mind that managing data won’t be possible instantly due to the lack of operational platform between them. Moreover, this method is not flexible when adding more sales channels.
Custom Magento-ERP Integration
Coming to another method of Magento 2 ERP integration – Custom Magento ERP Integration. This method uses both APIs ( Application Programming interfaces) to synchronize needed data.
This method is a lot more complicated than point – to – point one. Therefore, you will be charged a higher price when using this method. However, it can bring you a lot more functions as well as flexibility. In short, Custom Magento – ERP Integration will be more suitable for businesses with specific resources and requirements.
Multichannel Magento 2 ERP Integration
Multichannel Magento 2 ERP Integration is such a great option for you to integrate Magento and ERP. This method already includes an operational hub to store and manage your data. What’s more, it can automatically synchronize primary data such as item, inventory, order, etc.
Compared to point – to – point solution, this method will be a lot more expensive ( up to hundreds of dollars per month). On the other hand, the set up will be free of charge. Moreover, Multichannel Magento 2 ERP Integration can bring you better functions and flexibility. For instance, it’s easily adjustable to all the changes in the system. Also, it can sales along with your business
Therefore, this method can suit a wide range of businesses, from small – medium one to large enterprises.
We hope to deliver you sufficient basic understanding about Magento 2 integration. From this blog, you will be able to find the right ERP integration method for your online store. In case you need some help with your integration, or simply have some questions about it, don’t hesitate to contact ArrowHitech
ArrowHitech is the leading IT outsourcing company in Vietnam. With more than 13 years of working with different eCommerce projects, we confidently deliver you the best service, including Magento Integration service. Working with our decade – long developers, you’ll surely get all your requirements met. Request a Free Consultation