ERP Integration and Data Synchronization Between Systems

Integration with ERP is necessary for up-to-date data.

Integrating an online store with an ERP (Enterprise Resource Planning Software) system is an excellent solution for entrepreneurs and accountants who want to have real-time and 100% synchronized business data.

Every business benefits from integrating an online store with ERP systems. This is especially beneficial for businesses involved in wholesale, where data freshness regarding prices and stock levels, and alignment with the real state of affairs, is crucial. Incorrect data can lead to various issues, dissatisfied customers, and additional work in managing inventory. No online store wants its biggest wholesale customer to place a larger order at the old, lower price for a quantity that is no longer available.

In the past, integrated ERP systems were particularly relevant for larger online retailers that could afford expensive integrations. Today, affordable cloud-based ERP systems are available that already have ready-made connections (APIs) for most platforms. The connection does not have to be direct: often an intermediate layer sits between the store and the ERP, exchanging orders, stock, prices and invoices in both directions, and holding and retrying them in case of an outage. For larger catalogs, also use a product information management (PIM) system as the source of descriptions and attributes for all channels.

Cloud-based online ERP systems allow authorized individuals, including you, your colleagues, and your accountant, to access and use the system synchronously. This means you can continuously monitor the status and use the system to update prices or add new products. This eliminates the need for document transfers between you and your accountant and waiting for updates on your current status.

Simultaneous Data Alignment

It is advisable to connect your ERP software to your online store to ensure simultaneous data alignment between your online store and your ERP software. This virtually eliminates the risk of losing an invoice or causing discrepancies in stock levels.

Based on the unique code or SKU (Stock Keeping Unit) of your product in the ERP software, the system automatically connects to the online store, allowing for automatic updates of data, such as prices and stock levels of products, and other data you wish to update. You can determine the update schedule yourself, ensuring continuous updates of price and stock information for your online store's products.

Usually, we recommend frequent price and stock updates in stores to our customers. This is especially advisable for stores with frequent price and stock changes, while other stores may update product data less frequently and during times of low website traffic to avoid affecting the performance of the online store. Handling a large volume of data updates can put a strain on server processing power, potentially affecting website performance. Websites have limited available processing power to operate.

Time Savings from Manual Data Entry

ERP software can also save time that would otherwise be spent on manually aligning data. Moreover, your accountant will have access to the same data as you at all times, allowing for real-time accounting services. It's important to note that manual processes can lead to human errors, especially when dealing with high workloads and the desire for quick task completion. Automated systems can help alleviate such issues, so it's a good idea to consider their integration before setting up your online store or choosing an ERP system suitable for your business operations.

Data Alignment Among Different Branches

Companies can have multiple branches, both online and physical stores, making it particularly important to ensure that inventory of products is adequately synchronized. This helps avoid complications when trying to sell a product to a customer in a physical store that was just sold online. To achieve this, companies either need to dedicate a specific warehouse for online sales or have well-aligned data between business systems. This means that when a product is ordered online, it reduces the stock of that product in physical stores and prevents sales beyond available stock.

Import and Export of Data in Files

Have you ever wanted to edit multiple products at once but found it time-consuming? Have you needed data for use in another application? Exporting data in formats such as CSV and XML offers a faster editing solution. Most people are familiar with working with spreadsheets, so we'll explain how you can export products from your online store and easily edit them in a spreadsheet. After making the necessary changes, you can save the edited file and import it back into your store. Exporting data in this way can be used for product management, data analysis, or importing data into an accounting program.

Exporting Products from the Online Store in CSV

On various platforms, online stores allow you to export data from the administration interface in CSV files. CSV stands for "Comma-Separated Values," and it is typically used for text files in which data is separated by commas, semicolons, quotation marks, or similar symbols. A CSV file is generated when exporting data from a program that handles data for the purpose of transferring data elsewhere. You can use various software programs, such as Microsoft Excel, Google Sheets, LibreOffice Calc, etc., to edit the file.

Larger businesses should also consider electronic invoicing: several EU countries are introducing mandatory electronic invoicing between businesses, so choose an ERP that supports it. Check the rules in your country.

AuthorAnže Voh

My name is Anže, I am a certified Magento solution expert and the maker of several award-winning online stores. I am the architect of all Degriz projects.

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