What is an ERP system

What began as material resource planning system, MRP, made to improve production scheduling and processes, has expanded over time to become enterprise resource planning system, ERP. The ERP system integrates many different functions of your business to help streamline processes and information beyond just inventory and operations. In simple words, adopting the ERP system potentially removes unnecessary tasks and jobs which reduces the workload of your employees.

Many eCommerce businesses have begun using the ERP system and here’s why you should too:

Value of ERP

Cost effective inventory management

Using the ERP system will not only allow you to compile all the information on a common platform but information added is immediately updated as well and the information is available to employees in real time. With this real-time information, you are able to better plan your purchases and orders according to the demand of the products. Additionally, you will be able to closely follow the sales of products to plan marketing campaigns and sales promotions to boost sales of products that are not leaving the shelves as quickly as they should be

Increases scalability of your business

With an integrated system that automatically updates data across the different business function when there is a new data entry or purchase online, there is little need for human intervention. Hence, your business is able to respond to an increase in demand and expansion without the need to increase labour. With lesser reliance on human labour, the scalability of your business increases.

Improves productivity

With information being updated automatically, the freed up labour hours can be spent on growing the business. Employees can now work on identifying opportunities for the business and tackle issues that are it holding back.

Increased customer satisfaction

With incoming data being sorted and reflected immediately by your ERP system, up to date and accurate information is available to your customer around the clock. Customers do not have to trouble themselves to contact your staff for information such as product availability.

Furthermore, by integrating your eCommerce and ERP, orders flow seamlessly and immediately to your system. There is no longer a need for the order to be manually updated, printed and sent to the warehouse. This reduces the order cycle and speeds up your turnaround time.

With data including information such as age, gender, place or residence and purchase history, you will be able to better identify the preferences of your customers. Promotions, sales and products sold can better cater to their needs and wants. When customers are more satisfied, they are more likely to return to your site and continue supporting your business.


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