Oct 24, 2024 | 8 minute read
written by Seamus Roddy
Selling online comes with a host of three letter acronyms. AOV, CAC, LTV – whether you’re a small business selling online for the first time or a huge multinational with dozens of commerce sites, you understand and measure these acronyms to determine the health of your commerce operation.
For some businesses, especially manufacturers and distributors with B2B and B2B2C business models, another three letter acronym is paramount to commerce success: ERP. Enterprise resource planning (ERP) software and systems help centralize business data and management. ERP software is widespread, with ERP solutions making up 17% of global software spend and 5% of total IT spend – hundreds of millions of dollars in total.
For businesses, having your commerce tech stack integrated with a strong, performing, industry-friendly ERP means operating efficiently and offering better customer experiences. Learn more about ERPs, why many businesses want to maintain their choice of an ERP, the value of a flexible commerce solution that can integrate your chosen ERP, and notable ERP systems that manufacturers and distributors should consider based on industry, use case, and business needs.
An Enterprise Resource Planning (ERP) system is a comprehensive software solution that integrates and manages a company’s core business processes across departments such as finance, human resources, procurement, manufacturing, supply chain, and customer relationship management (CRM). By consolidating these operations into a single platform, ERPs provide a unified source of real-time data that facilitates fast decision-making and improves operational efficiency. In fact, 50% of businesses achieve a return on investment (ROI) from ERP systems within two years, with 28% seeing it within just one year.
For manufacturers and distributors, an ERP can provide value by centralizing operations and optimizing key processes such as inventory management, production planning, and order fulfillment. Manufacturers often deal with complex supply chains and require accurate forecasting to avoid stockouts or excess inventory. ERPs enable real-time visibility into inventory levels, demand trends, and production schedules, allowing manufacturers to manage resources effectively and reduce waste. For distributors, an ERP ensures smooth logistics and distribution, improving tracking of shipments, managing warehouses, and ensuring that products are delivered on time.
When we talk to manufacturers and distributors that sell online or want to sell online, they frequently mention that they need to integrate an ERP into their commerce solution.
ERPs are especially critical for manufacturers and distributors that sell online because they integrate commerce operations with back-office systems, tying together online platforms, inventory systems, and supply chains. These businesses sometimes need to manage both B2B and B2C channels while maintaining control over production, inventory, and customer orders. An ERP ensures that online sales are automatically reflected in inventory levels, production schedules, and financials, preventing the issues of overselling, understocking, or being forced into rate limiting. The real-time data integration provided by an ERP is essential for delivering a seamless customer experience and for ensuring that manufacturers and distributors can scale their online sales without operational bottlenecks and negative shopper experiences.
For manufacturers that sell configurable products or custom solutions, cloud-based ERPs are especially popular, and provide huge flexibility and scalability. Since configurable products often require custom specifications and result in complex pricing, an ERP can ensure that every custom order is accurately translated into production requirements, preventing errors in manufacturing, delays in fulfillment, or misquotes and other poor customer experiences. Ultimately, an ERP ties together commerce and business operations – about 60% of manufacturers identify real-time access to business operations as the top benefit of cloud-based ERP systems.
Here are 14 ERPs for manufacturers and distributors that sell online to consider.
Needing a strong, industry-specific ERP shouldn’t shackle you to a clunky homegrown commerce solution or prevent you from offering elevated shopper experiences.
We say all the time that so-called “B2B commerce” is B.S. Commerce is commerce, buyers are buyers, and even if you’re a manufacturer or distributor, your shoppers are modern internet users. They’re conditioned to expect D2C-level shopping experiences – and a flexible commerce platform that can integrate with a powerful ERP makes those experiences possible even for manufacturers and distributors with demanding requirements.
Elastic Path Composable Commerce is a platform that is purpose-built for the needs of manufacturers and distributors, and has a demonstrated history of allowing fast, simple integrations with tools like CPQs and ERPs.
Just consider some of our existing customers that integrated their preferred ERP into our merchandising platform:
Want to learn about how our flexible commerce platform can meet your business’s ERP needs? Schedule time with our team so we can hear about your ERP, your products and business, and what commerce experiences you want to bring to life.
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