The Influence of Ecommerce ERP for Small and Medium Business Growth

E-commerce ERP integration can help businesses increase productivity, retain customers, and increase revenue. This is of course a breath of fresh air in the midst of growing pressure on small and medium businesses. Before discussing the effects of integration between ERP Software and e-commerce systems, it's good if you know what ERP software is, its types, and also its relationship with e-commerce.

What is ERP Software?
In short, ERP or Enterprise Resources Planning is a set of software used by companies to manage operational activities in a business that is being run. Initially, ERP was mostly used by large-scale companies only. However, now ERP is also popular among SMEs.

This system can facilitate businesses by providing real-time information. That way, business people can easily make good decisions based on the data that this system has generated.

Types of ERP Software
There are several types of ERP that you can find on the market. To make it easier for you to choose the right type of ERP, consider the following three popular types of ERP!

On-Premise ERP
This ERP system is also known as conventional ERP or on-site ERP. The initial investment for on-premise ERP is considered so expensive because the company has to buy hardware, such as the server that is used to run the system. Even though it costs a lot of money, this ERP system is still in great demand because it makes it easier for companies to handle their own data so that data security can be better maintained.

Cloud ERP
A cloud-based ERP system is a type of ERP that allows companies to centrally manage their data by connecting to the internet network. The cost is lower than conventional ERP. However, every month the company has to pay a monthly fee as long as they use this system. This ERP system is very popular among small and medium businesses. The advantages it offers include faster deployment, regular system updates and upgrades, and a high level of mobility.

Hybrid ERP
This ERP system is a combination of conventional ERP and Cloud ERP. The function of Hybrid ERP is to improve conventional ERP systems without having to change them.

ERP and E-Commerce Relationship
E-Commerce is a trading activity that utilizes electronic systems, such as the internet network. In e-commerce, there is an electric transaction process for data transfer, data exchange, processing systems and inventory, the whole process is carried out with a computer network.

From this understanding of e-commerce, it can be seen that there is a need for an ERP which is useful for managing all e-commerce activities, such as order management, managing information, inventory management, reporting management, managing accounting, and so on. With the e-commerce ERP integration, the ERP implementation can be further improved.

How Does E-Commerce ERP Affect Small and Medium Businesses?
For small and medium-sized businesses who run their businesses by utilizing electronic systems, aka e-commerce, it is appropriate for them to start implementing ERP in the business. For small and medium businesses, the best type of ERP that you can choose is cloud-based. The following are some of the significant impacts felt by small and medium-sized companies with the integration of cloud-based ERP software with e-commerce systems:

• Speed ​​up information processing across business networks
• Increase task priority based on value creation and handling expansion needs
• Increase automation
• Lower complexity
• Encourage productive and intelligent cooperation
• Optimizing business and operations
• Encourage the emergence of more innovative processes
• Can be used as an investment in ERP today and for years to come

If at this time you are still confused about implementing an ecommerce ERP system in the small and medium scale e-commerce business that you are running, then don't hesitate to consult the right ERP provider. For this reason, Soltius Indonesia is here to help you by providing consultations for those of you who plan to implement ERP in small and medium scale e-commerce businesses.