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Most early eCommerce solutions were deployed as stand-alone systems and played only a minimal role in busi-ness strategies and operations. Over the past several years, however, the strategic value of conducting busi-ness online has become clear. As online transactions have become more pervasive, the demand for integrating eCommerce into other business operations has risen accordingly. The high transaction volume that has migrat-ed to the Web demands that eCommerce be more fully automated and integrated into the entire supply chain, including sales, customer service, accounting, inventory, point of sale and fulfillment. Managing those transac-tions efficiently and error-free is critical.
Back-office systems run the business administration processes. These days, they are commonly automated processes run by computer software. Generally, back-office systems include an accounting package or database that records sales transactions, records purchases, updates inventory records and generates paperwork, such as invoices and receipts. Many back-office systems also include shipping information and can generate reports to help executives monitor business performance and predict future market trends.
Connections
Integration means connecting your online eCommerce system with your back-office accounts and database systems. It’s important for the eCommerce platform to be able to talk to your other business systems, such as customer relationship management, inventory management, price maintenance, fulfillment and the accounting system, so that the transaction customer data interacts seamlessly with the enterprise resource planning (ERP) and accounting systems.
Linking back-office and online systems improves efficiency and often leads to greater customer satisfaction. The idea is that whenever a customer places an order online, your web store and back office deal with the sale at the same time. You don’t have to enter data more than once. The online system accepts the order and relays the information back to the customer while the back office records the transaction, adjusts inventory levels, gener-ates an invoice and fills the order.
High Efficiency
Automating and integrating all of your systems allows the business to run in real time. Business owners have more information sooner and can make better decisions. Employees can work faster and smarter. Customers are served better. Orders can be filled and tracked more quickly and easily with inventory levels updated in real time. Sales representatives working on orders and employees in charge of purchasing are more effective be-cause they can always see the inventory. An open, integrated system allows companies to carry lower inventory levels, analyze inventory costs and collaborate with vendors more efficiently.
Business-to-Business Integration
Companies not only are integrating their own back-office systems, but they are integrating with their business partners’ systems. For example, a retailer’s point of sale (POS) system can be integrated with his supplier’s online transaction system so that when inventory falls below a certain level, the system automatically generates a digi-tal order, which goes to the supplier’s online system.
Some large corporations expect their suppliers to set up an online ordering system to they can integrate and generate orders automatically. Especially in this global economy, companies want to be able to place orders without waiting for a customer service desk to open.
Automation and integration allow some companies to expand operations overseas more quickly than would have been possible if they had to hire an overseas staff and work through human resource issues. Integration also can create a level of stickiness and strengthen the ties between partnering companies. For example, once you’ve gone to the trouble of integrating systems, you’re less likely to change distributors.
In this fast-paced, global economy, automating back office systems and integrating them with eCommerce solutions is becoming the expected way to do business.
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