Given the increasing competition in the markets, one of the most important factors for an E-commerce to function correctly is its synchronization with the ERP (Enterprise Resource Planning), that is, the Enterprise Resource Management software. In short, it is the application that integrates all the operational transactions carried out by a company on a single platform. But why should we integrate them?
This is one of the keys needed to improve the core competitiveness of companies. ERP deals with a company’s internal processes such as production planning, raw material procurement, inventories, logistics and other resources. And E-Commerce manages the company’s external resources. Both are essential parts of business development. The main reason for such integration lies in the need for business information to flow in both directions, since the E-Commerce customer must have at all times information residing in the ERP about stock availability, prices and other aspects.
Although at the beginning of an online store it is possible that sometimes these tasks are performed manually, with the sustained increase in sales it becomes necessary and indispensable to automate the process and integrate the ERP with the E-Commerce.
Case Study: Isesa.cl
Isesa is a Chilean company with more than 50 years of experience in the manufacture, import, export and distribution of abrasives, tools, machinery and accessories for surface treatment.
The company requested Known Online’ s expertise to develop its E-Commerce and at the same time integrate with its ERP called QAD.
Isesa had the need to find a total solution for its online operations so that the transition to online sales would be improved due to a complete automation of the sales operation. Through such automation , human intervention would be avoided as much as possible to prevent human error and also improve the customer’s buying process, lower the company’s costs, and significantly simplify the entire sales process.
Solution provided by Known Online
In order to achieve a total solution to Isesa’s sales, operation and product dispatch problems, Known Online devised a strategy with four main axes where the following actions were carried out:
1) Creation of VTEX Store: In 75 days the site https://www.isesa.cl/ was developed from scratch, created on the VTEX platform that included the design, layout, backend configurations and training to the internal team.
2) Full integration of operations in VTEX with ERP QAD: We integrated systems so that they can communicate with each other and automate processes. In this way, stock synchronization in each of its warehouses, price synchronization, order entry and orders, and the sending of invoices were carried out. In addition, a portal called “Order Status” was created for customers to enter their order number and track their orders through system notifications.
3) Integration of E-Commerce with logistics: Orders were entered into logistics operators such as enviame.io and Position in such a way that when an order enters the VTEX store it is placed within its ERP and automatically defines which logistics provider it should be sent to and also notifies the customer to pick up the products when they are available. This was configured based on geographic regions so that, depending on the area and size of the order, Isesa’s own logistics or outsourced logistics are used to obtain, in a transparent way for the customer, the best price and service.
With these three points, the company was able to automate the entire sales process. When a sale is entered, the same system makes it charge, dispatch and invoice without human intervention, and also synchronizes in real time with the stock in the warehouse.
4) Omnichannel: We integrate offline and E-Commerce to generate an omnichannel shopping process. This means that there is a communication between what happens online and offline of the company since it allows the pick up in your own store. We synchronize the physical stores in Santiago de Chile as well as the warehouses that do not have access to the public so that the customer can select express pickups in less than 24 hours in the available stores so that there is complete visibility on which products can be picked up from the store and which products involve shipping.
On the other hand, within the same stores, salespeople now have the ability to do stock checks in the other warehouses to avoid stock-outs and lost sales.
5) Evolutionary support: Isesa has permanent support from Known Online to continue improving the user experience within its store.
Results obtained
- The proposal provided and implemented by Known Online completely solved Isesa’s need since the store is already operational and has a full integration of its site with its ERP. The complete automation of their online operations allows them to boost their sales, reduce their costs and avoid human errors.
- In addition, the sales of physical store salespeople increased because they avoid stock-outs since they have the total stock of the company and not only the stock of their single store.
