Cloud ERP explained
If you’re running any kind of ecommerce or retail business, then there’s a good chance you’ve heard of Cloud ERP.
If you’re just starting out, then there’s also a fairly good chance that you’re not entirely sure what it is, what it does, and why you need it! In this post, we take a look at cloud ERP, and how ecommerce businesses can benefit from it.
What is Cloud ERP?
ERP stands for enterprise resource planning – it’s business management software that you can use to collect, store, manage and share data from all your different business activities.
For ecommerce businesses, this might include:
- Product planning
- Sales, marketing and merchandising
- Inventory and stock
- Shipping and delivery
- Customer orders and payments
Cloud ERP simply means that the software platform is built, hosted and maintained by the provider (along with the data), and delivered to customers over the internet.
The advantage of a cloud-based system is that the provider can manage and update the software constantly, without any input from the user, taking away a lot of the hassle and back end management involved with offline systems.
How does cloud ERP work?
ERP systems are designed to automate and integrate some of the day-to-day aspects of your business, making it more streamlined and efficient.
In practice, this might mean the system taking orders from customers, tracking your accountancy data, handling your payroll and keeping track of all your stock and inventory, so you don’t have to.
At the same time, it will store and manage all this data in a centralised database, so all your staff members across different divisions can access the information they need to complete their day-to-day operations.
How ERP benefits businesses
There are loads of business benefits to having a good cloud ERP system – especially for larger organisations with multiple departments, who all need to share information.
The right cloud ERP system will improve the information flow inside your business, connecting different departments and helping your staff members to complete their jobs more effectively and efficiently. In turn, it will help you to develop and integrate new systems and processes, and get rid of redundant ones.
By providing a central database of customer, sales and financial info, it can improve forecasting and help with your on-going sales strategy, whilst helping to support your customer service delivery. In addition, it will help to control data flow and improve data security, reducing risk and helping with financial compliance.
Put simply – a good cloud ERP system is invaluable, and will save you time, effort and money on administration, so you and your staff members can concentrate on your core business.