How Does Multichannel Operations Excellence Impact ERP E-commerce?

As consumers, we all know how important it is to have an efficient and easy way to purchase goods online. But can businesses have that same expectation for their distribution and supply needs? An article on ThomasNet.com promises that they can and that the wholesale distribution industry will increasingly need to provide an e-commerce option within the next few years.

The value of an ERP e-commerce solution is growing rapidly as distributors begin to see accelerated sales in their online channels. For example, Fortune 500 industrial supplier W.W. Grainger, Inc. boasts 25 percent of its sales generated from e-commerce and projects a rise to 40 to 50 percent by 2015. Not only that, a properly implemented e-commerce solution can be a “cost-saving boon to distributors and suppliers,” the article says.

By boosting efficiency and providing more ways to sell, e-commerce can provide more cost effectiveness and savings. The feasible benefits of e-commerce for wholesale distribution are numerous and the pursuit of what the ThomasNet.com article calls “multichannel operations excellence,” or MOE, is a rising trend in the industry.

To attain MOE, online distributors must do more than just set up a shopping cart on their web sites. A successful ERP e-commerce implementation will encompass “social media efforts, mobile support (“m-commerce”), self-service, and improving customer expectations through added services, such as next-day delivery,” the article explains.

Increased web presence through Facebook, Twitter, forums and blogs, access to customer portals, and perks like free shipping can add value for the customer and increase revenue for the business. In addition to this, the proper integration of a new e-commerce channel with existing operations will improve continuity in the sales cycle and can mean increased customer satisfaction and loyalty.

So how can wholesale distribution companies most effectively acquire these benefits in their business? The article suggests that new technologies are vital in managing operations “in a more networked, integrated way that can be easily linked to customer support technologies and synchronized across all customer-facing and business-facing operations.”

A technology like NetSuite integrates ERP e-commerce with your CRM, customer service and other modules seamlessly. Using a single database, NetSuite eliminates the need for distributors and suppliers to spend massive resources integrating disparate systems. NetSuite brings everything into one software platform for both employees and customers to access.

Further, and perhaps more importantly, a full and comprehensive understanding of the company’s customers, products and value proposition is necessary for a successful ERP e-commerce implementation. For most companies, an experienced partner working closely with them to evaluate their business, its goals and provide expert guidance will prove an invaluable asset in this process.

Source: ThomasNet.com, April 2013