B2B DIGITAL TRANSFORMATION

ERP or Ecommerce: Which Comes First?

When undergoing a digital transformation, mid-market businesses can find themselves at a crossroads when it comes to deciding where to start. The choice between beginning with an ERP setup or building an ecommerce site first can seem like charting unknown waters. In this article, we outline the impact of both strategies.

As digital consultants, this question comes up frequently when advising manufacturers and newcomers to the B2B ecommerce space. Honestly, it’s a great question that is much more than option A or option B. 

Evaluating and deciding the order of implementation requires careful consideration and thoughtful analysis of the pros and cons of each approach. There is no one clear answer; it depends solely on the business and leadership goals in the upcoming months. We’ll walk through a few considerations for each route, but ultimately, it’s worth a deep dive with one of our SMEs to uncover the best strategy for your business.

ERP First

Implementing an Enterprise Resource Planning system (ERP) is no small endeavour and will impact nearly every aspect of your business. Whether you’re streamlining your internal processes by adopting Cloud ERP for the first time or upgrading an existing accounting system, the effort involved is significant. 

We’re lucky to work with some of the best Value-Added Resellers (VARs), like the Top Canadian Acumatica partner, The Answer Company. 

Known as ERP specialists, they offer expert consulting services, including detailed ERP design, customization, implementation, and training to businesses embarking on a digital transformation journey. 

We don’t pretend to know these products inside and out, so we lean on these VARs to drive and advise our clients' implementation journeys. However, we integrate these solutions into their digital experience, collaborating with our client and the VAR for a seamless customer experience.

Companies who should consider adding or modernizing their ERP before their ecommerce experience will often:

• Have complex product and inventory requirements.
• Manage distributed warehouses and inventory.
• Have intricate supply chain processes that require integration with multiple backend systems.
• Deal with regulatory compliance that necessitates robust tracking and reporting capabilities.
• Operate in industries where real-time data visibility is crucial for decision-making, such as manufacturing or distribution.
• Struggle with inventory management inefficiencies that lead to overstocking or shortages.

Impact of cloud ERP adoption

As mentioned earlier, adopting a Cloud ERP will impact nearly every aspect of your business. But what does this impact look like? 

We’ll look at Acumatica, a robust Cloud ERP solution that aligns perfectly to support some of the most common challenges we see B2B Manufacturers facing. With functionality around Inventory Management, Financial Management and Customer Relationship Management (CRM), customers have reported notable benefits, including: 

Drilling down further, all of this leads to streamlined financial operations that effectively cover accounting, invoicing, and payment processing. Centralizing data and workflows within a single system enhances inter-departmental collaboration and communication, boosts backend operations, increases team satisfaction, and provides a single source of truth for real-time visibility and data-informed decision-making.

Ecommerce First

As a digital agency specializing in modern ecommerce architecture (decoupled, headless & composable), we regularly see companies prioritizing their ecommerce experience. This approach maximizes time-to-value and can help companies offset the later investment of ERP implementation as they have a revenue-generating channel in a much shorter time frame. 

An ecommerce-first solution does come with its challenges, and it is a highly competitive market with a much greater array of solutions to consider, from ecommerce engines and integrations to design and user experience. Ecommerce also comes with additional staffing and expertise requirements, which are investments to consider when building a new sales channel.

Companies considering an ecommerce-first experience before modernizing their ERP will often:

• Have a smaller (or targeted) product offering
• Target niche markets or specialized products with high demand in online channels.
• Focus on customer experience enhancements to differentiate themselves in a competitive market.
• Prioritize agility and scalability to quickly adapt to changing market trends and consumer preferences.
• Emphasize rapid deployment and iteration of digital storefronts to capture early market share.
• Leverage advanced analytics and personalization techniques to drive conversions and customer retention.
• Integrate with third-party marketplaces or social commerce platforms to expand their online presence beyond a standalone website.

Impact of adding a commerce platform

No Wrong Choice

Digital commerce and ERP implementation are huge steps forward for any organization, so there is no wrong answer here. Both are significant investments, but they’re also proven to add value to the business in both the short and long term. 

In some cases, we’ve implemented both simultaneously to accommodate clients who want the benefits from both simultaneously. This kind of concurrent implementation requires a dedicated and knowledgeable product team on the client side and clear communication channels between all three (or more) parties involved. 

Regardless of how you approach this scenario, your business could benefit from a comprehensive planning session to ensure your stakeholders understand the implications of each path and its impact on your business. 

At Acro Commerce, our Discovery & Strategy offering lays out these options in measurable terms and tangible deliverables, allowing you to weigh the choices before you.

About The Answer Company

For the last 30 years, The Answer Company ERP consulting group has been transforming businesses with custom technology solutions. Our nationwide team of experts combines their robust industry knowledge with a wide range of cutting-edge tech solutions to drive tangible results. 

From designing, customizing, integrating and deploying Acumatica ERP to optimizing workflows, automating manual processes and leveraging centralized real-time data and insights, we give our clients the power to make informed decisions, enhance productivity and employee satisfaction, and achieve sustainable growth to drive profitability.

Ecommerce or ERP First — still have questions?

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