What is an ERP, a Shipping Tool, and How Do They Work Together?

Integrate ERP systems with ShipAccel to optimize ecommerce logistics, reduce costs, and enhance operational efficiency.
ShipAccel Staff ShipAccel
12/03/2024 Domestic Solutions

The world of eCommerce is fast paced and highly dynamic. eCommerce business owners, must constantly adapt to new technologies and changes in consumer preferences every day. One key enabler for the success is leveraging new technologies—specifically Enterprise Resource Planning (ERP) systems and shipping software to streamline operations and improve efficiency. These tools will not only simplify business processes but will eventually help increase revenues and decrease operating costs for the overall business.

What is an ERP, and what are the benefits?

Enterprise Resource Planning (ERP) systems integrate various business processes into a single, cohesive platform. These processes may range from accounting and finance to human resources, supply chain management, warehousing, and manufacturing. Examples of popular ERP systems include Quickbooks, NetSuite, SAP, and MS Dynamics.

Key features of ERP systems include:

  1. Centralized management: all business data will be presented on one platform, allowing owners to easily coordinate between business functions
  2. Automation: the ability to automatically execute tasks, reducing time and cost on manual input and potential mistakes
  3. Real-time data: the ability to view and gain insights from the most up-to-date data
  4. Integrations: most popular ERP systems can easily integrate to various other business tools, such as shipping software, Warehouse Management System (WMS), Customer Relations Management (CRM), and more

Given these features, key benefits of ERPs include:

  1. Enhanced strategic decision-making: business owners can leverage real-time data to gain insights on key decisions such as cost optimization, product mix, etc.
  2. Cost reduction: resources and people can be reallocated for other, more important tasks thanks to automation. Mistakes from manual input and human errors can also be eliminated, further eliminating the costs associated with that.
  3. Better customer service: access to the most up-to-date data can result in less WISMO calls and better overall customer experience
  4. mproved efficiency: improved coordination between business units and automation can lead to faster, more efficient operations

What is a shipping software solution, and what are the benefits?

Shipping software solutions or shipping tools help optimize all-things logistics for eCommerce businesses. These tools can help automate shipping processes, manage carrier relationships, provide access to better rates, and give real-time tracking information.

Key benefits of shipping tools include:

1. Streamlined shipping process through automation: tasks such as label printing, order management, and carrier selection may be completed automatically, thus reducing time and improving efficiency

2. Reduced costs: access to the best carrier rates, automatic carrier and service selection, and real-time tracking can help reduce costs for eCommerce shippers

3. Better customer service: by providing the most up-to-date tracking information, customers will be satisfied with the visibility

4. Enhanced strategic decision-making: access to shipping data can help managers pinpoint areas of inefficiencies and high costs

How can ERPs and shipping tools work together?

ERPs and shipping tools such as ShipAccel can be integrated to optimize the entire eCommerce business process. The integration will ensure automatic data flow of orders between the two platforms, improving the efficiency of order management and logistics. Given these features, it is then important to have two systems that are proven to integrate and work well together—otherwise, mistakes may occur that will cause hiccups in the businesses’ operations and eventually lead to financial losses.

Therefore, when choosing an ERP and shipping tool, it is best to consider the following factors:

  • Integration compatibility: note the technical aspects (API, automated workflows) and how the two systems may wok together
  • Establishment and credibility: consider the reliability of both systems and if they are both established players in the market
  • System performance: note how each system, on its own, is able to perform

For businesses that are already using an ERP, consider the following factors when selecting a shipping tool:

  • Integration compatibility: note how the existing ERP system can integrate with the shipping tool
  • Credibility: examine if the shipping tool is a reliable system
  • Scalability: some shipping tools are not able to scale alongside your business and ERP system. It is important to select a tool that has modular capabilities

ShipAccel, powered by Pitney Bowes, is the premier shipping tool for eCommerce businesses looking to scale with ease. The tool will feature strong integrations with major ERP systems such as Quickbooks, NetSuite, and MS Dynamics.

If you are searching for the best shipping tool that is compatible with the best ERP systems, look no further; learn more about how you can start streamlining your logistics today – Get a Demo.