Trends

Challenges from B2B Business to B2C / E-commerce: The Role of an All-in-one Cloud Native ERP

Source: reybex Cloud ERP

There are many challenges associated with the evolution from B2B to B2C and e-commerce. Companies need new solutions to meet the increasing requirements. A SaaS ERP solution plays a decisive role in overcoming the various challenges of B2B in B2C. Companies are confronted with the following requirements during the transformation:

1. Changes in customer expectations

2. Greater complexity of multi-channel sales

3. Technological complexity

4. Data integration and validation 

How can a modern ERP system help to overcome these challenges?

  1. Change in customer expectations: The B2C and e-commerce market is characterized by higher customer expectations of the shopping experience. Customers expect personalized offers, convenient shopping options, fast deliveries and transparency. A suitable ERP system should support this. This is made possible by centralized data management and the seamless exchange of customer data. This enables the system to generate personalized product suggestions and offers. The flexibility of such a system enables companies to offer goods in multi-channel or via various marketplaces.
  2. Greater complexity of multi-channel sales: In B2B business, sales are often made via traditional channels such as sales staff or catalogues. In the B2C and e-commerce market, on the other hand, companies need to utilize various sales channels such as online marketplaces, social media or their own online shop. Cloud ERP systems offer the necessary flexibility and integration capability to cope with the complexity of multi-channel sales. By linking the various sales channels, a cloud ERP system enables seamless synchronisation of product data, orders and inventory. This helps companies to offer their customers a consistent experience across different sales channels.
  1. Technology complexity: B2B systems are often designed for complex business processes and there are only a few interfaces to external systems. B2C and e-commerce solutions, on the other hand, are very user-friendly and require a seamless customer journey (more on the differences here). Cloud ERP systems are fundamentally designed to meet the technological requirements of the B2C and e-commerce market. These systems support usability, seamless integration of technologies via the API and an optimized customer journey. Companies can use cloud ERP systems to integrate technologies such as omnichannel presence, online payments and mobile applications to offer their customers a seamless shopping experience. It is ideal if both can be mapped in one ERP system.
  1. Data integration and validation: As companies transform from B2B to B2C and e-commerce markets, they need to integrate their different systems to ensure a smooth exchange of data. A cloud ERP system enables efficient data integration and validation as it serves as a centralized data source. By integrating different systems and channels, the ERP system can ensure the smooth exchange of order data, inventory information, financial data and customer data. This prevents errors, delays and lack of transparency that can occur with manual or delayed data integration. Thus, a true SaaS solution can fully utilize the potential of an automated e-commerce business.

A cloud native ERP system such as reybex, offers a complete SaaS solution and combines the necessary processes to master the transition from B2B to B2C / e-commerce:

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Source: reybex Cloud ERP

How can a cloud-based ERP system provide significant support?

To answer this question, we will show you the differences between on-prem, cloud and cloud native (also known as a true SaaS solution) and explain the advantages of cloud native, API first, seamless integration and modularity.

On-premise vs. cloud vs. cloud native: On-premise systems are installed and maintained locally on the company’s servers. They require high investments in the IT infrastructure and regular updates. Cloud systems, on the other hand, are located in the cloud and offer advantages such as scalability and lower IT costs. Cloud native ERP systems go one step further and offer continuous updates that enable companies to always be up to date. The cloud native architecture allows companies to benefit from constant improvements and updates without having to accept interruptions in their business processes.

Source: reybex Cloud ERP

API First for comprehensive integration: API First means that the entire company logic and all data is accessible via APIs using low code. This enables seamless integration of existing system landscapes and standardization of the connection. By connecting different systems, companies can accelerate and automate their processes without having to resort to redundant data maintenance. This approach also offers broad and deep integration, as companies can access a variety of tools and services to better manage their business processes.

Benefits of seamless integration: Seamless integration in a cloud native ERP system ensures accelerated and automated processes. Companies can concentrate fully on their core business without having to accept interruptions in their processes. Avoiding duplicate data maintenance and media disruptions saves time and resources. Business processes become faster and more efficient, allowing companies to bring their products or services to market more quickly.

Modularity of a cloud-native ERP system: Cloud-native ERP systems offer a high level of modularity, which means that companies only need to use the modules they require. The ERP system grows with the company and offers additional modules, such as financial accounting, production, payment reconciliation, B2B shop and returns portal. These integrated modules save time and enable automated processing of tasks, as they do not have to be carried out manually.

Customisation of Cloud Native: Cloud Native ERP systems offer individual configuration without the need for extensive coding. Customization options and low-code scripting make it easier to adapt the solution to the company’s individual needs. This reduces costs and complexity and enables companies to implement their requirements efficiently. With a cloud-native ERP and these approaches, regular updates can be imported and there is no need for major release changes every year and the associated costs.

Source: reybex Cloud ERP

DOs and DONTs during an ERP implementation

When implementing an ERP system, there are a number of Dos and Don’ts that need to be considered. Firstly, the dos include a clear definition of the scope of the project to ensure that all relevant areas of the company are covered. A focus on the core processes is also important to ensure that the ERP system fulfils the company’s requirements. A clear definition of use cases and testing of these cases in the early project phase helps to identify potential weaknesses at an early stage.

It is also advisable to work as closely as possible to the standard. This makes implementation easier and allows you to benefit from the proven best practices of the ERP system. Analysing the master data and data flow at an early stage ensures smooth integration and avoids problems later on.

On the other hand, there are also Don’ts in ERP implementation. Micromanagement should be avoided, as this can lead to slower decision-making processes. It is important to involve the specialist departments and users early in the implementation process and take their needs into account. Prioritizing according to business relevance helps to make the implementation efficient and tackle the most important aspects first. Finally, programming should be avoided without having carefully checked the standard in order to avoid problems and incompatibilities.

Here is a summary of the DOs and DONTs:

DOs

– Clear definition of the project scope

– Focusing on the core processes

– Precise definition of the use cases

– Carrying out tests for these use cases, ideally in the early project phase

– Utilization of the ERP system as close to the standard as possible

– Analyze and clean up master data and data flows at an early stage

DONTs

– No micromanagement 

– Involve specialist departments/users at an early stage

– Prioritization according to business relevance

– No programming without having carefully checked the standard

Differences between small and large ERP systems such as reybex:

Source: reybex Cloud ERP

A significant difference between small ERP systems and large enterprise ERP providers lies in the functional depth and automation. Small ERP systems often offer industry-specific solutions or focus on specific business areas such as accounting, warehouse management or CRM. The functionality can be more limited and less scalable. Large ERP providers, on the other hand, offer a wide range of functions covering different business areas such as finance, human resources, purchasing, sales, supply chain management and production. They enable comprehensive integration of these processes and offer extensive reporting and analysis functions. These systems tend to be more versatile and can scale better for large organizations with complex requirements.

Automation processes are another key differentiator. Large ERP providers are often characterized by a high level of automation and efficiency in business processes. The comprehensive functions of the systems enable companies to automate processes and minimize manual intervention. This leads to considerable cost savings and competitive advantages, as employees can concentrate on value-adding tasks. Small ERP systems often offer less extensive automation functions as they focus on specific business areas.

When analyzing these differences, it is important to consider the total cost of ownership (TOC). This not only looks at the pure license costs, but also includes implementation, maintenance, training and other cost factors. While large ERP providers can often have higher license costs, they often offer more extensive support, regular updates and a strong community. Small ERP vendors may have lower licensing costs due to their simplicity and lean structure but may require additional costs for integrations or customization.

Overall, the choice between small and large ERP providers, especially cloud-native systems, is a strategic decision for organizations. It is important to consider the company’s individual requirements, such as depth of functionality, automation potential and overall cost. Careful evaluation of the various options and expert advice can help to find the right solution and maximize the benefits for the company.

3 questions for Selcuk Acar, CEO of reybex:

  1. In your opinion, what is the biggest advantage of a true SaaS ERP solution (Cloud Native ERP)?

The biggest advantage of a true SaaS ERP solution is its flexibility and scalability. The cloud-based infrastructure allows companies to easily access additional capacity and adapt their business processes to growth. As the software and data are hosted in the cloud, there is no need for companies to operate and manage their own server infrastructures. This leads to a high degree of agility in restructuring and growth. At the same time, cost savings are an important driver. Finally, it allows companies to focus on their core competences instead of their IT infrastructure.

  1. How do you estimate the cost of implementing reybex vs. enterprise ERPs?

The effort required to implement a cloud-native ERP provider such as reybex compared to large ERP providers is significantly lower and offers clear advantages. reybex offers a wide range of functions and a more user-friendly interface at the same time. Thanks to our experience over the last 20 years, we have been able to reduce implementation times by at least 30%. Through smart processes and good on-boarding tools, we make the implementation phase more effective. Using a cloud-based ERP solution eliminates the need for extensive IT resources for the infrastructure.

  1. Do you have examples of automation potential from projects that have already been implemented?

In our previous projects, we have successfully utilized various automation potentials. These include, for example, up to 80% automation of returns management and the corresponding refunds, an increase in picking and packing efficiency of up to 50% thanks to smart processes, up to 40% automation of e-commerce order management and up to 90% automated item synchronization with shops and marketplaces. These measures have enabled us to save time and resources, reduce errors and improve customer satisfaction. Our projects show that we can achieve a high level of automation and offer our customers real added value.

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