Integrating your

eCommerce with ERP

White paper on how to gain operational
efficiency for your online business with
integration
Contents

Introduction 3

1 What is integration? 4

2 Why integrate? 4

3 Integration methods 6
3.1 Batch
3.2 Live
3.3 Hybrid
3.4 Data integration or Business Logic integration
3.5 eCommerce in your ERP system

4 What data to integrate 9

4.1 Product information
4.2 Prices and inventory level
4.3 Customer Information
4.4 Customer specific prices and discounts
4.5 Order information
4.6 Customer history and self service

About DynamicWeb 12
Introduction

Integration is complex and requires deep knowledge and experience in order to succeed and build scalable
solution architecture. With more than 4,000 customers, DynamicWeb has the needed experience, and
knowledge gained from practice, to successfully integrate eCommerce with ERP systems.

This whitepaper provides a detailed overview of what our customers have done and why. Our objective here is
to share our experience and empower you to understand and evaluate the important topics that determine how
eCommerce is integrated with the ERP system.

With the right integration setup, most businesses will gain operational efficiency and have newly unleashed
potential to grow revenue. This whitepaper covers both Return on Investment (ROI) scenarios and which type
of integration is best for different scenarios. The last part of the whitepaper addresses more practical topics
including which data is best to integrate.

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1 What is integration?

Integration is basically about getting two IT systems to Integration can be done by moving data from one
interoperate, where data and/or logic in one system is system to another, and storing them there for later
needed in the other system. This whitepaper focuses use (Batch). More complex scenarios might require
on how to integrate eCommerce with the ERP system. direct requests (Live) from the eCommerce to the ERP
system, when data and/or logic are needed. Typical
examples include if the eCommerce looks up quantity
An integrated solution establishes a secure and
in stock before confirming delivery to a customer etc.
reliable connection between the two systems so that
they can share data and offer flexible tools to manage
the process.

2 Why integrate?

There are several good reasons for integrating your • Prepare your business to scale and save manual
eCommerce with your ERP system. Most important resources for re-entering data that already exist in
is, of course, generating more revenue through your one system
online channel and optimizing your operational costs. • Offer better 24-7 customer service

• Eliminate risk of typing errors and inconsistent

Main advantages are that you can: data

• Deliver a good customer experience by ensuring

data consistency across your channels

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One of the main savings with integration is of course questions should be “Is the investment in integration
to optimize the resources spent with typically daily worth it?’
tasks like:

• Maintaining product data in the eCommerce The following is a simple ROI calculation where
solution average costs for handling product changes,
• Maintaining price and inventory levels in the orders and customer queries are multiplied with
eCommerce solution the daily number of occurrences, and an estimated

• Maintaining customer information in both systems improvement per cent in efficiency is used to calculate
the gain.
• Calculating discounts, freight, VAT, etc.

• Getting online orders into the ERP system

In this example with the listed assumptions there is a
saving of 221,190 EUR every year. The ROI calculation
Integration will partly or fully eliminate the daily tasks only focuses at the cost savings and not the additional
associated with tasks mentioned above. So one key
revenue many companies see from eCommerce.

Product integration

Product handling cost per new/change 10 EUR

Number of product change per day 10

Integration Efficiency improvement per cent 50%

Saving on product handling per year 18,250 EUR

Order integration

Order handling cost per order 10 EUR

Number of orders per day 100

Integration efficiency improvement 50%

Saving in order handling per year 182,500 EUR

Customer integration

Handling cost per customer query 7 EUR

Number og customer queries per day 10

Integration efficiency improvement per cent 80%

Saving in customer query handling per year 20,440 EUR

Yearly savings on eCommerce integration 221,190 EUR

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3 Integration methods

When integrating an eCommerce solution with an ERP system, there are

different levels of functionality and different levels of complexity. A high-
level distinction between different methods could be defined as “Batch”,
”Live” and “Hybrid”.

3.1 Batch
Many companies can gain operational efficiency with batch integration.
They periodically upload product and customer information from the ERP
system to the eCommerce and download the orders into the ERP. Batch
integration ensure re-use of master data already entered and it ensure that
you have the products created correctly in ERP system before you start
selling it online.

Batch integration is the simplest and least complex integration.

Complexitity

Hybrid

Live

Batch

Implementation cost

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3.2 Live
Live integration is when the eCommerce connects real time into the ERP system when the visitor is on your
website. This could be for customer specific prices, discount calculation, credit max check, real-time stock level
etc.

Live integration requires a fast connection from the ERP system to the eCommerce system since the visitor on
the website will be “waiting” for every request. With the development in internet technologies and bandwidth this
is possible in most areas – alternatively the online platform and the ERP system should be placed on the same
network (close to each other).

Live Integration is more complex than Batch and will typically have higher cost associated with the
implementation. Solutions with Live integration will normally also include some Batch integration.

3.3 Hybrid
Not only is bandwidth is a potential bottleneck. A high number of visitors will generate many requests to the
ERP system and some larger installations decide to implement business logic in the eCommerce to limit the
load on the ERP system. This could be a solution where product data and customer price data is loaded from
the ERP to the eCommerce solution every night. Customer prices are then calculated in the eCommerce when
prices are displayed to the visitor and any discount is calculated in the ERP when the visitor confirms the order.
This becomes a hybrid solution with batch load of products, customer price calculation in the eCommerce, and
discount calculation from the ERP. This setup provides a fast and consistent customer experience and it does not
query the ERP system every time a user display a product. However it does require the replication of data/logic to
the eCommerce solution for calculating the customer specific prices.

The Hybrid solution will have both the cost of doing Batch and Live, but also the cost of re-creating the
application logic on the eCommerce solution.

3.4 Data integration or Business Logic integration

ERP systems and eCommerce solutions both store data and have an application component where the specific
business logic is implemented. Integration can be done both at the data level and at the business logic level.

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Data Integration
Integration at the database layer is either directly with the databases or via exchange of files. If it’s simple data in
simple relationships, this is the preferred way. But you lack the business logic, which often is needed to get value
out of data and to ensure data consistency.

Business Logic Integration

Integration at the business logic layer is often more complex and needs to be done via a given system’s defined
interface (API). For example “creating a new product” includes many tasks like ensuring a unique product ID,
ensure correct unit of measurement, price, inventory information etc. It’s often done within the business logic to
ensure data consistency for all products.

Therefore, integration at the business logic layer is preferred in more complex scenarios. Especially when there is
an existing brick and mortar business, that already creates many of the data and already has much of the business
logic implemented in the ERP system.

3.5 eCommerce in your ERP system

An alternative to integrating an ERP system and eCommerce system is a solution where the eCommerce is built
on top of the ERP system. This eliminates the need for integration, but has not proven to be a practical solution in
real life since the two systems serve different purposes and are built for different processing, are quite complex on
their own and use different technology.

Beware of limitations
There are some ERP vendors that have added eCommerce functionality to their feature list and some third party
ISV’s that have built add-on modules. However it is often limited in eCommerce capabilities because it is built on
the ERP system and lacks the ability to customize the front-end interface to increase the user experience, which
becomes increasingly important.

Finally the ERP-based eCommerce solutions do not include the rest of the online tools like Content Management
System, Email Marketing and Online Marketing Optimization.

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4 What data to integrate

Most data needed for eCommerce is already in the ERP system. Generally we see the following data integrated in
most solutions:

• Product information

• Price and Inventory information

• Customer Information

• Order Information

• Customer history

XML
ERP DynamicWeb
Cart/order
Live Live integration
Productlist
Webservice Framework
User
Example

XML
Cart/order
Prices & stock
Order history
User info

XML
ERP DynamicWeb
Users
Batch Batch integration
Orders
Webservice Framework
Example

XML
Users
Products
Currencies
Languages

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4.1 Product information sources like their vendors systems to gain specific

The typical product information that can be integrated product information. The eCommerce solution will

from the ERP to the eCommerce is listed to the right. also gain value from integrating with these systems

Key challenges are: both in operational savings and in better customer

experience.

Item groups and categories

Product Master Data
Item groups and categories in the ERP are often used
in a different structure on the web in order to help the • Item ID

visitor to find the products easily. • Item Description (incl. different language version)

• Item Group/Category

Item variances • Item Unit Of Measures

Item variances typically need some kind of • Item Standard price (incl. different currency prices)
configuration logic in the eCommerce interface to • Item Dimensions (weight, length, height…)
help the visitor select a valid variance and get the
• Quantity on hand
price calculated correctly.
• Item Variances (incl. currency prices and language
descriptions)
Number of products/updates
• Related/cross sell items
The more the product data changes, in frequency and
structure, the more complex and time consuming each
4.2 Prices and inventory level
update will be.
For some businesses, real-time pricing & inventory
levels are important for the way they do business.
Some product information, like images, drawings, SEO
The prices may be frequently affected by changes in
tags, etc. are often not stored in the ERP system, but
exchange rate or vendor prices. Inventory level needs
placed in files/folders from different applications –
to be accurate to ensure delivery and to optimize stock
like Word, Excel, PDF, .PNG and CAD. This information
purchase/production.
should be stored or linked to in the eCommerce to
provide the visitor with all the relevant and correct
information about a given product. In general this Real-time prices and inventory are often implemented
means that master data are often maintained in the with live integration to reuse business logic in the ERP
ERP system and replicated to the online platform, system and ensure real-time numbers.
where they are enriched with more unstructured and
web related information.
The DynamicWeb integration framework consists of
a collection of components that can be used as an
For some companies, the ERP system is not the advanced starting point when developing integrations.
only place where product data already exists and
is maintained. Systems like a Product Information
Management system (PIM), and others, use external

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4.3 Customer Information Customer/Product Data
For B2B sites the customer is often known in the • Customer ID/Item ID assortment
ERP system before visiting the eCommerce solution. • Customer ID/Item ID/Quantity prices
This customer information should be integrated
from the ERP system to the eCommerce solution, to
4.5 Order information
ensure a consistent and better customer experience.
When the eCommerce visitor has confirmed the
The customer should not have to re-enter address
purchase, it needs to be captured in the ERP
information and the credit max should be validated
system for further order processing like invoicing,
both in the ERP system and in the eCommerce
bookkeeping and shipping.
solution.

For some customers the order can be changed in the

On many B2C sites the visitor can create them self
ERP system if specific calculations or products that
as customers directly on the site. This customer
were not in stock as expected. These order changes
information should be send back to the ERP system
need to be integrated to the eCommerce and the
for further order handling and book keeping purposes.
customer needs to be notified about the change –
either via email or some other means.
Customer Master Data
• Customer ID
Order Data
• Customer Name
• Reference number/Order ID
• Customer Bill To Address
• Customer ID
• Customer Ship To Address (one or more)
• Billing & Shipping addresses
• Customer Currency
• Order/Delivery/shipping date
• Customer Users (one or more)
• Payment Information
• Other segmentation attributes
• Order line details (Item Id, Quantity, UoM, price,
discount, VAT...)
4.4 Customer specific prices and
• Order value, discount, VAT…
discounts
Many companies have customer specific prices or
4.6 Customer history and self service
discount calculation defined in their ERP system. They
benefit from live integration between the eCommerce Often companies also offer some kind of customer

and the ERP system, where the eCommerce platform self-service functionality, which requires Orders, Credit

reuses the same logic/rules, which is used when notes, Invoices and Shipping status. These data will

creating an order directly in the ERP system. This typically be integrated from the ERP system where

ensures a consistent customer experience and lower the information originates by either Live- or batch

on-going maintenance of the logic as the business integration.

changes.

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About DynamicWeb

DynamicWeb is PIM, eCommerce, Marketing and CMS in one powerful and composable Commerce Suite
featuring standard integrations to Microsoft Dynamics ERP for mid/large and enterprise sized companies.

With more than 20+ years in business and more than 12,000 websites developed, we have the experience and
the software necessary to create powerful eCommerce solutions.

Learn more at www.dynamicweb.com

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