While online shopping has increasingly grown in popularity over the last decade, the COVID-19 pandemic has propelled ecommerce to become one of the largest market sectors in the world. And while a booming sector offers much opportunity for profits and ventures, the stiff competition also spells rising demands to meet market commitments.
Many ecommerce businesses in and beyond Singapore have already stumbled and fallen off, with another huge chunk of SME-sized market participants struggling to further expand their operations due to inherent complexities presented by the need for efficient cross-border value chains.
The Complexities Inherent to Cross-Border Value Chains
When it comes to ecommerce, value chain management becomes more important than ever due to the complexities inherent to cross-border value chains. When operating an ecommerce business, there are few named challenges that often arise:
On the supply side itself, it is extremely difficult to balance it with multiple demand sources to meet global order fulfillments in a timely and accurate manner. Inaccurate data and statistics from multiple sources of stock counting and purchasing orders being transferred and tabulated between the supply side and domestic warehouses can also lead to poor forecasting that results in suboptimal market demand capture or—worse still—company losses.
There is also the problem of subpar inventory allocation due to poor coordination between sales and the multiple overseas transit or shipping houses used. Further worsening the aforementioned is the inability to confidently visualize and manage inventory because of the obscurity that exists between the finance arm of an ecommerce business and its overseas transit or shipping warehouses.
Lastly, with multiple geographical locations of sales, the lack of unification between separate sales forces and that between sales as a whole and the finance department can cause costly accounting errors and unproductive business operations and financial management.
ERP Software and Systems as Integrated eCommerce Solutions
While the above problems may sound difficult to tackle, there are indeed ways to overcome these challenges. Ecommerce companies in Singapore can look to ERP software and systems implementation to better manage cross-border value chains and leverage on the ecommerce boom to grow market share and business profits.
By implementing end-to-end cross-border ecommerce digitalisation, ecommerce businesses can—instead of being inhibited by the sheer complexity of their value chains—capitalise on their extensive web of business nodes to provide more meaningful value to their customers. Through proper workflows and the implementation of aiding cloud ERP software and systems, ecommerce companies can turn these pain points into sources of competitive advantage, via a curated integrated ecommerce management solution designed by HAND Global Solutions.
The end-result of doing so will yield—amongst others—the following key benefits:
1. Collaborated Supply and Demand
ERP software can help create a collaborated supply and demand for ecommerce businesses in Singapore. Through providing effective means of data transfer; appropriate appraisal indicators; and comprehensive upstream and downstream reporting and change implementation, ERP software and system implementation allows for better order fulfillment, stronger cost control, and a more rapid and cohesive data mining process for any slow or sudden change in demand across multiple cross-border locations of business operation. A collaborated supply and demand, along with better supplier-vendor relationship management, can thus be enjoyed by ecommerce companies with ERP implementation.
2. Ease of Data Analysis
HAND’s ERP software and systems are also able to rapidly identify, trap, validate, and transmit relevant data points throughout the entire value chain to provide valuable insights. This allows ecommerce businesses in Singapore who implement our cloud ERP solutions to be more prescient than their competitors, and facilitates overall revenue efficiency, profit optimisation, and business growth over time.
3. Coordinated Global Allocation of Inventory with Improved Visibility and Control
With our ERP implementation services, ecommerce businesses can also eliminate over-complicated inventory management processes and ineffective global allocation of inventory. Through a unified inventory management system used across the board, the sharing of each warehouse’s on-hand inventory count becomes swift and convenient, and the automation of available quantity updates that abide by pre-set allocation rules make for fuss-free inventory management and allocation no matter how many countries your value chain extends into.
4. Integrated Operations, Accounting, and Finance
With the tediousness that can come from the likes of bank reconciliation, tax management, capital management, account receivables, and purchase management, ERP implementation can greatly lessen the load of accounting and finance arms of ecommerce businesses in Singapore. Automation, comprehensive reporting, instant visibility, and ease of data management and analysis means that ecommerce companies can better:
- manage their assets
- deliver timely and accurate financial reporting
- abide by compliance in various jurisdictions
- undertake intricate variance management
- partake in streamline budgeting
The integration of operations, accounting, and finance also grants more room for cohesive corporate strategies that take into consideration all relevant data points across different business arms.
Leverage eCommerce Management Solutions with HAND ERP Systems
All in all, there is no doubt that ERP implementation can do wonders for eCommerce businesses in Singapore. Getting cross-border value chains in reign is necessary to thrive in today’s global ecommerce industry. However, ERP implementation can be difficult, and improper implementation can result in hefty losses in both time and money.
That is why ecommerce businesses in Singapore looking to implement an ERP software or system should look to professional ERP implementation companies such as HAND for help.
Get in touch with us today to find out more.