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Application integration and the significance it has for inventory management software

Posted on | by Cin7 team | Leave a Comment on Application integration and the significance it has for inventory management software

In today’s automated world, retail and manufacturing companies control their business processes with several different software applications, each of which performs a specific function. For instance, there are applications for accounting, supply chain management (SCM), and inventory management (IMS). While they’re separate and perform their own clearly defined tasks, it’s vitally important for them to communicate with each other and for the data they use to be passed between them. Simply put: If your SCM can’t pass its data on to your IMS, information about your stock would have to be input manually.

When these different applications are able to communicate, you have application integration.

 

Different ways application integration can be performed

Application integration sounds simple enough, but there are four basic ways it can take place.

Data level integration

Called data level integration, this method puts the data stored in each application into a single, separate database. This separate database is called an enterprise database or an enterprise database repository. To create this centralized system, the data stored in each individual application are extracted, cleansed, and reformatted to be consistent with whatever standard the enterprise database uses. From that point, individual applications can tap into the central system to get the data it needs.

This method is the lowest-cost application integration due to the minimal amount of programming needed to set it up and the speed with which that can be done. Data level integration only takes the data an application stores, not the coding of the application itself.

Application interface level

Known as application interface level, this method doesn’t have a centralized database that stores everything. Instead, data extracted from one application are converted into a standardized format and then loaded directly onto the target application. Hence, application to application.

Application interface level is currently the most popular method for data sharing because most application codes now provide interfaces. Cin7’s IMS, for instance, offers over 700 integrations, and new integrations are being added regularly.

Method level

Here, it’s not data that are shared, but business functions. This may sound precarious, but the actual business functions are not included in the code that’s passed along. An evolving way of exchanging data, method level is promising because it’s compatible with technologies like Java RMI, DCOM, and Cobra. A big drawback, however, is that the application code has to be changed before it can be used.

User interface

User interface (UI) is about having the different applications designed in such a way that users (human) can log on to their company’s network and bring up the data they need from any computer in the network. Application codes don’t have to be changed for this method to work  – a factor that makes the cost minimal – but that also gives it less flexibility.

Benefits of application integration for inventory management software

When it comes to inventory management, application integration is essential. Having the ability to input data from other applications into IMS software or passing the data it stores into another system, and being able to do so accurately and quickly, is vital to business operations. The benefits are:

Inventory optimization

Inventory optimization, or having the right amount of inventory, means carrying enough to fill orders and prevent stockouts, while not having too much of it.

If your inventory management software is integrated with accounting and ecommerce applications, you’ll have a clear idea of the quantity of items you should be warehousing as well as information about which actual items you should stock. You’ll also be alerted when you need to reorder.  This means less worry about overstocking or understocking.

Making good financial decisions

Information about how well certain goods have sold in the past and predictions about how well they’re expected to do going forward informs decisions that are made in the present. In order to get this information, reports and forecasts have to be accessed from several applications in real time.

When this information is available to IMS systems, better decisions can be made about which stock to carry. Additionally, application integration with a variety of systems makes audits more accurate. You’ll be able to verify that the stock listed in your books is a real reflection of the goods you have in storage, and you’ll have complete information about items that are in transit.

 

Types of integrations available on Cin7

There are more than 700 integrations in Cin7’s software, but they can be categorized into the following business operations:

Accounting apps

Accounting software records and manages your financial transactions, everything from purchases and sales to operating costs and payroll. Cin7’s system can integrate popular accounting software like QuickBooks Online, Xero, and QuickBooks.

Ecommerce platforms

Cin7 can integrate with ecommerce platforms that include Magento, WooCommerce, Shopify, and others. If you’re selling through any one of them, IMS integration will give you oversight and let you know how your sales are going. If you’re selling items through more than one of these ecommerce platforms, Cin7 will allow you to integrate their data and accounts into a single platform on your system.

EDI retailers

Electronic data interchange (EDI) is the system through which documents like invoices and purchase orders are transferred electronically. There are several electronic standards to choose from for these exchanges, but whichever one is used, both sender and receiver have to be using the same one. Cin7 can facilitate most of them. Some larger retailers like Scheels, Sears, Sephora and Walmart have their own EDI systems, and Cin7 can be synced with them also.

EDI suppliers

EDI suppliers are organizations that provide EDI-compatible solutions and technologies to other companies. Two of the leading suppliers are Synnex and Tech Data, and Cin7 can integrate seamlessly with both.

Marketplaces

If the website you’re selling your goods through is charging you commission for each sale, you’re on a marketplace. Marketplaces are a good way to get your product out and make a name for yourself, especially if you have a new company or are small in size. To keep on top of your business in these marketplaces, you’re going to have to integrate them with your inventory management system. Cin7 can do this for all the major marketplaces, including Amazon, Etsy, Iconic, and eBay.

Payment gateways

When you sell online, you need a payment gateway to process payments. You also need to integrate this payment gateway with your IMS. More than just getting paid for your goods, integration with your IMS streamlines their flow and ensures you have enough in stock.  To make this easy, Cin7 can integrate with payment interfaces like PayPal, Dejavoo, EVO Payments, and others.

Sales and marketing

Sales and marketing software uses technology to get your advertising to the right audience. That means customizing and posting it on social media and other pertinent sites. To facilitate this, Cin7 inventory management software integrates with Customer Relations Systems (CRMs) such as Salesforce, Mailchimp, Senter, and HubSpot.

Shipping

The very nature of ecommerce involves shipping. Goods that are purchased online have to be physically transported to their buyers. If you hire a third-party to take care of this shipping, you still have to keep track of the items and maintain your records. Cin7’s software can integrate with shipping partners Shippit, GoSweetSpot, Shiptheory and many others, ensuring you’ll always have the information you need at your fingertips.

Supply chain planning

The supply chain covers every step in the fulfillment/manufacturing process from purchasing and inventory management to sales and deliveries. To organize all this in the best possible way, Cin7 integrates with supply chain planning apps like StockTrim, Streamline, and Easy Insight.

Third-party connectors

Sometimes a company uses another organization, a third party, to provide the application integration software (API) that allows different applications to speak to each other. To enable this, Cin7 can communicate with Syncware, Hyperspace HQ, and Pipe17.

Third-party logistics

Logistics is the physical act of moving items and people from one area of a business to another. If you’re parceling out your warehousing and transportation to another company, you’re using third-party, or 3PL logistics. Some of the companies that provide 3PL include JAS, JD Smith, Quiet Logistics, and Ship Depot. Cin7 lets you integrate your systems with any one of them.

 

Winding up

In summary, application integration refers to the process of connecting two or more applications so that the data each holds can be exchanged. When it comes to IMS systems, this ability to share data makes the entire inventory side of the business operate efficiently, and ensures that there’s enough of it all times in the right quantities.

Cin7’s inventory management software lets you integrate with all the relevant apps, making sure you have all the information you need to keep your inventory at optimum levels.

If you want to learn more about Cin7, book a demo by clicking here.

A complete guide to ecommerce fulfillment services and their processes

Posted on | by Cin7 team | Leave a Comment on A complete guide to ecommerce fulfillment services and their processes

If you are thinking about putting some or all of your sales business online, you probably have many questions about order fulfillment. What’s the best method for your company? How do you make your warehouse or stocking facility perform at maximum efficiency? How do you ensure that orders go out on time? In this article, we will help you answer them.

 

What is ecommerce fulfillment?

Ecommerce fulfillment services cover the entire process of getting an item that’s been ordered online to the customer. Ecommerce fulfillment encompasses everything from receiving the online order to retrieving the goods from their place in the warehouse to boxing and labeling them to shipping and delivering them. Whether your company is business to business (B2B), business to customer (B2C), or direct to customer (D2C), if you’re selling your products online, ecommerce fulfillment is the name of the game.

 

Steps in the ecommerce fulfillment process:

Picking

The first step in fulfilling a customer’s order is to collect the items from their storage locations in the warehouse. This is called picking, and it is carried out by a warehouse operator, or picker. There are two basic ways picking can be done: single order and batch. With the first, orders are taken care of individually, with all items from a given order being picked at once; with the second, a number of one particular item is pulled from its storage location at the same time and then those items are divided into multiple orders. Batch order picking means having to sort items into their individual orders after the initial picking stage. While it requires this second step, if there are a lot of orders to fulfill and many of them have the same item, it’s a cost-saving method. The picking method you choose will depend on the size of your warehouse and the number or orders you have to fulfill.

If you have a large warehouse—and they can be gargantuan nowadays—you also have to make sure that your operators are taking the shortest route as they’re picking. This means listing the items in the right picking order. Thus, if item A is stored close to item B, but item C is way across the facility, it would be logical to list their picking order as A, B, C.

All these considerations are taken care of with a pick list. Created by warehouse managers, a pick list is laid out by item location, name, and quantity needed. Pick lists tell the operator, or picker, first where to go, then what to look for, then how many to pull from storage.

After this, the items are sent to packing.

Packing

Once the items for an order have been collected, they’re placed in a container. It’s important to make sure that the items aren’t damaged during delivery, so packing has to be done with care – and padding.

After the items have been boxed up, a shipping label is created. This label contains:

  • Name and address of the fulfillment company,
  • Name and address of the buyer – where the package is going to,
  • The weight of the package, the entire thing including goods and packing,
  • Unidirectional code, which is a machine-readable code that can be swiped from any direction,
  • A postal barcode,
  • Method of shipping – standard, express, or priority,
  • A routing number, and
  • A tracking number – this is the number customers use to track their package online.

This label is then attached to the package, and the whole thing is weatherproofed with plastic wrap.

Shipping

The package is now ready for shipping. This involves collecting the box and getting it to the buyer’s address. A freight carrier like FedEx or UPS will usually be hired for this, but if the seller is small enough and only has local deliveries, they might take care of it themselves. On the other hand, if a company opts to sell their goods through a major online retailer like Amazon, shipping services are part of the deal: Amazon has its own shipping setup.

Delivery

The final step is to deliver the package to the customer’s door. There, the delivery service may find specific instructions, like being asked to leave the package with a neighbor. Overall, the most important aspect of this last stage is to get the goods delivered on their promised delivery date. Doing this promotes good will – and repeat business.

 

Ecommerce fulfillment models

There are three models you can choose from:

Fulfillment by the seller

When a company is small or doesn’t have many online orders, it can take care of its own fulfillment. If that’s the case, it probably has its own dedicated shipping department, which, depending on the number of online sales it has to organize, might be a small area and not have a dedicated staff. This fulfillment model also works well if the company specializes in unique and valuable items that need extra care.

This system stops working, however, when:

  • The number of orders suddenly shoots up; if this happens, the self-fulfillment system won’t be able to cope and it will collapse.
  • The company doesn’t have a system in place to ensure that all stages of fulfillment run smoothly.
  • The cost of fulfillment is much higher than it would be if using a third-party shipping partner.

2. Fulfillment by a third party

Third-party logistics, or 3PL, stands for an outside company that’s hired to take over all or part of fulfillment.

If a company handles picking and packing in-house and has a large number of packages to deliver to different locations, it’s a good idea to have 3PL take care of those final stages.

Additionally, 3PL companies can provide facilities for warehousing, and they have staff to do the picking and packing tasks as well. The services you choose to use will, of course, determine the fee you pay.

3. Fulfillment by Amazon (FBA)

When it comes to 3PL, the biggest player is undoubtedly Amazon. A complete online marketplace, Amazon is the go-to site for looking to buy something with a click from the comfort of your home, and it is often the first destination for those searching for a particular product. With FBA, Amazon takes care of everything from warehousing to delivery, and it charges two fees: one for storage, and one for the actual fulfillment process.

There are pros and cons to FBA, and the company offers alternatives like Fulfilled by Merchant (FBM) and Seller-fulfilled Prime (SFP). With FBM, the seller lists their products on Amazon’s online marketplace, but takes care of fulfillment itself. SFP is the same, except that Amazon’s shipping policies are used and the Prime badge can be shown against the products on the website. Each of these Amazon services has its own fee structure.

 

How Cin7 can simplify your ecommerce fulfillment

It doesn’t matter which fulfillment model you use, Cin7 inventory management software can be your perfect partner. Its integrated order fulfillment module gives you a clear, overall picture of your entire fulfillment process, including getting goods from your supplier and racking, or warehousing, them. Plus, you can operate your account from a mobile device.

But what if you use a 3PL model for fulfillment services? Well, Cin7 has a solution for you too. The software has 3PL feature that allows you to get real-time information about your inventory anytime, from anywhere, no matter what stage of the operation it’s in. Because it’s cloud based, you can access the system from any device.

 

Wrapping up…

Ecommerce fulfillment service starts when an online order is received by a company, and ends when that ordered item is delivered to the customer. We’ve laid out the steps that are involved in detail and explained the three basic fulfillment methods. While each of these methods is a little different, they all have the same goal: getting your products to your customers in the quickest way possible.

If you’ve been hesitating to set up an ecommerce store because you have concerns about the fulfillment process. keep in mind that Cin7 can provide top-notch services to help oversee and manage your fulfillment, and that it can make the whole process stress-free. Talk to our experts today and book a demo. You’ll be glad you did.