Magento Sage Integration: How to Reduce the Hidden Costs of Order Processing

Magento Sage Integration: How to Reduce the Hidden Costs of Order Processing

It’s been a busy day. Your Magento store has processed a record number of orders. Unfortunately, some time starved employee has to manually extract each order from Magento and re-key this information in to your Sage business software. Manual administration can be prone to errors, creating a costly backlog of orders awaiting delivery. Is repetitive bi-directional data entry really an efficient use of employee time and company resource?

As any business can testify, having to manage administration tasks can detract from a company’s long term objectives. Productivity suffers and decision making can be affected due to repetitive data entry between Magento and your Sage business software. What if a product is showing “in stock” on your website whilst in reality it is out of stock in your warehouse? More employee time is wasted by manually checking multiple applications, increasing the risk of errors and, in turn, creating order processing and delivery backlogs. Order processing is a hidden cost that many eCommerce professionals could live without.

How Much Money Does Order Processing Cost Your Business?

For a large number of eCommerce professionals, the true cost of order processing is often overlooked. Having the ability to reach a larger audience brings a variety of new challenges and added costs that can often go unnoticed. Order levels increase, stock levels fluctuate and manual bi-directional data processing escalates. This can often result in delays in order fulfilment. According to InternetRetailing, the high costs of fulfilling orders hits profitability for 84% of retailers and consumer goods manufacturers. That number isn’t really surprising when orders have been manually processed between Magento, your Sage accounting/ERP solution and manually placed with your carefully selected courier service for delivery. Here is a selection of hidden order processing costs for you to consider.

  • Do your employees manually update product listings? How long does this take them? How detailed are the descriptions?
  • In addition to Magento, do your employees update product information to Amazon Marketplace and eBay?
  • How many orders are manually processed on a daily basis?
  • How long does each order take to be processed from Magento into Sage?
  • How long does it take to process sales orders to and from Amazon Marketplace and eBay into Sage? Are stock levels manually checked in this process?
  • Are orders manually placed with the most cost effective delivery service for fulfilment?
  • How long does it take to process the order with your chosen delivery service and do you have to manually create and print labels required for delivery?
  • How many temporary employees do you need during seasonal peaks?

There are many more factors to consider when processing an order, but the long and short of the matter is that an increase in orders brings additional manual administration tasks, more products and multiple online shopping carts means more costly errors.

Removing the challenges of Magento Sage Integration

Removing the hidden costs of processing orders is a challenge that is faced by the majority of eCommerce professionals. Integrating Magento and Sage will do this for you. Enabling your business systems and applications to talk to each other not only reduces your order processing times and costs, it improves employee productivity and company performance.

The automation of business processes that can be achieved through Magento Sage integration can be set to your specific business rules on a scheduled or event-driven basis. Streamlining the manual administration that surrounds back office activities not only improves speed and efficiency, it also improves ROI and assists in moving your business forward.

The benefits of automating your Magento order processing include:

  • Automated synchronisation of Magento orders into your Sage application
  • Automated synchronisation of customer information between Magento and Sage
  • Automated updating of product descriptions to your Magento store
  • Automatic placement of orders with your preferred courier service
  • Automated creation and distribution of reports including stock levels and store sales reports
  • Stock level notifications in real time set to your business rules – Are stock levels too high or too low?
  • Synchronisation of offline/telephone orders with Magento
  • Proof of delivery and tracking number synchronisation between Sage and your courier service
  • Automated bank reconciliation
  • Automated email marketing campaigns to promote slow moving stock

As you can see, the possibilities on what you can achieve are endless. Why have an employee wasting valuable time and company resources by manually processing orders when the whole process can be automated?

Written by Simon Wybrow, Social Media Manager at Orbis Software, author of the business process automation and integration platform TaskCentre.