Unified commerce platforms vs. traditional ERP: which is right for your business?

In today’s rapidly changing business environment, companies face the ongoing challenge of choosing technology that keeps pace with customer expectations and operational demands. 

As businesses explore options to streamline processes and provide a seamless shopping experience, two main choices often emerge: traditional ERP (Enterprise Resource Planning) systems and unified commerce platforms. 

The core differences: ERP systems vs. unified commerce platforms

At their core, ERP systems and unified commerce platforms are built with different priorities. 

ERP systems evolved to support internal business operations, unifying departments like finance, inventory management, human resources and procurement. This cohesion was revolutionary for organizations that previously struggled with disconnected processes and data silos.

Unified commerce platforms, however, take a customer-centric approach. 

Built with the entire customer journey in mind, these platforms are designed to provide a seamless, omnichannel experience. 

They unify every point of sale, whether online or offline, and deliver real-time inventory updates and analytics, enabling businesses to react instantly to customer needs and market changes.

Understanding these differences helps clarify why companies in today’s commerce-driven landscape are increasingly weighing the options of upgrading their traditional ERP system or shifting to a unified commerce platform.

Traditional ERP: the legacy system for business management

ERP systems have long been the backbone of business management, consolidating data from various departments to create a single source of truth. By connecting these functions, ERP systems eliminate inefficiencies caused by disjointed software and make it easier for departments to work together.

Key benefits of ERP:

1. Operational efficiency: ERP systems automate repetitive tasks, reducing human error and allowing employees to focus on higher-value work.
2. Data centralization: By integrating multiple departments, ERP systems provide visibility into every aspect of the business, offering valuable insights for decision-making.
3. Scalability: Many ERP systems are modular, so as a company grows, it can add features to meet evolving needs.
4. Fiscal management: ERP systems streamline accounting, budgeting and forecasting, giving finance teams real-time visibility over cash flow, expenses and revenue.

Challenges with ERP:

While ERP systems offer substantial benefits, they are not without limitations, particularly for customer-centric businesses. Traditional ERPs can struggle to meet the demands of real-time commerce, as they were designed for internal operational needs rather than quick customer interactions.

1. Limited customer focus: ERPs are built around back-office functions, so they don’t inherently offer tools for a seamless customer experience.
2. Complexity and cost: Traditional ERP systems often require lengthy implementation times and significant investment, particularly if a business needs extensive customization.
3. Inflexible integration: Many legacy ERP systems struggle to integrate smoothly with other tools, especially modern, cloud-based applications, creating potential bottlenecks.
4. Lack of real-time data: Traditional ERP systems aren’t always built for real-time updates, so businesses relying on ERP may miss opportunities for agile, data-driven decision-making.

Unified commerce platforms: the customer-centric alternative

Unlike traditional ERP systems, unified commerce platforms were designed for omnichannel retail from the ground up. They integrate all facets of the customer experience—whether it’s online, in-store, or mobile—into a single, seamless solution.

Key benefits of unified commerce platforms:

1. Omnichannel experience: Unified commerce platforms provide customers with consistent experience across channels. From viewing product availability to checking prices and placing orders, customers can move between channels without disruptions.
2. Real-time inventory management: With unified platforms, businesses gain instant visibility into stock levels, enabling quick responses to demand shifts, minimizing stockouts, and offering accurate product availability data to customers.
3. Customer insights: Unified commerce platforms are designed to capture and analyze data at every touchpoint, giving businesses a 360-degree view of customer behavior and preferences.
4. Increased agility: Real-time data and insights allow businesses to make quick, informed decisions. Unified platforms enable rapid adaptation to market shifts and evolving customer expectations.

Challenges with Unified Commerce Platforms:

Despite their advantages, unified commerce platforms also come with challenges that companies should consider.

1. Upfront investment: Transitioning to a unified commerce platform can be an expensive and time-intensive endeavor. Businesses need to evaluate whether the ROI justifies the cost.
2. Integration complexity: Integrating a unified commerce platform with existing ERP or other legacy systems can be complex. This integration may require a phased approach and specialized expertise.
3. Learning curve: Unified commerce platforms represent a different operational model, which might require training employees to adapt to new processes and tools.

Choosing the right solution: key considerations

Both ERP systems and unified commerce platforms have their merits and the choice between them depends on several factors.

1. Business model and scale: If your company’s primary goal is efficient internal operations and back-office automation, a traditional ERP may be sufficient. However, if you’re in a consumer-facing industry where seamless customer experiences and omnichannel functionality are critical, a unified commerce platform might be a better fit.
2. Long-term goals: Consider the long-term trajectory of your business. If you anticipate growth into eCommerce  or expansion into multiple sales channels, investing in a unified commerce platform could future-proof your business.
3. Budget constraints: Budget is a significant factor when choosing between ERP and unified commerce. ERP systems may involve heavy initial investment in hardware and customization, while unified commerce platforms may also be costly but typically offer cloud-based, subscription pricing models.
4. Current system compatibility: For businesses already running an ERP, adding a unified commerce layer can sometimes be a strategic compromise. It allows them to maintain their ERP’s back-office functions while modernizing the front-end customer experience.

Why Infios’s order management system?

If your business leans towards the need for a unified commerce approach, Infios’s order management system offers a solution that brings together real-time visibility and seamless customer experience across channels. 

While ERP systems have their strengths, Infios’s OMS provides an advanced toolkit for companies looking to optimize the entire customer journey. 

From real-time inventory management to omnichannel insights, our order management system is built to empower businesses to respond instantly to customer demands.

This platform offers:

• Seamless integration: Infios’s order management system is designed to integrate smoothly with legacy ERP systems, allowing businesses to add omnichannel functionality without overhauling their entire system.
• Enhanced customer insights: With built-in analytics tools, Infios’s platform enables businesses to understand customer behavior better, delivering personalized experiences across touchpoints.
• Scalability: Our platform grows with your business. Whether you’re scaling your eCommerce operations or expanding into new markets, it provides a flexible framework to support your journey.

By using Infios platform as an add-on to traditional ERP, businesses can enjoy the benefits of both systems without sacrificing one for the other.

Case study: how Saddle Creek Logistics gained visibility to all clients and improved efficiency. 

Saddle Creek Logistics, a leading third-party logistics (3PL) provider, sought to expand its omnichannel fulfillment capabilities to better serve its diverse clientele. The company faced challenges in managing complex order orchestration and providing seamless customer experiences across multiple channels.

By implementing Infios software solutions, Saddle Creek achieved:  

• Enhanced order management: The platform's robust order management system (OMS) enabled efficient handling of complex order flows, improving accuracy and speed in fulfillment processes.
• Scalability: The microservices-based architecture allowed Saddle Creek to scale its operations seamlessly, accommodating growth and adapting to varying client needs.
• Improved customer satisfaction: With real-time inventory visibility and optimized order routing, the company provided clients with reliable and timely delivery services, enhancing overall customer satisfaction.

This transformation enabled Saddle Creek Logistics to offer advanced omnichannel fulfillment solutions, positioning them as a competitive leader in the logistics industry. 

Read more about the partnership between Saddle Creek Logistics and Infios Software Supply Chain. Discover how this 3PL provider gained visibility to all clients through a cloud-based, feature-rich, multi-tenant order management system.

Making the final decision

Selecting between an ERP and a unified commerce platform is a crucial decision that will impact the future of your business. Here are some questions to consider:

• Do you prioritize internal operations over customer experience? An ERP system may be a better fit if streamlining internal processes is your main focus.
• Is real-time data essential to your operations? Unified commerce platforms are designed to provide real-time updates, making them ideal for businesses that need to react quickly to customer demands.
• Are you prepared for an investment in omnichannel capabilities? Unified platforms can be a significant investment, but they pay off by delivering a seamless customer experience that can drive long-term loyalty and sales.

Ultimately, the decision will depend on your unique business needs, industry demands and budget constraints. 

For companies at a crossroads, integrating a unified commerce platform with an existing ERP system can offer the best of both worlds—streamlined operations and an enhanced customer experience.

In today’s competitive market, aligning your technology stack with customer expectations is no longer optional. 

Whether you choose an ERP, a unified commerce platform, or a hybrid of the two, investing in the right tools will position your business to thrive in the ever-evolving commerce landscape.