Enterprise Resource Planning (ERP) refers to the software and systems that connect business processes: finance, manufacturing, supply chain, sales, procurement, and others. ERP integrates these processes into one system. NetSuite, SAP, Acumatica, and Microsoft Business Central are examples of ERPs.
Having a centralized ERP is critical for scaling an enterprise, and integrations are key to success.
ERP integration connects an enterprise resource planning system with other software applications, databases, and external systems. It powers data flow, synchronization, and automation across different business functions, enhancing efficiency, visibility, and decision-making.
ERP integration helps create a single source of truth in your business so information can be shared across departments.
Integration methods include:
- Custom integrations: developing integrations with programmers.
- Vendor-built or native integrations are out-of-the-box integrations that allow you to connect specific applications. For example, many tools today connect ERPs directly with Shopify, CRMs and EDI providers.
- Integration platform as a service (iPaaS) is a cloud-based solution that builds and deploys integrations. With iPaaS, organizations can create workflows that connect cloud-based applications and deploy them without installing or managing hardware.
For example, if you integrate NetSuite with a Shopify store, you could automatically bring orders and customer data from Shopify into NetSuite at checkout. You could also use a connector to push information to a 3PL partner.
This can help businesses get orders fulfilled faster and increase same-day fulfillment of website orders. Think about the number of labor hours that could save you per month.
Without an ERP integration, the company would have to manually update inventory counts in its ERP system and ecommerce application. As sales volume increases and inventory expands, inefficient and labor-intensive operating processes are hard to scale.
Other functions such as stock management, purchasing and supply chain, CRM, fulfillment, and sales and payment information are also integrated into an ERP. ERP integrations make it possible to centralize enterprise data with a central hub where departments can access real-time data.
Integrations can take longer than anticipated. Failures are often the result of poor communication and planning, internal resistance to new systems, software integration issues, and poor data quality.
Sound data management is the backbone of ERP integration. Having clean, reliable data that gives strong insight into your business processes and will impact your bottom line. You need to:
- Cleanse data and normalize formats
- Validate data to ensure accuracy
- Review who has access to data and why
- Eliminate bad or duplicate data
Good data management will reduce delays during the integration process and make the transition smoother.
Need help implementing ERP data integrations? We can help. Contact us today.