ERP integration is the act of linking the ERP systems of a firm with other types of programs as well as data feeds utilized in the company. The primary purpose is to ensure smooth data sharing and integration of the main ERP system with other applications such as e-commerce platforms, accounting software, CRM systems, inventory management tools, and others. ERP Integration also reduces data duplication, data entry tasks, and solutions that hinder smooth operations and effectiveness. Let us understand in this article everything you must know about ERP Integration.
Understanding ERP
Also referred to as Enterprise Resource Planning, ERP is usually the system that pulls information from all the touchpoints and offers insights into the most significant KPIs in real-time when implemented optimally. ERP integration can be done by several approaches and techniques based on the ERP systems involved, the data needed, and the integration scale needed.
Common Methods of ERP Integration
- APIs and Web Services
APIs refer to the set of protocols or a series of functions that enable two or more applications to exchange information. Most of the contemporary cloud-based ERP solutions provide APIs that enable developers to connect the ERP with other applications and services.
- Data migration and ETL
Transfer of data between an ERP and another system once or at continuous intervals requires the use of data migration scripts as well as extract, transform, and load (ETL) tools. It is applied mostly at the time of the implementation of a new ERP system or its connection to the existing framework.
- Middleware and ESB
ESB is the hardware or software that provides the integration layer, or integration bridge, to connect the ERP system to other systems or data sources. The middleware converts between different formats of data, directs information’s flow, and controls the messages exchanged between the components.
Benefits of ERP integration for Businesses
Effective ERP integration provides numerous benefits for businesses, including
- Enhance the consistency, credibility, and reliability of the business intelligence data supported by an automated synchronization process.
- Efficient control and automation of the processes in business.
- Improved efficiency because several tasks involved multiple inputs of data.
- Inventory management along with less visibility of the supply chain
- Integrated reporting and collective responsibility throughout the organization
However, ERP integration projects can be more challenging than initially expected and are often best carried out after careful planning, whereby all data has to be mapped correctly and tested rigorously. Intelligent integrated systems allow interaction with specialized ERP consultants or system integrators who are engaged in the integration of the specifics of a certain ERP with other enterprise systems used by the company.
Anchanto, being a cloud-based ERP software provider, has rich API connectivity support and connections to third-party integration marketplaces. This facilitates the integration of the company’s ERP solution with key eCommerce platforms, shipping companies, payment methods, and other tools for efficient order and inventory processing.
In conclusion, organizations must integrate their ERP to optimally utilize the investment made in ERP. At the same time, it helps improve the efficiency of operations, visibility of information, and automation of processes across the extended enterprise system.