7 Benefits of ERP System Integration
ERP (Enterprise Resource Planning) software orchestrates the backend processes of businesses by:
- Aggregating data from multiple sources
- Automating flows and processes
- Facilitating organization-wide access to data
- Forecasting issues or trends
What is ERP?
ERP stands for Enterprise Resource Planning, and the software behind it handles the backend part of a business: data, inventories, and relations between data and processes. ERP software helps all businesses by consolidating data and streamlining operations.
What is ERP System Integration?
Businesses have many interacting and moving parts: data feeds, process variants, overlapping processes, and many more. To have everything connected on one platform from where you can access and control all the ins and outs of your staff, management, and customers is a show stopper. In the absence of an overarching platform, your business will be prone to mistakes, mishandling, and mismanagement, generating loss and waste.
ERP System Integration to the rescue! But before going deeper into this subject, we recommend reading why you should invest in System Integration and how important it can be to your business.
ERP System Integration software takes ERP software one step forward by ensuring all system modules (native or third-party) are interlinked, which means that:
- Integration logic & infrastructure is smart enough to gather data from multiple sources automatically, to reconcile data (format standardization and transformation), and to centralize it in a database.
- Workflows work properly and prevent data duplicates, improper data manipulation, discontinued data access, or inaccurate data.
- Business transformation naturally correlates with optimized operational costs.
Why would my business need it?
Your business is most likely to benefit from ERP System Integration if you check one or more of the following boxes:
- You mainly use manual processes based on disconnected lists, documents, spreadsheets with many parallel variants that lack unification.
- You use specialized software for various functions, but you manually import, migrate or enter data from one system to another leading to time waste and inaccuracy.
- You have several business departments, but the teams are not fully aligned in terms of processes, so you experience many slips, delays, or bottlenecks.
- You have a lot of data everywhere and you would like to get some insight out of it for your next business move, but going through the data is difficult, lengthy and reactive.
- You have several products and you find it hard to adapt to and implement regulatory compliance because your production lines and processes are not streamlined.
- You have customers which complain about your products, but you cannot trace back the root cause because you do not have real-time data readily available.
How can it improve my business?
ERP System Integration can connect the missing dots between the modules you already have and open up new integration possibilities. Your business success is a reflection of how well you manage not one, but all of your resources combined.
Customer-centric user experience
Whatever your business sells, you must make sure that the products actually reach your customers with the right bangs and whistles. CRM and ERP integration can offer:
- Better insight into what customers expect, helping you adapt your product features faster
- Platforms where customers have everything they need to make a successful purchase in easy steps and in a matter of minutes
- Fast feedback loops especially in times of crises (customer complaints, malfunctioning products)
You cannot afford to always react to customer actions. You must also stay ahead of your customers' needs.
Automated and real-time data exchange
Having a solution which integrates all your resources, means that data is accessible by everyone, in real time. For data to flow freely from one endpoint to the next relevant endpoint, ERP System Integration automates your business processes and rules in terms of:
- Conversions, standardizations, and transactions
- Workflow task assignments and completion tracking
- Alerts to catch and stop inconsistencies and deviant structures
You cannot keep doing manual work when communicating, entering, and processing data because it slows down your business.
Optimized production lines
Whether you work in a factory or an office, at the end of the day you will produce something. Production requires processes, building blocks, timing, and quality control. ERP System Integration connects your resources, tasks, and benchmarking scheme in terms of:
- Adherence to and compliance with internal and external standards
- Replication and scalability of successful production lines
- Real-time, virtual sync between the actual production line and the virtual, digitized production line
You cannot monitor everything on site all the time or understand the bigger picture of how healthy your production lines are unless you have integrated business units.
Business decision support
Strategic business decisions are always based on the right insight. ERP System Integration enables managers and business stakeholders to:
- Identify and visualize current and potential bottlenecks, success recipes, and next best actions
- Create a buy-in strategy that is targeted at customer needs
- Alleviate the stress of not fully grasping business potential
You cannot extract insight unless your data, your results, and your customer feedback are correlated and put in perspective.
Adhering to the industry regulations put forward by (inter)nationally recognized bodies can make or break your business. Regulatory compliance is not easy to implement because it requires multiple departments to observe different facets of a regulation set while making sure the end product is fully compliant. ERP System Integration embeds regulatory checks and audit control into your production and delivery workflows:
- Check your templates, flows, patterns, and benchmarks against external regulations
- Enforce workflows that spot regulatory inconsistency both early and in regression phases
- Adapt quickly to compliance changes by propagating the latest updates in all nooks and crannies
You cannot avoid legal issues, penalties, and malicious business scrutiny if regulatory compliance is not part of your daily activity, a constant concern rather than a disconnected cosmetic layer.
Business growth and fast ROI
You want to sell your products, make a profit, and become a reference player in your field. ERP System Integration can grow your revenue by:
- Giving you the insight and simulation tools to diversify your offer for mass and niche customers
- Providing financial reports where loss and increase are correlated with the right root cause
- Helping you measure success on the basis of accurate figures which bring waste, estimates, and margins to the table
You cannot maximize your business ROI unless you understand what business assets trigger the greatest profitability and how investment measures up against sales.
Businesses need accurate information they can build on and round-the-clock information availability. ERP System Integration can unify the way you store, access, and convey critical business information:
- Data hubs that aggregate multiple sources into one while eliminating duplicates
- Data updates which trigger timely data percolation and propagation
- Data-driven decisions based on the latest figures
Your business needs to boost productivity by boosting communication and information distribution.
What domains can I apply it to?
ERP System Integration streamlines and enhances operations for industries and businesses of all sizes.
Finances need to be in check at all times. You cannot afford to guess and approximate vital figures. Neither can you assume that accounts manage themselves, especially in a world where adjustments are the rule rather than the exception.
For finance, ERP System Integration can orchestrate the operations around accounts:
- Customer account management
- Payment processing and tracking (discounts, due dates)
- Cost management in relation to purchase orders and inventories
- Audit management (balances, statements, transaction volumes)
Manufacturing is almost always a multi-step process which requires coordination, looping, and control.
For manufacturing, ERP System Integration can streamline production and modernize factory operations:
- Full planning, tracking and scheduling of: components, processes, quality control, end product
- Optimized product delivery by calculated forecasting
- Fast categorization, labelling, shipment of product batches
Retail and Inventories
Retail is all about selling products and merchandise to the right audience, for the right price which ultimately leads to profit. Therefore, retail needs to zoom in and out of the purchase dynamics at all times. Lack of proper inventory planning and mismanaged purchases can make the difference in terms of successful or unsuccessful sales margins.
For retail, ERP System Integration can unify the entire retail experience of staff and customers:
- One-stop platform for real-time integrated data: inventories, orders, fulfillment
- Connected databases for product information, barcodes, promotions, sales data
- Accelerated invoicing and dispatch in physical and online stores
Supply Chains are vital for every single industry. You need data and information to understand and get insight. You need food and water to live. You need a good supply chain to keep your business going.
For supply chains, ERP System Integration can improve process visibility and overall coordination:
- Point-to-point procurement and fulfillment
- Optimized logistics: inventories and warehouses, production hubs, facilities and transportation
- Cross-checked offer-demand ratio
E-commerce is a subdivision of retail, and as such owes its success to platforms which connect retail, supply chains, and online purchase hubs.
For e-commerce, ERP System Integration ensures business continuity:
- Efficient order management with little manual input
- Customer historical data and purchase historical data for further business development
- Extensive product information: quantities, prices, availability, sourcing, purchase statistics, associated customer profile
- Enjoyable customer experience, from learning everything about the product to having it delivered
Matching the right people to the right tasks is the lifeblood of successful businesses. Attracting the right people and keeping them engaged requires considerable investment. For HR, ERP System Integration can run intelligent recruitment and staff tracking:
- Process candidate profile, and streamline hiring from prospect to actual employment
- Automate onboarding and reduce the learning curve
- Empower employees to perform administrative tasks confidently in one place: benefits, leave, evaluation
- Be compliant in terms of regulations across the organization
CRM (Customer Relationship Management) software backs up purchase-related information in real time: products, prices, customer activity and profile. CRM software needs to be integrated with retail, e-commerce, supply chains, or finances. Failing to connect all these modules means an overload of manual work and inevitable errors.
For CRM, ERP System Integration can interlink the work of Sales, Marketing, and Project Management with:
- Supply databases, for more intelligent distribution of effort and resources
- Customer opportunities, for targeted offers and interaction tracking
- Statistics, for high-revenue campaigns and new business opportunities
ERP System Integration connects the inner processes of a business with its customers.
ERP System Integration requires you to identify the business functions you want to:
ERP System Integration helps your business:
- Prevent data mismanagement: large volumes, multiple data sources, migration
- React to and assimilate the changes happening within the company
- Link, extend, and automate the internal business databases with dynamic customer data
- Deliver accurate data and the best product to the right customer
- Ensure regulatory compliance, single-sourced information, and relevant business decisions
We recommend checking out these articles if you want to get a clearer idea about ERP system and system integration:
Also, if you need someone to guide you through selecting an ERP System Integration, our experts can guide you, and they can implement it as well. You can contact us by writing us an email or call us, whatever is more convenient for you.