5 Types of ERP Integration and How You Can Benefit

ERP Integration July 24, 2020

Chloe Henderson

Through ERP integration, businesses can connect front and back-office systems to create a seamless flow of data and communication.

Implementing ERP integration automates basic procedures, such as email marketing, and data sharing through established software, allowing employees to invest their time and skills in other areas. By providing access to real-time data and insights, an ERP solution can help management make data-driven business decisions to improve operations and scalability.

What is ERP Integration?

Enterprise resource planning (ERP) services were originally developed to integrate standard back-office procedures, such as inventory and distribution solutions. However, it has evolved to handle front-office processes, like marketing and sales systems, as well. By automating procedures throughout the supply chain, ERP software can help businesses improve their functionality and scalability by streamlining data.

However, as organizations implement more ERP systems, they often realize the need for integration due to an overwhelming number of solutions and data exchange. ERP integration connects established ERP services with other management systems, such as customer relationship, marketing, and sales applications.

This integration platform creates a centralized database so employees, regardless of their department, can access information from various enterprise processes. By enhancing communication, businesses can significantly improve workflow and harmony throughout their company.

Benefits of ERP Integration

Application integration optimizes information and actionable insight exchange, allowing management to make data-driven decisions to promote business expansion. Integrating ERP solutions provides many other benefits, including-

1. Centralized Database
Integrated ERP software links several systems and keeps a single centralized database that updates with real-time data from every process. By establishing a centralized, up-to-date interface, all departments within a company can access accurate information using one platform. This eliminates the need to navigate through several processes to find specific information or designate a worker to consolidate and input data into multiple systems manually.

2. Operational Accuracy
The ERP integration solution ensures that information from all systems is aggregated and up to date within the database. Accurate data ensures that project managers are making impactful decisions. For example, if inventory and sales management systems were not integrated, warehouse managers would not have access to real-time stock quantities. Without this knowledge, the business could over or under-stock items, leading to negative repercussions such as inflated inventory costs.

3. Automated Processes
By automating basic procedures, ERP integration eliminates the need for human intervention, improving operational accuracy, and reducing human errors. With system integration, the database is updated whenever a new event occurs, or data is entered. There is no need to wait on employees or the end of day tallies to collaborate data.

4. Time Savings
One of the most time-consuming tasks is manually aggregating ERP data from all solutions, as it requires extreme attention to detail and access to each system. With ERP data integration, information is automatically consolidated and made available to all employees, saving time and labor costs. This allows employees to invest their time and efforts into more complex processes, such as marketing strategies and developing actionable insights.

5. Optimized Workflow
With an established database, employees can freely check on their project partners across various departments. ERP integration also promotes logistical planning, such as setting deadlines, creating schedules, and managing task priority levels. This open communication format ensures that workers are on the same page, preventing repetition and overlooked tasks.

6. Increased Sales
Integrating e-commerce and customer relationship ERP solutions increases the likelihood of converting website visitors into customers through the utilization of customer data. This allows management to develop effective marketing strategies and promotions to meet consumer demands and preferences.

5 Different Types of ERP Integrations

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There are many types of enterprise resource planning integrations that seek to improve business processes, including-

1. CRM
Customer relationship management (CRM) tools enhance a business's customer service and satisfaction by optimizing communication. This gives organizations a competitive edge over other companies within their industry by providing consumer insights. These insights allow management to personalize the customer experience and increase satisfaction levels. While a business may already have a CRM service established, it can be further enhanced through ERP integration. CRM integration connects customer demand metrics with supply solutions, streamlining marketing and sales processes.

2. Business Intelligence
Business intelligence (BI) software collects and analyzes internal data, providing actionable insights so management can create a plan of action to improve internal functions. Oftentimes, BI discovers opportunities in different processes to implement new software or components to improve functionality. By integrating BI with an ERP system, these insights become readily available to project managers and verified users.

3. Human Resources
As one of the most extensive sectors in a business, human resources (HR) needs to have a smooth workflow. With ERP integration, an HR system can effectively handle employee management, such as onboarding, training, and documentation due to its ability to store and share information.

4. Project Management
Modern ERP platforms offer project management programs that allow businesses to use custom integration to collaborate data from different systems for specific projects. Projects spanning from financials to production can be executed using one database, allowing managers to efficiently monitor team progression to ensure they meet their deadlines. This feature can help save time, effort, and capital related to handling enterprise projects.

5. eCommerce
For businesses with established online stores, ERP integration links their e-commerce site with in-store systems to track all incoming orders. These solutions can then connect with inventory management software to monitor stock levels and ensure all orders can be fulfilled. This prevents stockouts and backorders, which can lead to unnecessary inventory expenses, such as expedited shipping costs, and loss of sales.

ERP integration is an advanced data management system that streamlines processes and communication, saving organizations the hassle of manually aggregating system information. By automating data exchange and simple procedures, ERP saves businesses labor costs and time while promoting expandability through access to real-time data and insights.