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At its core, ERP software manages a company’s database of information, automates routine tasks and simplifies business processes. It optimizes operations so team members can focus on tasks that help build and maintain a business. Essentially, ERPs streamline a lot of the busywork of running a company.
What makes ERP software so unique is that it touches every aspect of a business, including:
- Accounting
- Customer relationship management (CRM)
- Manufacturing
- Inventory management
- Human resources
- Analytics and reporting
What is ERP integration, and why is it helpful?
ERP integration occurs when you add third party solutions to your existing ERP system to build out its functionality through digital connectivity.
ERPs are powerful tools, but they are only part of the technology stack used in modern operations. ERP integrations connect your platforms so data flows without manual keying between systems. This ensures that all your ecommerce platforms and EDI trading data is consistent across systems.
Examples of ERP Integration Use Cases
Ecommerce Integration: Syncing an ERP with Shopify or WooCommerce to automatically update product inventory, process orders, and manage shipments.
EDI Integration: Connecting an ERP with trading partners like Walmart or Canadian Tire to automate document exchange (e.g., purchase orders, invoices).
ERP integrations are essential if your company’s needs are growing and changing. For example, your current ERP may not be robust enough for your growing business processes and needs. However, changing ERP systems is costly, resource and time consuming, and carries a high risk of setbacks. To bridge the gap, integrations can provide more functionality to help your ERP go the extra mile and bring it up to speed.
Middleware platforms, such as OrderEase, extend your ERP's functionality, consolidating data from all channels you do business with.
How ERP Integration Works
For readers curious about the technical side of ERP integration, understanding the mechanics behind the process can shed light on how it streamlines operations.
Middleware platforms like OrderEase serve as the connective tissue between your ERP and other systems. Acting as a bridge, they enable seamless communication and data exchange without requiring significant customization or additional software development. This approach simplifies integration and ensures scalability for growing businesses.
For businesses working with large retailers, EDI (Electronic Data Interchange) plays a critical role in automating the exchange of business documents, such as purchase orders and invoices. EDI ensures compliance with trading partners’ standards, reducing errors and delays in supply chain operations.
Whether it’s inventory levels, order statuses, or customer details, real-time syncing prevents discrepancies and eliminates the need for manual updates. Middleware solutions manage this data flow to maintain a centralized, accurate source of truth.
The 10 key benefits of ERP integration
Integrating your ERP can transform the way your organization operates, providing a centralized, seamless flow of information. Below, we’ll explore the five key benefits of ERP integration and how it can elevate your operations.
1. An increase in productivity
Ultimately, as a growing business, time is your most valued resource. When you can automate manual tasks like data entry, order processing and fulfillment, productivity skyrockets. Integrations for your ERP can virtually eliminate all the manual work involved throughout your order operations.
Beyond the benefits of a more productive team, your employees will notice the difference, according to the Harvard Business Review and Salesforce.
2. Better mobility and connection to sales channels
Syncing your ERP provides sales reps real-time information—whether in the office or on the road. This keeps them selling instead of worrying about whether they have the latest catalog or pricing on hand. What's more, integrating your ERP with sales channels consolidates all orders, reduces errors, speeds up processing time, and increases the time for growth in new channels.
3. Improved order and inventory management
Integrating your ERP takes the guesswork out of aligning internal systems. Data flows seamlessly, ensuring your ERP remains the single source of truth.
With smooth communication between platforms, data management becomes streamlined so your teams can reduce manual updates.
4. Reduction of errors and data duplication
Manual data entry is prone to errors. In your supply chain operations, these mistakes can lead to shipping the wrong items, delays and productivity loss.
An integrated ERP helps to reduce errors by automating the flow of accurate data between systems. Reliable data enables better decision-making, stronger brand reputation and clear analytics.
5. Easy training
Implementing a new ERP system has high risks associated; Gartner estimates 75% of all ERP change projects fail. With poor change management and unclear goals, these migrations can cause serious financial risk.
6. Common Challenges of ERP Integration
While the benefits of ERP integration are substantial, businesses often face challenges during the process. Addressing these obstacles early on can ensure a smoother transition and better results.
Instead of starting over with a new ERP, integrating your current system with other tools can align it with your company’s needs without significant disruption.
Integrations allow employees to continue using familiar systems, minimizing the learning curve and enabling faster adoption. This approach keeps productivity high while extending your ERP’s capabilities.
7. Enhanced Customer Experience
ERP integration doesn't just streamline your internal operations—it directly improves the experience for your customers. When your systems are integrated, customers enjoy faster order processing, real-time updates, and more accurate order fulfillment.
8. Scalability for Growth
As your company grows, managing the increasing volume of orders, inventory, and sales channels becomes challenging. Integrated ERPs provide the infrastructure to handle larger operations without a proportional increase in resources or workforce.
- Easily add new sales channels (e.g., expanding into Amazon, Walmart, or Shopify).
- Support higher transaction volumes without slowing down.
- Maintain smooth operations even during peak seasons or sales spikes.
9. Cost Savings
ERP integration can result in significant cost savings across the board. While there may be upfront investment in integration, businesses quickly see ROI through:
10. Improved Compliance and Reporting
For businesses that operate in regulated industries, ERP integration can ensure compliance with reporting requirements. Integrated systems automatically capture and store the necessary data for audits, tax filings, or industry-specific regulations.
Next Steps: Planning Your Integration
Ready to take the next step in optimizing your ERP system? Here’s how to plan your integration effectively:
Assess Your Current Needs
Start by identifying gaps in your existing ERP system. Are you struggling with manual data entry? Are your ecommerce and sales channels siloed? Understanding your pain points will help you prioritize which integrations to focus on.
Choose the Right Middleware
Select a middleware platform tailored to your industry and business goals. For example, OrderEase is ideal for businesses looking to manage multi-channel catalogs, EDI, and real-time data flow with minimal complexity.
Work with Experts
ERP integrations can be complex, but partnering with experienced teams can make the process much smoother. Experts can assess your unique requirements, recommend the best solutions, and ensure seamless implementation.
By carefully planning and leveraging the right tools and expertise, you can maximize the value of your ERP integration and position your business for long-term success.
Want to explore how OrderEase can enhance your ERP’s functionality? Book a discovery call with our team today, and let’s discuss how we can help your business grow.