How ERP Integration Can Help You Get the Most out of Your Data
The other name for colossal data engines are ERP systems. Post implementing an ERP system in your company, it may start with a sales order that would need to be processed. For this the system will mention the elements that have to be in place and the modules that have to be executed for the desired end result.
However, an important aspect to ponder is that your company is not the only one to implement and use an ERP system. The suppliers and customers/ clients with whom you deal also might be having an ERP system in place and there are great chances that some departments in your company can work efficiently if integrated with them. For instance, online portals, point of sales (PoS) system, warehouse management system, transaction management system, etc. Basically, the course of action of integration involved is connecting with the individual systems to create an efficient working environment. And this ERP integration outside of your company helps in improved job efficiency and order fulfilment resulting in a win-win situation for all involved in the business. Integration can be worked upon on segments including the sales and distribution, manufacturing, purchasing, inventory and many others.
For instance, an e-commerce site hosts a range of products across sections and each product is offered by multiple distributors. When a buyer clicks on a particular product, say a mobile phone charger on the portal for which your company has taken the responsibility of distribution, the distributor gets intimation from the e-commerce site. When ERP of your company is integrated with clients’/ suppliers’ ERP system, the advantage starts as soon as the requirement is raised by the shopping portal, followed by the ERP immediately recognising the distributor who has the product in stock and placing an order with him. Simultaneously, a courier company is notified to pick the parcel from the distributor and deliver to the customer. The courier company acknowledges by sending the tracking data which is then sent to the customer who can track the parcel he ordered. When the parcel is delivered, the courier company notifies the shopping portal and the distributor. In case of a cash on delivery, (CoD) – the courier company collects the cash and gives it to you and you in turn, pass on the shares to the e-commerce portal and the distributor. In case of a card payment, the portal collects the credit/debit card information and forwards it to the distributor’s ERP which processes and debits money from the customer. This kind of multi level sales and distribution operation wouldn’t be as successful if there were no ERP integration between your company, clients and suppliers.
Similarly, this holds true for manufacturing too. In case of an automobile manufacturing company- for instance a car, a distributor may place an order to manufacture and deliver 500 cars in a time frame of 4 months. On receipt of the order, the sales department of the company’s manufacturing unit feeds the order and makes a blue print on how the order will be executed. The ERP in the manufacturing unit creates requirement for purchased components. Because of the integration of ERP systems between the manufacturing unit and its supplier, the ERP establishes that raw materials can be delivered on time for production. In this case, an order is placed directly in the supplier’s ERP and a traditional purchase order is avoided. The supplier acknowledges and sends tracking information once he ships the materials. In the meantime, the ERP in the manufacturing unit sends information to other concerned departments such that the goods are offloaded on the manufacturing floor and manufacturing starts almost immediately. As the product is being manufactured, real time data is fed in the ERP system so that it can look into scheduling the delivery. Simply put, this is possible because different business with different systems have one common bond-ERP.