ERP Integration: The Definitive Guide for 2025
Published on:9 October 2024
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Integrations are a sensitive topic for many companies.
Why? It’s because they can be time consuming, expensive and frustrating…
- 1 in 2 business technology professionals are frustrated with their current integration and automation tools.
- More than 1 in 2 believe that integration problems hold them back from leveraging data to achieve their business goals.
But, they are necessary.
More than half (56%) of North American companies say that it’s very important that new software easily integrates with existing solutions.
We agree!
One of the most important integrations a business can have is with their Enterprise resource planning (ERP) system.
That’s why today we are discussing ERP integration.
In this definitive guide, we’ll share the benefits, challenges, software platforms, integration methods, and best practices to help you with a successful ERP integration.
Ready? Let’s go.
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Contents
- What is ERP integration?
- 3 Benefits of Integrating ERP Systems
- Overcoming Common Challenges in ERP Integration
- Popular ERP Integration Methods
- 6 Types of Software That Integrates with ERP Systems
- Best Practices for Successful ERP Integration
- Conclusion
- Rillion’s AP Automation Software and ERP integration
- Customers Also Ask
What is ERP integration?
ERP integration is the process of connecting an ERP system with other software tools to streamline business operations and improve data flow.
Examples of ERP integrations include:
This connection allows different systems—like CRM platforms, eCommerce, and AP automation software—to share important data, making business processes faster and more efficient.
By automating tasks and data-sharing between systems, businesses save time, reduce errors, and increase productivity across their operations.
3 Benefits of Integrating ERP Systems
There are numerous benefits to Integrating ERP systems.
In fact, companies that successfully integrate ERP systems report a 49% improvement in the efficiency of their business processes.
One of the biggest benefits is having all your data in one place.
This makes it easier for different departments to work together and ensures the data is accurate. With everything centralized, businesses can make smart decisions quickly and avoid the challenge of dealing with separate sources of information.
Let’s take a closer look at three more benefits, including real-time data access, better control over inventory, and streamlining the way things get done.
1. Real-Time Data Access
ERP integration gives you access to real-time data, which means you can see everything from inventory to customer information as it happens. This makes businesses quicker and more flexible.
How so?
According to an article shared on NetSuite, real-time data access through ERP integration can improve on-time delivery by 24%.
And, since it’s cloud-based, you can access your data from anywhere—your phone, tablet, or computer!
2. Enhanced Inventory Management
ERP integration helps businesses manage their inventory by automatically keeping track of how many products are in stock in real time. Older systems that don’t connect well often rely on manual updates, leading to errors in tracking inventory and delays in the supply chain.
With ERP integration, all the important systems—like sales, warehouse, and supply chain tools—work together.
By having real-time visibility, businesses can make quicker, smarter decisions about restocking and supply chain management, improving overall performance.
3. Streamlined Business Processes
ERP integration improves efficiency by automating tasks, so you don’t have to enter the same information into different systems numerous times.
This saves time, reduces mistakes, and lets businesses focus on bigger, more important tasks. It also makes processes like managing orders directly from your website easier, ensuring everything runs smoothly across the company.
Overcoming Common Challenges in ERP Integration
While ERP integration brings lots of benefits, there can be some challenges along the way.
Below, we’ll look at some of the biggest challenges like budgets, security, and the difficulty of integration.
Budget Constraints
One of the biggest problems with ERP integration is sticking to the budget.
Costs can sometimes go over what was expected, making it important to have a good plan for managing your budget.
Up to 40% of businesses go over budget during ERP integration, mostly due to unforeseen complexity in system customization and data migration.
Careful planning and keeping an eye on expenses will help businesses avoid spending too much during the integration process.
Security Concerns
Keeping your data safe while integrating with an ERP system is a top priority.
Without the right security in place, businesses could risk cyberattacks and lose important information.
Training employees on security best practices is key to reducing the chances of mistakes and protecting sensitive data.
Complexity of Integration
ERP integration can get complicated if there isn’t a clear plan. Each tool needs to be connected to the ERP, which can be tricky.
It’s important to have a dedicated person in charge and to make sure all processes are well-documented so that the integration project can run smoothly from start to finish.
Popular ERP Integration Methods
There are different ways to connect an ERP system with other tools, and each has its own benefits. Let’s dive into three different methods to see how they work.
API-Based Integration
Application Programming Interfaces (APIs) allow different software systems to talk directly to each other.
This is a simple way to exchange data and keep everything updated automatically, without needing to type things in manually. APIs are great for businesses that need things to run fast and smooth, helping them automate tasks and stay updated in real time.
Middleware Solutions
Think of middleware as the bridge that connects different software systems.
Middleware is especially useful if a company has both legacy and new systems that need to work together, making sure data flows smoothly between them.
Custom Integrations
Sometimes, a company needs something a bit more unique, and that’s where custom integrations come in.
These are designed to fit a business’s specific needs, making sure all the data is accurate and aligned with how the company operates.
Custom integrations can give businesses an edge by tailoring workflows just for them and helping them grow faster.
6 Types of Software That Integrates with ERP Systems
ERP systems are connected to different types of software to make business operations smoother and more efficient.
Common software integrated with ERP includes things like AP Automation Software, eCommerce platforms, CRM systems, business intelligence software, and project management tools.
These connections help businesses automate tasks, improve accuracy, and get a complete view of how everything’s working.
Let’s take a closer look at the most common software types that get integrated with ERP systems.
1. AP Automation
AP automation software—like Rillion—connects with ERP systems to help manage invoices and payments better.
This means businesses can access real-time data, process invoices faster, track payments more easily, and reduce mistakes.
By automating repetitive tasks, businesses save both time and money, while also making sure all their payment activities are secure.
Here’s a look at Rillion’s Invoice Flow dashboard, which helps you stay on track of incoming and outstanding invoices.
Not sure which AP Automation integration works best?
Check out this article on how to choose the best AP Automation integration for your ERP.
2. eCommerce Platforms
Linking eCommerce platforms with ERP systems makes shopping smoother for customers by providing real-time updates during the sales process.
This integration allows businesses to offer different shipping options and handle things like international orders more easily. It also helps reduce costs and human errors while generating detailed financial reports.
3. Customer Relationship Management (CRM)
According to Havi Technology, companies that fully integrate their CRM systems with ERP see a 20% increase in productivity for sales, service, and operations.
How, so?
When businesses integrate their CRM system with ERP, they get a full view of their customer relationships.
A CRM stores all the details like customer purchases and contact information, which helps businesses improve their sales strategies and better serve their customers.
This integration gives businesses a clear picture of their interactions with customers, allowing them to create more personalized marketing and sales plans.
Here’s how the two systems work together.
| CRM | ERP | |
|---|---|---|
| 1 | CRM handles “front office” customer and sales data. | ERP handles “back office” operational and accounting data. |
| 2 | CRM helps you manage contacts, appointments, sales opportunities, marketing, and support activities. | ERP manages key operations like accounting, payables, invoicing, inventory, manufacturing, and more. |
| 3 | CRM helps you drive new revenue and, for existing customers, manage ongoing relationships and upsell opportunities. | ERP can help speed up production, improve inventory tracking, and automate accounting & reporting. |
| 4 | CRM integrates with marketing and sales tools. | ERP integrates with operational tools, such as a warehouse management system (WMS) or a job costing solution. |
| 5 | CRM is primarily used by your sales, marketing, service, and support teams. | ERP is primarily used by accounting, shop floor, and warehouse teams. |
4. Business Intelligence Software
Connecting business intelligence (BI) software to ERP systems helps businesses make smart decisions by analyzing their data.
BI software gives companies better reporting tools and insights, making it easier to see how the business is performing and where improvements can be made.
This integration helps align business goals with real-time data, giving companies a competitive edge.
5. Project Management Tools
Integrating project management tools with ERP makes it easier for different departments to collaborate and stay updated on tasks. This integration helps track project costs, monitor progress, and keep everything organized so that businesses can meet their goals.
It also provides real-time insights, helping companies stay on top of project performance.
6. Customer Service Software
When you connect customer service software with ERP systems, it helps businesses keep all their customer information in one place. Teams can see everything in real-time, from service requests to customer history, so they can respond quickly and follow up automatically.
Best Practices for Successful ERP Integration
For a smooth and successful ERP integration, it’s important to plan carefully, train your team, and keep an eye on things after the system is up and running.
These steps help make sure everything works well and avoid common problems.
Thorough Documentation of Business Processes
Before starting an ERP integration, it’s important to map out how each department operates and how tasks flow between them. This way, the ERP system can be set up to match what your company really needs.
Figuring out which parts of the business will benefit most from automation helps make sure the integration makes everything more efficient and supports the company’s growth in the long run.
Comprehensive Training and Support
When employees know how to use both the ERP and the systems it’s connected to, everything runs more smoothly.
Giving people the right training for their specific roles helps them learn faster and boosts their confidence. This makes sure the integration is successful, and the ERP system is used in the best way possible to help the business succeed.
For example, Mattias Rygler at Brain Accounting found Rillion’s ERP integration easy to use and can now set up new clients in an hour.
Brain Accounting
“My experience is that it’s extremely easy to get started. The system is intuitive and clients quickly understand what to do. Setting up a new client is very fast. I do that myself, including the integration with the client’s ERP system, in an hour.”
Continuous Monitoring and Optimization
Once the ERP integration is in place, it’s important to keep an eye on it to make sure it’s working well. Using tools to monitor how the systems are performing together can show where improvements are needed.
Feedback from the people using it is helpful for making the integration even better and ensuring it meets the company’s needs.
Conclusion
ERP integration can really change how a business operates, offering big advantages like real-time data access, better inventory control, and more efficient processes.
Even though there are challenges like managing costs, keeping data secure, and dealing with complex integrations, following best practices can lead to success.
It’s worth it, too—as 93% of organizations report their ERP integration projects as successful, according to research by TrustRadius.
When businesses integrate ERP with different tools, they can automate more tasks, cut down on human errors, and access insights that help the company grow and stay competitive.
Rillion’s AP Automation Software and ERP integration
Hi 👋 we’re Rillion.
Rillion is an accounts payable (AP) automation platform and we help businesses streamline invoice management, automate approval workflows, and optimize payment processes.
Rillion integrates seamlessly with popular ERP systems—like SAP, Microsoft D365 FO, and Sage Intacct—improving efficiency, visibility, and control over financial processes, allowing businesses to focus on what matters most: growth.
To explore how Rillion can benefit your organization, you can book a demo where one of our experts will guide you through the platform and discuss solutions tailored to your needs.
Customers Also Ask
1. How long does ERP integration take for a business?
For smaller companies, it could take around 3 to 6 months. But for bigger companies, especially if they’re linking a lot of systems (like CRM or eCommerce) together, it might take 12 to 18 months or even longer.
Things like customizing the system, training employees, and moving all the data to the new system can also affect the timing. It’s important to plan carefully so there aren’t any delays.
2. What are the common problems after ERP integration, and how can they be fixed?
After ERP integration, businesses can face problems like employees not knowing how to use the new system or issues with systems not syncing correctly.
To avoid these problems, companies need to train their teams well, so everyone knows what to do. Keeping an eye on how the system is running helps catch any technical problems early.
3. How much does ERP integration cost, and does it depend on the business?
The cost of ERP integration can be very different depending on how big the company is and what industry it’s in.
For small and medium businesses, the cost can be between $150,000 and $500,000. For larger companies, it can be over $1 million. Businesses in industries like manufacturing or healthcare may have to pay more because their systems are more complicated and need special integrations.
Costs also depend on how many systems are connected and how much customization is needed. It’s smart to plan ahead for unexpected costs, as ERP projects often end up costing more than the original budget.
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