ERP Integration

Connecting an in-house ERP system to an external supply chain creates the perfect integrated supply chain. Information flows seamlessly between the ERP and the trading partner’s system. Real time updates and impacts on either side are communicated without a significant time lag. This reduces all the inconsistencies across the extended supply chain.

Typical Scenarios where ERP Integrations are needed

1. External Orders to be imported into Order Management – For example EDI orders from customers to be brought into ERP system for processing

2. Shipment information from 3PL warehouses to be updated into ERP system

3. Accounts Receivable (AR) invoices from ERP to be sent to Customers

4. Purchase Orders to be sent to Suppliers Electronically

5. Purchase Order receipts reported by Warehouses (3PL) to be updated into ERP System

6. Manufacturing Requests (Work Orders) to be sent to Contract Manufacturers

7. Manufacturing confirmation from Contract Manufacturers to be updated back in to ERP

8. Accounts Payable (AP) invoices from Suppliers to be updated back into ERP

 

There are many technologies available for connecting different systems in the supply chain such as:

 

1. Electronic Data Integration (EDI) – This is the most common method used in most supply chains to communicate transactions. EDI X12 has standards such as 850 for Purchase orders, 856 for Advance Shipment Notice etc. Though these are standard messages, every company has variations in these EDI messages making it necessary for mapping and configuration work to be completed for individual trading partners.

2. Extended Markup Language (XML) – XML is also widely used for communicating orders and related messages in supply chains. Each trading partner defines their message structure and shares their XSD, or XML schema.

3. Web Service API – While EDI and XML are based on file exchanges and delayed processing, web service and API provides instant transaction level integration. All changes in one system are immediately propagated to the receiving system immediately.

4. Value Added Network (VAN) – VAN is like a public network where one trading partner posts an EDI message for another trading partner to pick up.

5. File Transfer Mechanisms– File transfer mechanisms like FTP, SFTP and AS2 securely transfer files between the sender and receiver.

For all of these systems, once the messages are received, they have to be processed automatically into the back-end ERP system. Since each ERP system has a different wayo of processing data, skilled consultants are needed to process the data into ERP.
Web Service API – While EDI and XML are based on file exchanges and delayed processing, web service and API provides instant transaction level integration. All changes in one system are immediately propagated to the receiving system immediately.

TPSynergy takes out all these complexities and makes it easy for your supply chain to be electronically integrated. See our Supply Chain Integration as a Service (IAAS) to learn more.

ERP Integrations

How does it benefit your supply chain?

  • Removes latency and time lag between customers and suppliers in communicating supply chain transactions
  • Purchase orders, order acknowledgements, ASNs, receipts, and inventory statuses are all synchronized between systems automatically
  • Manual data entry, associated errors, and delay is removed
  • Supplier performance and metrics improve drastically
  • Manual data entry, associated errors, and delay is removed
  • Changes in demand are propagated quickly to the entire supply chain resulting in increased customer response and satisfaction
  • It all matters for On Time Delivery.

Are you interested? Do you have any questions or comments?

We'd love to hear from you!

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