Ensuring seamless communication between your commerce solution and Enterprise Resource Planning (ERP) system is often a pivotal aspect of any commerce project, as it enables the effective management and synchronization of crucial data to power outstanding purchasing experiences. Here’s why your organization should consider integrating your ERP with commercetools Composable Commerce for B2B and how to make it happen.
Given that ERP (Enterprise Resource Planning) software has become a permanent fixture in the B2B tech stack, the integration of ERPs with commerce solutions has never been more crucial. In fact, 80% of B2B organizations are actively seeking ways to integrate their B2B eCommerce technology with cloud-based ERP systems, so they can move away from siloed and fragmented operations and toward system interoperability.
Unsurprisingly, there's a growing demand for deeper integration between systems, considering that commerce journeys rely on essential master data, including product information, customer data and inventory levels, all typically managed within the ERP. In other words, for buyers to access real-time inventory and pricing information, seamless exchange and synchronization of this data between the two systems are imperative.
The top benefits of integrating the commerce engine with the ERP system(s) for B2B organizations include:
Real-time data sync: With an API-based communication ensuring real-time sync, information such as inventory levels, pricing and customer data is always up-to-date, facilitating easier decision-making. For data that doesn’t have to be changed frequently, such as product descriptions, B2B firms can choose to rely on scheduled synchronizations.
Streamlined operations: Businesses can automate various processes such as order processing, inventory management and invoicing. This helps avoid the common issues of manual synchronizations, from human errors to scaling sync efforts, ensuring that data is exchanged seamlessly between the two systems. Plus, instant visibility into inventory levels and demand patterns allows businesses to prevent stockouts, minimize excess inventory and improve overall inventory turnover.
Enhanced customer experience: By enabling customers to view accurate product information, pricing and availability in real-time, B2B businesses can enhance the buyer experience, including creating the consistent omnichannel experiences that buyers expect today.
Efficient order fulfillment: Sales orders placed through the commerce platform are automatically transferred to the ERP system for processing, reducing fulfillment times and ensuring timely delivery.
Scalability and flexibility: Seamlessly integrated systems are scalable and flexible, allowing B2B organizations to adapt to changing business needs and scale operations efficiently. Whether expanding into new markets or adding new product lines, integrated solutions can accommodate growth seamlessly.
Cost savings: A commerce/ERP integration reduces manual efforts, eliminates duplicate data entry and minimizes errors, leading to cost savings for B2B businesses.
Choosing the right solution for integrating commercetools and your ERP system
There are three main ways to integrate your ERP, such as SAP S/4 HANA, with commercetools Composable Commerce for B2B:
Using a middleware integration
Middleware solutions bridge the commerce platform and the ERP system, facilitating communication and data exchange, and ensuring that the integration is seamless, efficient and reliable. When it comes to connecting commercetools with your ERP, especially SAP, there are two prominent options:
SAP Cloud Integration (SAP CI) offers a centralized solution for linking various systems and applications. Serving as a middleware, it connects the ERP and commerce systems seamlessly. You can create and manage integration flows, including data mapping and transformation, using APIs for smooth data exchange between commercetools and the SAP ERP. This solution is beneficial for customers already utilizing SAP CI to connect other systems with the SAP ERP.
Best-of-breed middleware solutions such as Boomi and MuleSoft provide a platform-as-a-service solution for integrations with pre-built connectors. They enable swift and effortless connections between commercetools and the SAP ERP, minimizing the need for extensive development efforts. These solutions are ideal for customers seeking complete flexibility and customized integration flows tailored to their requirements.
Leveraging cloud-based integration options
An alternative to middleware solutions is building the integration with cloud services offered by AWS, Google Cloud or Microsoft Azure. This approach offers flexibility and scalability, and provides a robust solution for linking ERP systems with commercetools without relying on traditional middleware platforms.
Building an integration on commercetools Connect
Because ERP setups tend to be hyper-customized, building an integration with commercetools Connect is immensely beneficial for B2B organizations, as you can build a custom connector that is hosted and monitored in a commercetools’ runtime environment.
In more detail, cloud-based integrations can leverage commercetools Connect to execute integration building blocks, like API Extensions, jobs and event listeners. With this setup, you don’t have to deploy integration components on AWS, Google Cloud or Azure directly, as this solution handles the build, deployment and hosting of the application or service. As a result, developers can concentrate on integration logic, data mapping and business processes, as well as maintain CI/CD processes and eliminate the need to provision infrastructure.
Overall, commercetools Connect can minimize the operational overhead and risk associated with building, hosting and maintaining integrations between commercetools Composable Commerce for B2B and the ERP.
Leveraging other relevant integrations for B2B: CPQ
In addition to seamless integration with ERP systems, B2B businesses also benefit from bridging the communication between commercetools Composable Commerce for B2B and any existing Configure, Price, Quote (CPQ) systems. With such an API-based integration, it’s possible to synchronize product catalog information to prevent discrepancies that can lead to customer confusion or order errors, as well as provide a consistent and automated quoting experience.
Similarly to an ERP integration, you can simplify your CPQ integration process with commercetools Connect.
Read the best practices guides for ERP and CPQ integrations and learn how to streamline your integrations to commercetools Composable Commerce for B2B.
Julia is a Senior B2B Product Expert at commercetools. With over a decade of experience across product and marketing teams in the tech world, she is an expert at creating innovative, customer-first strategies, and excelling in cross-functional growth & GTM initiatives.