Benefits of Integrating IoT With ERP Systems


The present-day ERP systems seamlessly bind all business applications together into a consolidated platform, improving data visibility, control, and decision-making. However, ERP business processes have remained unchanged from the way they were designed decades ago. ERP-IoT integration can give companies a valuable tool to optimize operations, improve customer service, and create new business opportunities.

According to a research by Markets and Markets, the market size of IoT is expected to grow from USD 759.5 million in 2017 to USD 3301.7 million by 2022. IoT application development extracts data from all types of external machines and connected devices and feeds it back into the internal ERP systems. In this way, organizations can seamlessly connect their internal business applications and processes to the external data. IoT devices are capable of collecting data in real-time, thus allowing businesses to gain actionable insights into their ERP processes.

Also Read : ERP and IoT: How They Will Refine Manufacturing Processes

Benefits of Integrating IoT With ERP

Better Decision Making

Gartner’s estimation reveals that by 2021, over 26 billion devices will be connected to the internet. It indicates that the amount of data available to the companies is growing rapidly. However, many companies that capitalize on this data aren’t fully prepared for the challenges involved in handling big data.

Gaining actionable insights into big data can provide several enterprise benefits, depending on the quality and quantity of data collected by the IoT devices. That being said, IoT development services can significantly improve data quality and availability. IoT-ERP integration ensures that changes in asset health and utilization directly reflect in the ERP system in real-time. At the same time, stakeholders are notified about these events, so they can take the required action.

Generating Real-Time Business Insights

Integrating IoT with ERP enables organizations to gain crucial business insights instantaneously. Enterprises can use the continuous stream of data from IoT sensors and devices to perform real-time analysis. It enables them to gain actionable insights to improve decision-making. In addition, you can equip ERP systems with advanced AI and machine learning capabilities to enhance the process efficiency.

Improved Communication

Generally, when a manufacturer sells a product directly to the customer, the ERP system’s service module is updated with customer information for each serial number. It usually happens at the time of shipment. But when a product is sold by a dealer, it is always difficult to obtain the end-user data. Nevertheless, IoT app development enables warehouse managers to keep track of the product at every stage. Moreover, it provides both service and engineering departments a wealth of information.

Most of the ERP systems offer portals to vendors and customers. It gives them direct access to the product information. In addition, it automatically confirms and updates orders, and registers issues pertaining to a particular item. IoT-enabled products communicate directly with the ERP system, enabling a strong connection between customers and suppliers. As a result, it streamlines the supply chain processes by reducing wastage and possibility of errors.

Inventory management is another aspect of ERP that benefits from IoT application development services. Manufacturers can manage consigned inventory or inventory located in third-party logistics warehouses with real-time updates of on-hand values. They can receive consistent and accurate data as they do not have to rely on warehouse workers to report inventory levels.

Better Forecasting

Forecasting consumer purchases and usage of products is complex, time-consuming and more prone to errors. With IoT, you can analyze a massive amount of data to make better supply chain decisions. ERP-IoT integration can establish a direct link between production and consumption by enabling businesses to capture real-time data directly from consumers. You can gather information about products as they are being used, based on consumer demographics and the frequency of use. As a result, forecasting and planning becomes easier and more effective.

Business Intelligence

ERP, when equipped with IoT data enables an organization to gain crucial business insights instantaneously. The continuous data flow enables enterprises to execute real-time analysis, ensuring the gain of actionable insights to make quick decisions. Furthermore, with IoT, organizations can integrate ERP systems with AI and ML so that employees get smart suggestions for making optimal decisions.

ERP systems enable organizations to run smooth operations, allowing team collaboration, and delivering real-time actionable insights. With each business function assimilated into one platform, companies can eliminate paperwork and become more efficient and productive at work. Moreover, they can automate time-consuming tasks.


Integrating IoT with ERP enables companies to become more customer-focused. It improves their supply chain visibility using real-time data feedback. An ERP system facilitates increased efficiency and accuracy across every department. Nevertheless, integrating it with IoT devices enables enterprises to enhance their productivity to drive growth and achieve business goals.

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Also Read : Internet Of Things And Its Impact On Enterprise Resource Planning

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