Avoid These Common Sage ERP Integration Mistakes
3 min read ● Silk Team
Common Sage ERP Integration Pitfalls — and How to Avoid Them
The key to effective Sage ERP integration lies in the ability to create a seamless workflow that offers manufacturers and distributors more control over their entire organization. However, many companies who have attempted to integrate their Sage ERP systems into other areas of their company (such as e-commerce websites) have found themselves disappointed with the results. More than likely, this disappointment comes from an incorrect approach to integration rather than poor technology.
Identifying some of the common pitfalls of Sage ERP integration will allow companies to avoid having to spend money on costly rework, unexpected expenses, and operational disruptions. Moreover, identifying these common pitfalls will help companies design integrations that will be able to support long term growth for their organization.
Viewing Integration as a “Set It and Forget It” Task
Companies change all the time. New products are added, new customers are acquired, prices are changed, and new sales channels are created.
If integrations do not change with the company, then manual processes will begin to creep back in. Data accuracy will decline over time, and small changes will result in costly fixes.
To avoid this: Companies need to plan for integration as if they were creating a living system. Include versioning, documentation, and on-going optimization in the design of the integration from the beginning.
Not Defining a Single System of Record
When there are multiple systems managing the same data, conflict is certain. An example would be editing pricing or inventory in both your ERP and connected platform.
Without clearly defining which system owns each piece of data:
- Data is overwritten
- Teams lose faith in their reports
- Troubleshooting becomes increasingly difficult
To avoid this: Define a single system of record for each piece of data. In most cases, the ERP system will own the inventory, pricing and financial data while other systems consume that information.
Underestimating B2B Complexity
Most Sage ERP integration failures occur when the integration was built using simplified workflows. Rarely does manufacturing and distribution operate in a straight line.
Some of the more commonly overlooked requirements are:
- Customer specific pricing and contracts
- Minimum order quantities and pack sizes
- Credit limits and payment terms
- Multi warehouse fulfillment rules
To avoid this: Create documentation for real world scenarios – not ideal ones. Engage operations, finance and sales teams early in the process to account for edge cases.
Neglecting Error Handling and Visibility
All integrations will encounter failures – API timeouts, data conflicts or validation errors. With out proper monitoring, these types of failures go unseen until a customer complains.
Some of the more common symptoms of failure are:
- Missing or late orders
- Inventory discrepancies
- Manual clean up work
To avoid this: Build in alerts, logging and retry mechanisms. Provide a way for teams to identify and fix errors.
Choosing Speed Over Scalability
It is easy to rush through integration projects and take shortcuts that do not scale. What may work for 50 orders per day may fail at 500.
Typically, problems such as slower sync times, increased system load and higher maintenance efforts appear when trying to handle large volumes of orders.
To avoid this: Plan for where the business is headed – not where it currently is. Consider future order volumes, additional systems and more expansive sales channels.
Poor Testing Prior to Go-Live
Testing only “happy paths” is a common and costly error. Real world use of an application or service will expose issues that basic testing missed.
To avoid this: Test with real customer accounts, complex pricing scenarios, partial shipments, and order changes. The more realistic the testing, the easier the transition will be to go live.
Conclusion
Sage ERP integration failures rarely are due to software limitations. Most of the time, they result from lack of clarity in regards to ownership, rushing through decision making and underestimating the operational complexities.
By acknowledging these common pitfalls and developing a plan to mitigate them, manufacturers will develop integrations that are durable, scalable and supportive of their business. Developing a thoughtful integration strategy does not only prevent problems, but also lays the groundwork for long term success in operational capabilities.