Understanding Sage ERP Integration Architecture for Scalable Operations
3 min read ● Silk Team
Sage ERP Integration Architecture: APIs, Middleware, and Custom Builds Explained
The reason ERP integration is so important for manufacturers who have expanded into the digital space is because it is such a fundamental element – not something that is done after the fact. No matter whether you are integrating e-commerce, customer relationship management (CRM), logistics, or third party applications, the architecture used to integrate your Sage ERP system is what will determine how reliable, scalable and maintainable your systems will be.
This guide will explain the 3 most common types of integration architectures – API’s, Middleware and Custom Builds – so you can make the best possible decision based on your company’s business strategy.
Why Integration Architectures Matter
The architecture of your integration defines how your systems talk to each other, where your data goes and how your errors are going to be handled. It does not take long before a poorly chosen integration architecture causes problems with performance, consistency of data and increased costs associated with maintaining your system as your company grows.
For manufacturers using Sage ERP, choosing the correct integration architecture is particularly important due to the complexities of the manufacturer’s pricing models, large transaction volumes and multiple channel sales environment.
API Based Integration: Simple and Fast
API’s (Application Programming Interface) provide a way for systems to interact with your Sage ERP system by providing pre-determined “end points” that allow systems to communicate directly with your Sage ERP system.
When API’s are the best fit:
- Well defined simple data exchanges
- Low to medium transaction volumes
- Fewer connected systems
Benefits of API’s:
- Faster to Implement
- Lower Up Front Costs
- Real Time Data Exchange
Drawbacks of API’s:
- Tight Coupling Between Systems
- Limited Flexibility For Complex Workflows
- Scaling Becomes More Difficult As Integrations Increase
For companies who are just beginning their digital journey, API’s are generally the best choice. However, as your company grows and the number of integrations increases, API’s can quickly become limiting.
Middleware Integration: Flexible and Scalable
Middleware functions as an intermediary layer between your Sage ERP system and other systems. Rather than having systems connect directly to one another (point to point), they all connect to one another via the middleware.
Why manufacturers use middleware:
- Multiple systems need to remain in sync
- Complex data transformations are necessary
- High transaction volumes require reliability
Benefits of middleware:
- Centralized Error Handling and Monitoring
- Easier to Scale When Adding New Systems
- Reduced Dependency Between Platforms
Drawbacks of middleware:
- Higher Initial Cost Than Direct API’s
- Requires Integration Expertise To Configure and Maintain
For mid-sized to large manufacturers, middleware typically provides the best of both worlds regarding control and scalability.
Custom Integration Builds: Total Control – Total Responsibility
Custom built integrations are solutions specifically designed to meet the needs of a particular process within your organization. These are usually developed when the available off the shelf options do not support your organizations specific requirements.
Best suited for:
- Highly Specialized Manufacturing Workflows
- Complex Pricing Or Fulfillment Logic
- Long Term Stable System Architectures
Benefits of custom builds:
- Fully Tailored to Your Organizations Needs
- Can Handle Edge Cases That Standard Tools Cannot
- Can Be Designed To Meet The Most Demanding Requirements
Disadvantages of custom builds:
- Higher Development and Maintenance Costs
- Longer Implementation Timelines
- Greater Reliance On Internal or External Developers
Custom builds are the most expensive option, however, if integration is a core competitive differentiator for your organization, then this is likely the best option.
Selecting the Best Integration Architecture
There is no single best solution; there are too many variables that affect which solution is best. Consider the following when evaluating which type of integration architecture is best for your organization:
- Current and Future Transaction Volume
- Number of Systems To Integrate
- Complexity Of Your Data And Any Required Transformations
- Technical Capabilities of Your Organization
Many organizations begin with API’s and move to middleware as the complexity of their integrations increases.
Final Thoughts
Your Sage ERP system integration architecture is not just a technical decision; it is also a strategic one. API’s, middleware and custom builds each have a role to play in the type of complexity and scalability that exists within your organization.
Organizations that select the proper integration architecture at the onset of their digital journey are able to develop a solid digital foundation that supports automation, enhances visibility and allows them to scale as needed without continually reworking their systems.