Imagine a factory where machines talk to each other, production lines run smoothly with minimal human intervention, and every piece of equipment is monitored in real-time to prevent breakdowns before they happen.
This isn’t science fiction, nor some distant future. It’s the power of integrating Enterprise Resource Planning (ERP) with the Industrial Internet of Things (IoT).
When these two systems work together, manufacturers like you can gain unprecedented control over your operations. From real-time data insights to automated workflows, the combination of ERP and IoT transforms manufacturing into a smarter, more efficient process.
In this article, we’ll dive into how these ERP and IoT integrate, the benefits of their integration, and how you can harness their potential to modernize your business.
What Are ERP and IoT in Manufacturing?
Enterprise Resource Planning (ERP) and the Internet of Things (IoT) are two powerful technologies that are shaping the future of manufacturing in Industry 4.0. But what exactly do these terms mean, and how do they relate to one another?
ERP refers to a software system that helps organizations in any industry organize all data from their business, from accounting to the shop floor, into one central database. ERP software includes custom dashboards tailored to each department, including everything from production and supply chain management to finance, human resources, and customer relations. Users are assigned roles which limit their access to a need-to-know basis.
In the manufacturing world, an ERP system plays an central role in streamlining operations. Your ERP platform makes sure that all departments are aligned and working from a single source of truth. It provides real-time information on inventory levels, production schedules, material costs, and much more, all in one centralized platform.
On the other hand, the Industrial IoT refers to a network of physical devices connected to the internet that can collect, share, and process data. These devices can range from sensors on the factory floor to wearables that monitor employee safety. In manufacturing, IoT-enabled devices communicate between machines, systems, and people, making it easy for your team to monitor and control business operations.
In other words, IoT platforms for manufacturers collect data from equipment, devices, and products to help you optimize performance, improve decision-making, and reduce downtime.
When used independently, ERP and IoT already offer substantial benefits to manufacturers. ERP helps centralize and streamline business processes, while IoT enables real-time insights from physical assets and machines. But when combined, these two systems can take your manufacturing operations to a whole new level of efficiency and insight.
How Do ERP and IoT Platforms Work Together?
The integration of ERP and IoT platforms brings about a transformative change in how manufacturers manage their businesses.
While ERP systems offer an overarching view of business processes, IoT devices capture detailed, real-time data from the physical world.
On a technical level, these systems are integrated by a team of expert ERP consultants who can make sure your systems are implemented correctly and the data migration is clean. Make sure to find a consultant who is:
- Experienced in manufacturing
- Familiar with both systems
- Has a track record of successful implementations and integrations
- Within your budget
Here’s how ERP and IoT integration work together in broader terms:
Achieve To-The-Minute Data Collection and Analysis
IoT devices gather real-time data from machines, production lines, warehouses, delivery trucks, and even employees. This data is then transmitted to the ERP system which processes and analyzes it in the context of the broader business operation.
For instance, sensors in a factory can monitor equipment performance and predict maintenance needs, which the ERP system can use to schedule repairs, order necessary parts, or reallocate resources.
When working in conjunction, the IoT platform supplies the data, while the ERP platform makes sure that data is actionable. The pair offers insights into business processes like inventory management, production schedules, and supply chain operations. The ERP system integrates this data with financial, customer, and vendor information to provide a complete view of business operations.
Upgrade to Data-Driven Decision-Making
ERP systems offer a consolidated view of your business’s resources, finances, and processes. When integrated with IoT, ERP systems gain access to a truly game-changing wealth of data.. Now, your decision-makers can see how every aspect of production affects the bottom line and make adjustments on the fly.
For example, if IoT sensors detect that a machine is operating below optimal efficiency, the ERP system can alert the right personnel to take action. Alternatively, if production slows down due to equipment issues, the ERP system can automatically adjust schedules or notify suppliers of potential delays based on your configuration.
Automate Workflows with a Click
Another intregal benefit of integrating ERP and IoT systems is the ability to automate workflows.
For example, if an IoT sensor detects that a machine is running low on raw materials, the system can automatically trigger an order for more materials through the ERP platform. Similarly, if a product is completed ahead of schedule, the ERP system can automatically update shipping schedules and notify customers of the early delivery.
Automated workflows reduce the need for manual intervention, speeding up processes and allowing your employees to focus on more meaningful tasks. They also allow your team to respond more quickly to unexpected changes, reducing the risk of downtime or delays.
Implement Predictive Maintenance and Performance Monitoring
One of the most significant ways IoT enhances ERP is through predictive maintenance. IoT sensors can monitor equipment in real time, tracking things like temperature, vibration, and wear. When these readings exceed predefined thresholds, the system can automatically schedule maintenance through the ERP system, preventing breakdowns before they happen.
This integration allows manufacturers to switch from reactive to proactive maintenance strategies.The bigger picture is that it reduces downtime and extends the lifespan of equipment. The predictive capabilities of IoT combines with the planning power of ERP is a massive upgrade to machine performance while minimizing costly interruptions.
5 Benefits of Integrating ERP and IoT Systems
Integrating ERP and IoT systems can bring a multitude of benefits to manufacturers. Here’s a closer look at some of the most impactful advantages:
1. Improved Operational Efficiency
When ERP and IoT platforms work together, you can automate repetitive tasks and reduce manual errors. The result is faster production times and reduced waste. The ability to monitor operations in real time also helps your team identify and address bottlenecks and inefficiencies as they arise.
2. Better Decision-Making
Having access to real-time, accurate data from IoT devices enables manufacturers to make informed decisions more quickly. Key stakeholders can view all systems’ data in the context of broader business processes so they can make more informed decisions on everything, from production schedules to resource allocation to supply chain management. The result is better agility and responsiveness that makes it easy for your business to adapt to changing conditions without losing productivity.
3. Upgraded Inventory and Supply Chain Management
The integration of IoT and ERP systems offers significant benefits in terms of inventory and supply chain management. IoT devices can track inventory levels in real time so that the ERP system always has the most accurate data. Now you can optimize stock levels to avoid shortages and reduce the costs that come from overstocking.
On top of that, IoT sensors can monitor the condition of goods as they move through the supply chain. You can install IoT sensors that report real-time data about temperature, humidity, and vibration so you know exactly the environment in which raw materials or products are stored and transported. This is especially important for industries like pharmaceuticals or food production where even minor deviations in environmental conditions can lead to spoilage or contamination – also known as lost money and unhappy customers.
4. Predictive Maintenance and Reduced Downtime
As mentioned earlier, predictive maintenance is one of the most significant benefits of integrating ERP and IoT. Predictive maintenance involves monitoring the condition of equipment in real time so your IoT sensors can detect potential problems before they lead to breakdowns. Then, you can schedule maintenance at the most convenient times, reducing downtime and extending the lifespan of machinery. It also helps avoid expensive emergency repairs and unplanned production halts.
5. Greater Visibility and Traceability
IoT devices provide real-time data from every stage of the production process, offering manufacturers X-ray-like visibility into their operations. When integrated with an ERP system, this data is used to create detailed records of everything from raw materials to finished products.
To say this level of traceability is important for industries that need to comply with strict regulations is an understatement. We’re looking at you, aerospace and pharmaceuticals.
It also makes it easier to identify the root cause of quality issues and improve product consistency over time.
How to Integrate ERP and IoT Platforms
Integrating ERP and IoT platforms is not a one-size-fits-all process. It requires careful planning and a clear understanding of both the existing technology infrastructure and the specific goals of the business.
Here are some steps to consider when integrating ERP and IoT systems:
1. Assess Your Current Systems
Before embarking on an ERP-IoT integration project, assess your current technology landscape. Take inventory of your existing ERP platform, IoT devices, and other systems that may need to be integrated. This assessment will help you identify any gaps or incompatibilities that could hinder the integration process.
2. Define Your Objectives
What do you hope to achieve by integrating your ERP and IoT systems? Whether it’s improving operational efficiency, enhancing predictive maintenance, or optimizing inventory management, having clear objectives will guide the integration process and ensure that the end result aligns with your business goals.
3. Choose the Right ERP and IoT Platforms
Not all ERP systems are designed to work seamlessly with IoT devices, and not all IoT platforms can easily integrate with ERP software. When choosing your platforms, make sure they are compatible with one another and capable of supporting the specific functionalities you need. Many modern ERP solutions, like Infor ERP and ProphecyIoT(R), come with built-in support for IoT integration, making the process smoother.
4. Develop a Data Strategy
Integrating ERP and IoT systems involves processing large amounts of data in real time. To make the most of this data, you’ll need a strategy for collecting, storing, analyzing, and using it effectively. This includes defining which data points are most important for your business, how that data will be shared between systems, and how it will be presented to decision-makers.
5. Implement and Test
Once your integration strategy is in place, it’s time to begin the actual implementation. This will likely involve configuring APIs (application programming interfaces) to allow your ERP and IoT systems to communicate with one another, as well as setting up data flows and automating workflows. Once the integration is complete, be sure to thoroughly test the system to make sure it’s functioning as expected.
6. Train Your Team
Finally, you have to train your team on how to use the newly integrated systems. This includes everyone from shop floor operators who will use IoT-enabled machines to managers and executives who will use the ERP platform to make decisions based on real-time data. The more familiar your team is with the system, the more value you’ll be able to extract from the integration.
Why You Should Reach Out to an ERP Consultant
Integrating ERP and IoT platforms can be a complex process, especially if your business has unique operational requirements. Working with an experienced ERP consultant like Godlan can help ensure a smooth integration. We specialize in ERP solutions that work seamlessly with IoT platforms, and our ProphecyIoT® platform is designed to maximize the benefits of IoT technology in manufacturing environments. By partnering with experts, you can unlock the full potential of ERP and IoT integration, boosting efficiency, reducing downtime, and gaining a competitive edge in your industry. Contact us to schedule a consultation today.
