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A Rundown of Magento ERP Integration

December 24, 2019
Shaheen Banu

Need help in integrating your Magento commerce with ERP? Talk to our Magento development team.

There are several benefits that you can derive from integrating your Magento eCommerce platform with an ERP system, from enhancing your eCommerce store to increasing your revenue, and so on. Through this blog, you will be getting an overview of the Magento ERP Integration.

Magento, an Adobe company, is one of the world’s top enterprise eCommerce platforms, empowering more than 250,000 merchants worldwide. Magento offers powerful and highly flexible features that include responsive design, order management, unmatched SEO capabilities, and catalog-management tools that help you control the look, content, and functionality of your eCommerce store.

What is ERP?

It would be very satisfying to have everything sorted in life so that you could have everything balanced. Well, an Enterprise Resource Planning (ERP) system does the same for your eCommerce business enterprise. ERP is the integrated management of all the primary processes in a business, which is generally managed in real-time to measure the productivity and profitability of a business, with the aid of software and technology.

The Role of ERP in eCommerce

Ecommerce has completely evolved since the time of its inception. It is the new-age: ‘The Digital Era’, where everything’s carried off in a trice. We want everything to be done instantly. And, to cater to such a strong need, we need something that’s as equally powerful to fulfill these requirements. And, that’s where ERP comes into play.

There is so much competition that we aim at staying ahead of everyone in the game. Enterprise Resource Planning (ERP) can help you in achieving this goal. Having an integrated ERP system confers you with processes that are optimized and streamlined, which also enables a reduction of time and litigation costs, eliminates unwanted operations and data, and so much more.

How Does ERP Work?

Enterprise Resource Planning has been primarily designed to improve the performance of a business by combining an enterprise’s planning, manufacturing, sales, and management into a single management system through a centralized database. Using an ERP helps in reducing manual labor along with simplifying the workflows of an existing business.

ERP Workflow

The different components of ERP include – financial management, accounting, order management, human resources, sales, inventory and supply, manufacturing, and customer relationship management.

Types of ERP

Enterprise Resource Planning consists of three types that you can choose from to implement in your business.

Cloud ERP – The cloud ERP can be accessed from anywhere at any time, where you can take control of your enterprise’s data from any corner.

On-premise ERP – This type of ERP does not give you the perk of having enough control as the cloud ERP. The on-premise ERP requires local servers for storing data.

Hybrid ERP – The hybrid ERP merges the features of both the cloud and on-premise ERP, thus giving you access to run some of your ERP applications on the cloud and some of them on-premise.

Key Benefits of Magento ERP Integration

Through ERP Integration, every order placed on your Magento eCommerce site will automatically be synced into your ERP system. And most importantly, the products that have been updated in ERP will be synced in real-time to your online store. This swift and smooth process enables you to manage a large number of orders and stock/price updates every single day.

Here are some of the key benefits you can get by integrating your Magento eCommerce store with an ERP system.


All the information that has been provided by the ERP system is synced to the website in its original state. A warning email is sent when there is an occurrence of an error. Every update from ERP to your Magento eCommerce platform is lined-up in Magento, ensuring that there is no loss of data.

Financial Transparency

Using the Magento eCommerce platform by itself, merchants can generate financial reports on sales, thus giving them the financial transparency for their organization. However, through Magento ERP integration, merchants can get to produce real-time financial reports such as cash flow, balance sheets, trial balance, P/L statements, etc.

Decreasing Error Through Flexible & Automated Operations

As stated in “An Essay on Criticism,” by Alexander Pope, “To err is human, to forgive divine.” Despite having a strong organized process and quality human resources, there will always be a scope for human error. There is no end to human error, and being the humans that we are, we cannot be blamed. Even the smallest mistake that’s got to do with price/order management or some sort of discrepancy in your eCommerce store would cost the reputation of your business. This is where ERP comes to your rescue. Integrating your Magento eCommerce store with an ERP system quashes the slightest of the chance of having an error. It also reduces the burden of having to update and transfer data from one system to another, meanwhile saving the time for doing something useful.

Reducing Inventory Cost

Through ERP integration, you get to receive updated information on sales, where any sale made on your Magento eCommerce website gets immediately reflected in the ERP system. This allows the users to properly plan purchases, leading to a reduction of cost in inventory management. Web transactions also promptly update the ERP item inventory, which makes it easier for you to keep track of your entire stock.

Synchronization of Data

A major benefit of using an ERP system is that all the critical data such as products, stock, prices, customers, orders, etc. get automatically synced between the two systems (ERP & Magento eCommerce platform).


The data between the ERP system and the Magento eCommerce platform syncs over the same encrypted connection that the Magento installation runs on (https/SSL), hence making the synchronization of data wholly anonymous and secure.

Having an ERP system has become an essential part of every business enterprise, where you get to save time and energy. ERP automates the operations and uncomplicates the business process by making it easier to handle. Therefore, allowing the performance of your business to be more efficient and productive. ERP gives you the control of being aware of everything that’s going on with your business.