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Integrating IoT Technology with ERP System for The Manufacturing Industry

Year 2020
August 2020
Integrating IoT Technology with ERP System for The Manufacturing Industry
28 Aug 2020

IoT banner - Integrating IoT Technology with ERP System for The Manufacturing Industry

Enterprises Resource Planning system gains fraction from the ability to lean business processes, improve operational efficiency, and update real-time information for manufacturing companies. It is all about fastening data from different departments into one unified system. IoT technology, meanwhile, is in opposition. It mainly deals with data from multiple devices in different formats. However, it is now an emerging trend that enterprises integrate ERP with this IoT Technology to leverage the potential benefits of an ERP system.

What are the positive effects of integrating IoT technology with an ERP system? Let us find out in this article.


IoT stands for Internet of Things – a network comprised of Internet-connected devices and digital machines capable of communicating with each other. These self-report devices have the ability to gather and transfer electronic data in real-time over a network without the need of human intervention via embedded systems and wireless sensors.

The instant availability of accurately gathering via IoT brings significant benefits to the tactical decision-making process and improves the seamlessness of operations as well.


While integrating IoT innovation with ERP solution is considered a complex process and requires long-term action, more enterprises are embracing this as it certainly brings considerable improvements to the software overall.

1. Better Production Efficiency

As mentioned above, we can understand that IoT is able to operate without any human-to-human or human-to-computer interaction. All manual tasks from scanning a barcode, to inputting data in the system, will be automated and brought in real-time with sensors embedded in products and machines.

Other essential manufacturing-related actions such as tracking & monitoring, re-ordering, replenishment can also be immediately fed in the ERP system, enabling companies to closely monitor the status of materials, machines, and then fuel the production greatness as a result.

2. Enhanced Asset Management

Gone are the days where capital assets only get serious maintenance when they have already broken down.

With smart sensors embedded inside, machines are able to spot their faults, as well as wear and tear problems which arise during their lifetime in advance and communicate this information to the manufacturing ERP software. The software will then relay this to the concerned departments for repairing or making a replacement. The assets therefore can last for much longer and run smoothly in the operation process.

3. Improved Forecasting

To be able to have the most precise forecasting, it definitely requires a massive quantity of data to observe and analyze. Thanks to IoT integration, a vast amount of real-time consumption information can be captured and directly sent to the ERP system. Companies will know exactly when and where the products are used, as well as the frequency of utilization. All of this helps them make better forecasting of the purchasing trend for their potential customers in the future.

4. Greater Customer Relationship Management

We know that integrating IoT with ERP enables companies to know how a customer interacts with the finished products via embedded sensors. This in turn shows enterprises whether clients are satisfied with their purchase and give valuable insight to customer care departments. Companies can rely on these data to take action and adjust their customer service in a more proper manner.

When it comes to integrating with innovative technologies, companies should look for a cloud-based ERP system to make sure the integration can bring the most out of the business. As Synergix Technologies is a Product Solutions Grant (PSG) pre-approved vendor (recognized by IMDA), companies purchasing our cloud-based ERP will become eligible to receive financial support of up to 80%. This is definitely a huge saving not to be missed for companies which are going on their software-implementing journey.

Now, to facilitate the digitalisation and adoption of innovative technologies, besides Productivity Solutions Grant, the Singapore government has also been introducing several other grants such as Enterprise Development Grant, E-Invoicing Registration Grant, Skillsfuture Enterprise Credit to support SMEs. Enterprises can tap on these initiatives to enhance their competitive benefits.

This is certainly a great opportunity for enterprises to grasp. Should you wish to have more information, do not hesitate to contact us for a free consultation.

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