As the CEO of Zapro, I’ve witnessed firsthand the pivotal role integration plays in streamlining procurement processes. 

You can consider integration as the car that needs to fit perfectly into the custom-designed garage. When done right, it transforms efficiency and transparency in procurement systems. 

Understanding the core purpose

Fundamentally, integration is crucial for sending approved invoices to ERP systems for payments and bookkeeping. 

However, the process doesn’t stop here. Integrating supplier, catalog, and user records is also essential to ensure smooth data flow and minimal disruptions. It’s about creating a cohesive ecosystem rather than piecemeal solutions. 

Diving into the nuances

A common question we encounter concerns the directionality of integration. While data can flow in multiple directions, it’s essential to establish a single source of truth. For example, Zapro serves as the source of truth when onboarding vendors—gathering data, assigning reference IDs, and synchronizing with ERP systems. Despite being bidirectional, this integration ensures that data integrity is maintained. 

Types of integration: choosing wisely

Deciding between SFTP and API integrations is crucial. SFTP, akin to a flat file import/export process, offers a secure, maintenance-light integration that’s suitable for daily syncs. 

However, it lacks real-time capabilities, which API excels at. APIs facilitate real-time, structured data exchange in formats like cXML or JSON, supporting more complex, hierarchical data transmission. 

Strategic integration considerations

Designing an integration strategy involves addressing key considerations like: 

  1. The type of integrations, whether via SFTP or APIs, each offer unique advantages and challenges.
  2. The integration’s frequency and synchrony with organizational requirements.
  3. Data mapping and transformation across entities, ensuring consistency and compatibility in formats.
  4. Data sequencing to maintain the integrity and logical flow of information.

Also, it is critical to decide who controls the source of truth to ensure data consistency across systems, minimizing integration discrepancies. 

The spectrum of integration levels

The integration landscape offers various levels, from native solutions providing deep synergy to API-based integrations that support flexible and expressive data exchange. While SFTP remains a secure option for specific use cases, it requires less maintenance than newer technologies but offers limited real-time capabilities. 

Concluding thoughts

Integration in procurement is not merely a technical necessity but a strategic enabler. 

At Zapro, we strive to simplify these complexities, helping businesses unlock their true procurement potential. By understanding the nuances and strategically leveraging different integration methods, businesses can ensure smooth, efficient operations even in a volatile supply chain environment.

Frequently asked questions

What is the objective of integrating systems in procurement? 

The goal is to route approved invoices to the ERP system for two main reasons: to manage payments and to handle bookkeeping. 

Is that the full scope of the process? 

Yes, but there are additional considerations. For instance, if an invoice involves a supplier like Lenovo, that supplier must exist within the ERP system to ensure successful integration. Much like fitting a car into a garage, the data must be properly aligned to integrate smoothly. 

What else should be integrated to support this process? 

To ensure seamless invoice integration, corresponding supplier records, catalog records, user profiles, and various other elements should also be integrated. 

Is there more to consider on this topic? 

Certainly, especially regarding establishing a ‘source of truth.’ For example, determining which system will hold the ultimate reference for integration, such as when Zapro collects vendor data and shares it with the ERP, and the ERP returns a reference ID. 

Must all integrations be unidirectional? 

Not necessarily, though typically one system will act as the ‘source of truth.’ When Zapro handles vendor onboarding, it sends vendor data to the ERP and gets a reference ID back, functioning as a bidirectional integration but with Zapro as the main reference point. 

Are there additional nuances to consider? 

Yes, including the type and quality of integration. Sending an invoice to the ERP via SFTP is basic yet stable. It is secure and low-maintenance but not real-time, so it is suitable for daily syncs. However, if the ERP adds a new field, adjustments will be reactive. 

In contrast, API integrations are real-time, with structured outputs like XML or JSON. SFTP uses flat files, such as Excel, without hierarchy, whereas APIs can manage complex data structures. 

When designing integration, what questions are important? 

Consider the type of integration needed (SFTP/API), which fields to integrate, how often data syncs occur, and how data maps between systems (e.g., “INV ID” vs. “Invoice ID”). Also, account for data formatting and sequencing to maintain integration flow. 

What different integration levels exist? 

Depending on your partnership levels with core and partner systems, you can create native integrations akin to Google SSO, which offer deep compatibility. Native integrations are top tier, followed by API with ETL and then SFTP, which is secure for certain use cases. While native/API might seem preferable, remember that they require more maintenance than SFTP.

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