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What is ERP API Integration?
API integration connects your Enterprise Resource Planning system with other software applications through Application Programming Interfaces (APIs), enabling seamless data exchange and process automation across your business ecosystem.
The Evolution of ERP Integration
Internal Integrations:
Core Module Integrations:
- Finance ↔ Inventory
- HR ↔ Procurement
- Sales ↔ Production
- CRM ↔ Service Management
External Integrations:
Ecosystem Partners:
- Banking & Payment Gateways
- E-commerce Platforms
- Supply Chain Partners
- Government Systems (Tax, Compliance)
- IoT Devices & Sensors
Cloud-to-Cloud Integrations:
SaaS Applications:
- Salesforce ↔ SAP
- Shopify ↔ Oracle NetSuite
- ServiceNow ↔ Microsoft Dynamics
- Workday ↔ ERPNext
# Example: Direct REST API Integration
import requests
import json
class ERPIntegration:
def __init__(self, erp_base_url, api_key):
self.base_url = erp_base_url
self.headers = {
'Authorization': f'Bearer {api_key}',
'Content-Type': 'application/json'
}
def create_sales_order(self, order_data):
"""Direct API call to ERP sales order endpoint"""
response = requests.post(
f"{self.base_url}/api/sales/orders",
headers=self.headers,
json=order_data
)
return response.json()
def get_inventory_levels(self, sku):
"""Fetch real-time inventory from ERP"""
response = requests.get(
f"{self.base_url}/api/inventory/items/{sku}",
headers=self.headers
)
return response.json()
Benefits:
- Pre-built connectors
- Data transformation
- Error handling
- Monitoring & logging
- Scalability
Popular Platforms:
- MuleSoft Anypoint Platform
- Dell Boomi
- Microsoft Azure Logic Apps
- IBM App Connect
- Workato
# Example: Event-driven integration using webhooks
class EventDrivenERP:
def __init__(self, erp_system):
self.erp = erp_system
self.webhook_urls = {
'order_created': [],
'inventory_updated': [],
'payment_received': []
}
def subscribe_webhook(self, event_type, callback_url):
"""Subscribe external system to ERP events"""
self.webhook_urls[event_type].append(callback_url)
def trigger_webhook(self, event_type, data):
"""Notify subscribers of ERP events"""
for url in self.webhook_urls[event_type]:
requests.post(url, json=data)
def on_order_created(self, order_data):
"""ERP calls this when new order is created"""
self.trigger_webhook('order_created', order_data)
| Scenario | Custom Solution | Standard Feature |
|---|---|---|
|
Unique business process |
✅ Required |
❌ Not possible |
|
Competitive differentiation |
✅ Advantage |
❌ Common to all |
|
Regulatory compliance |
✅ Tailored |
⚠️ May need customization |
|
Integration with legacy systems |
✅ Necessary |
❌ Not available |
|
Common business needs |
❌ Overkill |
✅ Recommended |
# Example: Custom Project Management Module
class CustomProjectModule:
def __init__(self, erp_core):
self.erp = erp_core
self.db = erp_core.database
def create_project(self, project_data):
"""Create custom project with ERP integration"""
# Link to ERP financials
budget_code = self.erp.create_gl_account(
project_data['budget_details']
)
# Create project in custom table
project_id = self.db.insert('custom_projects', {
'name': project_data['name'],
'budget_code': budget_code,
'status': 'active',
'created_by': project_data['manager_id']
})
return project_id
def track_project_expenses(self, project_id):
"""Real-time expense tracking against ERP data"""
expenses = self.db.query("""
SELECT SUM(amount) as total_spent
FROM accounting_transactions
WHERE project_code = %s
""", (project_id,))
budget = self.db.query("""
SELECT budget_amount
FROM custom_projects
WHERE id = %s
""", (project_id,))
return {
'total_spent': expenses[0]['total_spent'],
'budget_remaining': budget[0]['budget_amount'] - expenses[0]['total_spent']
}
-- Example: Custom Inventory Optimization Report
CREATE VIEW custom_inventory_optimization AS
SELECT
i.sku,
i.product_name,
i.current_stock,
i.reorder_level,
AVG(s.monthly_sales) as avg_monthly_sales,
CASE
WHEN i.current_stock < i.reorder_level THEN 'REORDER'
WHEN i.current_stock > (AVG(s.monthly_sales) * 3) THEN 'OVERSTOCK'
ELSE 'OPTIMAL'
END as stock_status,
-- Calculate ideal reorder quantity
CEILING(AVG(s.monthly_sales) * 2 - i.current_stock) as suggested_order_qty
FROM
inventory_items i
LEFT JOIN
sales_summary s ON i.sku = s.sku
GROUP BY
i.sku, i.product_name, i.current_stock, i.reorder_level;
class CustomApprovalWorkflow:
def __init__(self, erp_system):
self.erp = erp_system
self.workflow_rules = self.load_workflow_rules()
def evaluate_purchase_approval(self, purchase_request):
"""Custom multi-level approval logic"""
amount = purchase_request['amount']
department = purchase_request['department']
requester_level = purchase_request['requester_level']
# Custom business rules
if amount <= 1000:
return self.auto_approve(purchase_request)
elif amount <= 5000:
return self.route_to_department_head(purchase_request)
elif amount <= 20000:
return self.route_to_finance_controller(purchase_request)
else:
return self.route_to_cfo(purchase_request)
def auto_approve(self, request):
"""Auto-approve based on custom rules"""
request['status'] = 'approved'
request['approved_by'] = 'system'
request['approval_date'] = datetime.now()
self.erp.update_purchase_request(request)
return request
Phased Approach:
Phase 1: Discovery & Planning
- API capability assessment
- Data mapping exercise
- Security requirements review
Phase 2: Development & Testing
- Sandbox environment setup
- Prototype development
- Comprehensive testing suite
Phase 3: Deployment & Monitoring
- Staged rollout
- Performance monitoring
- Error tracking implementation
class SecureERPIntegration:
def __init__(self):
self.encryption = EncryptionService()
self.audit_log = AuditLogger()
def secure_api_call(self, endpoint, data):
"""Make secure API calls with encryption and logging"""
try:
# Encrypt sensitive data
encrypted_data = self.encryption.encrypt_sensitive_fields(data)
# Add security headers
headers = {
'Authorization': self.get_oauth_token(),
'X-API-Key': self.get_api_key(),
'X-Correlation-ID': str(uuid.uuid4())
}
response = requests.post(endpoint, json=encrypted_data, headers=headers)
# Log the transaction
self.audit_log.log_api_call(endpoint, headers['X-Correlation-ID'], 'success')
return response.json()
except Exception as e:
self.audit_log.log_api_call(endpoint, headers['X-Correlation-ID'], 'failed', str(e))
raise
class ResilientERPIntegration:
def __init__(self, erp_system):
self.erp = erp_system
self.retry_config = {
'max_retries': 3,
'backoff_factor': 2,
'retry_status_codes': [500, 502, 503, 504]
}
def sync_data_with_retry(self, data, sync_operation):
"""Robust data synchronization with retry logic"""
for attempt in range(self.retry_config['max_retries']):
try:
result = sync_operation(data)
return result
except requests.exceptions.RequestException as e:
if attempt == self.retry_config['max_retries'] - 1:
# Final attempt failed, send to dead letter queue
self.send_to_dlq(data, str(e))
raise
# Exponential backoff
sleep_time = self.retry_config['backoff_factor'] ** attempt
time.sleep(sleep_time)
continue
def send_to_dlq(self, data, error):
"""Send failed operations to dead letter queue for manual processing"""
dlq_entry = {
'data': data,
'error': error,
'timestamp': datetime.now(),
'processed': False
}
self.erp.insert_into_table('integration_dlq', dlq_entry)
class EcommerceERPIntegration:
def __init__(self, erp_system, ecommerce_platform):
self.erp = erp_system
self.ecommerce = ecommerce_platform
def sync_orders_daily(self):
"""Bidirectional order synchronization"""
# Pull new orders from e-commerce
new_orders = self.ecommerce.get_new_orders()
for order in new_orders:
self.erp.create_sales_order(self.transform_order_format(order))
# Push inventory updates to e-commerce
inventory_updates = self.erp.get_inventory_changes()
for update in inventory_updates:
self.ecommerce.update_stock_level(
update['sku'],
update['quantity']
)
def transform_order_format(self, ecommerce_order):
"""Transform e-commerce order to ERP format"""
return {
'order_number': ecommerce_order['id'],
'customer_code': self.get_or_create_customer(ecommerce_order['customer']),
'order_date': ecommerce_order['created_at'],
'line_items': [
{
'sku': item['product_sku'],
'quantity': item['quantity'],
'unit_price': item['price']
} for item in ecommerce_order['items']
]
}
class CustomSchedulingModule:
def __init__(self, erp_system):
self.erp = erp_system
def optimize_production_schedule(self):
"""Custom scheduling algorithm considering multiple constraints"""
orders = self.erp.get_pending_production_orders()
resources = self.erp.get_available_resources()
constraints = self.erp.get_production_constraints()
optimized_schedule = self.genetic_algorithm_scheduler(
orders, resources, constraints
)
self.erp.update_production_schedule(optimized_schedule)
def genetic_algorithm_scheduler(self, orders, resources, constraints):
"""Custom optimization algorithm"""
# Implementation of genetic algorithm for scheduling
# Considering: machine availability, workforce, material lead times,
# changeover times, priority orders, due dates
pass
class ERPIntegrationTests:
def setUp(self):
self.test_erp = TestERPSystem()
self.integration = ERPIntegration(self.test_erp)
def test_data_mapping(self):
"""Verify data is correctly transformed between systems"""
source_data = {'external_id': '123', 'amount': 1000}
expected_erp_format = {'document_id': 'EXT_123', 'total_value': 1000}
result = self.integration.transform_data(source_data)
assert result == expected_erp_format
def test_error_handling(self):
"""Verify system handles API failures gracefully"""
with patch('requests.post') as mock_post:
mock_post.side_effect = ConnectionError("API unavailable")
with self.assertRaises(IntegrationError):
self.integration.sync_customer_data(test_customer)
def test_performance(self):
"""Verify integration meets performance requirements"""
start_time = time.time()
# Sync large dataset
self.integration.sync_all_products(large_product_catalog)
execution_time = time.time() - start_time
assert execution_time < 300 # Should complete within 5 minutes
class IntegrationMonitor:
def __init__(self, erp_integration):
self.integration = erp_integration
self.metrics = {
'api_calls': 0,
'errors': 0,
'average_response_time': 0
}
def monitor_health(self):
"""Continuous monitoring of integration health"""
health_checks = {
'erp_connection': self.check_erp_connectivity(),
'api_limits': self.check_api_usage(),
'data_freshness': self.check_data_sync_status(),
'error_rate': self.calculate_error_rate()
}
return all(health_checks.values())
def generate_integration_report(self):
"""Regular reporting on integration performance"""
report = {
'period': 'daily',
'total_transactions': self.metrics['api_calls'],
'success_rate': self.calculate_success_rate(),
'performance_issues': self.identify_bottlenecks(),
'recommendations': self.generate_optimization_suggestions()
}
return report
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