Why Integrate Aras Innovator with your ERP Platform?
/Enabling the Digital Thread - Part 2 in a 3-Part Blog Series.
In the first installment of this series, we discussed the rationale for integrating Aras Innovator with Enterprise Resource Planning (ERP) systems. The primary takeaway was that automating data exchange between these platforms significantly minimized errors, inaccurate outsourcing information, resultant reworking and scrap, missing procurement opportunities, incurring expedited shipping costs, and handling warranty issues. These errors contribute to the "Cost of Quality" (CoQ), which is about 3 to 10 percent of a company’s annual revenues. By integrating these systems, organizations can take proactive steps to mitigate these costs. Thus, integration is not merely about enhancing efficiency—it's a business necessity.
What are the specific use cases for an Aras to ERP integration? Here are three primary use cases we frequently encounter …
Part/Bill of Materials (BOM) Release
Document Release
Data Federation
Let's drill into each of these to understand their significance.
From our previous discussion, we know that manually releasing parts or BOMs from PLM to ERP is laborious and prone to errors. A list of 100 parts could take days to process manually. The user starts by checking to see if the part exists. If it doesn’t the part and associated data need to be created. This may require going back to Aras to check on details and cut and paste the information back to the right fields, and update relationships. Statistically, there will be errors. Automating the release of part data eliminates the errors and saves significant time … going from what can take hours or days to mere seconds.
The second use case involves the release of documents. Parts often come with various associated documents, such as CAD models, specifications, and manufacturing instructions. When parts are released, the ERP system is updated as previously discussed. But what happens to the related content. ERP systems are not enterprise content management systems, nor is it cost-effective to procure additional ERP licenses merely for document retrieval across the enterprise and even external users such as suppliers.
Enter Enterprise Content Management (ECM) platforms like Microsoft SharePoint, OnBase, or OpenText that are designed to serve as central repositories for various content and documents. Aras serves as the “system of record.” The ECM platform serves as the “system of engagement.” This is where users from various departments such as purchasing, manufacturing, quality control, and field support can come to securely retrieve, interact, and collaborate with release product data. During the part/BOM release process, documents are first sent to the ECM platform. The resultant URLs of these documents are captured and merged with the part data that is sent to the ERP system, providing users direct access to the latest documents associated with each part. Part/BOM data are updated in ERP and simultaneously, the related documents are available to users across the enterprise.
Figure 1 below illustrates the dual connections facilitated by vdR’s Nexus middleware platform.
The third use case is referred to as data federation. This involves accessing data on-demand from another enterprise application(s) and displaying it to the user in Aras for informational purposes only. The data is not saved in Aras. For example, a user reviewing a change request might need to check current inventory levels to decide on the request's actions. Data federation allows for this information to be retrieved and displayed without logging into the ERP system—streamlining the process and providing a holistic view of necessary data.
While there are additional use cases such as synchronizing approved vendor lists, creating sales orders, or initiating investigation requests within ERP, these examples highlight how integrating Aras Innovator with an organization’s ERP system can drives significant efficiencies and ultimately contribute to reducing the Cost of Quality.
In Part 3 of our series, we'll explore the specifics of implementing an integration between Aras Innovator and an ERP solution, providing a detailed look at the technical and strategic considerations involved.
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