There’s no denying that the internet of things (IoT) has revolutionized the post-digital era. A vast network of connected devices is now sharing data via the internet. Often, this data flows into enterprise resource planning (ERP) systems.

The increasing popularity of cloud ERP means that more organizations have been able to take advantage of IoT in ERP. In fact, future-focused business leaders are looking for ways to tie their ERP systems into every facet of their organization, and IoT makes this intra-office connectivity possible.

If you plan to begin an ERP implementation this year, you may want to consider ERP software solutions with IoT capabilities as there are many benefits to this combination.

ERP IoT Across Industries

To date, many industries have already realized the powerful partnership of ERP and IoT.

Take the manufacturing realm, for instance. From warehousing facilities to end users and every touchpoint in between, IoT affords manufacturers access to greater amounts of data than ever before. In turn, this bolsters all areas of their business, allowing gains in business intelligence, inventory management, product development and customer service.

At the same time, IoT also allows healthcare providers to better align their physical operations and digital assets, greatly improving data flow, along with the patient experience. Other industries realizing the advantages of IoT-driven ERP software include, but are not limited to, retail, construction and finance.

The 2025 Top 10 ERP Systems Report

What vendors are considering for your ERP implementation? This list is a helpful starting point.

5 Benefits of IoT in ERP

Why should you invest in ERP systems with IoT capabilities? Let’s take a look at a few reasons to consider this emerging technology as you kick off your project:

1. Ability to Keep up with the Competition

The top ERP systems with IoT functions enable increased data availability, easier communication and smarter business intelligence. This means that early adopters that are already embracing the trend stand a chance to outperform their peers.

If your industry hasn’t yet adopted this technology, failing to follow suit could mean falling behind. Your ongoing success hinges on your ability to embrace new technology, especially if it enables a better customer experience. 

2. Real-time Data Insights

At its core, ERP is meant to provide companies with a single, unified data source. With IoT, this data is even richer and includes actionable insights. In fact, the network of IoT-driven sensors and devices provides a constant stream of timely information. 

When your systems, machines and products are speaking to one another, employees have access to real-time updates that can help them make better-informed business decisions.

From inventory levels to machine maintenance needs, there are many pertinent issues that – without IoT – can get lost in the chain of command. However, with IoT, all authenticated users are notified of any status changes immediately, allowing them to be proactive.

iot in erp systems

3. Improved Customer Service

Did you know that more than 60% of customers expect a standard-delivery item to arrive within three days? Quick shipping is only one facet of excellent customer service that turns clients into brand advocates.

Are you struggling to meet this demand? Imagine how much smoother your delivery process would be if you, your customers and your vendors had easily accessible, real-time updates.

With an IoT-connected ERP system, this is possible. Your customer and vendor portals become treasure troves of information with shipping updates, order confirmations and more.

4. Automation of Manual Tasks and Increased Efficiency

You already know that ERP solutions can automate much of your company’s manual processes, from accounting to human resources. With IoT, these capabilities are amplified. 

Until this technology entered the space, there were certain tasks that were simply too intricate and interconnected to be automated. 

Today, even complex processes, like barcoding, can be automated. Not only does this save your company time, money and resources, but it helps you efficiently deliver on customer expectations. 

5. Improved Forecasting

Running analytics and creating forecasts is one of the most important ways your company can plan for the future. Only by reviewing current and past data can you accurately predict trends and prepare for what’s to come. With IoT, your ERP-driven forecasting efforts are made even more accurate.

This is especially beneficial when you’re examining key data points, such as customer purchases or buying behavior. With IoT, you have access to substantial quantities of real-time data that reveal exactly how customers are finding, buying and using your products or services. Sending this data to your ERP system makes your forecasting and planning efforts more accurate and effective. 

Will You Take Advantage of IoT?

We’re more connected than we’ve ever been, and ERP vendors are leveraging this connectivity to deliver solutions that are more helpful and innovative than ever before. 

If you’re on the cusp of an ERP selection, it’s important to understand all of the system capabilities available on the market. While you evaluate features and functionality, you may want to consider IoT. 

If the benefits above align with your enterprise strategy, then IoT in ERP may be a good choice for your organization. Request a free consultation below to speak with our ERP consultants.

Posts You May Like:

The Pentagon Audit Failure: Unpacking DoD ERP System Issues

The Pentagon Audit Failure: Unpacking DoD ERP System Issues

The Pentagon's financial audit failures highlight systemic issues in ERP system integration and military financial management. Over-customization and legacy systems within the DoD contribute to fragmented ERP platforms and inefficiencies. Inadequate change management...

The Hidden Dangers of Choosing Software Quickly

The Hidden Dangers of Choosing Software Quickly

ERP failures stem from rushed decisions, often resulting in poor integration, unmet requirements, and costly implementation failures. The hidden costs of technical debt arise from "good enough" solutions, leading to inefficiencies, frequent downtime, and high...