Tag Archive for: Magento

SAP S/4HANA Magento Integration

What is SAP S/4HANA?

SAP S/4HANA is a next-generation enterprise resource planning (ERP) system developed by SAP AG. It was released in 2015 and is currently being rolled out across various industries. SAP S/4HANA is designed to help companies manage their entire business processes from sales to finance to human resources.

SAP S/4HANA combines the best of both worlds: cloud computing and on-premises solutions. With SAP S/4HANA, you get the benefits of cloud computing without having to worry about managing servers and data centers.

With SAP S/4HANA, you can manage your entire business from anywhere at any time, whether you’re working from home, traveling, or sitting in front of your computer. You can access your data from any device, and you can use it to automate processes, streamline operations, and improve customer service.

What is Magento?

Magento is a free open-source eCommerce software solution that helps businesses sell online. It is built on PHP and MySQL and supports multi-store functionality that provides online merchants with a flexible shopping cart system and control over the look, content, and functionality of their online store.

It is compatible with many payment gateways including PayPal, Stripe, Authorize.net, etc. It was first developed by Varien Inc., and later acquired by Adobe Inc. Magento is known for its robust features, scalability, and customization capabilities, making it a popular choice for businesses of all sizes.

What is Integration?

Integration is the act of connecting two or more systems together. In this case, we are going to discuss about connecting SAP S/4HANA and the Magento e-commerce platform.

This integration is essential for businesses that use both SAP for their enterprise resource planning (ERP) needs and Magento for their online sales and e-commerce operations.

Have a question about integration? Book a FREE one-on-one consultation with our integration expert.

The Power of SAP S/4HANA for Magento Online Store

SAP S/4HANA integrates with Magento Commerce, allowing you to create an online storefront using the power of SAP.

The integration between SAP S/4HANA and Magento allows you to create a single view of all your business processes across multiple channels. You can easily manage your inventory, sales, marketing, and service operations through the unified interface.
e-commerce automation and integration with ERP and CRM

B2B Customer Data Synchronization from SAP S/4HANA to Magento

Usually, the source for B2B customers master data is considered to be SAP’s S/4HANA. Thus, existing B2B customers in S/4HANA can be imported into Magento, and their contact persons are automatically registered as users. They can place orders on behalf of the company.

Based on S/4HANA data, the following B2B customer information is synchronized with Magento.
  • General information about the company, such as its name, address, and email address
  • Details about the company’s contact persons.
  • The address of the company to use for delivery.
  • Company credit Information
SAP Integration

The Most Popular S/4HANA – Magento Integration

In order to get the most out of SAP and Magento integration, companies typically sync the following entities:

Products – the e-commerce store owners can synchronize products between SAP and Magento. The synchronization process includes all product information, including product specifications, categories, product types, images, prices, etc.
  • Products. The most critical integration is synchronizing the entire product catalog between SAP S/4HANA and Magento eCommerce store. Integration includes product specification, product category, and product type.
  • Inventory. Inventory synchronization between the company’s SAP system and the e-commerce store.

Synchronization will provide real-time information on the availability and balance of goods in the online store. As a result, you will be able to avoid selling out-of-stock items on your Magento eCommerce store. The synchronization of inventory improves the overall efficiency of the online store and increases customer confidence and satisfaction.
  • Orders. Through the integration, you can stay up-to-date on all your orders, including payment details, status, credit notes, invoices, and shipping information.
  • Pricing. Syncing product prices will help you better manage your sales.

Synchronization of Sales Orders from B2C/Guest and B2B Customers

All sales orders placed through Magento synchronize with SAP S/4HANA almost in real time and are converted into SAP sales orders.

In this way, everything can be synchronized, such as billing data, status, credit notes, invoice, and delivery.

A B2B customer’s sales orders will be recorded in SAP with their SAP customer number. Furthermore, any purchase made with credit by a B2B customer will also update the credit usage status in Magento.

Benefits of SAP S/4HANA on Your eCommerce Business
  • Integration brings together a lot of disparate data to keep your business running smoothly. The company’s employees have easy access to all relevant information from orders and delivery, to communication with customers and product procurement processes.
  • The integration of ERP with an e-commerce store eliminates manual data entry and prevents information redundancy caused by data transfers between systems, saving time and preventing errors.
  • The integration of Magento and SAP allows to generate and analyze real-time reports, making it easier to keep up with the fast-paced e-commerce environment without having to wait for data to be transferred or information to be collected from multiple sources. This will allow you to instantly adjust processes and make the necessary management decisions, which can save you money.
  • Integration improves customer relations, as well as provides easy access to information for sales representatives and customer support. As a result, brand loyalty and sales increase.
  • Saving. While SAP integration with Magento requires some investment, it saves businesses money in the long run. How does it work? As a result of automating internal business operations, the company will be able to reduce transaction costs. In addition, the accuracy of the information provided will lead to a higher level of customer satisfaction, and ultimately to higher profits for the company.

Conclusion: SAP S/4HANA Magento Integration

SAP S/4HANA is a new-generation enterprise application suite that includes a range of products designed to help companies manage their data, processes, and people. Integration of SAP with Magento helps businesses manage customer information, inventory, and financial transactions. It also helps companies streamline business processes and improve efficiency.

With over 20 years of experience integrating ERP systems with e-commerce platforms and many successful projects under our belts, we are always happy to help you. Integrating SAP ERP with Magento with the help of professionals will save you time and money.

Please feel free to contact us if you would like to schedule a free consultation with one of our integration experts.
Retail automation
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Magento E-commerce Integration: Boost Your Online Sales with ERP, CRM, and AI-Driven Solutions

Intro: E-Commerce Integration

The integration of e-commerce with third-party systems such as ERP, CRM, accounting software, or EDI is a very hot topic and challenging for many companies.  While the COVID-19 pandemic accelerated the digital transformation of many businesses, today, businesses are more focused on sustainable omnichannel strategies.

Today, we focus on one of the most popular e-commerce platforms – Magento. We will explore the most important aspects of Magento integration, which have a significant impact on the performance and efficiency of your Magento store.

What is Magento?

Magento is one of the most popular e-commerce platforms in the world.

One of the reasons of Magento’s popularity is its flexibility and extensibility. You can integrate almost any functionality into your online store – which is why so many companies choose Magento.

There are two distinct platforms of Magento:

Magento Open Source

Magento Open Source (formerly under the name Community Edition) is an open-source e-commerce platform, that is, available to anyone for free. Magento Open Source provides basic e-commerce capabilities that enables to create an online store from scratch. However, for full functionality, Adobe Commerce is recommended.

It should be remembered that if you choose to use Magento Open Source, this does not mean that you can get your online store free of charge. You need to consider hosting costs, themes, domain name, SSL certificate, fees for processing payments, etc. Besides, to create and customize a full-fledged online store, you will need a developer with PHP experience because this task can be a little daunting for beginners without much programming knowledge.

Adobe Commerce (formerly Magento Commerce)

Adobe Commerce (platform as a service) includes cloud-optimized architecture and hosting, unlimited customization, third-party integrations, and AI-powered merchandising and analytics. Over 250,000 merchants worldwide use Adobe Commerce.

Adobe Commerce is a very reliable and powerful e-commerce platform used by many popular online stores with high traffic. This means that Adobe Commerce fit for large companies. However, if you plan to expand your online store (increase the catalog product, etc.) we would recommend starting with Adobe Commerce as it is a performance-proven platform for supporting large stores. Adobe Commerce is worth installing in the first place instead of switching from Magento Open Source to Adobe Commerce at a later stage. Even if there are data transfer tools, such as the Magento Mass Importer (MAGMI) for migration of Shopify to Magento this process will not be easy and demands time and effort.

Nevertheless, it should be kept in mind that Magento is aimed at three levels of companies: small businesses, medium-sized and large businesses.

Thus, Adobe Commerce delivers:

  • Cloud-Optimized Architecture & Hosting: Ensures high performance and scalability.
  • Unlimited Customization: Tailor your store with advanced third-party integrations.
  • AI-Powered Merchandising & Analytics: Leverage data for smarter business decisions.

Adobe Commerce is designed for large businesses that require robust, scalable e-commerce solutions, while the open-source version continues to be available as Magento Open Source.

According to recent market research, Magento-powered platforms are a key driver in global e-commerce, which reached over US$6.3 trillion in sales in 2023 and is projected to grow significantly in the coming years.

Magento History and Future Trends

The development of Magento started in 2007 by Varien Inc. and was officially launched on March 31, 2008.

In 2011, eBay, which already owns 49% of Magento, acquired the remaining 51%. In May 2018, Magento Inc. became the property of Adobe Inc. 

Adobe acquired Magento and rebranded Magento Commerce as Adobe Commerce in April 2021. The open-source version remains Magento Open Source, while the enterprise solution is now called Adobe Commerce.

This change reflects Adobe’s strategy to integrate Magento’s robust e-commerce capabilities into its broader Adobe Experience Cloud, offering enhanced features such as cloud hosting, AI-powered personalization, and seamless integration with other Adobe tools.

Magento Market Share: Adobe Commerce (Magento) now powers 15% of the top 100k e-commerce sites globally, with a 22% surge in enterprise adoption since 2023 (BuiltWith).

Useful Reading: In our EDI2XML Blog, we have covered a lot of e-commerce integration topics including Shopify, BigCommerce, or Amazon integration. Thus, if you are interested in learning more about these integration topics, please check out our articles:

Why Integrate Magento with ERP and CRM?

Companies that have linked their ERP system with their Magento online store, succeed by optimizing work processes, which positively affects the shopping experience, reduces order-processing time, and minimizes errors.

ERP stands for Enterprise Resource Planning. It is a business process management software that can be on-premises or cloud-based. ERP system helps to manage an enterprise in the following main areas:

– Financial Management
– Manufacturing Management (product data management)
– Distribution Management with three key areas of distribution management: sales order, inventory, and warehouse management.

Synchronizing data between Magento store and ERP system, eliminates the need for sales managers to enter sales order information manually into a business software system. This significantly increases the speed of order execution and eliminates possible errors, as well as improves the quality of customer service.

Due to Magento ERP integration, you can achieve efficient Inventory management that allows you to have complete control over your Magento online store. With automatic inventory management, you will always be aware of the goods received and sold, and most importantly, your customers will not place orders for goods that are out of stock. You do not have to bear the costs and waste time to contact the client to offer him a substituted item or to issue a refund.

A recent report by Forrester Research shows that companies using integrated ERP systems can reduce order processing time by 15–20% and experience overall operational efficiency gains.

The Role of Integration Platforms – Magic xpi 

One of the most important decisions when integrating your Magento online store with your business systems is choosing a reliable and scalable integration platform.

Adobe Commerce is API ready; the API capability, gives the flexibility to connect integration platforms such as Magic xpi and other systems.

Magic xpi integration platform is a leading solution for integration, enterprise-grade data synchronization, and complete automation of business processes.

Magento ERP integration

Magic xpi leverages code-free technologies to streamline business processes and manage communications between on-premises and/or cloud-based enterprise systems, automatically integrating data from multiple sources on a many-to-one basis.

Magic xpi implements comprehensive ready-made certified and optimized connectors and adapters, to synchronize leading ERP, CRM, Finance, and other busyness systems with e-commerce platforms and marketplaces.

Thus, besides Magento ERP/CRM integration, you can expand your sales channels and synchronize your Magento store with marketplaces like Amazon or eBay.

Magento Inventory Management

Inventory management is one of the important points in e-commerce integration with ERP. Up-to-date information about product availability is a key issue in online sales. This is an especially pertinent issue for companies with a multi-channel approach, i.e. offline (physical store) and online sales, such as sales via Magento online store, Amazon, eBay, or social media like Facebook or Instagram.

With Magic xpi integration platform, you can update your inventory in near real-time, giving you a unique competitive edge.

The Common Magento Business Process Integration

As mentioned above, Magic xpi is a proven integration platform that seamlessly connects the front office and back office IT systems for two-way communication. The most common examples of business process integration between Magento and business systems are:

  • Integration of e-commerce catalog data with ERP
  • E-commerce data integration with (PLM) Product Lifecycle Management
  • Inventory data pushed to Magento online store
  • Bi-directional Pricing updates – ERP with e-commerce
  • Real time inventory checks
  • Order information from e-commerce to ERP
  • Real-time credit card processing
  • Bi-directional address book updates
  • Shipment confirmation
  • Package tracking
  • Delivery notifications
  • Inventory notification/alarm for e-commerce managers
  • Call center integration
  • CRM integration

Choose the Right Integration Provider and Technology

Aside from using cutting-edge and well-established technology, the most important part of any integration project is having the right people to integrate quickly and efficiently without any disruption and within your budget.

Our team has implemented integration projects of different types and complexities. Many years of integration experience, as well as the use of new technologies, allow us to carry out projects quickly and efficiently allowing clients to see quickly the benefits of e-commerce integration with business systems.

Contact us for a free consultation with one of our integration experts.