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How to Make Every ERP System Communicate

How to Make Every ERP System Communicate — Data Exchange Standards
  • 8
  • March

What if SAP, Oracle, Odoo, and Saeree ERP could exchange data instantly — without forcing everyone onto the same system? The answer: you don't need a single platform. Just use "open standards" for data exchange — just like countries that don't speak the same language agree to use English as a "common language" for international trade.

In brief: Open standards like Peppol (e-Invoice), EDI (procurement/shipping), ISO 20022 (finance) enable every ERP system to exchange data — already used across 111 countries by over 2.5 million organizations | Organizations lose an average of $370 million/year from disconnected systems.

What's the Problem? — Why Can't ERP Systems Communicate?

Most organizations run multiple systems — one ERP, a separate accounting system, a different warehouse platform. Each one "speaks a different language." Data from SAP can't be sent directly to Oracle — someone has to manually convert the format every time.

Figures Details
897 apps Average number of applications used per organization (2024)
29% are connected — the other 71% remain siloed
$370 million/year Average cost organizations lose from disconnected systems (Integration Debt)
30-40% Share of IT Budget spent managing complexity from disconnected systems (Gartner)

With 10 systems, you need 45 connections (n×(n-1)/2) — with just 20 systems, that's 190! This is the "Spaghetti Architecture" trap that many organizations fall into.

The Answer: Use "Open Standards," Not a "Single Platform"

Instead of forcing every organization to switch to the same ERP (which is impossible) — have all systems agree that "when sending data to each other, use the same format."

┌─────────┐    Peppol/UBL    ┌─────────┐
│  SAP    │ ←──────────────→ │  Odoo   │
└─────────┘    Open Standards    └─────────┘
     ↑                            ↑
     │         API Gateway        │
     │    (translates for every vendor)     │
     ↓                            ↓
┌─────────┐    ISO 20022     ┌─────────┐
│ Saeree  │ ←──────────────→ │ Oracle  │
└─────────┘                  └─────────┘

Each ERP doesn't need to change its internal system — just build an "adapter" that converts data to the open standard before sending, and converts it back when receiving.

6 Global Standards in Active Use Worldwide

Standard What It's Used For Status
Peppol (UBL) e-Invoice, PO, Delivery notes 2.5 million organizations, 111 countries
EDI (X12/EDIFACT) Procurement, shipping, payments $34B market, used for 50+ years
ISO 20022 Cross-bank and international money transfers SWIFT mandated (Nov 2025)
xBRL Financial reports / financial statements Mandated in 50+ countries
GS1 Product codes (GTIN), locations (GLN) 2 million companies worldwide
OData API for retrieving/sending ERP data Primarily used by SAP and Microsoft

1. Peppol — The Fastest-Growing e-Invoice Standard

Peppol (Pan-European Public Procurement OnLine) is a network for exchanging digital business documents such as invoices, purchase orders, and delivery notes — using the UBL (Universal Business Language) standard, which is ISO/IEC 19845.

Remarkable figures: Peppol grew from 110,000 organizations (2019) to 2.5 million organizations across 111 countries — a 1,173% growth in 5 years.

Country e-Invoice Status Mandate Timeline
Singapore InvoiceNow (Peppol) — mandatory for GST businesses Apr 2028 - 2031
Malaysia MyInvois (Peppol) — mandatory for all businesses Aug 2024 onwards (phased)
Belgium Peppol BIS 3.0 — B2B for all businesses Jan 2026
All EU ViDA (VAT in the Digital Age) Jul 2030 (cross-border)
Thailand e-Tax Invoice (ETDA standard) — not yet mandatory Voluntary (with tax incentives)

For Thailand: The Revenue Department's e-Tax Invoice system uses XML per the ETDA standard — currently processing 1.5 million invoices/month (+40% YoY). While not yet mandatory, the ASEAN trend (Singapore and Malaysia already mandate it) may lead Thailand to join Peppol in the future.

2. EDI — The Veteran That Still Stands Strong

EDI (Electronic Data Interchange) has been in use for over 50 years — split into 2 branches: ANSI X12 (Americas) and EDIFACT (UN/Europe/Asia). The global EDI market is worth $34 billion (2024) and is growing to $74 billion by 2031.

The automotive industry is EDI's most sophisticated user — powering Just-in-Time Manufacturing across OEMs, every supplier tier, and the entire logistics chain.

3. ISO 20022 — The Universal Language of Finance

ISO 20022 is a messaging standard for financial systems — covering payments, securities, trade finance, and FX. Every accounting system connected to banks needs to know this standard.

Key milestone: SWIFT completed the migration from MT → MX (ISO 20022) on Nov 22, 202511,000+ banks worldwide must use the new format | ISO 20022 carries 10x more data than the legacy MT format — significantly improving AML screening and straight-through processing.

4. xBRL — Cross-System Financial Reporting

xBRL (eXtensible Business Reporting Language) is used in 50+ countries. For example, the SEC (US) mandates it for all listed companies since 2018, and the EU mandates it via ESEF since 2022. The advantage is that ERP systems can automatically export financial statements as xBRL — no manual tagging needed, reducing errors.

5. GS1 — One Standard for Product and Location Codes

GS1 defines standard codes for products (GTIN), locations (GLN), and shipments (SSCC) — used by 2 million companies. ERP systems integrated with GS1 barcodes achieve warehouse accuracy of 95%+, reduce stock-outs by 50%, and respond to recalls within 1 hour.

Important: GS1 Sunrise 2027 — by the end of 2027, all retail stores must be able to read 2D barcodes (QR codes) at checkout, replacing traditional 1D barcodes.

6. OData — The Standard API for ERP

OData (Open Data Protocol) is an ISO/IEC 20802 standard API primarily used by SAP and Microsoft — with a built-in query language ($filter, $select, $expand) that lets different ERP systems pull data from each other without writing custom integrations.

How to Connect ERP Systems — 4 Approaches

Approach Best For Cost
1. Custom Point-to-Point 1-2 systems $5K-50K per connection + 15-20% annual maintenance
2. iPaaS (MuleSoft, Boomi) 10-50+ systems $15K-100K/year + $400-800/connector/month
3. Event-Driven (Kafka) Real-time, multiple consumers EDA market $8.6B (2024) → $21.4B (2035)
4. Open Standards (Peppol/EDI) Entire supply chain Lowest — shared infrastructure + network effect

Recommendation: For Thai organizations choosing an ERP — select an ERP that supports open API standards (OData/REST) and can export/import data in UBL or EDI format. This will significantly reduce long-term integration costs.

5 Challenges and How to Solve Them

Challenge Solution
Different data formats — SAP uses IDOC, Oracle uses BOD, Odoo uses JSON API Use a Canonical Data Model (OAGIS/ConnectSpec) as a "common language"
Spaghetti Architecture — 10 systems = 45 connections Use an API Gateway as a central hub → reduce to n connections
Security — connecting systems = expanded attack surface API Gateway handles OAuth 2.0, TLS 1.3, centralized audit logs
Customization Lock-in — heavily customized ERPs can't expose APIs "Clean Core" — move customizations to sidecar apps using standard APIs
Batch vs Real-time — legacy EDI runs batch (daily/hourly) Event-Driven Architecture (Kafka) for inventory real-time

PINT — The Next-Gen Standard Thailand Should Watch

PINT (Peppol INTernational) launched in July 2023 and became mandatory in March 2025 — solving the problem that BIS 3.0 was designed only for the EU (supporting only VAT). PINT has a 3-layer architecture:

Layer Details
1. PINT Core Global mandatory fields (required by all countries)
2. Regional Rules e.g., GST (Singapore), SST (Malaysia), VAT (EU)
3. Country-Level Extensions Country-specific fields (e.g., Thai Tax ID numbers)

If Thailand joins Peppol in the future, PINT will be the base — ERP systems that already support PINT will be ready immediately.

Real Example: EU ViDA — Saving €4.1 Billion

The EU recently passed ViDA (VAT in the Digital Age) on March 11, 2025:

  • Cross-border e-Invoice mandate: July 2030
  • Full harmonization: January 2035
  • Reduces VAT fraud by €11 billion/year
  • Saves €4.1 billion in administrative costs over 10 years

This is proof that open standards are not just theory — they generate real ROI at the continental level.

What About Saeree ERP?

Saeree ERP is designed for easy integration with other systems — supporting standard data export/import formats and APIs for connecting with external systems. Regardless of which ERP your partners use, you can exchange data seamlessly.

Summary: Comparing 3 Approaches

Approach Advantages Disadvantages Best For
Build (Custom) 100% tailored to requirements Most expensive long-term, Spaghetti 1-2 connections
Buy (iPaaS) Fast, pre-built connectors available High license costs 10-50+ systems
Standards (Peppol/EDI) Lowest cost, Network effect Requires ecosystem adoption Entire supply chain

"The future isn't forcing everyone to use the same ERP — it's making every ERP multilingual. Like a person who speaks Chinese in China and English in America. Your internal language stays the same — you just translate when talking to others."

References

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About the Author

Sureeraya Limpaibul

Managing Director, Grand Linux Solution Co., Ltd. & Founder of Saeree ERP — providing comprehensive ERP consulting and services.