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What is n8n? How to Use It

n8n Workflow Automation
  • 9
  • May
For Implementation Team

What is n8n?

n8n (pronounced "n-eight-n", short for "nodemation") is an open-source workflow automation tool that lets you connect applications and systems together — pulling data from one system into another, conditional on rules you define — using a visual node-based editor instead of writing code from scratch.

What sets n8n apart from competitors is that it is self-hostable on your own server. All data flows only through servers you control, never sent out to the vendor's cloud — ideal for organizations handling sensitive data such as customer records, financial data, or government information.

In short: n8n = a free, self-hosted version of Zapier/Make — connect systems visually with minimal code, and your data never leaves your server.

n8n vs Zapier vs Make

Topic n8n Zapier Make (formerly Integromat)
LicenseSource-available (Sustainable Use)SaaS onlySaaS only
Self-host✓ Free (Docker / npm)✗ No✗ No
Cloud PricingSeparate Cloud plan availablePer-task — gets expensive at high volumePer-operation
Code NodeJavaScript + PythonJavaScript / Python (limited by plan)JavaScript
Data PrivacyStays on your serverThrough Zapier cloud (US)Through Make cloud (EU)
Best forOrganizations with IT team to run serversSMEs / marketers wanting fast setupPower users needing complex logic

n8n Architecture — Nodes, Triggers, Workflows

n8n uses a node-based approach, like connecting LEGO blocks. Each block does one job and you wire them together into a flow:

  • Trigger Node: the starting point — Webhook (URL is hit), Schedule (every 5 minutes / nightly), Manual (run on demand), Polling (check periodically)
  • Action Node: what the workflow does — create a database record, send email, post to Slack/LINE, call HTTP API, transform data formats
  • Logic Node: decision-making — IF (condition), Switch (multiple cases), Merge (combine branches), Loop (repeat), Wait (delay)
  • Code Node: write JavaScript or Python for custom logic that built-in nodes cannot handle

n8n supports integrations with 400+ apps and services — Google Workspace, Microsoft 365, Slack, LINE, Telegram, databases (PostgreSQL, MySQL, MongoDB), cloud storage, AI APIs (OpenAI, Anthropic), and any HTTP/Webhook system. Anything not pre-integrated can be called via the HTTP Request node.

What Can n8n Do — Real-World Use Cases

Common scenarios in Thai organizations:

Category Example Workflow
Cross-system syncPull sales orders from e-commerce → create invoice in ERP → email customer
Team alertsWhen stock falls below min level → send LINE Notify to warehouse manager
Automated reportsEvery morning at 8am → query yesterday's sales → email PDF summary to MD
AI integrationReceive quotation email → send to AI for summary → save as draft quotation in ERP
Approval processNew PO > 100,000 THB → send approval link via LINE to executive → update status in ERP
One-time migrationMove customer data from legacy system → clean → import into new ERP

How to Install n8n

n8n can be installed several ways. Docker is recommended for being easy to set up and upgrade:

1. Docker (recommended)

For production or server experimentation. Use a volume to persist workflows and credentials across restarts.

  • Requires Docker / Docker Compose
  • Use the official n8nio/n8n image
  • Always put a reverse proxy (Nginx / Traefik) with HTTPS in front for any real use
  • Enable Basic Auth or User Management to restrict access

2. npm (for experimentation)

Good for trying things on your own machine. Not recommended for production — process management and restarts are harder.

  • Requires Node.js 20+
  • npx n8n launches it immediately

3. n8n Cloud

The n8n team manages the server for you — no installation needed. Suits small teams that don't want to maintain infrastructure, but you have to send data through their cloud.

Self-host caveat: n8n stores credentials for connected systems (API keys, database passwords) in its own database. You must set N8N_ENCRYPTION_KEY and back up both workflows and the encryption key safely. If the key is lost, all credentials become unreadable.

n8n's License — Is It Really Free?

n8n is not pure MIT/Apache open-source — it uses its own Sustainable Use License (SUL). In short:

  • Internal company / personal projects are free — unlimited workflows, executions, users
  • You cannot resell n8n as a competing SaaS or rebrand it as your own product
  • Some features like SSO, LDAP, external storage, and audit logs require an Enterprise license

For typical organizations using it internally, you can use it for free without worrying about additional licensing.

How n8n Connects with ERP

n8n acts as an integration layer sitting between ERP and other systems. Instead of having developers write custom code for every system pair, you can drag and drop in n8n — saving time and increasing visibility (entire flow visible on one screen).

Common integration patterns:

  • ERP exposes API → n8n calls it: e.g. Saeree ERP exposes a REST API for stock queries — n8n calls hourly and pushes summaries to a dashboard
  • ERP fires Webhook → n8n receives: e.g. when a PO is approved → ERP fires a webhook → n8n creates a task in your project management tool
  • n8n reads database directly: if ERP doesn't expose an API, n8n's PostgreSQL node can read directly (use a read replica to avoid impacting production)
  • File-based integration: for legacy systems without APIs (e.g. GFMIS) — n8n reads CSV/text files and transforms format before importing into ERP

Read more on system integration in ERP Integration — API and What You Need to Know and about PostgreSQL — the database Saeree ERP uses.

Pros and Cons of n8n

Pros

  • Self-hostable — data stays inside your organization
  • Drag-and-drop UI makes flows clear; non-developers can read them
  • Code node available for custom logic when needed
  • Many integrations + HTTP Request node covers anything missing
  • Free for internal use
  • Active community + workflow templates in the official marketplace

Cons

  • Requires an IT team for server, backups, upgrades
  • Complex workflows become hard to read and debug (like untested code)
  • Enterprise features (SSO, audit log) cost extra
  • Not ideal for high-volume / low-latency real-time work — that should be a dedicated service
  • SUL license is not OSI open-source — if your core business is selling automation platforms, you can't use n8n

Getting Started — 5-Step Checklist

# Step
1Pick a first use case with a clear pain point — e.g. "the morning copy-paste from Sheet into ERP". Don't start with a big workflow.
2Install n8n on a test server (Docker) + enable HTTPS + set user/password
3Build your first workflow — test each node before chaining the full flow
4Add error handling — failures must alert the team and retry, never silently disappear
5Back up workflows + N8N_ENCRYPTION_KEY weekly + document what each workflow does
Warning: n8n makes automation so easy that teams often spawn many workflows without clear ownership. Within 1–2 years this becomes "spaghetti workflow" hell that nobody dares touch. Set naming conventions and ownership from day one.

n8n vs Custom Code — Which to Choose?

Not every integration is a fit for n8n. Sometimes writing a dedicated service is better:

Scenario Pick
Simple data sync / daily schedulen8n — fast, easy to maintain
Business team wants to view and edit it themselvesn8n — easy-to-read UI
Very complex logic that needs unit testsCustom code — version control + tests
High-volume real-time (thousands per second)Custom code — better performance
Distributed / multi-region deploymentCustom code + message queue
Existing ERP that frequently needs to connect to new systemsn8n — add new workflows without redeployment
"Workflow automation doesn't replace people. It replaces copy-paste and re-keying. People are left with the thinking work."

References

Want to Connect Saeree ERP with Other Systems via n8n?

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About the Author

The expert ERP team at Grand Linux Solution Co., Ltd., providing complete ERP consulting and services.