Automating business processes with SFTP

But for many, these processes are still managed manually, thus increasing the risk of errors, delays and potentially damaging data breaches. This is why Secure File Transfer Protocol, or SFTP, is trusted by firms around the world as a safe way to transfer files. But beyond this, it also provides a foundation for automating business workflows, cutting overheads and enhancing accuracy. 

Here, we’ll take a closer look at how SFTP can be used to automate a variety of key business processes. In particular, we’ll focus on five practical examples that demonstrate SFTP’s value as a force for improved efficiency and reliability. 

Why SFTP is ideal for automation

SFTP is built on the SSH, or Secure Shell protocol, which encrypts files in transit and verifies both sender and receiver. This makes it inherently secure, even for transferring sensitive business data including financial information and HR records. What makes SFTP even more valuable, however, is its capacity for automation. 

It integrates seamlessly with a wide range of enterprise software solutions, with ERP and CRM platforms, accounting and logistics tools all among them. Once configured, an SFTP connection can move data between systems automatically, at regular intervals or whenever a new file becomes available.  

By removing the need for manual intervention in these processes, SFTP saves time and helps to ensure that data is exchanged securely and on schedule.

Five business processes automated with SFTP

1. Exchanging stock and order data 

For retailers, distributors and suppliers, it’s critical to maintain up to date stock and order information across multiple systems. SFTP enables this by automating the transfer of CSV files between platforms. This might include, for example, synchronising inventory levels between an ERP system, warehouse database and online store. 

Once configured, the process runs automatically so that product availability, order confirmations and delivery updates are always accurate. The result is smoother fulfilment, a reduced administrative burden and (most importantly of all!) better customer satisfaction. 

2. Streamlining payroll and HR data transfers 

Payroll and HR departments often need to share sensitive information between systems or with external providers. Employee records, payment information and timesheet details are just a few examples of this data. Doing this manually both takes time and represents a security risk. 

With SFTP, these transfers can occur securely and reliably, such as exporting payroll data from an HR system and sending it directly to a finance or accounting platform. This cuts out the danger of human error and helps businesses stay compliant with data protection regulations. 

3. Automating financial reporting and reconciliation 

Financial teams rely on accurate, timely data from multiple sources, including sales systems, bank feeds and accounting tools. SFTP can automate the daily or weekly transfer of transaction summaries, invoices or reconciliation files so that all records are current and consistent. 

By scheduling transfers to occur automatically, organisations can avoid having to make manual uploads and downloads, which reduces processing time and makes their reports more accurate. 

4. Replacing complex EDI processes 

Electronic Data Exchange, or EDI, remains a standard for many large organisations, but it can be complicated and costly to implement. SFTP provides a simpler and more flexible alternative for sending structured business documents like orders, invoices and shipment notifications. 

Through automated SFTP transfers, these files can be exchanged in common formats like CSV or XML to enable seamless communication between suppliers, customers and partners, without the high overheads associated with full EDI systems. 

5. Managing backups and log file synchronisation 

IT teams need consistent backups and log data in order to maintain operational resilience. SFTP can be used to automate the secure transfer of system or configuration backups or application logs to remote servers or cloud environments. 

By scheduling these transfers so that they occur outside of regular office hours, organisations can ensure that critical data is always up to date and safely stored offsite, so that it’s ready to be restored if necessary. 

Building efficiency and resilience through SFTP automation

With efficiency and resilience both essential considerations for modern businesses, automation has become a strategic imperative. SFTP offers a dependable, highly compatible, secure and cost-effective way to automate various business processes, from stock updates and payroll data to financial reporting and backups, just to name a few. 

By embracing SFTP and automating these workflows, businesses can streamline their operationsfreeing their teams from repetitive tasks. Automation always comes with cost-savings and by outsourcing your SFTP hosting you can further remove the requirements for on-premise or self-managed solutions. 

If you want to find out more about how SFTP could benefit your business, get in touch with the team here at Ridgeon network. We’ll talk you through our SFTP hosting solutions and explain how they can make your organisation both more efficient and more secure.