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ERP vs WMS: Making the Best Choice for your Business

 

Choosing the best software for your warehouse may not seem like a tough task but it directly affects the operational and financial health of your business. It is very important to have the right tools, technologies and management systems for the effective functioning of your warehouse. Finding the best business solution that helps in running your warehouse smoothly can be a bit difficult. Basically, there are two management systems which you can choose from – Enterprise Resource Planning (ERP) and Warehouse Management System (WMS). They have varied functionalities but both can be effectively leveraged in warehouse management.

Overview of ERP and WMS

The Warehouse Management System helps in effectively handling the storage along with movement of the inventory. With this system, it is extremely simple to check the progress of every product. The process also provides transparency and you can easily get an idea regarding the core processes including packing, receiving and picking of the product. 

Enterprise Resource Planning is also a very effective tool. It empowers the management of warehouses to automate and streamline the data into one solution. Every department of the warehouse like accounts, customer relationship, inventory management etc. can be merged into one single centralized system.

Benefits of  Warehouse Management System

WMS is designed to address the day-to-day activities of the warehouse and gain insights through that into the information stored in it. It helps in increasing visibility into the process of inventory and gives an accurate and better view of the various warehouse operations. It also helps the manufacturers in giving an effective movement of inventory across the chain. It carries itself the detailed knowledge about all the stock items received, packed and shipped. It makes use of wireless networks, RFID technology, barcode scanners etc. to track the movement of products across various locations. 

WMS is an independent system and caters to the specific needs of business. Therefore, it also requires supporting solutions to cater to other functionalities of the enterprise. Depending on the real-time information gathered within the warehouse, it provides intelligence on the optimization of movement of inventory. With WMS, various reports can be generated to find the best location of each product and also provides functionalities for picking, packing, shipping, receiving, tracking, visibility analytics and reporting. It also gives inputs on dedicating a suitable inventory location, setting priorities and ratings. Other major benefits of WMS are as follows – 

  • Maximum utilization of space with less operating cost.
  • Transparent management of inventory.
  • Efficient management of labor.
  • Optimization of internal operations, supply chain and travel time.
  • Better stock control with easy tracking of inventory materials.
  • Leveraging the benefits of automation.
  • Best management of shipment with better client service.
  • Quick inventory turnover. 

Benefits of Enterprise Resource Planning

ERP is a suite of integrated modules that performs collaboration, streamline and automates the operational processes in an organization. It acknowledges all the data from various departments and becomes a centralized repository. This software performs various transaction processing, dashboard generation and report building by collecting, storing, managing and interpreting the collected data from various departments.

ERP involves many major processes like barcode scanning, human resources, manufacturing, order entry, order processing, finance, accounting, inventory tracking, inventory management, purchase orders, warehouse management, customer relationship management, E-commerce integration etc. It provides utmost accuracy and security while flow of information among the departments. By successfully implementing ERP, the departments can use shared, secured and updated information thereby enhancing productivity and profitability. Other major benefits of ERP are as follows –

  • Save money, time and effort.
  • Increased productivity along with client satisfaction.
  • Improve the cash flow and business reporting.
  • Enhanced cloud-based data and security.
  • Supply chain management.
  • Enhancements of business procedure.
  • Better inventory costs.
  • Traceability. 

Choosing the Best Fit for your Business

The confusion is still there, are ERP and WMS the same or do they serve different purposes? There are certain features that may be common to both but they are two different business solutions overall with different objectives in mind. They both have many independent features and the organizations choose the one that is most fit for their requirements. Here are certain parameters on which ERP and WMS can be compared – 

  • Objective: The objective of ERP is to integrate all the departments of the supply chain and provide a smooth flow of information. WMS aims for streamlining all the operations of the warehouse for a seamless flow of information within the supply chain. 
  • Strong Areas: ERP provides an easy flow of information within the departments with maximum security. WMS provides tracking of inventory systems along with real-time information of picking, packing and delivering the goods.
  • Key Features: The key features of ERP include managing the entire process from obtaining raw material to shipment of the final product. It also helps in reduction of overhead costs. WMS manages the deliveries of warehouse – outbound and inbound with goods return, pickup, sales receipts and schedules of delivery across warehouse. 
  • Ease of Implementation: ERP is not easy to implement as it involves multiple users and departments. WMS is comparatively easier to implement as it only caters to a certain specific audience.
  • Utilization: ERP is best suited for manufacturing segments that have to depend on various departmental operations. WMS is best for the warehouses with inventory movements, monitoring and real-time stock updates. 

Final Words

Deciding between ERP and WMS is not an easy task and there are a few things to be kept in mind while going for the right solution. The organizations should define their long-term objectives, check all the technical conditions, ROI should be worked out and then the ideal solution must be chosen. Both of them are of high value for your organization, the requirements, budget and organizational goals that will help in deciding which one to go for. 

About Digital Crafters

Digital Crafters has many years of experience with ERP and WMS solutions. Our services and solutions are based on in-depth and detailed knowledge of the business processes of various industries. The experts with us also advise you about the endless and exceptional possibilities you can have with the use of new technologies.

Write to us at info@digitalcrafters.tech for more details about our services.

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