ERP vs. WMS

Are you finding it difficult to choose the right business operations software for your company?

With so many options available in the market, it can be overwhelming to select a system that meets your unique business requirements. One of the biggest challenges businesses face is understanding the difference between two similar yet distinct software systems: ERP and WMS.

ERP, or Enterprise Resource Planning, and WMS, or Warehouse Management Systems, may sound like interchangeable terms, but they serve different functions in the business operations process. Gitnux reports that 95% of businesses that implement ERP solutions report similar improvements.

Similarly, warehouse management systems have been shown to reduce average order-picking time by 30%, resulting in enhanced productivity and reduced costs. By choosing the right software system for your business, you too can experience these benefits.

If you’re struggling to figure out which system is the best fit for your business, you’ve come to the right place. Let’s dive into the differences between ERP and WMS, and help you make an informed decision for your business operations.

 

Understanding ERP and WMS Systems

 

What Does an ERP Do?

ERP systems are comprehensive solutions that integrate several business processes, such as finance, production operations, sales, inventory management, procurement, and customer information.

They allow multiple departments and functions within an organization to access real-time data, streamline business functions, and make data-driven decisions.

 

ERP System Examples 

Examples of leading ERP systems include:

• Oracle Fusion Cloud
• Microsoft Dynamics 365
• NetSuite
• SAP S/4HANA

However, as a standalone system, ERPs aren’t well-equipped to oversee, manage and monitor warehousing activities and operations such as labor management or inventory and asset tracking.

This is where a warehouse management software solution enters the picture.

 

What is a WMS System?

WMS stands for Warehouse Management System and is a warehousing software solution focused on managing a company’s warehouse operations. WMS solutions help businesses to:

• Control inventory item levels
• Optimize warehousing space
• Decrease warehousing costs
• Support omnichannel initiatives

 

Some of the key features of a WMS system include:

• inventory tracking
• order fulfillment
• supply chain visibility

Some of today’s best WMS systems include Oracle WMS, NetSuite WMS, Softeon, InforWMS. They can be standalone solutions or as a module of an ERP system.

 

Differences Between ERP and WMS Solutions

While both ERP and WMS systems aim to improve business efficiency, they significantly differ in scope and application.

ERP solutions focus on managing and automating a wide range of business processes, including warehousing and distribution, while WMS systems focus specifically on warehouse management.

ERP Functions	WMS Functions
Finance and Accounting Human Resources Management Customer Relationship Management Sales Information Analytical Reporting Real-time data	Track inventory and assets in a warehouse and distribution network Yard management Kitting management Real-time tracking Fulfillment management

Choosing between ERP and WMS depends primarily on your business needs. If your business has complex operations across different departments, then an ERP system would be the best option. If your business is heavily focused on warehousing and distribution, then a WMS system is the right choice.

However, if your business has both complex operations and warehouse management, then incorporating both ERP and WMS systems is an optimal solution.

 

Advantages of Using Both ERP and WMS Systems

If you’re contemplating an ERP WMS integration, there are several factors that must be taken into consideration. However, the benefits will be well worth the effort. With a fully integrated WMS ERP environment, your company can:

• Streamline business processes across every facet of the business.
• Enhance warehousing operations and expand distribution center networks.
• Inform customers better, with clear and accurate information.
• Track materials and inventory across all levels of your supply chain.
• Bridge data and communication gaps between warehousing personnel and sales teams.

No matter the direction you choose, implementing either, or both, WMS and ERP systems can save time and money, reduce errors, and allow for real-time tracking of data, people and products.

And, advanced ERPs, such as Oracle Fusion, have WMS modules for their systems that seamlessly integrate with the ERP with ease.

With this, your business can enhance project management, human resources, and business intelligence.

However, it’s important to understand that a WMS or ERP implementation is an enormous endeavor that should include assistance from an expert ERP vendor and implementation expert.

 

Choose the Right ERP and WMS Solution for Your Business with NexInfo

At NexInfo, we understand how critical it is for companies to choose the right digital tools to streamline their operations. Our team of experts specializes in implementing and supporting Oracle Fusion/Cloud solutions for both ERP and WMS systems.

We have extensive experience in helping medium to large-scale businesses of all industries to identify their unique software needs and implement ideal solutions that align with their business objectives.

Our team not only helps you choose the right software, but we also offer implementation and support services. We help you optimize your software and ensure that it is running smoothly and effectively. With NexInfo, businesses can enjoy a seamless transition to their new software system, minimizing disruptions to business operations.

 

Start Streamlining Processes with NexInfo Today

If you’re still unsure about which system is right for your business or would like to understand your next step, we encourage you to contact us.

Schedule a consultation with us today to discuss your software needs and how we can help your business succeed!