• Jim Southern

WMS v ERP - No Contest


ERP v Real Time WMS - Top 10 Advantages

It's the million dollar question. Your company has reached capacity in terms of inventory fulfilment and distribution with your current operation. Business is growing, your customers have come to expect the best possible service, and you need to improve your fulfilment processes in order to stay competitive today and in the future. Do you look to your existing ERP software or a specialist WMS system to help you beat the competition and keep your customers happy?

Lets have a look at our top 10 distinctions between ERP and WMS and the benefits:

1. The inventory management functions of the ERP views of the stock from an accounting perspective.

WMS views the stock from a physical stock and location perspective. Its operational not financial.

2. ERP deals with the total quantity of a stock item available to sell is maintained.

WMS deals with the physical goods and tracks the product and quantities down to bin or location level.

3. ERP tracks the total quantities into and out of the warehouse, to maintain the current stock levels of each product.

WMS tracks the details of the product down to the location level, for full traceability in the physical warehouse. For example, the WMS would track whether the product was in the receiving area, had been placed into the correct storage location, or had been picked or despatched.

4. ERP manages the total quantity of a stock item is maintained using various costing models.

WMS keeps track of product batch, lot, owner, and expiry information down to the location level. The full physical movement history of a product is available in WMS, along with the person responsible for that movement.

5. ERP does not keep track the inventory movements within the warehouse, and therefore it cannot optimise the process.

WMS is able to use information to optimise the resources used in the warehouse. These resources are the space available, location rules, putaway strategies, and optimum pick routes etc.

6. ERP allows a single pick location to be allocated to a product that is used when storage and picking instructions are issued.

WMS uses storage rules, taking into account the product, putaway strategy and best locations for storage. Optimum pick and bulk storage locations can be allocated to the products received.

7. ERP replenishment methods are generated in batch and given to the user as a paper pick, it is not a real time update.

WMS tracks the product location quantities, in both bin and bulk, replenishment instructions can be generated "live" on the WMS. These can be issued to the warehouse workers in real time using handheld devices.

8. ERP works in batch mode and no real time optimization is done.

WMS uses uses "live" mobile devices to guide the warehouse operators, a pick sequence can be defined to optimise the picker's movements through the warehouse, ensuring that the picker walks the shortest and most efficient distance possible to pick the products required for an order or a pick group.

9. ERP fulfills the order one at a time, resulting in the picker having to visit the same location many times. This decreases the operational efficiency.

WMS is able to group the items on picking orders, allowing a picker to visit a location once per group of orders, rather than many times for the same group of orders.

10. ERP focuses on invoicing of sales order.

WMS focuses on correct delivery of a sales order to comply with customers requirements. Using the date of entry or the date of expiry, WMS is able to ensure that the oldest product is picked first, thus eliminating wastage due to product expiry or write-offs.

We have a wealth of experience in implementing our barcode driven Dexterity WMS Systems to help clients realise the benefits of a smart Warehouse Management System. Integration with your ERP system is straightforward. Please get in touch for a no obligation and no pressure discussion on how Dexterity WMS could help your business.


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