What is WMS in ERP?

Schedule a demo

What is WMS?

WMS is the acronym for a “Warehouse Management System,” a dedicated software designed to help manage, optimize and streamline businesses’ inventory and supply chain. WMS takes an active role in planning daily warehouse operations, to ultimately enhance the performance of various warehouse functionalities.

WMS software can be implemented as a standalone solution, but to really benefit from its far-reaching management and control capabilities, a WMS module is seamlessly integrated into an ERP system.

WMS at a glance

WMS is a software that helps logistics teams keep track of all the operations in the warehouse. This includes inventory management, stock location, shipping, warehouse capacity management, and record keeping and reporting. Based on aggregated real-time system data, WMS directs and optimizes picking, packing and stock put-away. This same system data is also used to generate reports that indicate the ideal location for every item in your warehouse, based on forecasting, purchasing trends, and seasonal demand for specific items.

WMS systems include functionality that helps with order management, including controlling backorders and scheduling orders for shipping and delivery. A WMS streamlines the tracking and traceability of every stock item received, picked, packed, shipped, or put-away using barcode scanners, RFID codes, and mobile devices and tablets, to accurately track the movement and storage of products.

ERP at a glance

An Enterprise Resource Planning system seamlessly integrates, automates and optimizes operational processes and a host of other business functions across the entire organization, all on a single platform, powered by a single database. It it as a system that essentially links your core organization, allowing your employees, processes, and all stakeholders in your supply chain, to communicate across all channels – creating a seamless flow of real-time information to optimize your business – end to end.

An ERP’s basic functionality includes planning and forecasting, inventory procurement, sales and marketing, finance and accounting, human resources, Customer Relationship Management (CRM), warehouse and fulfillment, and more.

When does a WMS integrate with an ERP?

While a standalone WMS facilitates a fair share of features for managing and controlling logistics and synchronizing the movement of parts, there are always additional front and back-office processes that help run your business smoothly – finance and accounting, human resources, sales and customer service.

The integration of WMS with a Warehouse ERP (Enterprise Resource Planning) system bridges this gap, significantly reducing the reliance on error-prone manual data entry and unlocking substantial operational efficiencies, resource savings, and cost reductions across the enterprise. When enhanced by a comprehensive ERP solution, organizations can leverage the full potential of their WMS capabilities.

Warehouse ERP software orchestrates all operational business processes, providing a unified platform that supports the organization in adapting to market fluctuations and escalating customer demands with unparalleled ease, speed, and agility. This integration not only streamlines operations but also positions businesses for scalable growth and enhanced competitive advantage.

The bottom line

Effectively managing your inventory, fulfillment, shipping and delivery, is at the heart of every WMS system. An ERP system, with built-in WMS functionality, helps minimize costs and improves overall operational efficiency.

Your organization will benefit from real-time synchronization between automated warehouses and the ERP system, for on-the spot adjustments to work orders, inventory allocation, and deliveries.

With always available, always accessible inventory, shipping and delivery information via your ERP, you’ll be able to simplify complex processes, maximize warehouse space, streamline workforce efficiency, automate data input via barcodes/RFID, benefit from advanced tracking and visibility tools, and more. All the more reason to integrate your WMS with a robust and reliable ERP system, to power your operations today, and well into the future.