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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 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.
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.
While a standalone Warehouse Management Systems facilitate 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 a business will require to run smoothly – finance and accounting, human resources, sales and customer service.
The integration of a WMS with an ERP (Enterprise Resource Planning) system bridges this gap, reducing the reliance on error-prone manual data entry and unlocking substantial operational efficiencies, resource savings, and cost reductions across the enterprise.
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The key difference between a WMS integrated with an ERP and an ERP-native WMS lies in how they function within the overall system. A traditional WMS-ERP integration involves linking two separate systems, often through middleware, APIs, or custom connectors. This requires continuous synchronization, which can introduce latency, data discrepancies, and higher maintenance overhead. Additionally, any updates or changes to either system may necessitate reconfiguration of the integration, adding to the complexity and cost.
In contrast, an ERP-native WMS is fully embedded within the ERP architecture as a core module. This ensures that all warehouse management functionalities are inherently aligned with other ERP modules, such as inventory, finance, and order management, without the need for external interfaces. The result is real-time, consistent data flow across the entire enterprise, reducing the risk of errors and eliminating the integration points that are typically sources of failure.
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. For organizations seeking a streamlined, scalable, and lower-maintenance solution, an ERP-native WMS offers clear advantages, delivering a unified platform that enhances operational agility and ensures long-term reliability.
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.
When a procurement process is integrated into an ERP system, it becomes a powerful tool to effectively manage and control the entire purchasing workflow, including managing budgets, tracking spending, and more.
A supply chain network connects all elements and covers all the steps involved in getting products or services from their initial state to the customer.
Demand planning is a process in supply chain management that helps companies to plan future demand for a product or service and execute an operational strategy.
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