Enterprise Resource Planning and Warehouse Management System are the backbone systems to any distribution center, wholesale, supply chain or FMCG business. Without them, these businesses wouldn’t be able to function.
What is ERP software?
Enterprise Resource Planning (ERP) is a business management software that integrates key areas and automates business processes across all departments of an organization like purchases, sales, marketing, human resources, services, inventory, financial management, etc., and it improves the flow of information across the organization. ERP has some functionality to handle warehouse management processes which has less complexity.
What is WMS software?
A warehouse management system (WMS) is a software application, designed to support warehouse or distribution center management and staff. These applications can manage the various operations, tasks and activities of moderate to complex warehouse or distribution centers (DCs).
Why do we need Warehouse Management Systems over an ERP?
All Warehouses are not same and in the same way all Warehouses Management Systems are not same. An ERP supports to a warehouse to an extent, if the warehouse process are less complex then we need to go with a specialized WMS to a warehouse. We can classify warehouse into five different levels as below:
Level1 –Store Room
Level 2 –Rudimentary Locator
Level 3 –Advanced Locator
Level 4 –Intelligent
Level 5 -Automated
Level 1 – Store Room:
Minimal usage of Technology
Less Complexity
Inventory is typically stored in single location and locations are predefined
Operations are performed manually
Level 2 – Rudimentary Locator
Usage technology for tracking pallets
Multi location inventory
Put away, receiving and minimal put way options
Operations are performed manually
Level 3 – Advanced Locator
Increasing warehouse Complexity
Receiving , put away, packing shipping and inventory managed options
Support of RF devices
Focus on improving warehouse performance
Level 4 – Intelligent
More people driven process both in operations and back office roles
Operations are typically more complex and sophisticated with higher volumes.
Requires robust decision support to optimize operations
Advance level of picking, replenishment.
Level 5 – Automated
Highly automated warehouses operations
Design are driven by engineering firms
Specialized systems are required.
Source Gartner- 2014
What can we expect from advanced and specialized WMS?
Mobile Productivity
License Plate Management
Collaboration
Multi Usage Platform
Real Time Information
Advanced Receiving
Event Management
Advanced Put-away Optimization
Advanced Pick and Pack
Advanced Shipping
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