Six questions to consider
Many companies eventually reach the logistical limits of their ERP system in their warehouses. This can be due to changing order profiles, e-commerce orders, shorter lead times, increased volume due to growth, or a lack of picking locations to handle the growing assortment.
These companies can either purchase a different (more comprehensive) ERP system with an inventory module or switch to a dedicated WMS. In our whitepaper, we address the six questions companies should ask themselves or may be inspired to make the right choice. You can read a short version below.
We'll clarify some key terms.
What is a WMS?
A WMS (warehouse management system) controls space utilization and all movements in the warehouse. This system ensures that the right people and machines are working in the right place at the right time. The dedicated WMS does this based on various parameters, such as logistical item properties (stackability, refrigerated), storage requirements (large or small, enclosed space), and rotation (fast or slow movement, items made to order).
What is an ERP?
An ERP (Enterprise Resource Planning) automates the activities of all departments in an organization, including accounting, customer relationship management, and inventory management. It's essentially an integrated all-in-one solution that ensures all employees work within a single application. The inventory module of an ERP manages inventory and has limited capabilities to support warehouse logistics with a single pick location per item.
Question 1: Can e-commerce be optimized in my warehouse?
E-commerce requires a completely different logistics approach than traditional B2B orders. Consider the large number of single-line orders, varying packaging formats, and the need for batch picking and individual picking zones. A dedicated WMS offers advanced support in these situations, while an ERP inventory module often falls short in terms of flexibility and efficiency.
Question 2: Do shorter lead times cause more stress in my warehouse?
Increasingly shorter delivery times, often even within the same day, increase warehouse pressure. A WMS can automatically prioritize orders, thus creating a calm and organized work environment. An ERP system requires more manual intervention, which increases the risk of errors and stress.
Question 3: Will mechanisation undermine the logistic performance of my warehouse?
Mechanization only truly pays off if it is fully integrated into warehouse processes. A WMS dynamically controls tasks (human or machine) at the right time, ensuring maximum efficiency. An ERP can only provide data, but lacks the intelligence to truly optimize processes.
Question 4: Will a new range of products in my warehouse cause stress?
New products with different logistical characteristics often require separate handling and storage. A dedicated WMS adapts flexibly to new flows, even with external storage. With an ERP inventory module, this usually requires manual intervention or adjustments.
Question 5: How dynamic are my dynamic pick locations?
With a changing assortment and unpredictable demand, automatic optimization of pick locations is essential. A WMS performs these calculations on the fly, ensuring you always work efficiently. ERP solutions offer little to no support in this area and require manual work.
Question 6: How flexible can I be in deploying employees?
Fluctuations in demand require the rapid deployment of temporary staff. A WMS assigns tasks without requiring employees to have prior knowledge, which ensures speed and reduces errors. An ERP system requires extensive training, which limits flexibility.
Download our whitepaper and learn more about choosing an ERP or WMS, or contact us.