Understanding ERP and WMS

Understanding the differences between Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system is really important, since some of the ERP solutions have added storage functionality to their offers. It is relevant to make the appropriate decisions at the execution of the distribution chain area of a business.

The distribution centre is considered the last step of a client order, and this is where all the orders are collected, assembled, documented, notified and dispatched.

Many companies are handling additional value services at their distribution centres, from elaborating packages or core promotions, labeled, assembled, light manufacturing and several improvements for an advanced distribution centre.

Therefore, having a poor knowledge of the differences between WMS and ERP in the processes of execution of the distribution chain is really risky.

WMS offers more functionality for the inventory, storage, logistics and transport than ERP; but some of the ERP solutions are stronger in the storage operations.

Advanced System for Locating and Slotting

An advanced system for locating places evaluated different rules, parameters and configurations. It takes into account the data of the product, status, lot, dates, dimensions, location, area, region, owner and inventory details. For this function, WMS determines which would be the best location to store the recently received product. In regards to the possibility of determining the proper location, ERP has a limited participation.

The administrators of the distribution centres are often storing their inventory several times in order to shorten the time of search and to optimize the use of space. This process is called optimization of the locations assigned, or slotting. Some solutions of ERP and WMS have added a re-optimization module incorporated (in the case of ERP) and separated in WMS.

Dynamic Waiting Tasks and Work Flow Tasks

One task of the distribution centre is the collection, dispatch, reception, storage, etc. A waiting list is the pending assigned task of the distribution area.

The software gives the possibility to assign tasks automatically to the staff using rules and parameters previously defined. In this particular case, WMS offers the possibility to give directions to the workers in an intelligent and organised way, while ERP can provide it only if a separate module is added.

Regarding the workflow, this allows a configuration to indicate the tasks that a specific product needs at the moment to be dispatched or received. As an example, one product will require the tasks of collecting, assembling and dispatching, and another will also need to be quality insured.

The software will provide the users with the possibility of configuring the workflow in relation to the product level, in order to organize the tasks well and to guarantee the satisfaction of the client. The majority of the systems support this activity, but there has to be a predefined criteria to manage the task accordingly.