ERP and WMS: what are the differences and how do you choose?

When it comes to business management tools, two solutions are often unavoidable: ERP (Enterprise Resource Planning) software and WMS (Warehouse Management System) software.

The combination of these two different yet complementary solutions simplifies the management of flows and goods in all sectors, from transport and logistics to e-commerce.

Having trouble distinguishing between the two? We'll help you make the distinction in this article.

The differences between ERP and WMS software

ERP software: a general-purpose management tool

ERP software, also known as PGI (Progiciel de Gestion Intégrée), centralizes and manages all a company's operational processes. This tool offers a wide range of functions, including :

• Financial management (expense tracking, accounting, budget management, etc.) ;
• Human resources (performance monitoring, recruitment management, payroll management, etc.);
• Sales and marketing monitoring (sales forecasts, customer relationship management, etc.);
• Production monitoring (inventory management, tool planning, etc.);
• Purchasing and supply (order management, supplier management, goods tracking, etc.).

ERP software is "general-purpose" software that provides an overview of all company operations, improving the efficiency of decision-making.

As explained above, it is a tool that can be used to manage a company's main activities and services, albeit at a lower level. What's important to remember is that ERP software is only for administrative and accounting purposes.

Specific tools are needed to manage payroll, customer relations and logistics. And when it comes to specific warehouse management, the tool for maximum optimization in this area is WMS software.

WMS software: a tool dedicated specifically to warehouse management

WMS (Warehouse Management System) software optimizes all operations carried out within a warehouse. Unlike ERP software, it will focus solely on this task, enabling advanced management of all warehouse-related activities. The classic functions of WMS software include :

• Goods-in management (arrival management, quality control) ;
• Storage management (optimization of storage locations, goods traceability);
• Order preparation (picking, packing);
• Shipment management (labeling, shipment tracking, etc.);
• Inventory management (optimization of stock levels, cyclical inventories, etc.).

WMS software is therefore the best tool to enable you to know the precise state of your stock in real time, with accurate tracking of warehouse inputs/outputs, as well as the location of each item.

Better still, it allows you to optimize both space and movements within the warehouse, for even greater productivity. Finally, it facilitates the dematerialization and circulation of information, with additional modules that enable dematerialized management of proofs of delivery or online order taking.

In short, WMS software doesn't just offer summary stock tracking like ERP software. It's a software package that manages all warehouse operations, optimizing process management and boosting productivity (particularly in terms of human resources and handling).

ERP or WMS: which to choose?

Need help choosing between ERP and WMS software? Here are a few points to consider:

Type and size of company

If warehouse management is an essential part of your business, you'll find it hard to do without WMS software.

ERP software will help you coordinate the basic management of your warehouse, but you'll quickly find yourself limited, especially if warehouse management is complex (due to the nature of the goods in transit, or the size of the warehouse, for example).

Company size doesn't matter: an SME can easily need software to get its business off the ground, if the basic functionality of ERP software isn't enough.

It's up to you to determine your needs and make your choice accordingly. Keep in mind, however, that the acquisition of a WMS gives a company the flexibility it needs to support its development.

Functional requirements

If you're just looking for software capable of managing all your company's operations, ERP software seems a logical choice.

But often, as explained above, its functionalities will be too basic, implying the use of complementary tools that will work in synergy with the ERP. In many sectors, warehouse management is too important an activity to be left to ERP software alone, which will need to be supported by WMS software.

For example, the Inventory Management System (IMS) of an ERP system doesn't allow you to manage storage locations, optimize manpower and equipment, or ensure traceability of goods. Only a WMS can help you perform these tasks.

Why choose Sinari WMS Stock-iT?

Sinari WMS Stock-iT is a complete, intuitive WMS software package, with 9 additional modules to adapt to all your company's needs:

• barcode module,
• EDI module,
• online stock consultation module,
• touch control station module,
• proof-of-delivery module,
• remote on-line order-taking module,
• cross-docking module,
• order scheduling module,
• data backup module.