What is the difference between a Warehouse Management System (WMS) and an Enterprise Resource Planning (ERP) system?

Warehouse Management System is one of the modules in Enterprise Resource Planning (ERP). Further more Warehouse Management System is to track inventory levels and there availability.

 Warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations. WMS systems may be standalone applications or part of an Enterprise Resource Planning (ERP) system. ERP is a full solution made up of different modules where each is addressed to handle related functions of the company from Finance, Payables, receivables, Trade & Logistic, Inventory, etc... Advanced ERP solutions may have a special module for Warehouse management while others may just have a simple inventory management module.

Based on your requirements and budget you can determine whether to choose an Full ERP or just an WMS but here make sure either of the two  is dynamic and scalable for your growth and changes and that the WMS has a user interface for integration with other applications you have.

 

It is important to understand the difference between Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system.

Though many of today's ERP systems have tightly integrated WMS systems, the earlier version ERP systems had a limited participation for WMS. This may be the reason why many companies installed a WMS software separately to manage their warehouse activities.

An advanced system 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. Some of the ERP package is not supported to determine the proper location. The selection of an ERP system with all these functions must be evaluated thoroughly before implementing it.

An effective ERP package gives the possibility to assign tasks automatically to the staff using rules and parameters previously defined. An intelligently integrated WMS module in an ERP system can give directions to the workers in an organized way. 

 The main difference between WMS and ERP is that WMS are usually standalone systems, needing other modules such as accounting and customer relationship management. (ERP) on the other hand, automates the activities across all the departments in an organization including accounting, customer relationship management and inventory management. An ERP software mainly facilitates the flow of information among all functional areas. ERP software has most of the capabilities of WMS software like tracking the course of inventory items picked, packed and shipped. The ERP software is an integrated all-in-one solution. It is important to note that it is counter-productive to have more than one software application running your operations. This is because multiple applications decrease efficiency and productivity through duplicate entries and rekeying errors

Enterprise Resource Planning (ERP) software automates business processes across all departments of a business including accounting, inventory management, and customer relationship management. The main purpose of ERP software is to facilitate the flow of information between all functional areas. ERP software has many of the same capabilities as WMS software such as tracking the process of inventory items - picked, packed, and shipped

Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) software is often used interchangeably. Although ERP software has warehouse management capabilities, they are not the same, and there are areas that set them a part.

A Warehouse Management System (WMS) is mainly used to manage the movement and storage of inventory. It tracks the movement of each inventory item such as the item being picked, packed, shipped and received. The key differentiator between ERP and WMS is that WMS systems provide intelligence on optimizing inventory based on real-time information. Reports can be generated to indicate the optimal location for each item to be placed based on historical data and trends. In addition, WMS are often standalone systems, requiring other modules like accounting and customer relationship management.

Enterprise Resource Planning (ERP) Software automates business processes across all departments of a business including accounting, inventory management, and customer relationship management. The main purpose of ERP software is to facilitate the flow of information between all functional areas. ERP software has many of the same capabilities as WMS software such as tracking the process of inventory items - picked, packed, and shipped.

 

 

It's important to know that ERP software is an integrated all-in-one solution - it's not necessary or recommended to have other systems working in conjunction with ERP software. Often times, it becomes counter-productive to have multiple software applications managing your operations.

The main aim for any ERP system is planning.. And planning needs timely information of Available resources.. Which is very important tool for decision making.. In broader sense ERP is for managing all the resources mainly (4M's) men, machine, materials, money.. Where as WMS manages only material..

Both ERP and WMS are a part of supply chain management and aimed to help businesses manage their resources in the most economical way possible.

However, ERP automates business processes across all departments of a business including accounting, order entry and processing, purchasing, inventory management, warehouse management, etc. whereas WMS is mainly used to manage the movement and storage of inventory within a warehouse.

Warehouse management systems control the movement and storage of your enterprise’s inventory. Enterprise resource planning is a suite of integrated applications that automates company activity across all departments. The primary difference between warehouse management systems and enterprise resource planning is that a WMS is a standalone system that needs support from other additional software, and ERP is an all-in-one solution. However, unlike warehouse management systems, ERP does not offer the optimization of inventory based on real-time information. ERP does not have the ability to generate reports based on historical trends and data that identify the best location for each stock item.

WMS systems offers optimization of inventory on the basis of real-time information.

ERP is the back bone of any large scale of distribution or FMCG business, without ERP planning the business would go smoothly.

WMS can sometimes be an individual software package developed to only take care of entre Warehouse functions.

 

An ERP or Enterprise Resource Planning is a complete package which contains  inbuilt modules or componets, which when activated or deployed can take care of each and evey aspect of the entire enterprise work operations, departments etc and establishes direct relation between each of them. This helps management in making a better informed decision. In other words, an ERP will have a module to take care of Warehousing, Finance, Production, HR & Payroll, Manufacturing, Sales & Marketing etc and many more. And each of them will be interlinked to each other. ERP provides scope for better visibility of the enterprises operations and helps in making faster, effecient and better decision making.