22 February 2022 The WMS system is fundamental for companies in the supply chain, operating in an integrated manner with the ERP. Discover the role played by the software. Technologies are today the great foundation of successful companies. With the help of continuously evolving software, management and work have become more effective and precise. Innovations have facilitated communication between various sectors of a company, as well as improved the company’s relationships with its customers and suppliers. Fundamentally, with centralized and assertively recorded information, the wheels of a business are ready. And the software takes care of this. In the case of companies operating in the supply chain, two systems are fundamental: the WMS (Warehouse Management System) and the ERP (Enterprise Resource Planning), the first being essential for efficient management, working integrated with the second. You might be wondering: if both are management systems, what is the difference between them? There are indeed important differences between an ERP and a WMS. And to make it clearer, we will explain better what each system is and what its functions are. What is the ERP? The ERP is a system composed of a set of integrated solutions that help companies manage their operations in various departments, such as accounting, finance, sales, personnel, customer relations, and inventory management. These are software considered the “backbone” of every company, given its function of facilitating the flow of information between all functional areas. When the ERP is implemented in a company, all departments have access to updated and shared information. The software also helps in the instant analysis of data on profitability, performance, and liquidity. Among the advantages offered by the ERP are: Automation of manual tasks and consequent increase in agility Organization, control, and standardization of processes Reduction of errors and elimination of rework Cost reduction Greater fiscal and financial organization Improvement of inventory costs and cash flow Optimization of business reports, among others. What is the WMS? The WMS is software designed exclusively for warehouse management and the optimization of intralogistics processes and material flow. The system assists in the daily management of operations, directing and controlling resources, executing tasks, and monitoring performance. The software tracks the movement of each item and provides information to optimize inventory and processes, based on real-time information. With WMS, it is possible to analyze product data, its status, batch, expiration dates, dimensions, warehouse location, among other important information. And it is from the recording of these data that the system can determine the best routing and direct picking, internal movements, shipping, and loading. The WMS also offers support in carrying out periodic inventories. The warehouse management system operates 24/7 with the aim of optimizing the use of resources (people, equipment, and area), reducing errors and rework, increasing operational productivity, ensuring correct quality control, and inventory accuracy. Among the advantages offered by the WMS, we can mention: Greater inventory control Better space utilization Faster order processing Greater traceability Reduction of losses and cost reduction Elimination of errors and rework Real-time performance analysis Main differences between ERP and WMS The big difference between the two systems is their degree of specialization. The ERP is a system that covers multiple business areas, which is why it is considered the “backbone.” But when it comes to logistics, we can say that the WMS adds more sophisticated functionalities than those offered by an ERP, being fundamental to help teams working in warehouses. The strength of the WMS lies in the management of routing and tracking of inventory items. The system automatically directs products to their best positions and provides real-time information on all movements made. This allows precise control of stock levels and the performance of all processes, including order processing, which is so important to ensure customer satisfaction. With the WMS integrated into the ERP, the entire operation is standardized, with teams working in sync and with high productivity. WMS also has the particularity of providing reports based on historical trends, bringing greater efficiency to logistics management and assisting in decision-making. Integration: the key to success ERP and WMS are two software that complement each other and, together, improve overall logistics management. As we highlighted earlier, the WMS is fundamental for companies in the supply chain. Working integrated with the ERP, it can significantly increase the order processing capacity because it speeds up picking, storing, and all other movements within a warehouse. Fundamentally, the process starts in the ERP, passes through the WMS, and then returns to the ERP. It is important to emphasize that your company does not necessarily have to use the WMS and ERP from the same provider. WMS DEAGOR, for example, has integration with the main ERPs on the market (SAP, ORACLE, TOTVS, and others), made possible through a standard communication level. In this sense, you have the freedom to choose the systems that best meet the specific needs of your business and that are developed by specialized companies, like Deagor, which has been operating in the logistics field for almost 10 years. What is the difference between WMS and ERP in warehouse management? Deagor WMS per ecommerce può aiutarti!