MRP, WMS, And How It Helps Manufacturing Process
In the business world, software applications like Warehouse Management System (WMS) and Enterprise Resource Planning System or ERP System are commonly used by wholesale & distribution, supply chain or fast-moving consumer goods businesses to automate their functional processes. Warehouses are mostly likely to operate with low efficiency without a suitable management system, but choosing the best solution for your business can be a daunting process. In this blog post, we will talk about the differences between ERP and WMS systems and the purpose of each system. This can assist managers in selecting the most suitable software to streamline their businesses.
WAREHOUSE MANAGEMENT SYSTEM (WMS)
Warehouse Management System or WMS is a management software designed to manage and optimise businesses’ inventory and supply chain. WMS takes part in daily planning & organizing tasks in the warehouse, manpower allocation and controlling inventories to increase the performance of warehouse functionalities.
ENTERPRISE RESOURCE PLANNING SYSTEM (ERP SYSTEM)
Enterprise Resource Planning (ERP) System is referred to a business management software that normally includes a suite of integrated solutions to help organisations manage their operations across various departments within that software. An ERP software provides its users with access to real-time information and notification of different business functions such as sales, procurement, finance & accounting, supply chain, human resources, work-in-progress, etc. By means of ERP systems, businesses are able to streamline information flows, facilitate error-free and stimulate the efficiency and effectiveness of the organization.
DIFFERENCES BETWEEN ERP SYSTEM AND WMS
WMS is a standalone solution that merely focuses on controlling warehouse activities while ERP system is an all-in-one software that helps its users to facilitate the flow of information between all areas of business. All departments such as Finance, Customer Relationship Management, Project, Sales, etc can be merged into one complete system. Nowadays, many ERP systems can have a Warehouse Management System as one of their modules. Therefore, though we can use two systems such as WMS or ERP for managing your warehouse, they have their own set of attributes.
WMS has strength in tracking inventory items including real-time information when items are picked, packaged and delivered. This functionality helps WMS users control inventory levels, distribute stocks effectively as well as optimise order placement processes.
Whereas, an ERP System allows data or information to flow seamlessly within various departments in the organization just through the software. For instance, if a company uses one Warehouse management software, another Accounting software, and another one for Human Resource and Payroll, they will normally have to transfer information from this software to another manually. The information transmission process will be much more time-consuming and can cause errors. But with an ERP system, all departments are integrated into one software and the data will be updated in real-time.
WHICH BUSINESS MANAGEMENT SYSTEM YOU SHOULD CHOOSE?
Instead of deciding on whether ERP System or WMS is the best solution, businesses should determine which system is the most suitable solution for their company. By defining the long term goals, unique requirements and budgets, it will be much easier for companies to select the right system for enhancing efficiency and effectiveness.
BUSINESS LONG-TERM GOALS
Answering the two questions what are your business’ the long-term objectives and how can the system help your enterprise to achieve those goals will be a key criterion before choosing the suitable Business Management System. Therefore, take some time to point out the specific measurable goals of your enterprise and identify functional requirements that your business needs to reach them.
SPECIFIC REQUIREMENTS
Furthermore, it is also important to take a look at the specific requirements of several departments. The analysis on fundamental detailed requirements will help businesses find out prioritized criteria to avoid unexpected problems or interruption during usage in the future.
COMPANY’S BUDGET
Last but not least, the financial capability of the company and the budget for the system is another huge element that most businesses base on to take into consideration.
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