On many occasions we have talked about the importance of implementing a warehouse management software (WMS) to automate processes within the warehouse, so that we can mitigate day-to-day incidents caused by human error.
However, it is crucial to remember that a warehouse does not operate in isolation, but is closely linked to the rest of the company. It is common that you need to integrate your new WMS with your existing Enterprise Resource Planning or ERP system. If you are thinking about how to do it, in APPIA GROUP we have the solution, we have been developing and continuously improving our own EMS program for 30 years, which integrates seamlessly with the various ERP’s on the market.
The ERP is the software in charge of controlling and coordinating all processes in the company, covering areas such as marketing, sales, human resources management, customer service, quality control and financial aspects, among others. The integration between the WMS and the ERP is essential to ensure smooth operations and a holistic view of all aspects of the business.
For its part, the Warehouse Management System (WMS) is a highly specialized software in the logistics field, in the case of APPIA GROUP this own program has been nurtured by the experience gained over the various integrations carried out for nearly three decades.
Thanks to our WMS it is possible to exercise total control over critical aspects such as inventory, incoming and outgoing goods, orders and locations, among others. It should be noted that it is also responsible for managing the automations implemented, thus optimizing all operations with the objective of saving time and financial resources.
Consequently, it is imperative that the communication and coordination between both programs be absolutely perfect, since they will operate in continuous synergy, sharing information on a constant basis. The correct integration between the WMS and ERP guarantees the effectiveness of business processes, maximizing efficiency and favoring decision making based on updated and accurate data.
Difference between WMS and ERP
We share what are the differences between a WMS and ERP at the usage level and what functionalities can be found in each of the programs.
We must keep in mind that at the usage level, a WMS (Warehouse Management System) and an ERP (Enterprise Resource Planning) are two types of business systems that address different aspects of the management and operation of a company.
Warehouse Management System (WMS)
Focus: The WMS focuses specifically on the management and control of operations within a company’s warehouse. Its main objective is to optimize the flow of goods, maintain inventory visibility and improve efficiency in warehousing operations.
Typical functionalities:
- Receipt and unloading of goods: Allows you to record the entry of products into the warehouse and their location in the inventory.
- Location and picking: Helps to identify the location of products within the warehouse and to manage the process of picking products for orders.
- Inventory control: Keeps an updated record of stock, avoiding shortages or excess inventory.
- Packing and labeling: Facilitates the process of preparing and labeling products for shipment.
- Quality control: Allows inspections and monitoring of the condition of stored products.
- Returns management: Manages the process of returning products and reintegrating them into inventory.
Enterprise Resource Planning (ERP)
Approach: ERP is an integrated system that encompasses multiple functional areas of a company, such as finance, human resources, sales, purchasing, production, among others. Its main objective is to provide a holistic and unified view of all company processes.
Typical functionalities:
- Financial management: accounting, budgeting, invoicing, cost control, etc.
- Human resources management: Employee registration, payroll, talent management, training, etc.
- Sales management and CRM: Customer tracking, order control, opportunity management, etc.
- Purchasing and supplier management: Supplier order control, receipt of goods, payments, etc.
- Inventory management: Multi-location stock control, batch management, movement tracking, etc.
- Production planning: Production scheduling, supply chain control, resource optimization, etc.
While WMS focuses on efficient warehouse management and inventory control, ERP encompasses a broader spectrum of business areas and seeks to integrate and coordinate all functions to improve efficiency and decision making throughout the organization. Depending on the needs and size of a company, it may be appropriate to implement one or the other or even both systems together for complete and effective management.
Therefore, the choice between a Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) depends on the specific needs of your company and the nature of your operations.
WMS vs. ERP experience
Here are some considerations to help you decide when it is better to use a WMS versus an ERP:
- Focus on logistics: If your main concern is to improve the efficiency and accuracy of warehousing operations, such as inventory control, picking and packing, a WMS is the right choice. Especially if your business has a warehouse where a large amount of products are managed.
- Warehouse optimization needs: If your warehouse is complex and requires tight control of product location, inventory turnover, and returns management, a WMS will provide the specific tools to manage these tasks effectively.
- Integration with other systems: If you already have an ERP, but need more specialized and detailed warehouse management, it may be more efficient to integrate a WMS with your existing ERP.
In many cases, a company can benefit from both systems: an ERP to manage global processes and a WMS to improve internal operations and warehouse efficiency.
Connection systems between WMS and ERP
To establish the connection between an ERP and a logistics software or WMS, it is essential to have an interface or API (Application Programming Interface) that enables the smooth exchange of information between the two systems.
However, this integration can also be done natively, which means that the logistics software is directly integrated and compatible with the ERP. Alternatively, integration tools such as ETL (Extract, Transform and Load) or middleware can be used to facilitate the interfacing process.
Which circuits should be integrated between WMS and ERP?
The integration between the Warehouse Management System (WMS) and the Enterprise Resource Planning System (ERP) is crucial to achieve an efficient and coordinated management of the entire supply chain and business operations. By connecting the two systems, real-time information flow is ensured, enabling faster and more accurate decision making. The key circuits to be integrated between the WMS and ERP are:
- Inventory and stock control: Inventory synchronization is essential to avoid overstock or out-of-stock problems. Information on stock on hand in the warehouse must be updated in the ERP so that it can be used for purchasing, sales and production planning.
- Order processing: The integration of the order process between the WMS and the ERP ensures that sales orders are captured and processed correctly. From order receipt in the WMS to invoicing and tracking in the ERP. All information must flow automatically and without errors.
- Goods movement: Goods movements within the warehouse, such as receiving, placing, picking and packing, must be instantly reflected in the ERP. In this way, stock records are kept up to date and timely adjustments can be made in planning.
- Customer information: Relevant customer information, such as contact details, purchase history and preferences, should be shared between the WMS and the ERP. This enables personalized attention and more effective customer relationship management.
- Reporting and analysis: Data integration between the WMS and ERP provides a holistic view of warehouse performance and its impact on the rest of the enterprise. The reports and analytics generated from this integration enable informed and strategic decision making.
- Financial Flow: Integration of the financial flow is essential to ensure that data related to invoicing, payments and accounting is correctly reflected in both the WMS and ERP.
Seamless integration of these circuits between the WMS and ERP eliminates the need for manual tasks, avoids errors and delays, and improves efficiency and productivity throughout the supply chain and business operations. It is important to have a secure and well-implemented integration to take full advantage of the benefits of these two systems working together.
What are the most commonly used ERPs?
As we have mentioned, APPIA GROUP’s own WMS program has the ability to integrate with a multitude of ERPs. We tell you which are some of the most known and used in the market:
- SAP Business One
- Oracle
- Sage 200
- Sage 50
- Sage Murano
- JDE
- Microsoft Dynamics NAV
- Odoo
APPIA GROUP’s WMS can be integrated with all the ERPs mentioned above, among many others. However, this integration is not possible natively. Do you have any doubts? Our team of experts can help you decide on the best possible integration.
Benefits of integrating a logistics software (WMS) with an ERP system
Greater control: this is possible by centralizing all information in a single system, which has the advantage of facilitating the monitoring and control of the supply chain.
Reduced incidents: the integration of data results in a significant reduction of communication errors and duplicity of information, which translates into a significant improvement in data quality.
Resource optimization: adopting this approach also leads to substantial savings in time and resources by automating processes and eliminating redundant manual tasks, thus optimizing the use of available resources.
Strategic vision: another key benefit lies in better decision making, as there is access to up-to-date information, which provides a solid basis for making informed decisions. This not only improves operational efficiency, but also increases the company’s competitiveness in the marketplace.
APPIA GROUP has the best WMS for integrating your ERP
APPIA GROUP has its own warehouse management system software, a benchmark in the logistics sector for its experience, advanced capabilities and customization to various customers and business sectors.
The integration of our WMS software with your ERP will optimize business management and improve efficiency throughout the supply chain. That’s why at APPIA GROUP, after three decades in the logistics industry, especially WMS, we know that WMS flexibility is key, that’s why our warehouse management software integrates seamlessly with any ERP.
Imagine having full control of your supply chain with a solution that adapts perfectly to your company. With APPIA GROUP, this vision becomes reality. Our WMS is designed to simplify your logistics operations, increase efficiency and boost the productivity of your business.
Our team of software experts is ready to take the reins and provide you with a solution perfectly tailored to your needs. We will thoroughly analyze your case to offer you the most efficient and seamless options, without unnecessary complications!
