The success of your business is directly linked to the effectiveness of your distribution capabilities and those capabilities are governed by the systems you use to manage them.
When deciding which software to use to manage your warehouse(s) you may be tempted to use your existing or new ERP solution. After all the business has already spent a considerable amount of hard cash to implement the latest and greatest ERP technologies and as part of the solution you likely got a “free” inventory module.
Before making what is a crucial decision for your business it is prudent to perform a full needs analysis study to determine the true costs of all of the possible solutions. This should look at all aspects of the business and in arriving at a decision on what is best for your business a number of key questions should be asked:
What are the long term objectives for your DCs and distribution?
It is crucial, during the decision making process, to consider your business objectives and the specific goals that the system controlling your inventory is required to meet. ERP and WMS have significantly different views and capabilities when it comes to stock and these will ultimately decide the success of your project.
Can the ERP support changing needs and provide flexible means of managing your customer’s demands?
Most ERP solutions are inflexible and force the customer down what they consider to be the best practice route which may work for some industries but perhaps not for yours. Even in the most flexible solutions, the functionality within the inventory module is limited and has a prescribed path which would not allow you to meet the varying demands of your customers. In a best of breed WMS, there are various mechanisms available to allow you to tailor the processes within your DC to meet the needs of each customer.
Is there a need to integrate to automation systems?
If your environment requires automation systems such as conveyors, sorters, picking technologies (e.g. voice or pick by light), then it is unlikely that your ERP will be able to accommodate this.
What are the long term objectives for your DCs and distribution?
It is crucial, during the decision making process, to consider your business objectives and the specific goals that the system controlling your inventory is required to meet. The ERP and WMS have significantly different views and capabilities when it comes to stock and these will ultimately decide the success of your project. Some differences are set out below:
