Study: Warehouses need WMS, not ERP systems

By Staff -- Logistics Management, 4/1/1999

Enterprise resource planning (ERP) systems are not providing the required functionality for most of today's distribution operations, says a new study conducted for the Warehousing Education & Research Council (WERC) by Andersen Consulting. The consulting firm canvassed some 200 warehouse and information-technology managers for the study, Warehouse Systems and the Supply Chain: A Survey of Success Factors.

ERP software, with its roots in manufacturing or finance, attempts to handle the entire gamut of corporate activities. Warehouse management system (WMS) software, on the other hand, is written specifically to manage warehouse operations.

Nearly one-third of the companies interviewed for the survey reported that they had installed an ERP system. Of those companies that had adopted an ERP system, however, nearly six out of 10 did not even consider using the ERP system's warehouse module.

Seventy percent of the survey respondents, meanwhile, said they had a WMS solution in place. The study found that most companies today were buying packages from WMS vendors.

The survey also found that no clear leader had emerged from the ranks of WMS suppliers. In total, the top seven software providers accounted for less than 40 percent of the survey responses.

The study found that, regardless of which software they used in the warehouse, respondents were not very satisfied with the results. Only 17 percent of respondents rated their WMS implementation as "very successful." Another 58 percent termed their WMS project "somewhat successful." Ten percent said their WMS installation was not successful.

Even so, companies that said they had WMS solutions in place reported that they had linked that software to a variety of other supply chain-related technologies. More than one-fifth of the survey participants said their WMS software interfaced with the Internet.

The survey results are available from WERC at no charge for members and $30 for nonmembers. Contact WERC at 1100 Jorie Blvd., Suite 170, Oak Brook, IL 60521. Phone: (630) 990-0001.