ERP vs. WMS: What’s Your Best Option?

There are critical differences between ERP warehouse management functionality and the functionality of a stand-alone, best-of-breed WMS. Uncover critical decision factors every supply chain professional must consider when comparing these two very different options.

By · June 14, 2011

The effective management of your warehouse and fulfillment/distribution operations is critical to the ongoing success of your business—but you’re unsure whether to select your ERP’s warehouse module or a best-of-breed warehouse management system (WMS). Unfortunately, the answer is not simple. In today’s tight economy, there is significant pressure to use the warehouse module from your ERP vendor because its price is usually heavily discounted as part of the original ERP license or the cost of integration is presumed to be lower.

The fact is, implementing an add-on ERP module without fully understanding the implications to your business could actually prove more costly when considering the potential impact on total cost of ownership (TCO), competitive advantage and customer satisfaction. Your system’s total cost of ownership is determined by all costs associated with initial implementation, which includes functionality fit, any up-front business process modifications, and integration; the ease of adapting the solution to your ever-changing requirements on an ongoing basis; and the upgrade process. In today’s highly competitive economy, the ability to respond to changing business and customer requirements more effectively and more quickly than your competitors is a key consideration. The strategic importance of your selection cannot be overstated. Budget overruns, dissatisfied customers and lost competitive advantage are very real threats.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Digital Issue: The Current State of Third-Party Logistics Services
It has become quite clear that logistics professionals are now facing an unprecedented set of challenges. From tightening capacity, to ongoing regulation hurdles, to the complexity brought on by e-commerce, today’s shippers are transforming the way they manage their logistics operations.
Download Today!
From the June 2017 Issue
Here are five trends that every shipper­—and potential shipper—must watch as the demand for experienced logistics and supply chain professionals soars.
2017 Rail/Intermodal Roundtable: Volume stable, business steady
Cross-Border Logistics: NAFTA tune-up time
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...