There are several similarities yet key differences between warehouse distribution software and ERP software. ERP, as you’re probably aware, stands for enterprise resource planning. It’s software that helps businesses manage multiple functions, and it’s considered a staple now of the manufacturing industry. It can help you manage accounting, finances, and other functions.
Warehouse distribution software or warehouse management systems help you manage the movement and storage of inventory. While manufacturers typically need both, many purchase just one system in the hopes that it can do double duty. By understanding important similarities and differences, you’ll understand the need for separate systems.
What Is an ERP System?
An ERP system or enterprise resource planning software automates business processes and provides information on all aspects of a company’s business systems. It includes accounting, inventory management, and customer relationship management, consolidating the information into a single point of entry and reporting.
ERP software serves many functions, but it’s main function is to improve communication across a company’s different areas. Data is shared freely so that anyone can access information at any time. It helps people work more productively and efficiently because data is always available to help them do their jobs.
A good ERP system takes the place of multiple software solutions running simultaneously throughout your company. Because it takes their place, it can save considerable time and money.
Warehouse Management Systems
Warehouse management systems and warehouse distribution systems focus on the management of inventory. Such a system can help you track inventory as it moves through the warehouse from receiving to its place in a bin or shelf as well as pick, pack, and ship activities. It can help you manage aging inventory and low stock notifications through automated re-order and alerts.
Warehouse distribution and management systems can help you with many aspects of your business. They can help you with efficient labor allocation, ensuring that you’ve got adequate staffing throughout your warehouse and distribution center. They can also help you optimize processes. When you have data on how slowly or quickly items move into receiving or out of shipping, you can use that data to improve processes and meet goals.
Another benefit of warehouse management and distribution software is better inventory management. Companies often invest a great deal of money into their inventory, and if that inventory isn’t managed properly, it can tie up capital. With better data on your current inventory, you can manage it more efficiently.
Smart Manufacturers Need Both
Smart manufacturers know that they need both a robust ERP system and a warehouse distribution system or WMS to keep their businesses running optimally. The ERP system reports on accounting, financial, and sales data, while the WMS helps manage the delivery of goods to the end customer. Both provide useful data and analytics that can be used to improve quality, efficiency, and production in an organization. Not only do you need both, they should be completely integrated with each other for real-time data accuracy.
Acumatica Cloud ERP offers mid to large sized companies an efficient way to manage their business processes. It’s a system that can be accessed from any internet device, which improves productivity. Acumatica’s cloud ERP system includes Distribution Management Suite, which can help you with warehouse distribution software needs. It’s a scalable, cost effect, and efficient solution for manufacturers.
What if you aren’t sure which ERP or warehouse distribution system to choose? That’s where Emerald TC can help.
Emerald TC can help you choose software solutions to meet your business needs. Our experienced team of certified consultants, master developers, and CPAs provides you with a comprehensive team of experts for advice, solutions, and suggestions. We are here to help you build and grow your business. Contact us or call 678-456-6919.