Every aspect of warehouse management requires powerful business software to navigate. When distribution companies want to move products through their warehouses more effectively, they often turn to two types of software—an Enterprise Resource Planning (ERP) solution or a Warehouse Management System (WMS).

What Is Enterprise Resource Planning Software?

ERP software automates business processes across every team at your company. With a dedicated ERP, businesses can streamline workflows, automate redundant tasks, and consolidate vital business data.

Because ERP software is all-encompassing, businesses can use it as a system of truth, a central data hub that feeds into and out of the other solutions in their environment.

Standard ERP capabilities include:

• Managing orders, invoicing, general ledger, AP and AR, fixed assets, and basic inventory management
• Streamlining administrative responsibilities
• Generating user-specific dashboards with real-time insights

What Is a Warehouse Management System?

Warehouse Management Systems track the location and movement of items and resources within a warehouse. Once the warehouse layout is communicated to the WMS, the software analyzes how goods move through the facility and how kits are packaged together and shipped off. Warehouse Management Systems can suggest ways to optimize operations further.

Warehouse management systems focus on resources housed in specific buildings rather than offering a multi-location look at stock. If you’d prefer a broader approach to tracking materials, you might want to consider Inventory Management Software.

Standard WMS capabilities include:

• Managing material and product movement, such as picking, packing, receiving, and shipping
• Planning and optimizing warehouse layouts
• Specifying item size, serial number, expiration date, and more via labels

How Are Enterprise Resource Planning and Warehouse Management Systems Similar?

On the surface, Enterprise Resource Planning solutions and Warehouse Management Systems share a common goal—streamlining processes to save your business time and money. To do this, both solutions analyze current processes, enable automation of redundant tasks, house and display data, and suggest areas of improvement.

How Are Enterprise Resource Planning and Warehouse Management Systems Different?

Despite their similarities, ERP and WMS platforms differ in what they optimize.

Warehouse Management Systems manage a specific area of business—the movement and distribution of goods. Because the software is narrow in scope, it excels in this area, often including unique features that other solution types don’t have.

ERP software takes a broader approach to operations management, handling various business processes across teams. Some ERPs include features for specialization areas, such as warehouse management, though this functionality is typically not as robust as what you’d find in a warehouse-specific solution.

Is Enterprise Resource Planning Software or a Warehouse Management System Better for My Business?

Remember that Warehouse Management Systems and ERP solutions are not mutually exclusive. Some ERP systems have basic warehouse management features built in, and adding a dedicated WMS can deepen an ERP’s existing capabilities.

Software developers like InsightWorks have created warehouse management modules that synchronize with popular ERP solutions. Microsoft’s Business Central ERP pairs with InsightWorks’ warehouse app to create a native integration that works with any warehouse configuration.

Still not sure what’s right for you? Consider the following table to get a general idea of which management solution might be a good fit for your company.