| When choosing software for a particular aspect of | | | | managing assemblies can be a significant issue to |
| your business, be it CRM, Shop Floor Management, | | | | resolve when working with two separate systems. |
| Quality Control, Point of Sale, WMS or anything else, | | | | But in a fully integrated system, it's an integral part of |
| the choice between selecting a specific package to | | | | the ERP system, extended into the WMS. |
| address your needs (Best of Breed), or selecting an | | | | 5. Data synchronization challenges: a. There are a |
| overall system that will serve your business as a | | | | number of inventory attributes that are |
| whole is not one that should be taken lightly. | | | | customer-specific in both what they represent and |
| If you do not already have an ERP system in place, | | | | the business process/rules that they must fulfill, such |
| you might want to consider looking for a system | | | | as customer-designated inventory allocation |
| that covers both the specific functionality you are | | | | (quantitative, prepaid, etc.), "ship to/bill to" locations |
| looking for, as well as being a fully functional | | | | and more. Any mismatch between the ERP system |
| company wide solution. For companies that already | | | | and the WMS when such attributes and rules are |
| have an ERP system, try to find out if your vendor | | | | synchronized could cause a discrepancy between the |
| offers a WMS option, and even if it doesn't include all | | | | two systems, which in turn may result in prolonged |
| the very specific functionality, if it's "close enough" | | | | work stoppages until the problems are identified and |
| you should certainly weigh it carefully against the | | | | resolved. b. Delivery priorities as set by the Supply |
| integration of third-party options. Let's look at the | | | | Chain Management (SCM) system in the ERP system |
| case of Warehouse Management Systems, or WMS. | | | | are difficult to synchronize with an external WMS on |
| Implementation of WMS systems has always been a | | | | an ongoing basis. Tracking and synchronization |
| major challenge even when undertaken with budgets | | | | between two systems to account for other actions |
| of $500K and upward, so it is understandably a | | | | in the warehouse, such as "Put", that are temporarily |
| greater challenge within the budgets that small and | | | | implemented in the ERP system can be troublesome. |
| medium-sized companies can afford. A major | | | | An integrated solution |
| contributing factor to this challenge is the integration | | | | Some ERP systems now include an integrated WMS |
| complexity of a system that is not part of the ERP | | | | module. Following are some of the benefits provided |
| system. Implementing a stand-alone WMS solution, in | | | | by the integrated WMS-ERP solution: |
| addition to the complexity of its integration, could | | | | |
| have a tremendous impact on pricing and costs, | | | | 1. Integration: an integrated WMS system enables the |
| overall system stability and the efficiency of | | | | warehousing functions to interact seamlessly with |
| day-to-day work. | | | | other system and corporate activities, be they |
| Issues | | | | manufacturing or distribution related. Whether your |
| Following are some of the common problems faced | | | | business is manufacturing bars of soap or providing |
| when integrating an ERP and WMS system: | | | | maintenance for jet engines, the warehouse |
| | | | functions as an integral part of the business, so it |
| 1. Inventory balance discrepancy (or "mismatch"): | | | | makes sense to manage it as an integral part of the |
| there are a plethora of issues that could trigger an | | | | core software solution. |
| inventory balance discrepancy between a system | | | | 2. Visibility: an integrated WMS system provides a |
| with separate ERP and WMS software. For every | | | | greater depth and breadth to supply chain visibility, |
| part for which a mismatch is detected, there may be | | | | helping users not only to check order statuses, but |
| hundreds (or thousands) of transactions that should | | | | also to meet ever increasing delivery standards, |
| be investigated to analyze the cause of the | | | | manage global operations on many levels more |
| discrepancy. Selecting the two-system approach | | | | efficiently, and provide customer service reps with |
| mandates the appointment of individual/s who would | | | | crucial information and alerts. |
| do the investigation and make it part of their job | | | | 3. Unification: unified data structures (part catalogue, |
| description. | | | | warehouse/location records, etc.). As a result, any |
| 2. Incremental system initiation is almost mandatory | | | | authorized user can perform data validation during |
| to avoid costly downtime in a warehouse. There are | | | | initial system implementation using a single system |
| two ways to achieve incremental implementation, | | | | and interface. |
| both of which are difficult if not impossible to | | | | 4. Interface consistency: With a unified user interface, |
| accomplish when the WMS is a separate entity: a. | | | | training fees and learning curve times are greatly |
| Isolate an area in the warehouse and implement the | | | | reduced. Getting new employees up and running on |
| WMS on that area only. b. Isolate an activity (e.g., | | | | two different user interfaces is always more costly |
| "pick") and implement throughout the warehouse. | | | | and time consuming than learning a single user |
| 3. Incremental system shut-down: warehouse | | | | interface. |
| management systems (integrated or separate) can | | | | 5. Unified system maintenance: Of the many issues |
| suffer from erroneous data definitions that will result | | | | that could be covered under this topic, a predominant |
| in system malfunctions. When working with a third | | | | one is maintaining "user permissions/profiles" in two |
| party WMS, there is no way to incrementally isolate | | | | different systems. |
| the area or operation in which the malfunction was | | | | 6. Overall benefits of the ERP system are |
| detected. Unless a quick fix is provided, the whole | | | | automatically included in the WMS functionality: BI |
| warehouse operation may come to a standstill as the | | | | features including Dashboards and KPIs, BPM |
| problem spreads and is exacerbated with every | | | | functionality and more. |
| additional transaction or activity reported into the | | | | If the WMS is part of the ERP system, warehouse |
| system. Incremental shut-down capabilities are a | | | | operations can interact seamlessly with accounting, |
| readily available option in a fully integrated WMS/ERP | | | | CRM, Supply Chain, production processes and more. |
| system. | | | | Purchase, sales and inventory processes can be used |
| 4. Managing assemblies (packing small packages into | | | | to trigger the putaway, picking and replenishment |
| larger ones, unpacking, etc.): due to complexity, | | | | tasks, or vice versa. |