WMS (Warehouse Management System) and ERP (Enterprise Resource Planning) are two commonly used software for enterprise management. Although they both focus on managing enterprise resources, there are some differences in functionality and usage scenarios.
The following will give you a detailed introduction: 1. What is wms; 2. What is erp; 3. What is the difference between wms and erp.
1. What is wms
WMS, the full name of Warehouse Management System (Warehouse Management System), is a software system used to optimize and manage warehouse operations .
Imagine you have a small snack shop , and your warehouse is filled with all kinds of goods, including chips, chocolates, beverages, and more. Sometimes you need to find specific items, sometimes you need to replenish inventory, and sometimes you need to ship to customers. Without a good warehouse management system, you may become in a hurry, looking around, misplaced goods, and there may be insufficient or excessive inventory.
Now, you have installed a super smart WMS system. This system has excellent memory and efficient processing power. It can help you track inventory in real time, know where each item is placed in the warehouse , and when a customer places an order, it can help you quickly find and prepare the item to be shipped. And when you need to replenish inventory, it will remind you which items are about to sell out, allowing you to purchase in advance . At the same time, it can also optimize the storage location of goods in the warehouse, so that the most commonly used goods are placed in the most accessible place, making the entire warehouse operation more efficient.
This intelligent WMS system, like your personal assistant, assists you in managing the goods in the warehouse, making your snack shop operate more smoothly, saving time and energy.
The above small example can help you understand what a WMS warehouse management system is in a more general way.
Next, I will introduce the functions of the system through a specific warehouse management system-Jiandaoyun WMS.
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1. Inventory management
Inventory management is a vital part of a company's daily operations, and WMS has become a key tool for optimizing the entire inventory management process. Using the WMS system, enterprises can accurately grasp the movement of each batch of goods, and understand their location and status in the supply chain in real time , so as to achieve efficient inventory management and optimize inventory turnover. In addition, the system can also help enterprises establish an automated inventory replenishment mechanism to ensure that inventory is always maintained at a reasonable level , which not only avoids capital occupation caused by excessive inventory, but also avoids sales delays and customer dissatisfaction caused by insufficient inventory. .
2. Inventory management
It can effectively monitor the process of goods entering and leaving the warehouse, including important links such as goods acceptance, storage, and delivery. The system has the function of quality inspection of incoming goods to ensure that the received goods meet the predetermined quality standards and can be stored safely. At the same time, WMS can also record the outbound process of goods in detail to ensure the accuracy and timeliness of outbound operations.
3. Delivery management
With the vigorous development of global trade, the importance of logistics management for enterprises has become increasingly prominent. The traditional manual operation has become incapable in the face of complex and changeable market demands. With the help of the modern management method of WMS, enterprises can have a more accurate, efficient and intelligent logistics distribution system. Enterprises can automatically formulate comprehensive distribution plans and optimize distribution routes to further improve overall distribution efficiency and accuracy, and thus significantly reduce logistics costs.
4. Finished product management
It can accurately analyze the spatial structure of the warehouse, and optimize the layout according to factors such as the type of goods, storage requirements, and the flow of incoming and outgoing goods. This personalized warehouse layout design not only ensures the reasonable storage of items, but also makes the logistics process inside the warehouse smoother, minimizing the time cost of transportation and handling.
2. What is erp
What is the ERP system that makes countless companies love and hate?
ERP, also known as enterprise resource planning, is to share and connect the processes and data of core business departments such as sales, procurement, inventory, and production until it flows to the financial side, so that business data and financial data are matched, and the data is fed back to business management, in the process of planning and forecasting .
It will be clearer with two examples:
If your company is a trading enterprise that does not need production, your company receives an order and enters it into erp, the system starts to calculate whether there is any stock in stock, how much is left in stock, whether replenishment is required, and replenishment is required If so, how long is the replenishment cycle? How long will it take for the purchase to be delivered to the customer? Final financial settlement and payment.
If your company is a production company, ERP can help you analyze: Is there any inventory after receiving the order? If there is no stock and you need to arrange production, how much do you need to produce? Do you need to prepare materials? How long is the preparation cycle? How many processes are there? How many equipment crew resources are needed? When and which raw materials arrive? Which process can be performed? Finally, when is the order expected to be completed and delivered to the customer? Customer payments aggregate data to financials.
In order to facilitate everyone to better understand the functions of the erp system, we still use Jiandao Cloud System to introduce its functions in detail.
(Template guidance >>>> https://www.jiandaoyun.com can be installed online for free )
1. Customer management
- Statistics and maintenance of customer information:
Salesmen enter customer-related information into the system for effective data statistics and quick query; it helps us better analyze customer information and make smart strategic decisions.
- Customer visit and follow-up:
Salespeople log customer interactions and visits for follow-up inquiries and reference.
2. Sales management
- Sales Contract:
The sales clerk signs a contract with the customer to form a sales contract.
- Business flow:
After the sales contract is executed, the salesman will make a business flow order, which clearly includes the material BOM and material demand information of the corresponding product in the contract. At the same time, the clerk will designate available warehouse materials for inventory locking to ensure the supply of required materials. In addition, the details of the materials to be purchased will be confirmed and recorded to facilitate the smooth progress of the subsequent procurement process.
- Sales Shipping, Returns, Exchanges:
The quality of the product will be inspected before delivery, and the product will be delivered only if the quality meets the standard. In the future, if the product has any quality problems or the customer is not satisfied, you can return and exchange the product online.
3. Purchasing management
Based on the material procurement requirements generated by the business circulation order, or some non-order-related material procurement requirements, we will uniformly formulate the procurement contract.
- Purchase and arrival of main materials:
In this process, delivery period control and logistics arrival tracking will be carried out to ensure that the materials arrive on time. At the same time, it is also responsible for initiating material procurement and warehousing to ensure the smooth flow of the supply chain.
- supplier option:
In order to select the best supplier, our salesman will enter the supplier information into the system and conduct a careful analysis of the supplier's situation to optimize the procurement process to the greatest extent.
- Purchase report:
According to the procurement report generated according to the procurement situation, you can view the number of contracts, the total amount, and the details of the procurement contract, and you can filter and query through the filter component.
4. Technical management
The business process is as follows:
- Use historical production data to continuously update and maintain fixed manufacturing cost parameters and product process information;
- According to the customer's needs, submit a proofing application, and after confirming that the sample meets the requirements, generate the package number and produce the product;
- Organize and back up existing product and material information to form a detailed and complete product file.
- Continuously maintain and update fixed manufacturing cost parameters and product manufacturing process information by analyzing past production data;
- According to the specific requirements of the customer, submit a proofing application to the relevant department, and after obtaining the confirmation of the sample, generate the corresponding package number for further product production;
- Carefully sort out and back up the existing product and material information to form a comprehensive and detailed product file.
5. Production management
- Production Plan:
Generate production demand based on order information, reasonably plan production plan and issue production tasks;
- Material pick-up:
According to the established production plan, materials will be collected in advance, and production arrangements will be made strictly on time. In case of insufficient materials, a purchase application will be initiated in time;
- Production report:
After the production personnel complete the production work, they submit the completion report, record the working hours and actual production conditions in detail, and conduct quality inspection of the finished products, and count the output quantity and qualified product quantity at the same time.
6. Inventory management
- Inbound and outbound management:
Review and update the physical inventory according to the warehousing application initiated by procurement/production/sales; perform form conversion on some materials and update the system inventory (completed together with warehousing).
- inventory check:
Regular inventory to ensure inventory accuracy;
3. What is the difference between wms and erp
Through the previous description of the detailed system of the two system functions, we can make a specific division of the difference between the WMS and the ERP system:
1. Functions and fields:
WMS: Warehouse Management System focuses on warehouse and logistics operations. Its main functions include inventory management, goods in and out of warehouse management, order processing, picking and packing, shelf management, transportation and distribution, etc. WMS is designed to optimize warehouse operations, improve inventory visibility and accuracy, thereby improving logistics efficiency and reducing inventory costs.
ERP: An enterprise resource planning system covers the overall operations of a business . It integrates the information and processes of various departments (such as finance, human resources, procurement, sales, production, etc.) to help enterprises achieve higher-level planning, management and decision-making. ERP systems usually include multiple modules such as accounting, financial management, human resource management, supply chain management, sales and procurement management.
2. area:
WMS: Warehouse Management System focuses on a single aspect , namely logistics and inventory management. It mainly serves related departments such as logistics, transportation, distribution and warehouses.
ERP: Enterprise Resource Planning system covers all departments and processes of a business . It works across the entire enterprise, including finance, purchasing, sales, human resources, and more.
3. Objectives:
WMS: The main goal of a warehouse management system is to improve the operational efficiency of the warehouse, reduce the holding time of goods, improve the accuracy of shipments, and ensure the control of inventory levels.
ERP: The goal of the enterprise resource planning system is to improve the overall efficiency and productivity of the enterprise through information integration and process optimization. It looks at resource management and decision support across the enterprise.
4. Integration:
WMS : WMS can usually be integrated with ERP systems to exchange inventory and logistics data. In this way, the ERP system can understand the real-time inventory situation in the warehouse, so as to better plan sales and purchase activities.
ERP : The ERP system itself is an integrated software that connects various departments and processes so that data and information can be seamlessly transferred and shared.
5. User:
WMS : Warehouse Management System is mainly used by logistics and warehouse managers to ensure the smooth running of warehouse operations.
ERP : The enterprise resource planning system covers a wider range of users, including senior management, department managers, financial personnel, sales teams, purchasing personnel, etc.
To sum up, both WMS and ERP systems are important enterprise management tools, each with different functions and usage scenarios. When an enterprise chooses whether to deploy an independent WMS, it needs to comprehensively consider its scale, storage requirements and whether the existing ERP system can meet the requirements of warehouse management. In any case, ensuring good integration and collaboration of data between systems is the key to ensuring the efficient operation of the enterprise.
The above is the whole content of this article, I hope it will be helpful to you.