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How ERP Can Improve Your Warehouse Management

ERP Modules

Thursday, 25 February 2021
Omni Accounts
How ERP Can Improve Your Warehouse Management

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How ERP Can Improve Your Warehouse Management

Learn how ERP can improve your warehouse management and help you take control of your processes more effectively and efficiently. This is all you need to know about ERP solutions for warehouse management. 

What is ERP?

Enterprise Resource Planning (ERP) is a system that allows for the automation and integration of business processes across all industries. ERP tools cover various processes, including finance, human resources, distribution, manufacturing, services and more. 

What Is a Warehouse Management System?

Your warehouse management system (WMS) controls all the storage and movement of your inventory while providing your organisations with updated, real-time data. This way, you know precisely where any piece of inventory is at any time. The WMS uses a range of features for its operations, including barcode scanners, mobile devices, and radio frequency identification (RFID) technology. 

What Is the Difference Between a WMS and ERP?

The main difference between these two systems is that the WMS operates as a standalone system, requiring other supporting software for daily functioning such as accounting and customer relationship management. ERP is a fully-integrated solution with warehouse management capabilities. 

What Are the Features of ERP for Warehouse Management?

If you’re in the manufacturing, distribution or logistics industries, warehouse management is one of your core functions. Modern ERP software solutions empower such businesses with impactful features for ease of operations. Here are some of the ERP features that will directly improve warehouse management:

  • Stock tracking and management
  • Sales and purchase order management
  • Warehouse management and stock transfers
  • eCommerce functionality
  • Payment gateway functionality
  • Integrations with other operational tools
  • Intelligence reports and analytics
  • Interactive, real-time management of activities and consumption
  • Multi-channel order processing 
  • Inbound and outbound serial tracking, pick planning and consolidated picking, order pack-out, cross-docking, carton packing, RFID and manifesting interfaces

Benefits of ERP for Warehouse Management

ERP systems have evolved to the point that they’re starting to replace traditional warehouse management systems. Here’s a look at how ERP benefits warehouse management. 

Inventory Management 

One of the primary ways in which ERP software enhances your warehouse's management is through its inventory management features. ERP will track your inventory, automatically updating your records and eliminating the risk of lost stock. Other ways you benefit from inventory management include:

  • Better visibility
    You have access to real-time data on all your current inventory which allows for demand forecasts and identifying trends. By discovering which products are popular with customers and when you can better plan for future orders. 
  • Recalls
    Because of your inventory's improved visibility and traceability, you're able to better deal with any product recalls. You can quickly identify and remove all recalled products, thereby protecting consumers – and your business.  
  • Just-in-time inventory
    This feature allows for stock levels to be kept low and products to move quickly through the warehouse using 'just-in-time' orders. This means the product doesn't sit for ages in the warehouse, and money isn't lost on expired or damaged goods. 
  • Inbound/outbound optimisation
    The ERP system has planning tools that optimise how inventory is moved around the warehouse. This allows you to determine the best date and time to receive shipment based on the equipment and staff available. 

Picking Optimisation

Through ERP software, you can give employees picking orders for more efficient warehouse operations. Employees can pick accurately and reduce wasted time. Updated picking orders can also be done when it comes time to move products, such as those that are more in demand. 

Spreadsheet Ends

By implementing ERP systems for warehouse management, you’re effectively getting rid of the tireless manual warehouse spreadsheets which need constant updating. This means that, with any changes made to the inventory, you won’t have to disrupt everything and physically update the spreadsheet. This is all presented on an easy-to-access visual dashboard which minimises the risk of error. 

Customisation 

Through the ERP system, you're able to customise the modules to fit your operations better. You can customise specific features related to quality control, cross-docking, sales and transfer – whatever works for your particular business. You can also add and remove modules as you need. 

Decrease Operating Expenses

There are so many ways that implementing an ERP system will save you in the long run. You're able to keep track of all materials, products and equipment for optimised workflow, reducing the need for manual operations. There is also so much more accuracy with ERP software as it reduces the risk of data redundancy and incorrect input. 

Improved Customer Service

These improved operations - and the increased speed of operations - through ERP systems make it easier to provide better customer service. Orders are delivered on time, feedback provided quickly, and stock levels maintained for an enhanced customer experience.  

  • Better System Security
    There is a wealth of valuable data retained on an ERP system designed for warehouse management, so it comes with enhanced security features. All employees will have access to individual user accounts when getting into the system, limiting the threat of theft and errors. In addition to the access requirements, ERP software also has user-based access levels so that not all employees have access to every part of the software, only what is necessary. 
  • Increased Productivity
    By streamlining warehouse operations – including incredibly complex processes – the ERP system frees up employees to focus on business-driven activities rather than wasting time on administrative duties. There is a quicker turnaround and a much higher return on investment. 
  • Improved Staff Morale and Support
    With employees not handling the mundane warehouse operations and dealing with more content customers, your employee morale will drastically improve. They feel more in control at work and a lot less stressed. And, because ERP systems are relatively standardised, they're easy to learn and easy to use. 
  • Better Billing Management 
    Your ERP system will have billing management tools that allow you to track all financial transactions within the warehouse and generate accurate fees. You can also connect to other eCommerce platforms for extensive financial operations. 
  • Consistent Updates
    The software is always improving, which means that your business is also continually improving! Through continuous software updates, you're gaining access to new features that keep you ahead of the game while also reducing the need for in-house IT employees. 
  • Mobile Deployment 
    The increasing decentralisation of work and remote operations means employees will need to access warehouse management software from afar. ERP software comes with a mobile-friendly interface that can be accessed from handheld devices. This mobile deployment gives employees access to purchase orders, inventory and raw material. And, because there are real-time updates, you're able to access the latest information at all times. 

What to Consider When Choosing Erp for Warehouse Management 

You’ve learnt of all the benefits of implementing ERP for warehouse management, so now it’s time to consider which ERP software to invest in. However, before making this decision, here’s a look at some important factors in ERP selection. 

  1. Determine Your Warehousing Needs
    ERP for warehouse management is industry-specific, so you need to be looking at ERP software designed for this particular industry. Added to this are your specific warehousing requirements. You need to analyse exactly what features are needed for your particular business operations and how ERP software can actually help. What are your warehousing goals? What are the challenges currently being experienced? What are your crucial warehousing operations you want automated? Once you have a better understanding of your warehousing needs, you can hone in on the ERP system for you. 
  2. Determine the Scalability
    No business owner wants their business to stagnate, so it’s vital that you consider your potential warehousing growth when looking at your ERP software options available. You know what features you currently need, but you will also need to consider your future needs – how will your business grow and is the ERP system capable to accommodate this growth? Look for an ERP solution with continuous improvement and scalability. 
  3. Consult With Stakeholders
    Your stakeholders and employees will need to give input on this impactful business decision as they, too, have intimate knowledge of the business operations, areas for growth and improvement. By getting everyone on board from the start, you’re ensuring a much more seamless integration of the new ERP system and less disruption to daily operations. 
  4. Consider Software Integration
    Your warehouse management ERP software may need to integrate with existing operational software. If this is the case, you’ll need to check with the ERP vendor whether this is possible so that you’re not starting everything from scratch. Point-to-point integration connects ERP with other software, whereas customised applications work with your business needs and integrate various tools. There are also Enterprise Services Buses (ESBs) that connect applications using centralised tools.
  5. Consider the Support Given
    You might have found the ideal ERP software, but you need to ask about the training and support provided by your ERP supplier. This allows you to take full advantage of the ERP software features, and keep adapting as the software updates. Omni Accounts is a leading ERP software provider, ready to meet all your warehouse management needs!



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