Many companies wish to manage their ERP warehouse automation via their existing ERP system. At first glance, this sounds logical: the ERP system already knows the items, orders and stock levels. However, the more complex the warehouse processes and the higher the level of automation, the more important it becomes to clearly separate the tasks.
This is because the ERP system and the Warehouse Management System (WMS) have different objectives:
The ERP system manages the overarching business processes. The WMS manages the operational warehouse processes.
ERP and WMS: Who handles which task?
An ERP system manages core business processes such as purchasing, sales, production and finance. In the warehouse, for example, it provides orders, master data and overarching information.
The WMS, on the other hand, handles the day-to-day operations within the warehouse. It manages storage locations and stock levels, controls put-away, replenishment and order picking, and decides, based on defined strategies, how an order is physically fulfilled within the warehouse.
| ERP system | WMS |
|---|---|
| Customer and production orders | Warehouse orders |
| Purchasing and sales | Storage location management |
| Master data | Warehouse strategies |
| Overarching processes | Picking & replenishment |
| Company-wide processes | Operational warehouse management |
For a simple, manually operated warehouse, the warehouse management functions of the ERP system may well be sufficient. However, as complexity and automation increase, so do the demands placed on operational warehouse control.
Why is a WMS important for warehouse automation?
An automated warehouse consists of more than just software. Conveyor systems, automated small parts warehouses (AKL), high-bay warehouses, storage and retrieval machines (SRMs) or automated guided vehicles (AGVs) must be integrated into the warehouse processes.
A WMS provides the necessary warehouse logic and establishes the link between the ERP and the warehouse technology.
Put simply, the process chain looks like this:
ERP → WMS → warehouse technology → WMS → ERP
For example, the ERP system transfers an order to the WMS. The WMS checks stock levels, storage locations and storage strategies, and uses this information to generate the necessary warehouse orders.
In automated processes, the WMS then communicates with the existing warehouse technology and processes the feedback it receives.
In this way, for example, conveyor systems, automated small-parts warehouses, AGVs or pick-by-light and put-to-light systems can be integrated into operational warehouse processes.
ERP warehouse automation: What are the limitations?
Technically, ERP systems can, of course, communicate with automated warehouse technology via interfaces. The crucial question is therefore not:
“Can my ERP system integrate with the warehouse technology?”
Rather:
“Is my ERP system the right level for operational warehouse management?”
If the entire warehouse logic is custom-built within the ERP system, this can result in high development and maintenance costs. Changes to the warehouse technology or the ERP system may need to be carefully coordinated and tested, which can be time-consuming.
A specialised WMS, on the other hand, brings with it the expertise in warehouse processes and the integration of different warehouse technologies.
The clear division of responsibilities is as follows:
ERP: overarching business processes
WMS: operational warehouse processes and warehouse logic
Warehouse technology: physical execution
This creates a clearly structured system architecture and facilitates the further development of the warehouse.
COGLAS WEB WMS links ERP and warehouse technology
The COGLAS WEB WMS handles operational warehouse management and links your existing ERP system with the processes and technology in the warehouse.
There is no need to replace the ERP system. It remains in use for its existing tasks, whilst COGLAS takes over the specialised WMS functions.
These include, amongst others:
- ERP integration via interfaces
- Integration of conveyor systems and automation systems
- Integration of automated small-parts warehouses and high-bay warehouses
- Support for AGVs
- Pick-by-Light and Put-to-Light
- Storage location and stock management
- Order picking, replenishment and warehousing strategies
As a cloud-based SaaS WMS, COGLAS can also be deployed without the need to operate your own servers.
Conclusion: ERP + WMS rather than ERP or WMS
The question regarding ERP warehouse automation should therefore not be: “Can my ERP system integrate with warehouse technology?”
What matters far more is which system is best suited to which task.
An ERP system is optimised for overarching business processes. A WMS specialises in operational warehouse management and links this to the physical warehouse environment.
ERP and WMS therefore complement each other – particularly in automated and complex warehouses.
Are you planning to automate your warehouse or would you like to integrate your existing ERP system with warehouse technology?