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ERP for warehouse management:
a comprehensive guide
April 25, 2025
ERP for warehouse management is a comprehensive enterprise resource planning solution that provides extensive functionality for administering warehouse and inventory operations in addition to key features for accounting, finance, HR, and supply chain management.
With 10+ years of experience delivering ERP solutions, Itransition builds fully-featured enterprise systems that help companies gain complete visibility and control over warehouse operations and other core business processes, driving operational efficiency and informed decision-making.
ERP capabilities for warehouse management
Improved inventory management
Gaining real-time visibility into inventory across all warehouse locations to maintain safety stock levels and avoid overstocking and stockouts.
- Real-time stock-level tracking, including quantities, locations, and statuses through native integration with barcode readers and RFID scanners
- Automated cycle counting and stock audits
- Support of different inventory valuation methods (FIFO, LIFO, and WAC)
Optimized space utilization
Dynamically optimizing your warehouse layout to improve warehouse space utilization, reduce handling costs, and facilitate faster stock placement, picking, and packing.
- Managing different storage locations, such as aisles, shelves, bins, and pallet racks
- Dynamic slotting depending on the product type, size, and demand
- Automated putaway suggestions to guide products to the optimal warehouse location
Streamlined inbound & outbound logistics
Enhancing order fulfillment accuracy and improving customer satisfaction by automating shipment receiving, putaway, picking, and packing activities.
- Managing incoming shipments and verifying them against purchase orders
- Managing cross-docking operations
- Product pick-and-pack strategy management (wave, batch, zone picking)
- Automated shipment label and documentation generation
- Tracking and managing product returns
Efficient staff management
Having real-time visibility over warehouse staff performance and labor-related costs, as well as managing warehouse workers’ activities to increase staff efficiency.
- Automated warehouse task assignment
- Employee performance tracking according to defined KPIs
- Balancing employee workload based on their skill, availability, and performance
Advanced reporting & analytics
Streamlining warehouse data collection and aggregation to identify process bottlenecks, generate data-driven insights for warehouse workflow optimization, and accurately forecast future inventory needs and demand fluctuations.
- Data visualization with customizable dashboards
- Tracking warehouse operations KPIs and metrics, such as inventory accuracy, stockout rates, putaway cycle time, and space utilization
Integrated business functions
Ensuring real-time data synchronization and warehouse and inventory data exchange with other company departments to achieve a holistic view of key business processes.
- Accounting and finance business module integration to reconcile data on stock movements, labor performance, and order fulfillment with financial data
- Sales data integration to synchronize warehouse activities and workload with current sales orders and ensure timely fulfillment
- Procurement data integration to link inventory levels with purchase orders and enable automated replenishments
Looking for a trustworthy partner to implement ERP for warehouse management?
90%
decrease in manual operations
Odoo-based ERP solution with warehouse management features
We delivered a comprehensive ERP solution for a provider of repair and maintenance services for industrial automation systems, helping the company accelerate work order management by 100%. Our team customized the off-the-shelf Odoo warehouse features, enabling users to create product versions, manage products with different attributes, and create a basic set of product versions with a custom algorithm.
Streamlined
warehouse operations management
A comprehensive software suite for a furniture manufacturer
As a part of our long-standing cooperation, we helped the customer replace their legacy off-the-shelf system with a brand-new warehouse management solution that enables quick access to reports and data dashboards with key metrics, automated PO status changes, and stock movement tracking between different warehouses. The solution also supports multiple user roles and seamlessly integrates with the corporate IFS Warehouse Data Collection and the CRM/ERP systems.
Traditional WMS & integrated ERP: a comparison guide
Traditional WMS systems and ERP solutions with warehouse management capabilities share many similar functions but differ in upfront investments, long-term costs, and integration flexibility. Here, we compare the capabilities of dedicated WMS solutions and ERP software to help companies choose the most cost-effective and beneficial solution for their warehouse processes.
Traditional WMS | Integrated ERP | |
|---|---|---|
Functionality | Specialized and tailored to warehouse operations, featuring advanced functionality for inventory tracking, order and shipment processing, and real-time control over warehouse processes. | Integrated standard warehouse management capabilities with broader functionality for finance, HR, and sales management, providing a unified view of all business operations. |
Costs | Generally are relatively cost-effective, especially for SMB companies, with implementation costs ranging from $4,000 to $10,000. However, integrating a dedicated WMS with the rest of corporate software can increase implementation costs. | Typically are more expensive due to larger functional scope, and implementation costs can vary significantly between $10,000 to $1M+ depending on the company’s size and requirements. |
Integration | Requires integrations with other corporate systems, like ERP, SCM, CRM, or 3PL software, that can add extra costs. | Additional integrations with accounting, SCM, and other solutions are not required since warehouse, finance, inventory, and sales modules are already incorporated into ERP. |
Maintenance | As a standalone solution, it requires separate updates and support, incurring additional costs. | The warehouse management module is supported and updated as an integral element of the ERP solution. |
Top ERP platforms with warehouse management capabilities
Odoo is an open-source modular solution that helps small and midsize companies manage key business operations.
Warehouse management functionality
- Inventory control
- Multi-warehouse management
- Picking, packing, receiving and shipping features
- Putaway management
- Barcode scanning
- Expiration date tracking
- Inventory valuation
- Analytics and reporting
Core features
- Finance and accounting
- Sales and customer management
- Procurement and product lifecycle management
- Human resources
- Marketing management
Pricing
- Free open-source Odoo Community edition
- Monthly subscription fee for the Odoo Enterprise edition
Deployment
- SaaS
- PaaS
- On-premises
Dynamics 365 Finance & SCM
Microsoft Dynamics 365 Finance & Supply Chain Management (formerly known as Dynamics 365 Finance & Operations) is a comprehensive enterprise resource planning solution for managing all business operations for midsize and large companies.
Warehouse management functionality
- Inventory management and order fulfillment
- Warehouse layout management
- Picking, packing, receiving and shipping features
- Cross-docking support
- Quality control management
- Barcode scanning
- Label generation
- Mobile application support
- Integration with Power BI analytics
Core features
- Advanced finance and accounting capabilities
- Supply chain management
- Production control and order management
- Sales and marketing management
- Procurement and sourcing
- Transportation and logistics
- Project management
- HR administration
- Ecommerce management
Pricing
Standard and premium subscription options depending on the used functionality
Deployment
- Cloud
- On-premises
Microsoft Dynamics 365 Business Central is a multifaceted ERP solution for automating core business operations for small and medium-sized organizations.
Warehouse management functionality
- Inventory management
- Inventory costing
- Multi-site warehouse management
- Pick-and-put-away process support
- Warehouse bin management
- Order fulfillment and shipment control
Core features
- Finance management
- Sales operations management
- Supply chain and asset administration
- Project management
- Service management
- Manufacturing control
Pricing
Standard and premium license types depending on the number of users and installed apps, with a free trial available
Deployment
- Cloud
- On-premises
NetSuite is a fully-featured enterprise resource planning solution that helps companies of all sizes and all industries automate business workflows.
Warehouse management functionality
- Inventory management and order fulfillment
- Inbound logistics management
- Warehouse space management
- Returns management
- Multi-warehouse management
- Integrated mobile access
- Barcode scanning support
Core features
- Finance and accounting
- Marketing automation
- HR management
- Customer relationship management (CRM)
- Manufacturing processes control
- Services and project management
Pricing
Annual license fee that depends on core platform usage, implementation of optional modules, and the number of active users
Deployment
- SaaS
Looking for the best ERP platform for warehouse management?
Smart technologies to extend ERP warehouse management capabilities
Integrating advanced technologies into ERP software helps transform your storage facilities into efficient hubs as well as enhance the accuracy of warehouse processes and reduce operational costs.
Mobile devices
Smartphones, tablets, and handheld barcode scanners allow workers to fulfill their duties on the go and access critical warehouse data (inventory levels, orders, or shipment statuses) from any warehouse location, accelerating warehouse operations fulfillment and reducing paperwork.
Voice-picking technology
Voice-picking technology allows workers to receive verbal instructions from the ERP system through headsets, guiding them on when and where to perform a required action (e.g., pack orders or handle a return), thus increasing workers’ speed, productivity, and task fulfillment accuracy.
Artificial intelligence (AI)
Artificial intelligence is applied in various aspects of warehouse operations, including the analysis of vast amounts of WMS data to derive valuable insights for optimizing inventory management, reducing stockouts or overstocking, and improving overall warehouse efficiency.
Internet of Things (IoT)
IoT technology enables real-time information collection to gain insight into warehouse operations. It also facilitates real-time monitoring of the warehouse assets, inventory and environmental conditions, ensuring timely alerts on equipment failures, inventory issues, or warehouse temperature changes.
Itransition’s ERP services
ERP consulting
We offer professional consulting services to help translate your business needs into software requirements, select the most optimal ERP for warehouse management, and plan cost-effective ERP implementation.
ERP implementation
We implement custom and platform-based ERP software with warehouse management capabilities for you to manage core business operations, including warehouse activities, with a single integrated feature-rich solution.
Custom WMS development
We build bespoke warehouse management systems, tailoring the solution to your unique warehouse operations and integrating it with third-party business apps for enhanced interoperability.
About Itransition
10+ years in delivering ERP services
50+ ERP projects across various industries, including retail and ecommerce, finance, insurance, manufacturing, automotive, and healthcare
25+ years of experience in enterprise software development
Strategic partnership with Odoo, Microsoft, and Oracle
Maximize the efficiency of your warehouse operations with ERP
Implementing an ERP system with sufficient warehouse management capabilities can be a game-changer for companies looking to streamline business operations and improve operational efficiency. Having your warehouse operations interconnected with your finance, sales, and procurement processes helps eliminate data silos and achieve complete visibility over core business processes, enabling better decision-making and helping you detect and eliminate operational bottlenecks and reduce related costs.
Itransition leverages over a decade-long experience in delivering enterprise resource planning solutions tailored to the unique needs of our customers. Whether you need a professional technology consultant, ERP implementation, or delivery of a custom-built WMS, our team is ready to assist.
FAQs
A warehouse management system (WMS) is a specialized software solution designed to streamline warehouse operations from the moment goods are received at the warehouse until they leave the facility. Warehouse management software solutions usually include functionality for inventory management as well as product picking, packing, putaway, and other order fulfillment activities.
There are two types of warehouse management solutions:
- Standalone WMS software is a dedicated solution for managing warehouse operations deployed on the company’s premises or as a cloud-based SaaS solution.
- An ERP-based warehouse management module with functions similar to dedicated WMS software but is an integrated part of enterprise-level ERP software.
Enterprise resource planning software is a comprehensive solution for managing the entire scope of business operations, including finance, accounting, sales, customer relationship, supply chain, and warehouse management, whereas a dedicated WMS solution features only WMS functionality for controlling and administering only warehouse-related operations and requires additional integration with finance, SCM, or CRM software.
The choice between a traditional dedicated WMS solution and ERP depends on such factors as business size and the complexity of warehouse operations, available budget, supported IT infrastructure, and more.
Relying on our hands-on experience in delivering ERP and WMS software, we recommend opting for a standalone WMS system if:
- You have complex warehouse operations that require a highly customized and feature-rich system for managing warehouse activities
- You operate multiple storage locations with a high volume of transactions that only a dedicated WMS system can support
Consider choosing an ERP system if:
- Your business requires a unified view across all of the company’s operations
- You have standard warehouse operations and workflows as well as moderate needs in terms of warehouse management functionality
Although integrating a best-in-class WMS with an ERP system can incur additional costs and cause implementation complexities and data latency issues, taking such a hybrid approach can help achieve both efficient warehouse operations and enterprise-wide connectivity.
When choosing an ERP system for warehousing operations, we recommend considering the following factors:
- The feature scope of the WMS module to ensure that ERP software supports your warehouse operations.
- Integration capabilities to ensure that ERP can be easily connected with such external solutions as ecommerce systems, transportation management software, and logistics systems (3PL).
- Deployment options: cloud ERP systems provide greater scalability and flexibility, whereas on-premises ERP solutions ensure greater security and control over sensitive data.
- Vendor support to ensure your solution is regularly updated and maintained, and users can get timely assistance with software usage issues.
- The total cost of ownership that includes licensing, implementation, and maintenance expenses.
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