For companies dealing with 3PL, Warehouse Management System plays a major role in their processes. Unluckily, it's not always simple to choose the right one. There are various kinds of warehouse management systems and different options in each of these categories. To make the right decision, you need to understand what the options are, why they are different, and who is best for your business.
There are essentially three kinds of WMS systems for 3PL companies. It is 'stand-alone warehouse management', a supply chain implementation module, and an integrated ERP (Enterprise Resource Planning) system.
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Now let's dive into the 3 main types of warehouse management systems:
Independent:
The standalone system was purchased for their warehouse management function and nothing else. Such storage systems can be combined with existing or future solutions, but are sold as a specialty product with no additional functionality in the supply chain. Some providers offer some basic transportation management tools, but the focus is on the best WMS products.
Modules in the supply chain:
If you look at the different types of WMS systems, you can think of them as a sub-category of Supply Chain Management (SCM). Supply chain management software has many variations – it helps users manage everything – from supplier relationships to business processes to risk assessment. It focuses on automating tasks such as inventory management, material supply, and product cycles.
Integrated with ERP:
ERP is a great software solution that unites the abilities of many other systems. It offers most of the core applications that keep 3PL processes running smoothly: from supply chain planning, accounting, customer relationship management, human resources, and more. They are specialized systems that provide stable supply chain performance and scalability.