ERP vs WMS Software: How to Choose the Best Systems for Your Business

Being a small and medium-sized business (SMB) owner is no small feat. Juggling marketing, leadership, inventory, finance, and resource management leaves little room to breathe, let alone focus on boosting profitability and scaling your business. It can feel like pushing a boulder up a hill without the right tools to ease the burden.

For your business that buys, sells, and/or fulfills physical goods, the question often comes down to: Should we rely on Enterprise Resource Planning (ERP) system warehouse management features, or invest in a dedicated Warehouse Management System (WMS)?

Let’s take a look at the key differences between ERP and WMS software, when each makes sense, and how to determine the best fits for your business goals or, perhaps, find the perfect all-in-one answer with DigitBridge.

What are ERP and WMS Systems? Understanding the Basics

Related Post: What is a Warehouse Management System (WMS)

ERP vs. WMS: The Key Differences Explained

ERP WMS Modules: When Are They Enough?

Some businesses can get by with an ERP’s warehouse management module for a while, especially if: 

• They have one warehouse 
• They ship low order volume 
• Their SKUs are simple and low in variety

However, growth quickly exposes the limits of ERP warehouse modules. If your team struggles with: 

• Inaccurate or delayed inventory counts
• Slow or error-prone fulfillment especially when dealing with high volume of DTC shipments
•  Labor inefficiency
• High return rates or shipping errors
• High cost of IT

Traditional On-Premises or Cloud-Native: Deployment and Cost Considerations

Both ERP and WMS vendors now offer cloud-native platforms. Benefits of going to the cloud versus having traditional on-premises software are vast but include easier updates, faster deployments, operational flexibility, and reduced IT overhead. Subscription-based pricing also lowers up-front costs.

Integration Challenges

If you choose separate ERP and WMS systems, integration is essential. Look for solutions that support:

• Pre-built connectors
• Real-time data syncing
• Workflow triggers between systems
• Shared data visibility

The Unified Strength of ERP and WMS

In the modern business landscape, efficiency and integration are paramount. Enter the combined power of an ERP system and a WMS. When these two titans of operational management converge, the result isn’t just additive—it’s multiplicative. An ERP, with its ability to offer an integrated view of core business processes, and a WMS, which optimizes the storage and fulfillment of orders/goods, work in tandem to create a synergistic effect. This integration translates into streamlined operations to automate the whole order management processes, real-time data visibility to optimize inventory allocation, cutting edge inventory management to maximize the warehouse space and reduce the stock level, and enhanced decision-making capabilities. In essence, when you sync ERP and WMS, it offers your business a holistic solution to the complex business requirements in the digital commerce era. This synergy ensures that the whole is, without a doubt, greater than the sum of its parts.

How DigitBridge Simplifies ERP and WMS for SMBs in the DTC Era

Direct-to-consumer e-commerce has transformed the fulfillment landscape, especially for small and midsize businesses. What used to be a manageable flow of bulk orders has become a high-volume, small-package operation that traditional manual processes can’t keep up with. Inventory visibility gaps, shipping errors, and inefficient picking workflows quickly pile up—slowing growth and frustrating customers.

DigitBridge was built to solve this. Our platform connects ERP and WMS into one streamlined system, automating routine tasks and simplifying complex operations. SMBs can ditch spreadsheets and manual handoffs, freeing up time to scale faster, improve accuracy, and focus on strategy instead of daily fire drills.

DigitBridge Can Do It All

DigitBridge is a comprehensive turnkey digital commerce platform that will provide SMBs and dropshippers with all the tools they need to sell, fulfill, and buy.

• Stay on top of all business operations in real time with Enterprise Resource Planning (ERP) solution
• Keep your warehouse & shipping running smoothly with Warehouse Mangement System (WMS)
• Manage your sales channels with Commerce Connector
• Create and optimize product digital content and manage your digital sales with Product Information Management (PIM+) system
• Keep a single source of truth for all of your operational data for real-time business insight and AI application

WMS and ERP Examples

Example 1: Apparel Brand Level-Up

A mid-sized apparel brand initially used NetSuite ERP to manage warehouse inventory. As DTC order volume grew, pick errors increased and inventory counts fell out of sync. They were paying too much for the traditional ERP to not give them a solution to their problem. After implementing the DigitBridge business operating system, order processing error reduced 98% and warehouse labor productivity rose by 30%.

Example 2: 3PL Compliance & Visibility

A 3PL needed real-time tracking on FIFO and compliance. Their ERP couldn’t handle these needs, but the cloud-native DigitBridge platform with compliance workflows filled the gaps.

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