One of the biggest differences between ERP fulfillment systems and purpose-built WMS systems happens during implementation (both initially and ongoing). Although, most companies don’t realize this until much later, when they hit one or more of these breaking points:

• Order volumes get out of hand
• A new location(s), ecommerce marketplace, or sales channel such as a D2C is required
• Teams are spending too much time onboarding new hires and seasonal staff
• High turnover and shipping costs ignite that “Oh-$*%#!” moment

That’s when a company realizes that the time, cost, and learning curve to implement new functionality into their legacy system just can’t sustain the pace at which their needs are pulling them.

ERP inventory fulfillment, out of the box?

Inventory fulfillment solutions in an ERP are designed to implement “out of the box”. But what’s included in that box? Is the solution part of one big (rigid) product suite? Or a platform of modular, flexible supply chain solutions that can adapt to your changing needs?

Each ERP module requires a great deal of complexity, time, and cost to implement–usually 6 months or longer. Modules are not designed to work with other applications outside of their own.

The assumption is that the ERP applications will talk to other supply chain applications and work perfectly… and that all the costs associated with that initial implementation will cover everything you’ll ever need. [Spoiler alert: NOT true.]

A loose definition of “free”

Out-of-the-box ERP fulfillment functionality may work for smaller organizations where the volume of orders is low, there are fewer complexities in their supply chains, or they have tons of time/IT expertise on their hands. If you know you will not need much custom development work as your customers’ needs evolve, then the ERP’s fulfillment solution may suffice.

One must look deeper into the bundled licensed agreement to understand the additional needs and other modifications that will be required, to determine if the module is truly “free”.

What does your ERP’s fulfillment solution offer in the way of:

• Business strategy: reactive or proactive? Near- or long-term?
• Up-front design focus: business-centric or warehouse-centric?
• Scaling: modifications require custom work with the vendor (or their consultants)? Or easy, pre-built APIs for third-party apps?
• Go-Live time: 6+ months or 90 days?
• Training and support: rollout + hand-over only, or the same team focused on your goals from implementation through all customizations, modifications, integrations and upgrades?

ERP vendors only invest in new features about every 2+ years. They can’t possibly predict (and build in) all the functionality you’ll need until you are ready for the next big product release.

System modifications are not easy in any sense of the word. So they often get put on hold. In the meantime, you can expect stability problems, growing pains, missed opportunities, and a high risk of the system going down—usually at the worst possible moment.

Just think about the level of uncertainty and change we’ve seen in the past 2 years! Considering the total jump in ecommerce of 14.2% for 2021, this sheer growth in order volume is a perfect example of why you need a stable system that allows modifications much faster and easier.

WMS, scalable out of the box

If your company is growing fast and wants a complete understanding of all hidden costs, time to value, adaptability, and a clear idea of total cost over time, a modern WMS that integrates with your ERP is the best choice. These solutions focus on scalability and flexibility from the ground up, versus a product suite that boxes you into the common needs of companies “like” yours.

A focus on long-term business value during the design process is a hallmark of modern WMS software. A tremendous amount of expertise goes into the up-front design to ensure that the WMS solution will be:

1. Easy to learn, during initial rollout as well as future capability upgrades, with new-user onboarding in under 15 minutes
2. Free of problems with system stability, interoperability, and security
3. Configured to your specific goals and processes, rather than force fitting your business into the vendor’s pre-defined functionality
4. Focused on results, market responsiveness, continuous improvement, and scaling without extra fees

What to look for during a WMS software evaluation

A good sign that the platform is truly “out of the box” is if the vendor can provide ALL of the following prior to starting your project:

• A detailed plan that models your unique operations
• Demonstrated knowledge of interoperability with existing applications, including your ERP and third-party supply chain applications
• KPIs tied to your unique customers’ needs
• Access to in-house expertise and existing tech partnerships (not third-party consultants) included in the contract
• Success stories with metrics specific to your challenges
• Detailed ROI calculations of ALL costs, including a clear maintenance, support, and upgrade process with no surprises
• Names and contact information for the implementation team, who will be the same team you work with always

When you’re ready to actively begin your WMS software comparison, here’s a free RFP template on what to ask in your evaluation.