WMS Integration: A Comprehensive Guide

Are you grappling with manual data entry, inventory discrepancies and delayed order processing? Is your warehouse bleeding money and fighting against inefficient processes? WMS integration can improve everything from customer satisfaction to inventory management and transportation.

This article will cover how integrating warehouse management software with other systems can support vital processes, choosing the right integrations and some major benefits this strategy brings to the table.

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What This Article Covers

• What Is Warehouse Integration?
• Different Types
• Benefits
• Choosing the Right WMS Integration
• Next Steps

What Is Warehouse Integration?

Warehouse integration is the process of connecting and coordinating various warehousing aspects, such as operations, systems and processes, via software to streamline and optimize overall functionality.

It combines different software systems, including ERP, CRM, TMS, eCommerce, MHE and more to create a seamless and efficient flow of information, materials and resources within the warehouse.

Systems integration reduces manual data entry and error risks. It provides data synchronization and updates you about inventory levels, order statuses, shipping information and more.

When you have an integrated system, updates in one application will automatically reflect in others, ensuring everyone has access to the latest information. This approach creates a well-connected and efficient ecosystem.

Types

There are several WMS integration types, each serving specific purposes and contributing to the optimization of warehouse operations.

Let’s take an in-depth look at each:

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1. Enterprise Resource Planning (ERP)

Integrating ERP and WMS systems is a logical step for businesses looking to scale. Combining them offers access to centralized data for improved inventory management, financial insights and demand forecasting.

With ERP integration, organizations can streamline order processing, fulfillment and delivery while monitoring inventory levels and triggering procurement processes when stock falls below thresholds.

SAP WMS is an excellent example of a unified solution that efficiently manages all warehouse needs in one system.

Since ERP systems don’t traditionally integrate with WMSs, there are specific business considerations you’ll need to take into account.

• What role will the system play in your organization?
• How much ROI do you expect your ERP/WMS integration to deliver?
• What’s your company’s long-term business goal?

ERP and WMS – A Winning Combination

This integration strategy can take your warehouse operations to the next level. However, since both systems work together, you’ll need to ensure seamless data flow and collaboration between different functions. Let’s look at how this is achievable without causing disruptions.

• Point-to-Point Integration: Establish direct connections between specific modules or components of ERP and WMS systems. For example, the order processing module of the ERP system communicates directly with the picking and packing processes of the WMS.
• Middleware Integration: It’s an intermediary layer between ERP and WMS systems, facilitating communication and data exchange. It’s a central hub that connects multiple systems, allowing them to exchange data seamlessly.
• Shared Components Integration: Use common data structures or shared databases between ERP and WMS systems. Both systems interact with the shared components to access and update information.

2. Customer Relationship Management (CRM)

CRM software stores and organizes customer information, communication history and interactions. It also streamlines your sales, marketing and customer service processes to improve customer satisfaction, retention and overall business performance.

A WMS manages and optimizes warehouse operations. It focuses on efficiently controlling and tracking inventory, orders and goods movement within a warehouse or distribution center.

However, when integrated, they can facilitate seamless communication and data sharing between customer-centric functions (sales, marketing, customer service) and operational functions (warehouse management and inventory control).

• Real-time inventory information, order status and shipping details help customer service representatives with accurate and timely customer updates, improving customer satisfaction.
• CRM data on customer preferences, purchase history and behavior supports personalized marketing and sales.
• A comprehensive view of customer interactions, orders and inventory levels supports decision-making.
• CRM-initiated return requests trigger the WMS to guide the return process, automatically updating inventory levels and generating return labels.
• Integration eliminates data silos and discrepancies between CRM and WMS systems, resulting in accurate and consistent information across the organization.

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CRM Considerations

We’ve covered most of how WMS and CRM integration might benefit your organization. However, testing how this integration would work on your system is important.

Let’s look at three major factors you need to consider.

1. Integration Architecture: The architecture should be easy to use, with no code and visual design, allowing non-technical users to design, configure and manage integrations without extensive coding knowledge. Visual design tools can facilitate quick integration setup, accelerating the deployment timeline. Non-technical users can create complex integration workflows without custom code.
2. Customizations: Different businesses have unique processes and growth trajectories. Customization options ensure that the integration can scale to meet changing demands. Some scenarios may require intricate workflows that might not be achievable with out-of-the-box features. For such situations, having customization options can easily allow businesses to address complex use cases.
3. ROI-Oriented Workflows: An ROI-oriented workflow focuses on achieving specific business outcomes and returns on investments. It can streamline processes, reduce manual efforts and eliminate redundant tasks to improve operational efficiency. These workflows contribute to cost reduction and resource optimization by supporting task automation and resource allocation. Workflow design also prioritizes data synchronization to support informed decision-making.

3. Transportation Management Systems (TMS)

Both WMS and TMS software form the backbone of transportation and logistics operations. Their integration bridges the gap between warehouse operations and transportation planning to enable a cohesive supply chain strategy.

This strategy further maximizes efficiency, minimizes costs and ensures timely and accurate deliveries.

Moreover, when these technologies communicate, decision-makers can benefit by using the data gathered to make informed choices about inventory management, transportation route optimization and resource allocation.

4. Ecommerce

The growth of eCommerce makes shopping cart and eCommerce platform integrations a necessity. You can automate the entire order fulfillment process by integrating your WMS with platforms like Shopify, BigCommerce or WooCommerce.

For instance, when a customer places an order on your eCommerce site, this information is automatically sent to your WMS. The WMS then processes the order, updates inventory levels and sends back shipping confirmation once the order is dispatched.

This integration can help you dodge stockout and overselling risks with constant, real-time visibility into your stock. Such value makes it no surprise that the eCommerce warehouse market is expected to hit a value of $832.8 billion by the end of 2023.

Other integrations, like mobile barcode systems, can also keep things flowing.

5. Material Handling Equipment

There are numerous options for integrating machines to handle and move products around the warehouse. Pick-to-light tools, automated storage and retrieval systems (AS/RS), conveyors and other warehouse automation are huge efficiency boosters. They can work alongside your human resources to boost productivity, improve picking and packing accuracy, and more.

These advantages are causing massive growth in the global materials handling market, to the tune of $194.2 billion in value by the end of 2023. The adoption of robotics is a warehouse automation trend to keep an eye on as more warehouses integrate these devices into their daily operations.

Robotics isn’t the end of the human warehouse employee. These tools let them focus on more than mundane picking tasks and shift to more valuable tasks.

6. Customs Management Software

Dealing with international operations is hard enough, especially when it comes to moving products across borders. Customs, while already a massive headache, doesn’t have to be so painful.

For businesses dealing with international shipping, this integration is extremely beneficial. It manages all the administrative customs tasks, and integrating it with your WMS can optimize declarations and perform necessary checks before sending anything forward. This aspect is a game-changer for businesses dealing with complex shipping operations.

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Primary Benefits

Multiple system integration can offer several advantages. Let’s look at some of the detailed benefits.

Increase Efficiency

Seamless integration with ERP and eCommerce platforms enables automatic order processing and reduces manual intervention. It triggers efficient picking, packing and shipping processes.

Optimized inventory management provides real-time inventory level visibility to prevent stockouts and overstock situations. Maintain optimal inventory levels based on demand and order history.

Enhance operational transparency by allowing stakeholders to monitor and track goods movement.

Facilitate Quick Responses

Share real-time data between systems for inventory levels, order statuses and shipment updates. Provide instant order fulfillment visibility and system updates after completing the picking, packing and shipping process.

Accurate and immediate inventory information prevents overselling, stockouts and delays. Customers can receive notifications, tracking details and order confirmations without delays.

Trigger alerts and notifications during inventory shortages or delayed shipments to prevent disruptions.

Reduce Costs

Automation reduces manual labor, leading to cost savings on wages and labor-related expenses. It also negates errors associated with manual data entry and processing. It avoids overstocking and stockouts and minimizes carrying costs and costly emergency restocking.

Streamline order fulfillment processes and reduce the time between order placement and shipment. Minimize carrying costs associated with excess inventory, such as storage fees, depreciation and obsolescence.

It can reduce transportation costs by minimizing fuel consumption, optimizing routes and reducing empty miles.

Improve Services

Insights into customer preferences, purchase history and interactions enable personalized customer service and targeted marketing efforts. Provide a holistic view of customer interactions and order status.

Real-time data sharing allows for quick issue identification and resolution. Minimize service disruptions and downtime to facilitate continuous operations.

Streamline the returns process by providing a hassle-free return experience.

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Choosing the Right WMS Integration

Choosing the right WMS integrations is crucial for optimizing your warehouse operations. Here are five steps to guide you:

1. Assess Your Requirements: Understand your warehouse processes and identify key pain points. Determine the specific functionalities needed from a WMS integration, such as inventory management, order fulfillment, shipping or reporting.
2. Research Available Options: Explore different WMS integrations on the market. Consider factors like scalability, ease of use, implementation timeframes, compatibility with existing systems and customization capabilities.
3. Prioritize Integration Compatibility: Evaluate how well a potential WMS integration can seamlessly integrate with your existing software systems, such as ERP or eCommerce platforms, to ensure smooth data transfer between systems.
4. Consider Customization Capabilities: Determine whether the WMS integration offers flexibility in tailoring workflows or adding new features to align with your unique business requirements.
5. Test and Review: Request demos or trials of shortlisted WMS integrations to get hands-on experience with their functionality. Seek feedback from current users by reading reviews or getting in touch with references provided by vendors before finalizing your choice.

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Next Steps

WMS integration is vital for optimizing warehouse operations and streamlining the supply chain. You can hone in on the perfect tools by assessing requirements, researching options, prioritizing compatibility, and thoroughly considering customization and testing.

Jumping headfirst into a WMS solution search can be overwhelming. Let our free comparison report guide you with apples-to-apples views of how the top vendors measure up to your requirements.

What warehouse integrations have you successfully implemented? How have they changed your processes? Let us know with a comment!