How are attitudes in logistics and warehousing departments changing?
What is the main driver of change in warehouses? If we ask logistics professionals, they will undoubtedly point to the growth of multichannel retail. It is online sales that are transforming the face of logistics—a sector that is growing worldwide. Below, we present statistics on e-commerce growth in the European Union in recent years.
It is estimated that by the end of 2024, as many as 74% of Internet users will make online purchases. The frequency and volume of these purchases will continue to grow in the coming years.
E-commerce - The Unique Characteristics of Multichannel Retail
Why does logistics need to change to meet the demands of e-commerce? Can’t orders from online stores be processed the same way as those from other channels? The answer depends on the specific nature of multichannel retail, and in particular on:
- the volume and frequency of customer orders,
- service quality requirements, particularly regarding shipping speed,
- the need to process returns,
- specific requirements regarding packaging and the choice of transportation,
- seasonality and the associated need for rapid scalability of operations.
All these factors mean that running an e-commerce business requires the right IT tools to optimize warehouse processes. Among the most popular are WMS-class systems, as well as ERP systems.
ERP Systems as a Logistics Support Tool
An ERP (Enterprise Resource Planning) system is an integrated software solution used to plan and manage an organization’s resources. As the name suggests, it covers all areas of a company’s operations—from finance, through human resources, sales, and purchasing, to logistics.
Unlike systems that focus on a single aspect of business operations, ERP integrates all processes within a single IT platform, eliminating the need to combine different tools.
In logistics, ERP enables the tracking of tasks—from the moment a customer places an order all the way through to the shipment of goods from the warehouse. Integration with other modules allows logistics activities to be triggered by events in other areas (e.g., a placed order).
WMS System – IT-Based Warehouse Management
Unlike ERP planning systems, WMS (Warehouse Management System) solutions are strictly management tools focused on organizing warehouse processes. A WMS system is typically a standalone solution integrated with an ERP system via interfaces.
WMS manages the entire lifecycle of goods in the warehouse: from receiving, through storage, to order fulfillment and shipping. It enables:
- optimal use of warehouse space,
- organizing the operators’ work in a way that ensures timely completion,
- minimizing errors,
- selecting the right shipping packaging and reducing shipping costs,
- integration with warehouse automation systems,
- rapid scaling during periods of increased demand,
- efficient handling of returns
All of this makes WMS an indispensable tool in e-commerce logistics.
WMS or ERP – Summary
It is impossible to definitively say which system—ERP or WMS—will be better without knowing the specifics of a particular company. One thing is certain (and our experience confirms this): once a certain level of revenue and operational complexity is reached, both systems become indispensable.
ERP is responsible for the formal recording of processes across the entire enterprise, while WMS is used to manage and optimize warehouse processes—on an ongoing and comprehensive basis. The integration of both systems yields the best business results.
