Three benefits of a best-of-breed WMS

As soon as warehouse management systems (WMS) began being integrated into enterprise resource planning (ERP) platforms, the debate over best-of-breed vs. best-in-class solutions has persisted—and there's no sign of it ending soon.

Today, there are many scenarios where an ERP platform might make more sense, especially as data moves to the cloud and software updates can be delivered seamlessly. However, the advantages of a best-of-breed WMS remain significant, particularly in terms of advanced functionalities such as transport logistics or machine tool nesting programs. These advantages should be carefully weighed against future company growth and budget considerations.

What’s the difference?

Best-of-breed is a term frequently used in software circles but not always clearly defined. A best-of-breed WMS refers to a standalone WMS that is considered the best product of its type. For almost all best-of-breed software, you’ll be purchasing a specialized product directly from a single vendor, while best-of-breed applications for other departments may come from different developers.

So, if you opt for a best-of-breed WMS, you won’t be getting it from the same company that provides your HR program or your ERP system.

In contrast, a WMS integrated as an ERP module is a warehouse control platform that’s already embedded as part of your resource management system. This software natively works with your ERP and other systems from the outset, but it might not have been designed by a company that specializes in warehouse management.

Here are a few reasons why you might prefer a standalone WMS.

1. You need specific capabilities

Best-of-breed WMS platforms are typically designed to meet both standard warehouse requirements and industry-specific needs. While you may need to customize a standalone WMS to some extent, you’ll generally require less customization compared to an integrated ERP module.

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Selecting the standalone WMS will often mean you get the picking configurations plus asset and people management tools you need to run efficiently and adapt to changes.

While integrated ERP modules are catching up in this area, their improvements are often limited to where the ERP vendor has purchased or licensed a WMS platform. You’re often still working with a system primarily designed for broader business operations, which might overlook the complexities of warehouse management or require more extensive customization—a challenge that can become complicated in systems trying to cover all business functions.

2. You like what you already have

In the past, ERP systems were the clear winners in terms of integration and ensuring seamless communication across all business functions. However, this advantage has diminished as large best-of-breed WMS developers have focused on enhancing their integration capabilities with popular systems.

If you already have existing management systems, vendor portals, or an ERP that does not include a WMS module, it might be more beneficial to focus your search on a standalone WMS that is compatible with your current software.

The integration priorities of ERP platforms and standalone WMSs also tend to differ. An ERP will prioritize integrating core business functions such as payroll and purchase orders, with a focus on what is most vital for your company as a whole.

In contrast, a WMS developer will focus their integration efforts on functions critical to your warehouse, such as parcel shipping, consolidating less-than-truckload (LTL) shipments, and incorporating sophisticated picking rules.

If you’re satisfied with your existing payroll and other platforms, a standalone WMS likely makes more sense.

3. You need the WMS first

A best-of-breed WMS often makes the most sense when warehouse control is your top priority, and you don’t have the budget or infrastructure to implement a full-scale ERP.

This situation can be tricky because you must consider the future to ensure that a standalone WMS is the right investment. If there’s uncertainty about your need for an ERP in the future, look for a WMS from an established company that is already working to integrate with ERP and other platforms.

Buy what you need now, but always keep future expansion in mind to ensure long-term satisfaction with your decision.

Conclusion

In the ongoing debate between best-of-breed vs. best-in-class warehouse management solutions, it's crucial to evaluate your company's specific needs, existing systems, and future growth plans. A best-of-breed WMS can offer unmatched functionality tailored to your industry and operational requirements, especially when warehouse management is a core focus of your business.

While ERP modules provide broader integration across all business functions, they may not always capture the intricacies of warehouse operations as effectively as a specialized WMS. Ultimately, the right choice depends on your current infrastructure, budget, and long-term strategy.

Choosing the right WMS is not just about immediate benefits but also about ensuring that your system can grow with your business. Whether you opt for a standalone WMS or an integrated ERP module, the key is to make a well-informed decision that balances today’s needs with tomorrow’s possibilities.

TL;DR

What is a best-of-breed WMS?

A best-of-breed WMS is a standalone warehouse management system that is considered the best product of its type. Unlike integrated ERP modules, which are part of a broader resource management system, a best-of-breed WMS is specifically designed to handle warehouse operations, often offering more advanced and specialized features.

How does a best-of-breed WMS differ from an ERP module?

A best-of-breed WMS is a specialized software focused solely on warehouse management, whereas an ERP module is part of a larger enterprise resource planning system that handles multiple business functions. While ERP modules offer broader integration, they may lack the deep, industry-specific functionalities that a standalone WMS can provide.

What are the advantages of using a best-of-breed WMS?

The primary advantages of using a best-of-breed WMS include specialized functionality tailored to warehouse management, the ability to integrate with existing systems, and the flexibility to meet industry-specific needs without extensive customization. This makes it an ideal choice for companies that prioritize warehouse efficiency and operational excellence.

When should I consider using an integrated ERP module instead of a best-of-breed WMS?

An integrated ERP module may be more suitable if your company requires a unified system that manages multiple business functions beyond just warehouse management. It’s also a good choice if you have a limited budget and need an all-in-one solution, or if your warehouse operations are relatively straightforward and don’t require specialized features.

Can a best-of-breed WMS integrate with my existing ERP system?

Yes, many best-of-breed WMS platforms offer robust integration capabilities with existing ERP systems and other business software. This allows you to maintain the specialized features of the WMS while ensuring seamless communication across your organization’s various systems.

How do I choose between a best-of-breed WMS and an ERP module?

The choice between a best-of-breed WMS and an ERP module depends on your specific operational needs, existing software infrastructure, budget, and future growth plans. If warehouse management is a critical part of your business and requires advanced, industry-specific features, a best-of-breed WMS is likely the better option. However, if you need a comprehensive system that handles multiple business functions and offers broader integration, an ERP module might be more suitable.