WMS? WCS? WES? ERP? WTF?!
The supply chain software space for warehousing is a veritable alphabet soup of acronyms. Do you need a WMS? WCS? WES? ERP? WTF?!
Here’s a quick overview of some of these software products, and how they fit into the warehousing ecosystem.
Warehouse Management System (WMS): WMS software is all about controlling the movement and storage of inventory in a warehouse or distribution center, cost-effectively and efficiently. A WMS keeps track of items picked, packed, shipped and received, and typically incorporates hardware such as mobile computers, barcode scanners, and radio frequency identification (RFID) technology to track the storage and movement of goods. A WMS is a “stand alone” solution, and is generally supported by additional software that handles accounting and customer relationship management. For more extensive analysis and a comparison of a WMS, WCS, and WES, this pdf is useful.
Warehouse Control System: WCS software is all about the flow of goods throughout a warehouse, and traditionally found in highly automated facilities, where the solution manages automated equipment like conveyors, sorters, pick to light, and the like and provides operators with real time data. Most WCS’ do not typically have the ability to interact with an ERP system, but do typically include features like pack and ship sort management, pick-to-light and put-to-light management, mobile and fixed scanner integration and the like.
Distribution Center (DC): In a warehouse, the main priority is to efficiently store products. A “DC,” by comparison, is typically structured differently, and has been described by some as needing to satisfy the rule that the “required quantity” of a product be in the “right place and the right time.” Source: (https://blog.intekfreight-logistics.com/warehouse-vs-distribution-center-explained)
Warehouse Execution System (WES): A WES is a newer player in the warehouse software solutions scene, and is best thought of as a hybrid of a WMS and WCS. It bridges the gap between a WMS and WCS, and is often considered to be a more inclusive solution, especially for a small to mid-sized operation. Although there is not a standardized definition for what constitutes a WES, many will include features like basic receiving, shipping management, inventory and replenishment management, pack and ship management, and automated pick management and zone skipping.
Enterprise Resource Planning (ERP): Compared to the standalone WMS solution, an ERP is an all-in-one solution, but doesn’t offer the benefits of optimizing inventory based on real-time information.
We hope this clarifies some of the acronyms in the warehousing and logistics space!