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Choosing between WMS and ERP: What you need to know
If you run a wholesale distribution business, you’ve probably felt the pressure. Orders are coming in faster than ever. Customers expect next day delivery, and keeping your stock under control feels like a full time job. You know the right technology could make life easier, but one question keeps coming up: Should you invest in a Warehouse Management System (WMS) or a full Enterprise Resource Planning (ERP) solution?
Here’s the thing: This isn’t just an IT decision. It’s about finding the system that will help you stay competitive, keep costs in check, and set your business up for growth, without creating more headaches along the way.
Let’s break it down.
What is a WMS?
A Warehouse Management System (WMS) is software built specifically to manage and streamline what happens inside your warehouse.
What it’s great at:
Tracking inventory in real time
Managing picking, packing, and shipping
Supporting barcode scanning and automation
Helping you prioritise labour and tasks
If your main challenge is warehouse efficiency, a WMS can be a game-changer. It’s built for accuracy and speed. For example, if your team spends too much time manually picking orders or fixing stock errors, a WMS can slash mistakes and speed things up.
Best suited for:
Businesses with complex warehouse operations
High-volume distributors running multiple sites
Companies where speed and precision in the warehouse are everything
What is an ERP?
Enterprise Resource Planning (ERP) software, like MYOB Acumatica, looks at the bigger picture. Instead of focusing on the warehouse alone, ERP connects your finance, sales, purchasing, inventory, and even customer management in one place.
What it’s great at:
Core warehouse functionality (inventory tracking, order management)
Financial and accounting integration
Purchasing and supplier management
Real time reporting and dashboards
Optional modules for CRM, manufacturing, and more
ERP gives you a single source of truth across your business. Sales can see stock levels before they promise delivery dates, finance can keep an eye on margins, and managers can make smarter calls with the right data in front of them.
Best suited for:
Mid-sized distributors who need more than just warehouse control
Businesses planning for growth and scalability
Teams that want full visibility across finance, operations, and inventory
WMS vs ERP: What’s the difference?
While WMS and ERP overlap in a few areas, their focus is different.
Functionality:
WMS: Specialised warehouse features like wave picking or slotting optimisation.
ERP: Broader business management that covers your warehouse plus finance, purchasing, and more.
Cost and implementation:
WMS: Usually cheaper upfront, but you’ll still need extra systems for finance and reporting.
ERP: Bigger initial investment but fewer disconnected tools in the long run.
Scalability:
WMS: Great if you only need to scale warehouse operations.
ERP: Built to scale with the whole business, not just one department.
When to choose WMS over ERP (and vice versa)
If you’re a single warehouse distributor and your main challenge is getting better control over stock, ERP with built in warehouse features is often enough. You’ll get operational visibility and financial oversight without juggling multiple systems.
But if you run several warehouses, deal with high-volume fulfilment, or need advanced warehouse tools, pairing ERP with a WMS might be the smarter path. You get the benefits of specialist warehouse software while keeping finance, purchasing, and reporting in the same system.
How businesses grow into ERP + WMS
For many wholesale distributors, the most cost-effective move is to start with ERP and add WMS later.
Stage 1: ERP as the foundation
Start by bringing finance, purchasing, and inventory management together in one platform. This gives you a clear view of what’s happening across the business.
Stage 2: Streamline warehouse operations
Leverage ERP’s built in warehouse tools like barcode scanning and automated stock updates to reduce manual work and prevent errors.
Stage 3: Add WMS for advanced needs
When your business grows, more warehouses, bigger order volumes, complex fulfilment, you can integrate a WMS with ERP. This way, you keep everything connected while adding the warehouse-specific tools you need.
This phased approach means you can scale up without overspending too early.
How to decide
Here are a few questions to help you figure it out:
Where’s the pain right now? Is it in your warehouse accuracy, or is it bigger than that, finance, purchasing, visibility?
How complex is your operation? One warehouse with a manageable product range is very different from a multi-site distributor with thousands of SKUs.
Will it scale? Think about not just today but where you’ll be in two or three years.
Do you want one system or many? ERP consolidates everything. WMS is highly specialised, but you may still need to connect it to other tools.
Bringing it all together
For most wholesale distributors in Australia and New Zealand, ERP is the best starting point. It gives you the core warehouse tools you need, plus visibility across finance, sales, and purchasing, without the headache of managing multiple systems.
And if your business grows to the point where you need advanced warehouse features? ERP makes it easy to add WMS later, without starting from scratch.
The bottom line? Get the right system for where you are now, but choose one that can grow with you. That way, you stay in control, no matter how fast things move.
FAQ: WMS vs ERP
Is WMS part of ERP?
Not exactly. ERP includes basic warehouse features, but WMS is a specialised tool for advanced warehouse operations. ERP can integrate with WMS if your needs grow.
Can I start with ERP and add WMS later?
Yes. Many businesses begin with ERP to centralise finance and operations, then add a WMS module or integration once their warehouse complexity increases.
Which is better for a growing distributor?
If you’re small to mid-sized, ERP is often the better starting point. It reduces system silos and gives you a single source of truth across the business.
Will ERP replace my need for WMS?
It depends on your complexity. For simple warehouses, ERP may be enough. For high-volume operations with multiple sites, ERP plus WMS integration is ideal.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
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