MEMO · TO readers evaluating a workshop or a speaker · RE Operations & Systems

Insights Operations & Systems

Your WMS and your ERP probably don't agree with each other

A warehouse management system rarely closes the gap it was bought to close. The gap usually sits at the handoff into the ERP, where someone still reconciles the two systems by hand, and that reconciliation step is where the real cost of a warehouse project sits.

Download branded PDF report
Veronica Loh

About the author

Veronica Loh

Co-Founder & Head, Operations · Managing Director & Chief Sustainability Officer

Co-founder and Head of Operations at Praxora Lab, and Managing Director and Chief Sustainability Officer of Orion Five Engineering, with twenty-six years managing business operations across logistics, food technology R&D, manufacturing mechanisation and digitalisation in Singapore and the region.

Read the full profile ›

Most warehouse automation projects get scoped as a WMS purchase, and most of them under-deliver against that scope. The reason is rarely the software: it is the handoff between the WMS and the ERP sitting beside it, where someone still keys the same movement twice because the two systems were never told to agree. That handoff is invisible in a sales demo and expensive in production. It shows up as a stock count that is technically correct in one system and stale in the other, a purchase order raised against a number nobody has checked since the morning shift, and a reconciliation spreadsheet that has quietly become someone's full-time job.

The reconciliation step costs more than the headcount it visibly occupies: a duplicate entry point, every movement keyed once for operations and once for finance, with drift between the two the moment either lags; a stock figure only as current as the last manual sync, which on most floors is once a shift at best; an audit trail that exists in two places and agrees in neither, the first thing a stocktake discrepancy exposes; and a cost that scales with transaction volume rather than with the value the reconciliation is protecting.

Exhibit · Zebra's 2023 Warehousing Vision Study

Two sides of the same building

  • 82%

    of warehouse associates say better inventory tools are needed

  • 69%

    of decision-makers had automated workflows or planned to by 2024

Zebra's 2023 Warehousing Vision Study, interviews with more than 1,400 warehouse decision-makers and associates, found 82 percent of associates and 76 percent of decision-makers saying their facility needs better inventory management tools to get accuracy and availability right, and 69 percent of decision-makers said they had already automated workflows or planned to by 2024. None of those figures describe the WMS in isolation. They describe the same symptom from two sides of the same building: the record of what is on the floor and the record the business runs on do not update on the same clock, and the gap between the two clocks is where the inaccuracy actually forms.

One of our own logistics deployments replaced exactly that manual step. A government client's asset and inventory system tags stock the moment it enters, at manufacturing, distribution, or receipt, so identification happens by scan rather than by search, and a real-time dashboard gives managers constant visibility of what is currently on loan rather than a periodic physical count. The reconciliation step did not get faster there. It stopped needing to exist, because there was one live record instead of two records taking turns being current. That is the shape of the fix in general: not a bigger WMS, but one boundary where the two systems are made to share a record, checked at the interface rather than at month end.

Exhibit · Before buying either system

What to check

  1. 01

    One identifier per SKU and location

    Or is mapping between two sets of codes left to whoever configures the integration later?

  2. 02

    Same-transaction updates

    Does a stock movement update both systems together, or is one authoritative and the other a nightly copy?

  3. 03

    Who reconciles today

    How many hours a week it takes them, and whether that time was costed into the automation business case.

  4. 04

    Tested against a real discrepancy

    Is the integration tested against a real stocktake discrepancy before go-live, not only a clean demo dataset?

Reference

This piece is adapted for Praxora Lab from the original. Originally published at orionfive.ai ›

Dr. Jayarethanam Pillai

Before you go

Two systems that do not agree with each other, reconciled by hand at real cost, is an organisational failure dressed up as a software gap, and Veronica's account of it matches a pattern I have watched across very different institutions: a technically correct record in one system and a stale one in another, with a staff member's unpaid attention quietly holding the gap closed. Her point that the fix was not a bigger system but one shared boundary, checked at the interface rather than at month end, is a smaller and more honest claim than most integration proposals make, and I trust it more for being smaller.

Signature, Jayarethanam Pillai