Enterprise Architecture

Traditionally, ERP systems lacked WMS capabilities due to technological and architectural differences. However, with the advent of cloud technology, modern systems now include basic WMS features for mid-market users, eliminating concerns about complex integration or the need for a separate WMS package. Nevertheless, companies, even with simpler operations, often outgrow these basic capabilities and find the need for best-of-breed WMS software.

Once you reach this stage, the next step is to identify the most suitable best-of-breed WMS software. A crucial consideration emerges for companies with a 3PL focus, even if it constitutes a minor component of their business model. As distributors seek diversification, many explore 3PL offerings, leading to a warehouse architecture distinct from the traditional approach closely tied to inventory accounting. Moreover, the requirements for accelerated transactions and round-the-clock operations highlight the essential need for a dedicated warehouse management system.

With technological advancements, warehouse architecture has undergone significant evolution, comprising three key components: the warehouse management system (WMS), warehouse execution system (WES), and warehouse control system (WCS). The control system’s role is to transmit commands, facilitate integration with hardware, and ensure smooth coordination. The warehouse management system primarily handles data and inventory management, while the execution component unifies these functions. WMS solutions may offer some or all of these capabilities, often bundled with additional systems in their suite. Now, let’s explore the top 10 WMS systems in 2024.

Criteria

• Overall market share/# of customers. How large is the market share of this WMS product? WMS vendors‘ overall market share is irrelevant for this list if they have multiple WMS products in their portfolio. 
• Ownership/funding. Who owns the WMS vendor? Is it a private equity company, a family or a group of families, or a wealthy corporate investor?
• Quality of development (legacy vs. legacy dressed as modern vs. modern UX/cloud-native). How modern is the tech stack? Not clunky! How aggressively is the WMS vendor pushing cloud-native functionality for this product? No fake clouds! Is the roadmap officially announced? Or uncertain?
• Community/Ecosystem. How vibrant is the community? Social media groups? In-person user groups? Forums?
• Depth of native functionality (for specific industries). Last-mile functionality for specific industries natively built into the product?
• Quality of publicly available product documentation. How well-documented is the product? Is the documentation available publicly? How updated is the demo content available on YouTube?
• Product share and documented commitment (of the publisher through financial statements). Is the product share reported separately in financial statements if the WMS vendor is public?
• Acquisition strategy aligned with the product. Are there any recent acquisitions to fill a specific hole with this product? Are there any official announcements to integrate recently acquired capabilities?
• Maturity of the Supply Chain Suite. How mature are other capabilities that would augment WMS, such as TMS, WMS, S&OP, and the network?
• User Reviews. How specific are the reviews about this product’s capabilities? How recent and frequent are the reviews?
• Must be a WMS product. Must be a recognized WMS product by several analyst firms with a proven track record and market share.

10. Tecsys 

Tecsys specializes in serving healthcare and retail sectors, offering unique capabilities tailored to specific verticals, particularly in point-of-use inventory management. While many WMS vendors may include hardware or have partnerships for devices and ASRS systems, Tecsys stands out with its focus on specialized hardware and interfaces crucial for point-of-use systems, which could be costly to develop on generic WMS platforms. 

These sectors also benefit from Tecsys’ robust multi-location inventory features, facilitating seamless goods transfer across various locations. Opt for Tecsys if you’re a mid-market healthcare or retail organization, especially if you have distinct needs they uniquely address.

Pros

1. Point-of-use inventory management, with specialized hardware and interfaces, is crucial for traceability.
2. Multi-location Capabilities are suitable for facilities with diverse locations, such as hospitals or retail businesses.
3. eCommerce and retail-friendly with an integrated Order Management System (OMS), catering to budget-conscious mid-market Direct-to-Consumer (DTC) and e-commerce-centric companies.

Cons

1. Outdated technology compared to some modern cloud-native options.
2. Not a comprehensive suite like larger players such as Blue Yonder and Manhattan, lacking a full supply chain suite.
3. Limited ecosystem and consulting options compared to other alternatives on the list.

9. Mobe3 WMS

Mobe3 WMS is among the more compact solutions featured on this list, commonly integrated into smaller ERP ecosystems. Despite its size, it boasts rich features tailored to support the specific requirements of smaller warehouses, particularly in process and batch-centric industries. 

These industries demand specialized capabilities, such as pallet and lot attributes, integrated into the solution. Opt for Mobe3 WMS if you are a small organization seeking a cost-effective and easily implementable WMS tool.

Pros

1. iOS-friendly and cloud-native, uniquely designed for iOS interfaces, making it one of the few cloud-native WMS systems.
2. Advanced capabilities for SMBs, including features like measuring picking metrics, surpassing expectations for its size.
3. Advanced capabilities for process and batch manufacturing, offering support for lot attributes, bin attributes, and pallet attributes crucial for advanced slotting and cross-docking.

Cons

1. Technology and compatibility issues with some devices require careful consideration of device compatibility.
2. Reports of software bugs from some users, indicating potential stability concerns compared to larger vendors.
3. Not suitable for enterprises, lacking the transaction processing capabilities required by larger organizations.

8. Logiwa WMS

Logiwa WMS is tailored for eCommerce and parcel-centric operations, excelling in various aspects of warehouse management, including WMS, WCS, and WES. While its capabilities are robust, they may not be as comprehensive as those offered by some other enterprise solutions featured on this list. Opt for Logiwa if you require a cloud-native, feature-rich WMS designed for mid-size warehouses with a focus on parcel-centric operations.

Pros

1. Ideal for eCommerce and parcel-centric operations, making it particularly well-suited for businesses in these sectors.
2. Feature-rich, offering advanced capabilities typically found in mid-size WMS systems, although not as advanced as some enterprise solutions.
3. Cloud-native UI/UX, providing an intuitive interface and user experience. Encompasses capabilities across WMS, WCS, and WES, including integration with ASRS systems and AGVs.

Cons

1. Learning curve, requiring users to adapt to the system, especially if they lack prior experience with WMS solutions.
2. Not as user-friendly as simpler WMS systems like Mobe3, necessitating training and implementation efforts.
3. Limited coverage for complex enterprise modes, primarily designed for parcel-centric operations, makes it less suitable for warehouses with diverse modes.

7. Softeon

Softeon caters to a customer base similar to Infor WMS, focusing on the upper mid-market segment. However, it lacks proven experience with enterprise customers compared to some other solutions on this list, and it might be too robust for smaller companies. 

Consider Softeon if you are a mid-sized organization in search of an advanced WMS that not only offers additional capabilities like distributed order management but also supports crucial batch processing required for larger warehouse operations.

Pros

1. Robust batch capabilities, addressing the needs of mid-sized companies that have outgrown basic barcoding solutions.
2. Seamless integration with other solutions included in the suite, streamlining the connectivity between different components like distributed order management.
3. Distributed order management capabilities are beneficial for high-volume retail and distribution organizations managing complex transactions, including micro-fulfillment operations.

Cons

1. Not tailored for enterprise-scale operations. lacking a proven track record with larger companies.
2. Requires third-party add-ons for enterprises needing additional supply chain capabilities, making the suite less comprehensive than larger solutions like Blue Yonder or Manhattan.
3. May be too intricate for very small operations, with layers supporting batch processing potentially overwhelming for companies with minimal scale.

6. Infor WMS

Infor WMS is tailored for distributors in the upper mid-market segment, particularly prevalent in manufacturing industries, with a notable focus on verticals where solutions like Infor LN and M3 hold prominence. This is particularly applicable to sectors such as Automotive, Aerospace, Fashion, and Industrial distribution. If you are a mid-market manufacturer, especially considering or already utilizing Infor LN or M3 ERP systems, Infor WMS might be a suitable choice.

Pros

1. Seamless integration with other Infor ERPs. Infor WMS offers pre-integrated solutions with Infor LN and M3, addressing the inherent challenges of ERP-WMS integration, especially for manufacturers already leveraging these ERP systems.
2. Comprehensive supply chain capabilities. In addition to WMS, Infor WMS incorporates various supply chain offerings, including S&OP and visibility platforms, making it comparable to larger supply chain suites like Blue Yonder or Manhattan.
3. 3D warehouse functionality. The unique 3D warehouse capability is particularly advantageous for larger warehouses, enhancing operational efficiencies through a virtual 3D layout.

Cons

1. Limited suitability for large enterprises. While excelling in upper mid-market warehouses, Infor WMS might not be the optimal choice for high-volume warehouses with smaller dollar transactions.
2. Weakness in TMS execution. The Transportation Management System (TMS) component is not as robust, necessitating the adoption of a best-of-breed TMS execution product to align with more robust suites like Blue Yonder.
3. Suboptimal for 3PL. While possessing capabilities similar to SAP EWM, Infor WMS is not tailored for 3PL perspectives, lacking in-depth compliance, freight audit features, and dispatch and rate shopping functionalities typically essential for 3PL operations.

5. Oracle WMS

Oracle WMS is well-suited for expansive transactional warehouses seeking a dedicated supply chain layer to manage high transaction volumes, 24/7 operations, or the warehouse architecture of a 3PL business model. It is particularly advantageous for enterprises desiring comprehensive supply chain capabilities within a unified suite, especially if already integrated with Oracle Cloud ERP. If you are a large enterprise, particularly leveraging other Oracle products like ERP or RMS, Oracle WMS may be a suitable choice.

Pros

1. Complete suite for a comprehensive tech stack. Oracle WMS integrates various supply chain capabilities, including RMS, S&OP, TMS, etc., offering a comparable feature set to other expansive suites like Blue Yonder and Manhattan.
2. Pre-integration with other Oracle apps. Oracle WMS seamlessly integrates with other Oracle applications such as ERP and TMS, eliminating the need for expensive custom integration efforts, making it suitable for large enterprises.
3. Proven for high transaction volumes. Oracle WMS has demonstrated its effectiveness in managing millions of transactions and large, busy warehouses and operations.

Cons

1. Overwhelming for smaller companies. The data model and product design may pose challenges for smaller organizations, introducing additional steps and operational overhead.
2. Dependency on add-ons for specific capabilities. Oracle lacks native capabilities for network, data, and maps, relying on partners to provide these features, limiting its execution capabilities.
3. Expensive customization for compliance workflows. Implementing compliance workflows not pre-built into the core requires substantial development and consulting efforts, contributing to higher customization costs compared to other solutions.

4. SAP EWM

SAP EWM caters to enterprise-grade warehouses and distribution companies, especially those with a 3PL business model, particularly when integrated with other SAP solutions like SAP S/4 HANA. However, it may not be the best fit for smaller warehouses operating on a limited consulting budget. Opt for SAP EWM if you are a large distribution company with a global presence, particularly leveraging other SAP products such as SAP S/4 HANA or SAP Hybris.

Pros

1. Support for both decoupled and embedded architecture. This flexibility enables companies to facilitate 24/7 warehouse operations and accommodate the unique warehouse architecture demands of a 3PL business model, distinct from the financial representation in the ERP system.
2. Power of HANA. Leveraging the robust capabilities of HANA, SAP EWM can efficiently handle the demanding workloads of Fortune 500 organizations, providing a competitive edge compared to solutions that might struggle with such volumes.
3. Advanced capabilities for 3PL. SAP EWM offers features tailored for 3PL operations, including support for value-added services integral to the 3PL business model, and enhancing capabilities for billing and service offerings.

Cons

1. Too big for smaller companies. The complex data model of SAP EWM may pose challenges for smaller organizations seeking streamlined systems without the overhead crucial for larger enterprises.
2. Learning curve and expensive implementation. Implementing SAP EWM involves a significant learning curve and substantial implementation costs due to the system’s complexity.
3. Expensive. In comparison to other solutions on this list, SAP EWM’s pricing may not be as accommodating for smaller organizations.

3. Korber/HighJump 

Korber/HighJump serves mid- to upper-mid-sized companies seeking an integrated suite, including last-mile capabilities. Although Korber/HighJump features various integrated components like TMS, DSD, and freight audit capabilities, it may not offer the same level of comprehensiveness as some other solutions on this list. Opt for Korber if you have graduated from standalone, smaller WMS systems and require a suite with advanced WMS capabilities tailored for mid-market companies.

Pros

1. Fairly comprehensive suite for both WMS and TMS. Korber’s suite encompasses several pre-integrated components, providing advantages not found in smaller solutions like mobe3.
2. Pre-integrated WMS and TMS. The pre-integrated WMS and TMS offered by Korber are particularly beneficial for mid-market companies, eliminating the need for extensive integration efforts required by standalone WMS and TMS systems.
3. DSD capabilities. Korber addresses the needs of companies in the DSD space, offering specialized capabilities such as proof of delivery, in-house fleet management, and unique dispatch and scheduling features based on routing or priority.

Cons

1. Issues with pre-baked integration. While Korber provides pre-baked integration, thorough vetting of integration flows based on specific requirements may be necessary. Custom integration might be required if existing flows prove insufficient for particular use cases.
2. Not a complete Supply Chain suite. Compared to other suites on this list, Korber may lack some comprehensive capabilities, such as integrated S&OP and control tower features that are more expansive in other solutions.
3. Not for enterprises. Unlike proven solutions such as Blue Yonder and Manhattan, Korber may not have as extensive experience with large accounts.

2. Blue Yonder

Blue Yonder boasts the strongest supply chain suite, coupled with advanced WMS capabilities, well-established in enterprises, particularly within high-volume retail companies. However, Blue Yonder may not be suitable for smaller businesses. Opt for Blue Yonder if you are a large enterprise, especially in the retail sector, seeking a comprehensive supply chain suite seamlessly integrated with a WMS.

Pros

1. Enterprise-grade WMS with pre-built components. Blue Yonder stands out as a leading supply chain suite, validated through successful collaborations with Fortune 500 accounts.
2. Ideal for retail-centric industries. Offering advanced capabilities tailored for retailers managing extensive SKU portfolios and multiple locations, Blue Yonder excels in location-level planning.
3. Pre-integrated support for all supply chain modes. Blue Yonder provides comprehensive assistance across all supply chain modes, inclusive of a supply chain control tower with advanced AI and ML capabilities, enhancing the existing WMS features.

Cons

1. Too large for SMBs. Blue Yonder’s extensive capabilities may be overwhelming for small and medium-sized businesses seeking simpler WMS solutions.
2. Cost-prohibitive for SMBs. The expense associated with Blue Yonder may be deemed excessive by SMBs without enterprise-scale requirements.
3. Lack of a network component in the supply chain suite. A notable drawback is Blue Yonder’s absence of an owned network. Solutions with an integrated network possess enhanced data control, enabling richer insights to augment WMS capabilities.

1. Manhattan Associates

Manhattan WMS stands as one of the most robust solutions in the market, particularly excelling in high-volume retail scenarios. While Manhattan may not offer the same comprehensiveness in its Supply Chain suite, it is exceptionally well-suited for large enterprises in the food, grocery, shoe, and apparel industries. However, it may not be the optimal choice for smaller businesses. Opt for Manhattan if you are a sizable company, particularly in the food, grocery, shoe, and apparel sectors, seeking a top-tier WMS solution.

Pros

1. The suite includes a pre-integrated point of sale. Manhattan’s suite incorporates a pre-integrated point of sale, offering significant advantages for companies lacking internal IT capabilities for integration or unwilling to invest in costly integration processes.
2. Capable of handling enterprise workloads. Proven with enterprise retailers dealing with extensive transaction volumes and SKU portfolios, Manhattan demonstrates proficiency in deep planning and merchandising capabilities.
3. Effective management of complex verticals. Manhattan excels in handling unique requirements associated with inventory planning in verticals like grocery, shoes, and apparel, showcasing specialized WMS capabilities.

Cons

1. Incomplete supply chain suite. Although Manhattan’s suite covers essential execution components such as WMS, TMS, OMS, and POS, it falls short in other supply chain pillars such as S&OP and network.
2. Requires add-ons for comprehensive supply chain capabilities. Companies seeking a holistic suite experience may need multiple add-ons to match the capabilities of other Supply Chain suites like Blue Yonder.
3. Not designed for SMBs. Tailored for enterprise companies, Manhattan’s design may not be as accommodating for smaller businesses seeking simpler solutions.

Conclusion

Selecting a WMS system can be challenging, given its intersection with various software categories and evolving packaging strategies. As technology progresses, the distinctions are becoming less clear, adding to the complexity.

For those seeking a new WMS system, a crucial step is understanding your business model and transactions and aligning them with suitable software with the help of independent WMS consultants. This list aims to offer a concise starting point for further evaluation.

FAQs

ERP contracts are not as straightforward. Depending upon the engagement structure (and different parties involved), the arrangements could vary, with serious implications on the outcome. These agreements include various elements, such as relationships and obligations of different parties involved, including licensing, pricing, implementation, support, and maintenance. They set the tone for your ERP initiatives.

Misunderstandings start with the misalignment in expectations. Even if different parties claim to be aligned, they might still arise because of the language used. The same keyword could mean different things in different contexts. For example, customers might expect ERP vendors to do the heavy lifting. However, vendors might expect their role to be just advisory due to the limited budget. Even if contracts might include detailed RACI charts, there might still be layers that might cause confusion and disagreements.

Moreover, customers struggle with ERP contracts due to their myopic focus on hourly rates, pricing, and discounts, and because of this, they lose sight of details. The problems with contracts are very similar to any complex project, especially with scheduling. Because customers underestimate the complexity and expertise required to read between the lines. This article will explore the top five types of ERP contracts, discussing their nuances, benefits, and potential drawbacks.

1. Software License, Implementation,  and Support on OEM Papers

In this ERP contract arrangement, you enter into multiple contracts directly with the software OEMs. In the ERP industry, the OEM would be software publishers such as SAP, Oracle, or Microsoft. The software OEMs would not only provide the software and product support, but they would also use their professional services to help with implementation. These contracts are usually segregated into software, service, and support agreements, each serving a distinct purpose and carrying different legal obligations.

The software agreement encompasses an End User Licensing Agreement (EULA), which defines the terms and conditions for utilizing the ERP software and the accompanying IP rights. On the other hand, the services agreement focuses on the services related to implementing the ERP software. This typically includes information about the skills required, the methodology for implementing the software, project timelines, and the roles and responsibilities of both parties involved.

The support agreement specifies the support services provided for the ERP system. It often categorizes support into different tiers based on the severity of issues, sets timelines for issue resolution, and may define billing rates for additional services not covered by the initial support agreement. This agreement may also contain provisions related to warranties.

Key points to remember: OEMs are generally cautious in their consulting and support recommendations. The caution arises because any help or recommendations they provide in areas not explicitly defined in the contract may affect their obligations under the software agreement. By assuming too much risk in these areas, the software company may potentially jeopardize its software contract so they may be conservative in their approach.

2. Software Licenses on OEM Papers; Engagement with a Reseller

In this arrangement, the software contract is still with an OEM, but your primary engagement will likely be with a reseller. These resellers typically have access to the OEM’s quoting software and can provide a quote on official OEM documents.

In this arrangement, the OEM works in the background. They may not actively engage with the customer unless specific issues arise that may require their involvement, particularly if the customer’s relationship with the reseller becomes problematic. In such cases, the OEMs generally take over the reseller and might suggest switching to another reseller. In this arrangement, there are potential issues to consider:

• Discounts and Costs: The discounts and costs associated with the ERP software may change based on new resellers’ tier status. 
• Reseller Commissions: Switching to a different reseller might affect the commission structure, potentially leading to a loss of existing discounts or benefits.
• Support Costs: If the company decides to switch back to the OEM for support, this may be more expensive than receiving support from the reseller.

Key points to remember: The support for the ERP software in this arrangement can vary. Sometimes, the software OEM may still provide support directly, or the reseller might handle the first level of support. The reseller will collaborate with the OEM if more advanced support is required. Implementation contracts with resellers are usually easier to switch unless the reseller has used proprietary intellectual property (IP) in the implementation. In such cases, changing resellers can be more challenging, as the new reseller or the OEM may not possess the specific industry-specific IP needed for the system to be useful for the customer.

3. Software Licenses on Reseller’s Papers 

In this arrangement, the software vendor (OEM) transfers the legal responsibility for the software to the reseller. This means that the reseller becomes primarily accountable for the software sales, support, and any legal issues that may arise. The relationship between the OEM and the reseller remains transactional, meaning the OEM would still transact with the reseller for each transaction rather than buying in bulk. The reseller earns a commission for each sale it makes. 

However, the OEM does not control (at least not directly) the final selling price the reseller offers to customers. The OEM provides the software to resellers at a wholesale price. This wholesale price is typically lower than what end customers pay. In this arrangement, the reseller can determine the final selling price to customers. 

Key points to remember: The legal responsibility for the software product is entirely shifted to the reseller. In other words, if any legal issues or disputes arise related to the software, the reseller is held accountable. The reseller is also responsible for providing customer support for the software. Customers may contact the reseller for assistance, and the reseller is expected to resolve any issues. Additionally, the reseller may be able to customize the software to meet industry-specific needs.  It’s common for resellers in this arrangement, especially those dealing with horizontal software platforms such as SAP, Oracle, NetSuite, or Microsoft, to have their own Intellectual Property (IP) that enhances the core software. This IP may provide industry-specific functionalities that cater to the unique needs of specific business sectors or verticals.

4. Software Licenses Sold in an OEM Relationship by Software OEMs

This is a special arrangement with resellers and might be reserved only for certain territories/geographies or for very large resellers. In this arrangement, the resellers acquire licenses from their software publishers (or software OEMs) in an OEM arrangement. This agreement might be based on a volume purchase, which means the reseller commits to buying a large number of software licenses. 

In this scenario, the reseller could substantially change the software’s code, including selling under a completely new brand in a white-label arrangement. This can include customizing the software to meet specific needs, adding new features, or altering the software’s appearance. 

Key points to remember: In this situation, the reseller OEM primarily acts as the software platform provider. They focus on creating and maintaining the core software product. You might have limited or no direct interaction with the software OEM as a customer. Instead, your dealings would be mainly with the reseller OEM. Since you’re primarily dealing with the reseller OEM, you may not have access to the software OEM’s support and resources. If you encounter issues or need assistance, you typically contact the reseller OEM. If the reseller chooses to white-label the software, they may establish support and implementation services. This means they’ll provide customer support and help with the software’s deployment independently of the software OEM. They might have their dedicated support team and resources to assist you.

5. Software Licenses Sold in a Master Distributor Relationship

In this arrangement, the software OEMs may have several layers of master distributors with their respective channels to distribute the licenses. This arrangement is similar to the reseller OEM relationship in #4, where the software OEM will likely be least involved with the licensing and support. And for the most part, you are likely to deal with a master distributor. 

Key points to remember: This arrangement is especially common with companies selling hardware, but software vendors like Microsoft will likely have similar relationships even for their ERP channel. Due to the nesting of relationships and contractual dependencies, this is perhaps the most convoluted arrangement where understanding the roles and responsibilities of each party might be harder, even for ERP experts.

Conclusion

Understanding the legal obligations of each party involved is essential for the project’s success. Otherwise, get ready to face the financial and legal surprises. These relationships and arrangements can challenge even the professionals tracking the space daily. So, don’t underestimate the expertise required to understand these contracts. Hire the advisors at least for negotiation before creating a million-dollar disaster by not fully understanding what you are signing up for.

FAQs

The list of ERP business processes is endless and can seem overwhelming. However, not all these processes hold equal importance and can vary significantly depending on their interaction with the ERP system. While core processes tend to be consistent across most solutions, non-core ERP business processes vary considerably.

Various factors influence whether a business process qualifies as core or non-core. Typically, core processes are hosted within the ERP system, while non-core ERP business processes may often reside in external systems. For instance, the order-to-cash process is a classic example of a core ERP cross-function business process commonly integrated into the ERP system. Other processes like Dispatch-to-deliver and Issue-to-resolution demonstrate high levels of integration with ERP systems but may vary based on business models.

Cross-functional business processes can also undergo significant transformations depending on the industry they serve. For instance, the order-to-cash process for a manufacturing company can differ substantially from that of a transportation company, with the latter possibly residing in a Transportation Management System (TMS) rather than the ERP. Understanding these non-core ERP business processes is essential for making informed decisions about system selection and architecture, as the line between integrating them into the ERP or opting for a best-of-breed solution can be quite thin.

1. Dispatch-to-deliver

The dispatch-to-deliver business process initiates when a shipment is ready to dispatch from the facility. It involves several steps, like planning and coordinating various stages in the supply chain. It is to ultimately deliver goods to the customer and obtain their signature as proof of receipt. This business process primarily falls under the responsibility of the supply chain execution function. 

Typically, ERP systems do not include the dispatch-to-deliver process as an integral part of their functionalities. Instead, specialized systems like WMS(Warehouse Management System) or TMS(Transportation Management System) generally facilitate this process.

However, some systems available in the market offer an embedded experience for the entire dispatch-to-deliver process. Therefore, when deciding how to manage the dispatch-to-deliver process within your organization, you should consider transaction volume and architectural requirements. Depending on your specific needs, you can incorporate this process within your ERP system or introduce a dedicated WMS or TMS system into your architecture.

2. Hire-to-retire

The HR department primarily manages the hire-to-retire process. It begins with the recruitment of candidates, their onboarding, training, and monitoring of their job performance, and concludes with the necessary procedures when the company either terminates them or they leave voluntarily. 

In most cases, an HCM system facilitates this process. Generally, ERP systems do not have the functionality to host this process. However, there are instances when the hire-to-retire process interacts with ERP systems in industries where specific skills and certifications are integral to the operational processes. 

In such cases, ERP systems tailored for these industries may incorporate certain elements of the hire-to-retire process. This integration ensures that HR-related data, like employee skills and certifications, is seamlessly integrated into the broader ERP system, enabling better workforce management within the company’s overall operations.

3. Issue-to-resolution

The issue-to-resolution process is a fundamental customer service procedure that companies follow to address customer concerns and ensure the smooth functioning of their products or services. It typically commences when customers reach out with specific issues related to their equipment or services. Upon receiving the customer’s call or inquiry, service teams assess whether the equipment or service is still under warranty coverage as the first step. This can significantly impact the resolution process.

If the warranty covers the equipment or service, the service team provides the necessary services to rectify the issue. In cases where the warranty has expired or does not apply, the service team may initiate the process of issuing a purchase order for any required replacement parts or services. This process may sometimes involve physical visits to the customer’s location, especially if there is a need for on-site repairs or inspections.

Managing this process is essential for customer satisfaction and operational effectiveness for companies. They often host this process inside CRM or a best-of-breed field service system. Depending on their specific needs and preferences, some companies integrate this process with their ERP systems, initiating the flow with a service order or a GL entry. 

4. Lead-to-quote

The lead-to-quote process is integral to pre-sales and marketing automation workflows, primarily hosted within CRM systems. It commences by creating leads, which are potential customers, through various channels such as physical marketing campaigns or digital initiatives. 

These leads then move through the funnel using a series of interactions, which involves estimating the required services, if necessary, engaging in engineering activities to tailor offerings to the customer’s needs, and, finally, releasing the quote. 

It’s important to note that in most cases, this process remains within the confines of the CRM system and does not typically involve an ERP system. However, exceptions exist, particularly when engineering processes require access to product data or when configuring complex product quotations (CPQ), necessitating a connection to the ERP system.

5. Campaign-to-lead

The campaign-to-lead process is a fundamental aspect of marketing and sales operations within a business. It is a crucial precursor to the lead-to-quote process or can function as a subset. 

This process begins with the initial design of marketing campaigns, which can be either physical, such as print advertisements or billboards, or digital, including online ads and social media promotions. After campaign planning, the next step involves executing these marketing initiatives. Subsequently, it necessitates the measurement of campaign results to gauge their effectiveness.

A key component of the campaign-to-lead process is capturing potential customers’ interest and guiding them through the sales funnel until they convert into leads. It’s important to note that, in most cases, this process operates independently of the company’s ERP system. ERP systems typically come into play much later in the customer journey, mainly when leads are qualified and have the potential to translate into financial opportunities for the company.

6. Contract-to-enroll

Companies involved in multiple enrollment campaigns commonly use the contact-to-enroll business process, particularly for subscription-based services like educational courses or paid events. This process guides potential participants from initial contact to successful enrollment.

It begins with identifying specific programs or offerings the organization wants to promote. Once they identify the programs, the next step involves crafting targeted marketing campaigns to generate interest among potential participants. The process also involves nurturing these prospects through a sales or enrollment funnel. This may include various stages, such as providing information, addressing queries, and guiding them to the enrollment step. 

These programs may be paid or unpaid depending on the organization’s objectives. It’s important to note that unless there is a specific requirement for integrating financial aspects into the organization’s ERP system, this contact-to-enroll process typically operates independently from the ERP, focusing solely on the enrollment journey of potential participants.

7. Expense-to-pay

Expense-to-pay is a crucial component within an organization’s time and expense workflow. In this process, an employee initiates the workflow by reporting expenses incurred during client visits, projects, or events. These expenses may include a wide range of items, such as travel costs, accommodation, meals, and other related expenditures. 

The primary goal is to accurately document, validate, and eventually pay or bill these expenses, depending on the specific circumstances. Depending on company policies, some expenses may need to be billed to clients for reimbursement, while others may be eligible for direct reimbursement to the employee. Additionally, organizations often need to oversee and control budgets associated with employee expenses, ensuring that expenditures remain within predefined limits. 

Employees who have received company credit cards to facilitate expense transactions manage these cards, including monitoring transactions and ensuring timely payments. Companies may host this complex process within a specialized T&E software or utilize the T&E module within their ERP system.

8. Recruit-to-hire

Recruit-to-hire is a fundamental process that lays the foundation for an organization’s workforce. It is a precursor to the hire-to-retire process. First, it all starts with creating job descriptions that outline the roles and responsibilities expected from potential candidates. Once these descriptions are in place, the process shifts towards identifying the most suitable channels for sourcing potential candidates. This could involve posting job listings on websites, utilizing recruitment agencies, or leveraging social networks.

Following candidate sourcing, a critical aspect of recruit-to-hire is conducting evaluations and interviews. This entails assessing candidates’ qualifications, skills, and cultural fit within the organization. Organizations often perform background checks to ensure the correctness of a candidate’s claims and protect the company’s interests.

Finally, once a candidate is selected, the recruit-to-hire process culminates with signing offer letters, solidifying the employment agreement. While it rarely touches ERP, companies often use various systems like Applicant Tracking Systems (ATS) or Human Capital Management (HCM) software to streamline and manage these tasks efficiently.

9. Return-to-refund

The return-to-refund process is an integral component of the overall return procedure within a company. This process typically begins with the initiation of a return request by the customer. Once initiated, the company handles various steps, including processing the return, providing appropriate packaging and labels, and receiving the returned inventory. 

They perform a crucial quality check at this stage to ensure the returned items meet the necessary standards. Subsequently, the respective vendors might receive the inventory back, and they may manage the warranty process if applicable. Finally, the company issues the refund to the customer, thus concluding the transaction. 

To host the return-to-refund process, companies commonly integrate software systems, such as eCommerce platforms, POS systems, or ERP software. Moreover, the return process frequently interfaces with other essential systems, including WMS, OMS, and CRM tools. Within an ERP workflow, the process can start by directly capturing the return request within the ERP system or by interacting with it to process the necessary General Ledger (GL) entries.

10. Market-to-order

Market-to-order is a comprehensive business process that serves as a superset of lead-to-quote and the precursor of order-to-cash. The process begins with formulating and maintaining a well-thought-out marketing plan, which includes strategies and tactics to reach the target audience effectively. Once the plan is in place, the next step is the design and execution of marketing campaigns, aligning them with the established budget.

Throughout the marketing campaigns, monitoring their performance and effectiveness is crucial, ensuring that they yield the desired results. As part of this process, leads are generated and captured. Managing these leads involves guiding them through the sales funnel, where they are nurtured and engaged until they reach the point of conversion into actual orders. This conversion marks a critical transition from marketing to the subsequent stages of the business cycle.

In most cases, Market-to-order operates independently of an ERP system. However, in some situations where quoting, estimation, and engineering processes are tightly integrated into the company’s operations, they might be hosted within the ERP system. Alternatively, if the quoting and estimation functions are part of the ERP, the integration may occur even earlier in the business cycle.

Conclusion

In conclusion, distinguishing between the core and non-core ERP business processes is necessary to navigate different business processes smoothly. The nuances of ERP systems and diverse industry requirements often complicate this task. While core processes are consistent and typically integrated within the ERP, non-core processes can exhibit a broader spectrum of possibilities, including integration with best-of-breed solutions or residing in external systems. Recognizing the distinctions and dependencies among these non-core processes is crucial for making informed decisions about system selection and architecture.

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