Mika Aalto / Devoca Oy
Many companies are asking the same question: Do we need a separate WMS – or can we grow our ERP into a full warehouse solution?
Traditional WMS systems are known for deep functionality. Unfortunately, they usually come with a long, complex and expensive project. You get a broad feature set, sometimes broader than your actual need.
A modern alternative to a dedicated WMS is to extend an existing ERP in phases, so it covers more WMS‑level functions. This is exactly the approach Devoca supports: we have built a modular solution that integrates with several ERP systems and lets you develop your warehouse step by step – all the way up to mid‑ to high‑tier WMS level.
The starting point is quite simple: your own bottlenecks and targets, not a fixed template. Usually it means operations first, then orchestration and optimization.
How an ERP can evolve toward WMS?
Standard ERP warehouse modules usually cover the basics:
- Goods receiving
- Putaway
- Picking
- Inventory counting
- Stock and location management
When you add smart, easy‑to‑use mobile tools, barcode scanning and basic reporting, you are already in a decent place. With modular extensions, you can go significantly further. Below is an example based on Devoca’s solution set:
- Voice and multimodal use (voice + scanner + touch screen) » Speeds up picking, reduces errors and lowers training time.
- Optimisation (multi‑order picking, route optimisation, wave picking, ABC analysis) » Cuts unnecessary walking and improves high‑volume picking.
- Work management and prioritisation » Lets you allocate resources in real time based on current workload.
- Shipment management (integration to transport systems, shipping labels) » Connects the warehouse tightly to the rest of the supply chain.
- WES extensions (Warehouse Execution System) » Orchestrates all operations when needed.
With these modules, a modern ERP can grow in stages, driven by your own business needs, and respond to increasing logistics demands without a heavy WMS project. And you do not pay for features you do not need.
Advantages compared to a traditional WMS
1. Faster go‑live
ERP extensions can often be rolled out in weeks, while a traditional WMS project usually takes months, even up to a year.
2. Modularity and cost control
You pay only for the capabilities you use and can scale the solution step by step. In Devoca’s pricing model, costs are tied to number of users and selected modules, which makes budgeting more predictable.
3. One system, one source of truth
There is no need to build and maintain a separate ERP–WMS integration. Warehouse data becomes a real‑time part of the company’s core data. The ERP remains the master system when it comes to data.
4. User‑friendliness
Voice guidance and mobile use make work easier forstaff and shorten onboarding times.
5. Flexibility
New features can be enabled quickly as the business evolves, for example changing customer requirements, growth in e‑commerce or seasonal peaks.
Strategic angle: ROI and TCO
Every system investment should be viewed analytically. With solid calculations you can build a strong financial case and compare different paths with clear criteria.
An ERP extension and a traditional WMS look very different when you compare ROI (Return on Investment) and TCO (Total Cost of Ownership).
ROI – Return on Investment
- In the ERP extension model, the initial investment is lighter, and the benefits (fewer errors, faster picking, better throughput) show up sooner – often in months.
- In a traditional WMS project, benefits also accumulate over time, but payback can stretch across several years due to heavy up‑front costs and a broader focus that is not always centred on day‑to‑day picking work.
TCO – Total Cost of Ownership
- With an ERP extension, costs are spread over a longer period and tied to user numbers. TCO is easier to manage and grows in line with the business.
- For a WMS, TCO can be clearly higher: large initial licence fees, consulting, complex integrations and stronger vendor lock‑in are common.
Speed of benefit realization
- With an ERP extension (for example Devoca Talk’nPick voice solution), efficiency gains are measurable immediately after go‑live – often within weeks.
- For a WMS, many benefits show up later (for example deep automation control and advanced optimisation) and require more time and resources to unlock.
The ERP extension model typically offers a faster ROI and more predictable TCO, while a traditional WMS aims for deeper long‑term benefits that may be harder to capture quickly.
Risks and limitations
No system investment is risk‑free. Each option has pros and cons. With a clear, objective assessment, most of the risks can be understood and managed.
It is also smart to review the vendor’s product roadmap, so future capabilities are considered as part of your decision, not as a surprise later.
Key points to keep in mind:
- Depth of functionality
- Even an extended ERP may not cover everything a traditional WMS can do, for example very complex automation control or advanced quality‑management workflows.
- On the other hand, a modern multimodal picking solution can be clearly more efficient in day‑to‑day operations than a classic WMS interface.
- Scalability with heavy automation
- In very large, automation‑intensive warehouses, a specialized WMS can still be the more effective choice for managing highly complex setups.
Which industries benefit the most?
In principle, a modular ERP extension is worth considering in any sector. In Devoca’s experience, the biggest benefits show up in businesses with large or varied picking processes:
- Wholesale and distribution » Fast picking and packing, broad assortment, many order lines.
- E‑commerce logistics » Strong seasonality, high staff turnover, need for quick onboarding and minimal errors.
- Manufacturing and spare parts logistics » Weight‑based picking, inventory modules and voice guidance improve accuracy and quality.
- Mid‑size and large companies without extensive automation plans » Get a cost‑effective, modern solution without a heavy WMS project.
- Healthcare and life science » High requirements for traceability, accuracy and process compliance.
The 3 key benefits when you build on ERP
- Cost‑effectiveness and step‑by‑step scalability: You pay only for what you need and can grow the solution with the business.
- Fast implementation and ease of use: The solution works in practice quickly and supports efficient onboarding.
- Strength of ERP integration: Warehouse data is part of the company’s core data without complex integration projects.
What next? Map your path from ERP to WMS
Devoca has brought this model to market in a concrete way. It proves that an ERP is no longer just a finance and resource management system. With the right modular extensions, it can become an agile, cost‑effective alternative to a traditional WMS – especially when your warehouse processes do not require heavy automation.
If you are currently evaluating your options, we are happy to help you:
- Review your current ERP and warehouse processes in a short remote session.
- Outline a phased roadmap from ERP to WMS‑level capabilities.
- Compare expected ROI and TCO for different paths.
Contact us
Want to see what a phased ERP‑to‑WMS roadmap could look like for your warehouse?
Get in touch with Devoca and we will walk through your current setup and options in a 30‑minute meeting.
