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What is the SGA and what is it for?

An SGA system (Warehouse Management System) allows to control and optimize, in an integral way, all the operations and processes of a warehouse.

Thanks to the SGA system, you can automate and synchronize all operations in real time and integrate it robustly with the ERP and MES systems to obtain a complete solution connected to production processes.

Whether you are an SME or a large company, the WMS system helps to increase efficiency, reduce costs and increase overall data security in the warehouse and in production.

What is a SGA, an ERP and a System MES ?

A SGA (Warehouse Management System) is a tool that becomes essential in a warehouse as it helps you to comprehensively manage, control and optimize all the operations and processes that occur in your warehouse.

A MES system (Manufacturing Execution System) is a software tool that allows the planning, monitoring and control of production processes in factories in order to improve efficiency and quality, and reduce costs.

This is a very useful tool for a global analysis of the productive management of the company, since it can be integrated with an ERP or an SGA.

An ERP (Enterprise Resource Planning) its main function is to record the complete process of a company, of which only a part is the production process. What allows to centralize in a single platform, information related to accounting, billing, human resources, purchases, etc.

The ERP system allows us to have a global vision of the business and helps to improve business management. Thanks to ERP, it is easier to make decisions that directly influence the management of the business.

Main differences between MES, ERP and SGA

An ERP is the tool that controls all business management processes, but it is not dedicated to the productive management of factories, for this there is the MES system, which is the software in charge of regulating and optimizing the plant process.

The ERP and the MES System are in continuous communication and operate integrated. It must be specified that the weight of the data in terms of detailed information on production, operating machines, quality, etc., resides in the MES.

Just as the MES software works with the ERP, it must work in line with the SGA to provide security and guarantee control of the materials in the warehouse. A SGA is the basis for the management of all the components in production, and communicates with a MES SYSTEM to supply the production lines.

The MES system occupies an intermediate layer between the ERP and the production plant and works at the same level as the SGA.

Advantages SGA vs. ERP:

An SGA (Warehouse Management System) is specifically designed to manage and optimize warehouse operations, while an ERP (Enterprise Resource Planning) system is a broader software solution that can manage multiple business processes, including finance, resource human resources, customer relationship management and supply chain, including warehouse operations.

These are some of the advantages of using a SGA over an ERP for the management of an industrial warehouse:

  • Improved inventory accuracy: a SGA is designed to provide visibility inreal-time of inventory levels, locations, and movements. This helps ensure accurate inventory counts and reduces the likelihood of stock-outs or overstocks.
  • Better Order Fulfillment – ​​A SGA can improve order picking accuracy, reduce order cycle times, and increase on-time delivery rates. This is because a SGA can streamline warehouse processes and automate tasks such as order picking and packing to increase efficiency and reduce errors.
  • Optimized receiving and putting away – A SGA can streamline the receiving and putting away process by automatically allocating incoming inventory to the proper location based on pre-defined rules. This reduces the likelihood of errors and speeds up the time it takes to get products to storage.
  • Increased Work Productivity – A SGA can help improve work productivity by providing workers with clear instructions on what tasks to perform and where to perform them. This reduces the time it takes to complete tasks and minimizes errors.
  • Integration with other systems – While an ERP system can manage multiple business processes, a SGA is specifically designed to manage warehouse operations. An SGA can be integrated with other systems, such as transportation management systems, to provide end-to-end visibility and control over the supply chain.

In general, an SGA provides more focused functionality and can offer better visibility and control over warehouse operations, making it a more efficient and effective solution for managing an industrial warehouse.

Basic functions of a SGA

  • Ticket management: receipt of merchandise, collect logistics data that helps traceability, labeling. Inclusion of quality criteria. Communication with an ERP for administrative management with suppliers.
  • Location management: cargo units, ideal location based on rotation, cross-docking, saving movements.
  • Stock control management: warehouse map display, location management, stock management, item rotation, counting and inventory.
  • Output control management: order preparation, picking process management, labeling and documentation of shipments, loading and communication with the ERP.

Benefits of an SGA

  • Integrally manage, control and optimize all operations and processes in a warehouse.
  • Real-time knowledge of available inventory and the location of factory components (raw materials, auxiliary material, semi-finished product and finished product)
  • Traceability of product movements in the factory
  • Optimization of the movement of materials in the plant
  • Management of logistics tasks associated with operators
  • Management of the reception of raw materials, their cycle within the production and the dispatch of the finished product
  • Management of locations and stocks in real time
  • Order management through picking tasks
  • General data security in the warehouse and in production in real time
  • Reduce costs and reduce errors
  • Integration with external systems such as ERP and MES

Characteristics of an SGA

  • Flexible, Scalable and Modular: Adaptable and grows with you
  • Technological connectivity: ERP, RF, RFID, PICKING
  • Logistics 100%
  • Logistics efficiency: Analytical and operational
  • Intuitive: Easy to learn and use
  • Integration with ERP and MES system

At Geprom I Part of Telefónica Tech, we have the integration of the SGA-Warehouse Management System.

Are you interested in managing and optimizing warehouse operations?

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