The following article compares inventory management with warehouse management, their similarities and differences and how they interact with each other.
Inventory Management vs. Warehouse Management
The process of managing inventory and related responsibilities within a warehouse is known as warehouse management. Inventory management is concerned with stock management for the entire company and projecting business trends.
What Is Inventory Management?
Inventory management is the process of anticipating, ordering, receiving, and distributing inventory. Seasonality and past sales trends will be used by the buying manager to forecast demand. Raw materials, parts, and final goods are all part of the inventory.
What Is Warehouse Management?
Warehouse management entails overseeing stock storage as well as picking and packaging operations in a warehouse. The strategy places the best-selling items near packing facilities to speed up delivery and dictates which items to use to fulfill orders, such as items with the closest expiration date.
What Do Inventory Management and Warehouse Management Have in Common?
Inventory management and warehouse management are related disciplines in that both contribute to the efficient and effective movement of inventory from the supplier to the end user. Each needs stock storage, delivery, and restocking. They have the following characteristics in common:
- To boost efficiency and accuracy, both use software, radio frequency identification (RFID), and barcode tools.
- Both supply visibility into all stock, whether for a single warehouse or the complete organization.
Differences Between Inventory Management and Warehouse Management
Inventory management and warehouse management are two aspects of stock management. Inventory management gives a high-level overview, while warehouse management concentrates on the specifics of stock movement.
Inventory Management
- The emphasis is on overall inventory levels and their statuses.
- This data is used to assess sales trends, profit margins, and holding expenses.
- Reorder points are figured out based on demand and preferred stock levels.
- Displays the inventory information and saves the inventory availability status for future use.
Warehouse Management
- Monitors stock movement and position within the warehouse.
- Sales patterns, profit margins, and holding expenses are all examined.
- Identifies options for task simplification.
Inventory Management Systems vs. Warehouse Management Systems (IMS vs. WMS)
An inventory management system (IMS) tracks all goods in each warehouse and records where it is stored. A warehouse management system (WMS) tracks the location of each type of merchandise within a warehouse. The two approaches often complement one another.
What Is an Inventory Management System?
A supply chain and delivery system are managed by an inventory management system, which is software. An IMS is used by businesses to manage raw materials in manufacturing and finished goods for retail.
Automation is one of the most important advantages of inventory management software. Based on your choices, the system can choose replenishment points and then receive automatic alerts when stock runs short, as well as prompts for cycle inspections. Managers use the software to track a product based on customizable criteria such as expiration date, lot number, and serial number. This enables you to trace a component or raw material from the finished good to the client order—if a recall occurs, you can figure out which components were used to manufacture specific products and which customers received them.
What Is a Warehouse Management System?
A warehouse management system is software that handles the day-to-day operations of a warehouse. Managers use a WMS to obtain precise stock level information and to define or standardize picking, packing, and shipping activities. The solution follows goods from the warehouse to the customer.
Warehouse management software can be purchased separately or as part of an enterprise resource planning (ERP) solution. Both options contribute to increased output, cost savings, and customer satisfaction. When spreadsheets can no longer be used to handle replenishment and fulfillment processes, businesses resort to a warehouse management solution.
Size, weight, color, serial number, lot, and case are all recorded by the system. Because the program keeps information on all goods, it can find the item’s location in the warehouse as well as its purpose. A WMS, for example, can inform you of the bin number, picking sequence, and if the stock is for picking or reserve. The program may also track information like the location of the loading dock door and the speed with which staff picks and packs products.
Integrating Inventory Management and Warehouse Management Systems to Grow Your Operations
Businesses today require real-time access to inventory and order status. As you adjust or scale your business, automating your inventory and warehouse processes will make a difference.
Consider NetSuite if you need an inventory management system, a warehouse management system, or both. Its cloud-based inventory management technology supplies automated replenishment as well as precise cycle counting. Traceability allows you to trace things through various warehouses by lot or serial number. The warehouse management module includes a dashboard for tracking activity, integrated barcoding, expiration, and shelf-life tracking, and suggested put-away definitions. Learn how the NetSuite Inventory Management System and NetSuite Warehouse Management System can help you reduce handling costs and increase cash flow.
Read the full article here: https://social.ora.cl/601935uTU
