What is the difference between Warehouse Management & Inventory Management?

What is the difference between Warehouse Management & Inventory Management?

The terms “inventory management” and “warehouse management” are sometimes mistakenly used interchangeably as they both deal with operations and products of industries. Despite their few similarities, there are many notable differences between warehouse and inventory management systems.

The terms “inventory management” and “warehouse management” are sometimes mistakenly used interchangeably as they both deal with operations and products of retail industry. Both inventory and warehouse management systems enable companies to use barcoding devices to track parts and products within the warehouse, monitor product levels, pick, pack, and ship items, manage various locations, receive orders into inventory, and perform cycle counts. Despite their few similarities, there are many notable differences between warehouse and inventory management systems.

  • Inventory management is usually the first step taken before warehouse management.
  • Inventory management deals with total amount of inventory in one specific location.
  • Inventory management tracks transactions related to inventory and provide total amount of stock for each specific storage location.
  • Inventory Management is about managing the stocks in the warehouse and ensuring that the proper flow of stocks is maintained in a supply chain through the order fulfillment process. 
  • Warehouse management focuses on managing the entire storage system within the warehouse
  • Warehouse management tracks location of specific items in the warehouse
  • WMS deals with production supply, sales and distribution, and quality management and integral to ongoing operations of the retail organization.
  • The most significant difference between the two systems is the human factor.
  • Inventory management focuses only on product or stock, warehouse management involves managing employees and shipping or freight personnel operating in the warehouse environment.
  • Warehouse Management is about managing the whole facility in which the products are stored, including the workforce, the equipment, technology to be used, and the inventory itself. 

warehouse

Related Links

Creation Date Sunday, 01 January 2023 Hits 3995

You May Also Like

  • Business Case of Multiple Warehouses

    Business Case of Multiple Warehouses

    Adding extra warehouses to business provides many benefits such as reducing shipping costs, increasing storage capacity, and having warehouses for specific purposes to simplify overall warehouse management. Multiple warehouses allow you to organize your inventory in a way that helps your business be more effective.

  • Overview of Third-Party Logistics

    Overview of Third-Party Logistics

    Third-party logistics (abbreviated as 3PL, or TPL) is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. A third-party logistics provider (3PL) is an asset-based or non-asset based company that manages one or more logistics processes or operations (typically, transportation or warehousing) for another company.

  • Warehouse Components

    Warehouse Components

    At a high level, the essential elements in a warehouse are an arrival bay, a storage area, a departure bay, a material handling system and an information management system. As part of the process for enabling a warehouse layout, you must define warehouse zone groups, and zones, location types, and locations.

  • Warehouse Packaging Process

    Warehouse Packaging Process

    Before shipping, businesses need to make sure that the items will arrive in good condition. Packaging is a form of protection against environmental threats that the product will face from the time it leaves warehouse facility until the time it reached the customer. The packaging is intended to provide protection for the item as it is being handled in the warehouse or when the item is being shipped.

  • Warehouse Management

    Warehouse Management

    Warehouse management and distribution logistics involve the physical warehouse where products are stored, as well as the receipt and movement of goods takes place. Warehouse management aims to control the storage and movement of products and materials within a warehouse. These operations include the receipting of inwards goods, tracking, stacking and stock movement through the warehouse.

  • Miscellaneous Warehouse Processes

    Miscellaneous Warehouse Processes

    At the end of each inventory control, the Contractor provides the Ordering Person with an inventory report which contains a list of all stock adjustments. The Ordering Person uses the report to create, by use of his/her own means, necessary value and accounting adjustments related to the stock. Let us look at some to the mislaneous warehouse processes not covered earlier.

  • Outbound Picking Process

    Outbound Picking Process

    When a customer wants a product that has been stored in the warehouse, the same need to be picked off the shelf (or off the floor) and get it ready for shipping. Depending on how big is the warehouse, picking can take a while. (Many distribution centers cover more than 1 million square feet.). Hence, warehouse order picking methods are an important aspect within any warehouse.

  • Warehouse Returns Process

    Warehouse Returns Process

    In the normal course of business, customers are likely to return orders from time to time due to various reasons and business should design processes the manage and accept such returns. A well designed returns management process can reduce costs and issues associated with returns or exchanges.

  • Types of Inventory Count Processes

    Types of Inventory Count Processes

    While dealing with lots of inventory in a warehouse, lots of things can go wrong. Shipments may not have the right number of units in them, or they could get damaged somewhere along the supply chain. Discrepancies in the stock may arise as part of every inventory control, and need to be corrected immediately after the inventory control procedure has been finished.

  • Different Types of Warehouses

    Different Types of Warehouses

    Warehouses may seem like a simple, straightforward concept, but they actually include a variety of different types of warehouses that all have their own niche. The type of warehousing that’s right for you depends on your specific industry, location, and needs. From private warehousing, distribution centers, and climate-controlled warehouses, there’s an option to suit every business.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved