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. 

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