Test Your Knowledge – The Differences Between Inventory Management and Warehouse Management Systems

Let’s test your knowledge about inventory management systems! Do you know the difference between inventory management and warehouse management systems?

Answer “True” or “False” to each of the following, then add up your answers.

1. Inventory management systems include hardware, software, procedures, and methods to monitor stocked items.
2. An IMS includes a means to identify items in the inventory using barcode labels, RFID tags, etc.
3. A device, such as a scanner, is used to read barcodes.
4. Inventory management software provides the database for all the inventory,
5. Inventory management software can analyze sales data and make detailed forecasts about demand for specific items 

If you answered “True” to all FIVE questions, then you’re an inventory management software genius. (Come work for us?) 

In all seriousness, inventory management software and warehouse management software are often confused. Warehouse management software typically includes all the above features of an inventory management software system but adds onto it the functions of tracking merchandise location in the warehouse itself, such as bin or aisle location. A good warehouse management system also helps you manage the stock rotation whether you are using FIFO or LIFO methods. It can identify merchandise that is aging and must be shifted, for example, or help you rotate stock so you’re using the appropriate merchandise to fill orders. 

The easiest way to understand the differences between inventory and warehouse management systems is in their level of complexity. Inventory gets down to the individual item level; warehouses are complex systems that need further management features. Managing space (warehouses) versus items (inventory) calls for different systems. 

Scanco can help you find the right options for your warehouse business, whether you need an inventory management system or a warehouse management system. Let one of our solution experts guide you by calling (330) 645-9959 or contact us online.