There seems to be a common question among two similar terms: What is the difference between warehouse and inventory management. The two terms are, admittedly, used synonymously at times – even by warehouse professionals. In reality they have similar characteristics and similar goals in mind. Both inventory and warehouse management are concerned with the completion and fulfillment of orders in addition to the daily sending and receiving of shipments, packages, and parcels. They are also similar in that the amount of product that is currently at your location(s), in-route, and/or on back-order are of fundamental importance for ensuring the proper management and organization of the product. There are, however, a few differences between the two.
Big vs. Small
So just what is warehouse management and how does it differ from inventory management?
Probably the biggest difference between regular inventory management and knowing exactly just what warehouse management is comes in the detail by which they see things. Inventory management, in general, is concerned with the overall amount of material or product that is currently located and stored in your system – no matter the amount of warehouses that contain the product. Basically, inventory management is concerned with the overall number of things and the bigger picture as a whole. Warehouse management, on the other hand, is a more detailed approach to organizing, storing, shipping, and receiving the product. A picker and puller, for example, might receive a work order stating the amount of product that is needed and, most importantly, that order should also show a location in the warehouse where the product is regularly stored. The bin location that marks the spot for the needed product is a manifestation of warehouse management. Warehouse management is also concerned with the number of product but it is often at a more specific level – as in the case of picking and pulling enough product for a work order.
Details Matter
While inventory management is not the simple act of adding up big numbers, it does not take the same detailed approach to each individual warehouse. Many companies have multiple warehouses across the nation or even the globe; this requires the proper implementation of both inventory management (to control the overall inventory of the company) and warehouse management (to control and organize the inventory of a specific warehouse down to its finest detail). You may be wondering what is warehouse management like in the world today. Much of it depends upon the type and size of industry, though there are software programs that can be easily adapted to most any type of industry. The majority of warehouse management is often done through inventory management software that can, in addition to keeping overall inventory control, help manage each specific warehouse.
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