Difference between Warehouse Management and inventory Management
To make matters worse, many software products overlap in function, while they try to bring in dozens of cool features and functionalities. Not only are these jack-of-all-trades applications frequently clunky and difficult to use, their particular decreased focus can indicate half-baked features and much more inefficiency than you began with.
In this post, we attempted to clear-up some confusion by deteriorating the distinctions between two types of software usually conflated collectively: product sales order administration and stock administration. Armed with these records, you’ll be much better ready to determine what will meet with the requirements of wholesale business.
What's Stock Management Computer Software?
Inventory management software is a backend system focused on monitoring the stock inside warehouse(s). Pre-owned as a means of avoiding unnecessary product overstock and backorders, this software is found in the distribution supply of a wholesale business. Boiled down, it’s a database that keeps an exhaustive, step-by-step ledger of just what stock came in-and-out, and where it absolutely was located.
Inventory management enables you to:
- Use barcode scanners to arrange outbound/inbound inventory
- Track inventory across multiple warehouses
- Assign sublocations to identify the career of an item within a warehouse
- Compile stock-on-hand reports
Your employees can monitor services and products by their particular barcode, serial number, or other requirements and never have to manually keep an eye on inventory figures and deal with outdated data. In addition allows for more strategic preparation, to ensure that businesses can balance stock availability without unnecessary holding costs.
What's Order Management Software?
While stock management software paths activities having already occurred (i.e. days gone by) product sales order management software program is a front-end system made to set-up the future–new purchases and start up business. Product sales order administration software powers your sales and customer support teams, gets better the performance for the wholesale product sales process, and optimizes for product sales conversations beginning.
Borrowing from definition found in our Sales Order Management FAQ post, sales order management software is “a comprehensive order administration solution that includes mobile purchase writing, internet purchase administration, B2B e-commerce, and also the capability to incorporate with your straight back office methods (typically, your ERP).”
With the mobile purchase composing answer, sales reps have access to a detailed electronic product catalog, customer listings, contact information, pricing, etc. saved on a mobile device and capable write and distribute sales at a shop see or trade show with only various taps and swipes.
Internet purchase administration after that enables your back workplace group to help keep tabs on purchases to arrive from sales representatives in the field, so the picking and packing can commence. With web order administration, they likewise have the capability to make any necessary data changes, like rates modifications, item additions, etc.
Sales purchase administration computer software also can permit you to:
- Send interactive drafts of instructions that retail purchasers are able to modify and/or verify
- Strategically leverage consumer order record to upsell and introduce new items
- Quickly procedure routine reorders
- View and share reports on product sales and individual representative overall performance
All this work info is synced across cellular and web, eliminating any importance of paper purchase kinds and data entry, and purchase instructions can be sent to the distributor in a few minutes to be written. Sales representatives work quicker and provide their buyers with a much more efficient, modern-day customer knowledge. Some product sales purchase administration systems also offer a B2B e commerce portal, enabling retail buyers to position sales on the web.
So why can it be so confusing?
The primary confusion between these two forms of software arises from the reality that numerous inventory administration systems provide “order administration features, ” while sales purchase management systems might have “inventory monitoring.” Let’s clarify why this is basically the instance.
In the case of stock management computer software, some vendors boast additional order administration functions, like drafting sales estimates, saving buyer information, or sending purchase invoices via email. The issue here is that if you’re interested in a seamless experience totally optimized for the sales representatives on the front side lines, a software merchant whose focus is on backend stock management may fall short of the club.
Which will make issues even more complicated, it's usually the situation that among stock software suppliers, “order management” is a blanket term that encompasses the handling of sales planning and off a warehouse.
Within particular context, “order management” can refer to the way the system tracks when much more inventory has to be purchased from the maker to renew a warehouse. It’s “order administration” occurring one step backwards in the offer string, also it does not have actually the maximum amount of to do with the actual product sales procedure between representatives and buyers.
On the other hand, some product sales order management software will offer inventory monitoring functions that allow reps to see stock information right inside their mobile application. The goal is to enable reps to offer even more strategically, let consumers understand ahead of time that an item is out of stock, preventing backorders.
The way this is usually carried out is by uploading the information from another source, or by integrating with another system, whether or not it’s committed inventory administration computer software or an ERP that includes an inventory management system.
The Bottom Line
You can look at the fundamental differences when considering inventory management and product sales order administration computer software through two contacts:
Back-end vs. Front-end:
Stock administration software is backend technology employed by your back office and warehouse staff to handle item.
Product sales purchase administration application is a front-end answer optimized the product sales and purchasing procedure, whether or not it’s an in-person meeting at a shop check out or trade program, or an online purchase order placed by the retailer through a B2B e commerce platform.
Past vs. Future:
Inventory administration computer software keeps an authoritative record of stock moves and deals which have currently occurred.