Manufacturing and distribution businesses require unique managemement software features to organize, track, and manage raw materials and finished goods. Software companies have produced plenty of solutions geared toward product-focused organizations. Often, manufacturers and distributors research inventory and warehouse management software. What are these solutions, and how can you determine which is the best fit for your business?  

What Is Inventory Management Software?

Inventory management software tracks product stock across your entire business, from raw materials through finished goods. Think of inventory management software as a solution that automates the supply chain—you can use inventory management software to track stock and receive notifications when it runs low. You can also forecast demand to keep production running smoothly. 

Standard inventory management features include: 

• Low-stock alerts and demand forecasting 
• Document creation for production-related files 
• Organization capabilities for multi-location businesses 

What Is Warehouse Management Software?

Warehouse management software tracks where items and resources live within a specific facility and examines how the building’s layout can be optimized to save time and money. This solution lets teams understand picking and packing processes for different materials and products. 

Standard warehouse management features include:  

• Item specification labels like size, serial number, expiration, type, etc. 
• Stock location tracking within specific buildings 
• Auto-generated suggestions to streamline processes  

How Are Inventory and Warehouse Management Software Similar?

Inventory and warehouse management solutions are discussed interchangeably—an understandable mistake given their similarities. Both types of software use barcode tools and other scan-and-track features to determine where a given component lives, how many are in stock, and what overall inventory looks like.  

How Are Inventory and Warehouse Management Software Different?

Inventory management takes a broader approach when tracking materials and items, focusing on multiple locations rather than individual production centers. Using inventory management software, your team gets a holistic view of your cumulative raw and complete components broken down by location.  

Warehouse management software drills a bit deeper; instead of focusing on which facility your materials inhabit, the solution tracks where materials are located within a given building. You can see which items fulfill orders, and you can even chart the complete journey from the initial materials to the delivered product. 

Can I Use Enterprise Resource Planning Software Instead?

In addition to inventory and warehouse management systems, manufacturers and distributors might consider an ERP solution. This software includes features to manage inventory, production, and demand forecasting. ERP software also adds capabilities for other areas of your business, like sales and finance. While ERP software lacks some of the deep manufacturing and distribution functionality that more specialized systems provide, it allows your team to handle every aspect of the quote to cash cycle with one central system. 

Is Inventory Management or Warehouse Management Software Better for My Business?

Consider the following table to get a general idea of which management solution might be a good fit for your company.