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If you are starting off with a new modern-day factory/warehouse, you need to update your vocabulary with some common terms that will help you communicate with your employees efficiently. It is a rookie mistake to consider order management and inventory management, the same thing.
Here, we shall discover the difference between both of them.
Inventory Management Vs Order Management
Inventory management is the process of tracking the items in your warehouse. This process allows you to keep note of all the items in your warehouse as well as the ones that come in and go out on a regular basis. It also keeps track of the location at which a particular item is placed. Inventory management is exclusively about maintaining the contents of a warehouse in a systemic and orderly fashion.
Order management is the process of keeping track of the orders placed by your customers. It helps you keep track of the various needs of your customers as well as clients. The order management process helps you extrapolate the supply and demand and plan your near-future actions accordingly. Therefore, order management is exclusively about maintaining a strong demand-supply chain between your clients and customers.
Computational Aspects of Inventory Management
The processes that make up inventory management include:
- Bar-code scanning: Use of RFID tags helps the employees quickly locate articles for shipping or processing.
- Automated article stacking: In case of a very large warehouse facility operated by robots, the automated article stacking machines can help reduce the time taken for the organization of objects.
- Offline inventory tracking: An offline inventory tracker system notifies you about the deficiency or surplus amount of a particular product.
Computational Aspects of Order Management
The processes that make up order management include:
- Transportation and hauling equipment: Transportation equipment will carry the required articles from stacked location to the loading bay.
- Data entry, shipping, invoice, accounting computers: These computational devices will help you keep track of the sales and generate comprehensive sales reports.
Understanding the difference between order and inventory management is the first and the most important step of running a well-organized warehouse.
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