In the logistics sector, managers need to be familiar with a range of terms. Inventory and warehousing, for example, are often heard—and also the most confused. Some people still understand these two words as synonyms, but that's a mistake.
In the logistics sector, the manager needs to become familiar with a series of terms. Stock and storage, for example, are usually the most heard — and also the most confused. There are still those who understand these two words as synonyms, but this is a mistake.
Understanding the difference between warehouse management and inventory management is crucial. Only then will teams have their own goals, considering the nuances of each sector. That's why Bertolini has unraveled the mysteries behind each of these terms and explained the difference between inventory and storage.
What is inventory management?
Stock is the space used to store raw materials, unfinished products or goods that can already be sold. Therefore, we find stock in the most diverse sectors, from a construction materials warehouse to a clothing store.
In this way, we understand the inventory management as the practice of storing items in a certain location. The responsible team needs to deal with a series of variables, such as weight, size, purpose and temperature conditions.
Please note that the inventory model varies according to the company's needs. There is no generic answer and it is essential to study which variable best fits your business. Failure to do so may harm employee productivity and increase the risk of product damage.
One way to facilitate this process is through software. use of technology in the inventory sector is already a reality and allows an overview of the need for replenishment, purchasing and production.
What is warehouse management?
Storage is a very broad concept — and even encompasses stocking. Storage involves a series of logistical processes: distribution, product flow, equipment, packaging and transportation.
In other words: managing storage is a very detailed process. It involves all the tasks of distributing goods, and it is necessary to have integration with warehouses, distribution centers and stockrooms.
How to differentiate inventory management and storage management?
With an overview of the concepts of inventory and storage, it is time to understand how each of these terms impacts the company's strategies.
Remember that the Storage is just one of the many logistics processes within warehousing. Therefore, it is not possible to think of one term without the other, as they are interdependent. However, each one needs its own plan.
When managing inventory, the person in charge needs to take into account which raw materials are most used in the process, which products sell the most and which ones absolutely cannot be missing.
Warehouse management requires the manager to think about receiving, identifying and separating items. It is also necessary to understand what the best storage systems, how to pack correctly and pay close attention to the delivery of the order.
We hope you understand the difference between inventory and storage. Understanding how to make these two processes more productive is essential to increasing the competitiveness of your business.
