Inventory Management for Warehouse

By Annapoorna


Updated on: Apr 5th, 2022


3 min read

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The timely supply of products through numerous channels can be extremely challenging, considering the continuous pressure from different stores and buyers. Proper inventory management for warehouses is required for constantly monitoring the inventory to meet the demands of the buyers without facing an inventory shortage.

What is Inventory Management for Warehouses?

Inventory management for a warehouse is acquiring, monitoring, managing, and auditing inventory in a storage facility or warehouse for fulfilling orders. Warehouse inventory management keeps track of the incoming and outgoing products along with the information of where each product is stored. It also helps in replenishing inventory when the stock reaches the minimum quantity.

How Do Inventory Management Systems Work?

Inventory management software provides different features to efficiently monitor and control the warehouse inventory. It can either be a stand-alone system or a part of the Enterprise Resource Planning (ERP) system. Apart from helping in the receiving, monitoring, and managing the stock, inventory management software also aids in forecasting future demand/sales based on the past purchase history. Investing in a seamlessly integrated inventory management process allows easy monitoring of stock across different storage facilities and multiple channels.

5 Best Practices for Inventory Management for Warehouses

  • Determine the Floor Plan of the Warehouse

The physical layout of the warehouse directly affects work efficiency. Dividing the space into different zones and numbering aisles and bins can help the inventory staff navigate quickly, resulting in fast identifying, packing, and delivering products. 

  • Recruit a Warehouse Manager

Appointing a warehouse manager is essential for heading the inventory management process and guiding the staff. A warehouse manager will be responsible for constantly keeping up with the inventory management system, identifying any abnormalities, scanning the products, and managing the staff to ensure smooth functioning. 

  • Identify the Best Selling Products

Proper inventory management for warehouses helps track the products that sell well and are in demand. This allows businesses to position these products in an easily accessible location. Businesses can also use this information to spend less on the storage and transportation of poor-selling products, saving inventory costs.

  • Implement Cross Docking and Wave Picking

Cross-docking, a process of directly distributing products from suppliers or manufacturers to customers, significantly enhances profitability by reducing material handling, labour costs, storage costs, delays in shipping. 

Wave picking or cluster picking, a process of picking up multiple orders simultaneously, improves efficiency by discharging particular orders to the floor for fulfilment based on common ground such as warehouse zone, shipping date, etc.

  • Invest in Inventory Management Software

Managing warehouse inventory can seem like a challenging task. Investing in efficient inventory management software can automate the process and make it hassle-free. The software will show the complete inventory record and the storage location once the staff scans and catalogues the products. It will either generate a replenishment list or automatically order the products to be restocked.

About the Author

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more


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