--- title: What Is a Warehouse Inventory Management System? description: An inventory management system is a must-have for any warehouse looking to improve the accuracy of inventory tracking. image: https://info.archon-interactive.com/hubfs/shutterstock_294109637.jpg --- [![](https://info.archon-interactive.com/hubfs/Archon_Interactive_August_2015/Archon_Logo.png)](http://archon-interactive.com/) - [Solutions](https://archon-interactive.com/warehouse-management/) - [Warehouse Management](https://archon-interactive.com/warehouse-management/) - [Warehouse Control](https://archon-interactive.com/warehouse-control/) - [3D Pack](https://archon-interactive.com/3d-pack/) - [3PL](https://archon-interactive.com/third-party-logistics/) - [Cycle Counting](https://archon-interactive.com/cycle-counting/) - [ERP Integration](https://archon-interactive.com/integration/) - [Resources](https://archon-interactive.com/resources/) - [Blog](https://info.archon-interactive.com/blog) - [Our Story](https://archon-interactive.com/about-us/) - [Contact Us](https://archon-interactive.com/contact/) # Warehouse Dispatch # What Is a Warehouse Inventory Management System? Posted by [Reid Curley](https://info.archon-interactive.com/blog/author/reid-curley) on May 3, 2016 8:00:00 AM - [Tweet](https://twitter.com/share) ![What Is a Warehouse Inventory Management System?](https://info.archon-interactive.com/hs-fs/hubfs/shutterstock_294109637.jpg?width=295&name=shutterstock_294109637.jpg "What Is a Warehouse Inventory Management System?")Inventory management is one of the most important parts of any warehouse management software. It combines a current need for improved tracking of products with the need for more accurate future planning as components are used up. This management greatly impacts the profitability of any business by minimizing waste and improving the flow of products from start to finish. ## **Product Identification** Most companies manufacture and/or store many different items that share core characteristics. As a result, some warehouses struggle to define and organize products clearly. Warehouse management systems overcome this challenge by assigning specific barcodes to each item and product. Barcodes are extremely important because when a barcode is scanned, it communicates directly to the WMS and sends/ retrieves information in real time. Thus, properly labeling and identifying products is the first step to gaining better inventory control. ## Product Movement Since items and products are properly labeled, their movements throughout the warehouse can be fully tracked. Warehouse management systems track items from the moment they arrive to the moment they are packed, collecting detailed information such as when the item arrived, where it is stored, if it's been moved or not, which order the item is associated with, and its remaining quantity. The communication between barcodes and warehouse management systems provides widespread inventory control. From the second a raw component gets ordered until it has been shipped out the door, it is considered **an asset for the company.** It is imperative that companies keep track of the items moving through their space so that spare parts are not gathering dust in a corner of the warehouse while duplicate orders are placed. To maintain best practices and encourage first-in, first-out policy adherence, warehouse management software will help employees identify components that have been lingering in the warehouse, determine which ones should be used first, and help [weed out misplaced items](https://info.archon-interactive.com/blog/the-pitfalls-of-physical-inventories-and-how-to-avoid-them). By scanning items in and out of each phase of production, it is possible to trace movement more completely and pinpoint accuracy errors. ## Further Optimization Inventory control can be taken to the next level now that items are labeled and fully tracked from beginning to end. For instance, optimization rules like first-in and first-out (FIFO) can be enforced. Furthermore, inventory control provides the chance to determine trends and patterns and create strategic plans for the warehouse. Inventory management is one of the most powerful tools available to warehouse managers who are looking for ways to increase inventory control while simplifying inventory tracking processes. Employees who have access to a **comprehensive warehouse management system that increases inventory control** will appreciate how easy it becomes to follow company policies and standard operating procedures compared to older manual tracking methods. The end results of inventory management and control are that the warehouse will have enough of the products it needs most, won't have excess stock taking up valuable real estate, and will be able to fill orders completely and on time. 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