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A Quick Guide to Inventory Management vs ERP:

What is ERP?

Enterprise Resource Planning systems are typically used by companies to do supply chain planning from start to finish. Because they are all-encompassing, they are usually massive in size and scope. If you go with something like Oracle or Netsuite, you’ll often need multiple server rooms to handle all of the data, plus you’ll have to install the software on every single computer, and you may be stuck with a ton of features you don’t need. For example, if you do white label product shipping, what do you care where your manufacturer gets their raw materials from? ERP systems are usually reserved for large businesses that encompass multiple unique verticals. If you’re a small to medium size business that just makes and sells a particular product line, you may not need to go with a full-stack system; it may be better for you to integrate multiple, smaller options and build a custom setup that works for your operational flow.

What is an Inventory Management System?

Inventory Management software tracks how much stuff you have and where it is. Every warehouse operation requires an inventory tracking software to keep a meticulously detailed account of exactly where your goods are located, where they came from, and where they’re supposed to go. When companies choose to keep manual records instead of inventory management that syncs accurately across channels, they tend to be at risk for stockouts, overstocks, and incorrect picking/shipping.

Advantage of Inventory Management Systems Over ERP Systems


-The CB Team


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