Logistics Technology
Inventory Management

Category Compare: Inventory Management vs. Warehouse Management

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In this report, we define and compare inventory management and warehouse management software to help you decide which one aligns with your business goals.

Inventory management software and warehouse management software facilitate the movement of inventory from suppliers to end consumers. Both play a vital role in supply chain operations by managing inventory fulfillment processes, but they also have several notable differences. This report identifies the similarities and differences between the two software categories to help you understand which one is better suited to your needs.

What is inventory management software?

Inventory management software allows businesses to track and manage their inventory levels. It provides complete visibility into stock movement, helping maintain optimal levels and predict future requirements via real-time inventory reporting.

Inventory management tools send alerts about low inventory levels and shipment and supply chain delays. Several tools also offer automated reordering of best-selling items. Users have to set the minimum quantity requirement for each item, and the system automatically generates a purchase order once the specified level is reached.

What is warehouse management software?

Warehouse management software facilitates the storage and movement of inventory within a warehouse. It allows businesses to monitor warehouse operations from the time inventory enters the warehouse until it moves out. This also helps maximize the utilization of warehouse space.

A warehouse management system helps increase the efficiency of warehouse operations and reduce costs by ensuring optimum utilization of resources, including man, material, and time.

The software uses barcode readers and radio frequency identification (RFID) tags to track warehouse inventory movement and update the information on the software dashboard so it’s readily available to all stakeholders. It also sends automated alerts about low inventory levels, late deliveries, short picks, and missing stock.

What do they have in common?

Both inventory management software and warehouse management software are vital to enterprise resource planning (ERP) and supply chain management processes. Some of the common features offered by these tools include product identification, order management, inventory tracking, and forecasting.

Inventory management software features

Warehouse management software features

Which tool is right for you?

Inventory management and warehouse management may sound similar, but warehouse management has a greater focus on managing warehouse workflows and offers a wider range of functionality beyond inventory management.

If you’re looking for a tool to get location-wise inventory overviews, check stock availability, and maintain optimum inventory levels for order fulfillment, then investing in an inventory management system would be the right choice for you.

But if you’re looking for software that provides complete visibility into warehouse operations and allows you to monitor inventory movement within warehouses or between locations, then investing in a warehouse management system would be a wiser decision. Besides managing inventory, warehouse management software tracks the picking, packing, and shipping of stock. It also helps manage employees/freight personnel and generate warehouse inventory status reports.

Once you’ve decided which software to use, head to our inventory management software and warehouse management software category pages where you can find a sortable list of products, software reviews from verified users, and comprehensive buyers guides.

If you wish to narrow down your search to only the most popular and highest-rated solutions, visit Capterra’s Shortlist reports for the top inventory management software and warehouse management software tools. Our reports are based on an analysis of thousands of user reviews.

11 top-rated inventory management and warehouse management software

These eleven products, listed in alphabetical order, are among the top-rated in both software categories.

Note: Reviews and ratings data in the product cards is as of June 17, 2022. New reviews may have been added since the publication of this article, so the reviews data in this piece may not reflect current conditions.
The products in the category comparison images are examples to show a feature in context and are not intended as endorsements or recommendations by Capterra. They have been obtained from sources believed to be reliable at the time of publication.


To be included in the top-rated list, the products had to:

  1. Be listed under Capterra’s 2022 Shortlist reports for inventory management software and warehouse management software. Learn more about the Capterra Shortlist methodology here.
  2. Meet our software market definition for inventory management software and warehouse management software:
    • Inventory management software: “Inventory management software monitors inventory levels for optimal production and distribution of goods for wholesale or retail.”
    • Warehouse management software: “Warehouse management software enables the movement, tracking and storage of materials throughout the warehouse.”

Looking for Inventory Management software? Check out Capterra's list of the best Inventory Management software solutions.

About the Author

Shephalii Kapoor

Shephalii Kapoor

Shephalii Kapoor is a writer at Capterra. She helps small businesses identify the right software for their needs by analyzing user reviews for top-rated software products. Prior to Gartner, she worked as an assistant content manager at InfoEdge India Ltd. She has also worked in company law, aviation, and real estate. She is a published author and has contributed to various magazines and websites. During her free time, she enjoys reading.

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