Many organizations starting their warehouse technology journey ask whether they need a full warehouse management system (WMS) or whether simpler inventory management software will suffice. The answer depends on your operational complexity, order volume, and strategic priorities.
What is Inventory Management Software?
Inventory management software tracks stock levels, product locations, and inventory movements. Basic systems focus on knowing what you have and where it is. They handle purchase orders, receiving, stock adjustments, and basic reporting. Popular examples include inFlow, Sortly, and Cin7 at the SMB level.
Inventory management answers the question: "What inventory do we have?" It excels at visibility and record-keeping but typically lacks operational direction and optimization.
What Does WMS Add?
A warehouse management system builds on inventory tracking to actively direct and optimize warehouse operations. WMS answers: "How do we move inventory most efficiently?" Key additions include:
- Directed operations: Workers receive specific instructions via mobile devices rather than making decisions independently
- Pick optimization: System determines optimal pick sequences, batch groupings, and travel paths
- Labor management: Productivity tracking, engineered standards, and performance analytics
- Cartonization: Automated container selection and pack optimization
- Wave planning: Coordinated order release based on carrier cutoffs and capacity
- Integration: Deeper connections to automation, carriers, and enterprise systems
Comparison: IMS vs WMS
| Capability | Inventory Management | WMS |
|---|---|---|
| Stock Level Tracking | ✓ | ✓ |
| Location Tracking | ✓ Basic | ✓ Advanced |
| Barcode Scanning | ✓ | ✓ |
| Pick Path Optimization | ✗ | ✓ |
| Directed Put-Away | ✗ | ✓ |
| Labor Management | ✗ | ✓ |
| Wave Planning | ✗ | ✓ |
| Automation Integration | ✗ | ✓ |
| Cost | $50-500/mo | $1,000-10,000+/mo |
When Inventory Management is Sufficient
Basic inventory management software may be adequate if you:
- Ship fewer than 100 orders per day
- Have 1-3 warehouse workers
- Use simple picking processes without zones or batching
- Do not need labor productivity optimization
- Have limited technology budget
- Have straightforward shipping requirements
When You Need WMS
Upgrade to WMS when you:
- Ship hundreds or thousands of orders daily
- Have growing fulfillment team needing productivity tools
- Need multiple pick strategies (batch, zone, wave)
- Experience accuracy problems requiring verification controls
- Face labor cost pressure requiring optimization
- Plan warehouse automation integration
- Operate 3PL or multi-client facilities
Growth Path Considerations
Many organizations start with inventory management and later graduate to WMS as operations grow. Consider solutions that provide upgrade paths. Some SMB-focused WMS platforms like Fishbowl bridge the gap with accessible pricing and simpler implementation while providing WMS-level capabilities.
When selecting inventory management software, verify whether it can scale to WMS-level functionality or integrate with WMS platforms when your needs outgrow basic capabilities. Avoid solutions that will require complete replacement as you grow.
Explore our WMS software guide to understand available options, or request quotes to find solutions matched to your current requirements and growth trajectory.