warehouse inventory management - moving boxes

How to Improve Warehouse Inventory Management: Tips and Best Practices

If you’re running a warehouse, then inventory management is sure to be one of your top priorities. After all, if you can’t keep track of what you have and where it’s located, then you can’t efficiently manage your stock. Fortunately, there are a number of ways to improve your inventory management process.

In this guide, we’ll explore some of the best practices and tips for managing warehouse inventory effectively. We’ll also introduce Logimax WMS, a warehouse and inventory management software that can automate and streamline many of the tasks involved in warehouse inventory management.

What is Warehouse Inventory Management and What Are its Benefits?

Warehouse inventory management is the process of organizing and tracking inventory levels, order fulfillment, and stock locations in a warehouse. By streamlining these operations, businesses can improve their overall efficiency and better utilize their warehouse space. In turn, this can lead to cost savings and improved customer satisfaction.

Some of the specific benefits that can be gained from implementing a system to manage inventory include reduced labor costs, shorter lead times, and lower inventory levels.

Additionally, a well-run warehouse can provide a competitive advantage by allowing businesses to respond quickly to changes in customer demand. As such, warehouse inventory management is an essential part of any business that relies on maintaining an inventory of goods.

What is a Warehouse Inventory Management System?

A warehouse inventory management system is a software application that helps businesses do the things mentioned above – track and manage their inventory levels, stock locations, and order fulfillment. These systems can also generate reports that provide insights into warehouse operations and help businesses improve their overall efficiency.

There are a variety of different systems for managing inventory on the market, each with its own unique features and pricing. Some software systems are focused strictly on managing inventory, while others are designed to manage the entire warehouse operation.

Inventory Management System (IMS) vs. Warehouse Management System (WMS)

An inventory management system (IMS) is a software application specifically built to help businesses track and manage their inventory levels. Whereas, a warehouse management system (WMS) is a software application that helps businesses track and manage a wide range of warehouse operations, including receiving, order fulfillment, reporting, and much more.

While inventory management systems can be helpful for managing inventory levels, warehouse management systems offer a more comprehensive solution for warehouse management. As such, a WMS is typically a better choice for businesses that rely heavily on their warehouse operations.

Logimax WMS offers all of the features and functionality of a warehouse management system, as well as a number of features specifically designed for managing inventory.

checking warehouse reporting on tablet

Best Practices for Warehouse Inventory Management: The Basics

There are a few basic best practices that every warehouse should follow in order to improve inventory management. Here are some of the most important:

1. Invest in Warehouse Management Software

Warehouse management software, like Logimax WMS, can automate many of the tasks involved in warehouse inventory management, from tracking stock levels to placing orders. This software can also generate reports that will help you optimize your inventory levels and improve your overall warehouse efficiency.

2. Keep Track of Your Stock Levels

After implementing a warehouse management system, the next step to effective inventory management is knowing what you have in stock and where it’s located.

One option is to use an inventory management software like Logimax WMS. Our software can help you track your stock levels in real-time, so you always know what you have on hand. For best results, use our system together with barcodes and RFID tags to keep track of your inventory.

3. Use FIFO Inventory Management

When it comes to managing your warehouse inventory, it’s essential to use a system that will help you keep track of your stock levels and ensure that you’re using your space efficiently. The FIFO (first in, first out) method is one of the most popular and effective inventory management systems.

With the FIFO system, you’ll always ship or sell the oldest items in your inventory first. This ensures that your products are always fresh and reduces the risk of them expiring before they’re sold.

4. Conduct Regular Inventory Counts

It’s important to conduct regular inventory counts to ensure that your stock levels are accurate. This can be a time-consuming task, but it’s essential to maintaining effective control over your inventory.

Inventory counts can be conducted manually or with the help of an inventory management software like Logimax WMS. If you choose to conduct manual inventory counts, be sure to schedule them at regular intervals and plan for them in advance.

Additionally, cycle counting is a method of inventory management that involves counting a subset of your inventory regularly, instead of counting everything at once. This can help to reduce the time and effort required to conduct a full inventory count.

5. Set Clear Processes and Procedures

In order to effectively manage your warehouse inventory, it’s important to have well-defined processes and procedures in place. These should be designed to help you track your inventory levels, keep your stock organized, and minimize the risk of errors.

Some of the key processes and procedures that you should put in place include:

  • Creating a system for receiving and storing new inventory.
  • Tracking inventory levels and reordering stock when necessary.
  • Organizing your inventory so that it’s easy to find items when needed.
  • Conducting regular inventory counts.

6. Regularly Review Your Inventory

It’s important to regularly review inventory management systems to ensure they are optimized. This will help you to identify any areas where improvements can be made.

Doing a review also allows you to adapt to changes in your business, such as an increase in the number of products you’re stocking or a change in your storage capacity.

7. Invest in Ongoing Training for Your Staff

In order to effectively manage your warehouse inventory, it’s important that your staff are properly trained. They should understand how your inventory system works and be familiar with the procedures that need to be followed.

Investing in ongoing training will help to ensure that they’re able to carry out their tasks efficiently and effectively. It will also help to reduce the risk of errors being made.

8. Implement Safety Measures

It’s important to implement safety measures to prevent accidents as well as to protect your inventory from damage or theft. Some of the safety measures that you should put in place include:

  • Using proper lifting techniques to avoid injuries.
  • Storing hazardous materials safely.
  • Securing your inventory with locks and alarms.
  • Making sure that only authorized personnel have access to your inventory.
  • Installing security cameras, alarms, locks, gates.

9. Use Quality Control Methods

Using quality control methods can help to ensure that your inventory is in good condition and fit for sale. This can include inspecting items when they’re received, conducting regular inventory counts, and using barcodes and RFID tags to track your inventory.

looking at tablet - warehouse analytics

Tips for Improving Warehouse Inventory Efficiency

There are a number of ways to improve inventory efficiency in a warehouse setting, including:

  1. Streamline Receiving: This can be done by implementing a system wherein all incoming shipments are logged and tracked. This will allow warehouse staff to quickly and easily locate any specific item that may be needed.
  2. Improve Organization: This means creating a system that logically arranges items in the warehouse so that they can be easily found when needed. This can be done through the use of shelves, bins, and labels. By taking the time to organize the warehouse properly, staff will be able to save time when looking for specific items.
  3. Keep an Accurate Inventory: This can be done through the use of barcodes or RFID tags. Using these tags, you  can track items as they move through the warehouse, and they can also be used to locate items that may have been misplaced. By taking the time to implement these tracking methods, warehouses can ensure that their inventory is always accurate and up-to-date.

Tips for Organizing Your Warehouse Space

Proper warehouse inventory management requires careful consideration of how your warehouse space is being used. There are a number of ways to optimize your warehouse space, including:

  • Utilize vertical space as much as possible. This can be done by installing shelving units and racks that extend to the ceiling.
  • Group similar items together in one area to make it easier to find what you need.
  • Label all shelves and bins clearly so that everyone knows where things are supposed to go.

Tips for Handling Seasonal Changes and Unexpected Increases in Demand

As a supply chain business or manufacturer, you are responsible for ensuring that products are delivered on time and in good condition. This can be a challenge at the best of times, but it can be especially difficult during seasonal changes or periods of unexpectedly high demand.

Here are some tips to help you navigate these challenges:

  • Communicate early and often with your clients. They will need to be aware of any potential delays so that they can make alternate arrangements if necessary.
  • Have a contingency plan in place for when things go wrong. This might include partnering with another 3PL who can pick up the slack if you are unable to meet demand.
  • Be flexible and adaptable. Things rarely go according to plan, so being able to adjust on the fly is essential.

By following these tips, you will be better prepared to handle whatever challenges come your way.

Tips on How to Deal with Damaged or Defective Products

As any supply chain manager knows, damage and defects are an inevitable part of doing business. Whether it’s a carton that’s been crushed in transit or a product that didn’t meet quality standards, dealing with damaged goods is just part of the job.

Here are some tips on how warehouses can best deal with damaged or defective products:

1. Invest in Quality Control

One of the best ways to deal with damaged goods is to prevent them from happening in the first place. That’s why it’s important to invest in quality control measures. By conducting regular inspections and audits, businesses can identify potential areas of improvement and take steps to prevent damage from happening.

2. Have a Clear Returns Policy

When customers receive damaged goods, they usually want to return them for a refund or exchange. That’s why it’s important to have a clear returns policy in place. This policy should outline how customers can return damaged goods and what they can expect in terms of refunds or replacements.

3. Keep Good Records

When damage does occur, it’s important to document it thoroughly. This documentation will be used to file insurance claims and help businesses track trends over time.

How to Choose the Right Inventory Management Software

There are a few key factors to consider when choosing a warehouse inventory management software. First, you’ll need to decide what type of system you need.

On-Premise vs. Cloud-Based Systems

There are two main types of management systems for warehouse inventory: on-premise and cloud-based. On-premise systems are installed on your company’s servers, while cloud-based systems are hosted by a third-party provider.

Features and Functionality

Next, consider the features and functionality that you need. Some inventory systems offer basic features like inventory tracking and order fulfillment, while WMS systems offer a more comprehensive suite of tools, including warehouse optimization.


You’ll also need to consider the price of the system. Inventory and warehouse management systems typically start in the tens of thousands of dollars and can be priced upwards of a couple hundred thousand dollars. However, many system providers now charge on a subscription basis. For a much smaller fee, you get full access to the system as well as technical support to ensure that the system is always up and running.

Logimax WMS is a cloud-based warehouse management system that offers all of the features and functionality you need to streamline your inventory management process. Logimax WMS is priced on a yearly subscription basis, so you can get started without having to make a large upfront investment.

Standalone vs. Add-On System

Finally, you’ll need to decide whether you want to purchase a standalone system or integrate your warehouse inventory system with your existing enterprise resource planning (ERP) system. If you have an ERP system in place, it might make sense to integrate your inventory system with it. This would allow you to share data between the two systems and improve efficiency. However, if you don’t have an ERP system, you can still purchase a standalone WMS or inventory system.

Logimax WMS: Inventory and Warehouse Management for 3PLs, Distribution Companies, and More

Logimax is a comprehensive WMS built for 3PLs and distribution companies, but can also handle complex industries such as consumer packaged goods, pharmaceuticals, cold storage, and more. Our system is browser-based and lives in the cloud , so it can be accessed from anywhere, at any time. Logimax WMS also integrates with existing ERP systems or other complementary software solutions such as EDI, TMS, etc.

Some of the key features and benefits of Logimax WMS include:

  • Comprehensive inventory management including real-time tracking of stock levels, locations, and movements
  • Flexible order management including support for multiple order types, custom workflows, and user-defined rules
  • Powerful reporting and data analytics tools to help you optimize your warehouse operations
  • Support for multiple warehouses and stock locations
  • Integration with popular ERP systems such as SAP, Oracle, or Microsoft Dynamics
  • Scalable and modular design so that you can add new features and functionality as your business grows

If you are looking for a comprehensive, cloud-based system that offers all of the features and functionality you need to streamline your inventory management process, Logimax WMS is the perfect solution for you.


By following these tips, supply chain businesses can ensure that their warehouse is well-organized and prepared to handle any challenges that come their way. Implementing these tips will help warehouses run more smoothly and efficiently, which will ultimately lead to happier customers and higher profits.

Logimax WMS is a comprehensive warehouse management system that can help you streamline your operations and improve your bottom line. For more information on how Logimax WMS can benefit your business, contact us today.

Worker scanning a return in warehouse

How to Maintain Order and Process Returns in the Warehouse Efficiently

Product returns are always a hassle. Whether it’s due to shipment damage, product malfunction, or product recall, managing returns effectively is essential for 3PLs and warehouses. One of the biggest challenges when handling returns is keeping employees’ labor-intensive tasks well organized. Through automated processing and integration with external systems, your 3PL warehouse management system (WMS) software should be easy for employees to use and track stock to process returns efficiently.  

Your Logistics Software is Key

WMS software is the backbone of any distribution center, and it can help you maintain order and efficiently process returns. With a powerful, easy-to-use warehouse management system, you will be able to track all inventory from initial arrival to shipping orders out the door. And since your WMS also handles returns or recalls, you can make decisions based on real-time data rather than estimates or guesses. 

The best 3PL WMS software should supply product information and traceability for every single item moving in or out of your facility. This includes inventory location assignments, product expiration dates, and lot numbers. Lot and expiration date details should automatically be tied to each item’s barcode since all inventory transactions require a scan. Warehouses whose WMS supports radio frequency and barcode labeling can leverage their wireless network to experience dramatic increases in inventory accuracy, picking accuracy, and productivity.  

Efficient logistics operations are vital to product returns and recalls. The best WMS software from Logimax optimizes efficiency by:  

  • Automatically sorting single or batch orders by date 
  • Measuring user productivity against established time standards 
  • Automatically enforcing product consolidation and rotation based on item and location rules 

WMS Software Can Help with Labor Savings 

All return and recall processing rules can be pre-set and tracked through your WMS softwareLogimax can even work with your HR system via advanced metrics to preplan and optimize workflow to track labor hours. Utilizing barcoded employee badges and asset/equipment tags, 3PL warehouses can easily trace employee time and attendance, labor and equipment costs for returns, and how long employees and equipment are assigned to activities. With the WMS software and your HR system working together, you will know exactly how high your labor costs are per task and can make any future accommodations for better productivity.   

Instituting Return Procedures 

Return guidelines are usually specified by each customer based on their requirements. However, 3PL warehouses always implement a standard set of procedures for returned goods because you must have a set way of physically handling and processing inbound returns. Every step in the process can be stored in Logimax’s WMS software for full return traceability. 

1.  Receiving Returned Inventory

A Return Merchandise Authorization (RMA) or Return Goods Authorization (RGA) form should always be filed prior to the initial product return. These forms can easily be generated and sent using a web client portal. Customer name, return authorization date, order number, and carrier tracking number are pieces of information usually included. On arrival at the warehouse, the shipment is compared to the RMA/RGA for accuracy. Once received into the WMS system, returned products should be marked accordingly and moved to the inspection area.

2.  Inspecting Returns

When you receive a returned item, it’s important to be thorough in your quality inspection process. There are a few different things you’ll want to check for: 

  • Carton and product damage 
  • Product expiration dates 
  • Product tags, including barcodes and stickers 
  • Any other markings on the product or packaging that may indicate tampering or reconditioning 

Food items cannot be resold once returned. Log these returns immediately and dispose of the food product accordingly. Return damaged or malfunctioning products to the manufacturer or destroy them per customer instructions, recycling procedures, and governing agency guidelines.   

3.  Repacking Inventory

Non-food products can be resold if the item is not damaged or malfunctioning and damage is only to the packaging. These items can usually be repacked and added back into inventory with a new SKU assigned to note that it was previously returned. These items are sometimes offered at discounted prices — as warehouse deals or opened box discounts. Repacks occur either at the warehouse facility or the manufacturer depending on the 3PL warehouse partnership.  

Procedures for Recalls

Distributors and 3PLs both can be incredibly valuable to brands in managing their product recalls. During a recall, a warehouse must be able to provide complete life cycle information on affected SKUs, including lot number and expiration date. It’s vital that the warehouse is aware of what recalled inventory is in-house, quantities shipped out already and to whom, and how much recalled product is yet to be received.  As a general rule, recall procedures should include: 

  • Report all prior shipments of recalled products to your client. 
  • Immediately put a hold on all of the recalled SKUs. No product marked for recall should be allocated or shipped, even if it is on the staging dock. 
  • Assign a segregated area of the warehouse for recalled products. For better visual identification, indicate the area with appropriate signage and mark items with hold tags. 
  • Alert customers. This may be done by the manufacturer or distributor depending on procedural recall assignments. Customer communication typically is in the form of an email and sometimes accompanied by a press release. 
  • Do not receive any additional recalled product from the manufacturer even if it is on order.  
  • Change the class code of the recalled product SKU for potential ordering, picking, receiving (returned), or destroying under specified guidelines and regulations.  
  • Generate and issue appropriate reports to the client. 
  • Some clients may require a mock recall as part of their partnership with the warehouse to ensure that the process will run smoothly, should a recall occur.  

Trends in Returned Products

Logimax WMS software can also aid your clients in identifying trends in returns by generating customized reports. These can include which products have been returned, why, when, and how often over select periods of time. This is particularly helpful in identifying future recalls, uncovering packaging or shipping issues and problems, and highlighting possible product defects or opportunities for improvement. The ability to provide this information to your clients gives your business a huge advantage. 

Because the supply chain is built on relationship building and cooperation between your 3PL warehouse and customers, look into finding the right technological solutions for your inventory tracking. Make your returns processes more effective by integrating the best software for warehouse management systems from Logimax.