Written by
Carlos Virreira
Published on
October 13, 2023
An inventory management system and an asset management system are two distinct systems used by organizations to track and manage different types of resources. While there may be some overlap in functionality between the two, they serve different purposes and focus on different types of items.
An inventory management system and an asset management system are two distinct systems used by organizations to track and manage different types of resources. While there may be some overlap in functionality between the two, they serve different purposes and focus on different types of items. Here's a breakdown of the key differences:
An inventory management system is primarily used to track and manage the flow of goods and products within an organization. It is commonly used in retail, e-commerce, and manufacturing sectors.
Examples of inventoriable items include clothing, electronics, food goods, raw materials, and finished products.
The main objectives of an inventory management system are to optimize inventory levels, ensure product availability, and streamline the order fulfillment process.
An asset management system focuses on tracking and managing an organization's capital-intensive resources like machinery, equipment, vehicles, buildings, and IT infrastructure.
Examples of assets include manufacturing equipment, corporate vehicles, medical devices, Forklifts, buildings, servers, production tools and more.
The primary objectives are to optimize asset utilization, enhance maintenance processes, and ensure compliance with regulations.
In summary, inventory management focuses on resources for sale while asset management focuses on resources used internally. Both are critical systems, but track and manage different types of items central to business operations.
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