What is an Inventory Management System?

An Inventory Management System, often referred to in German as Warenwirtschaftssystem (WaWi), is software used to manage the procurement, stock, movement, and availability of physical goods such as components, spare parts, or finished products.

It is widely used in industries like manufacturing, wholesale, retail, and maintenance to ensure that the right items are available at the right time, in the right place, and in the right quantity.

Core Functions of an Inventory Management System

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An Inventory Management System ensures transparency and control across the entire inventory lifecycle.

Inventory Management System vs. ERP vs. E-Procurement

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Inventory Management System is often part of an ERP system, but may also be a standalone tool in logistics-heavy environments.

How Inventory Systems Support Procurement

A Inventory Management System provides critical support to procurement teams by:

• Flagging reorder needs based on consumption and thresholds
• Connecting to approved suppliers and contracts
• Automating purchase requests and deliveries
• Ensuring accurate goods receipt data for invoicing and compliance
• Improving demand forecasting through historical stock data

Integrated inventory data reduces emergency purchases, overstocking, and operational delays.

Integration with in Procurement Systems

Inventory Management System are integrated to enable:

• Real-time material master data sync
• Automated purchase order triggers from stock alerts
• Contract- and catalog-based supplier selection
• Receipt-based 3-way match with WaWi and finance systems
• Actionable analytics combining stock data and spend insights

Conclusion: Inventory Systems as the Operational Backbone

An Inventory Management System (WaWi) is essential for companies dealing with physical goods. It provides the foundation for procurement automation, stock visibility, and operational planning. When integrated with sourcing platforms like Mercanis, it supports end-to-end supply chain transparency and control.