SKULabs offers two inventory management systems depending on how experienced your team is and if you believe you want to incur the penalties of tracking inventory in multiple locations per warehouse.

Warehouse-based inventory allows you to still keep separate backstock and frontstock picking location names so your team knows where inventory can be found but your team will not be forced to select or scan which location they are fulfilling from or receiving into. This works for 95% of operations and makes managing inventory seamless; for these reasons we highly recommend using the recommended warehouse-based inventory configuration.

Location-based inventory allows you to manage a unique inventory level at each bin treating each one like a mini-warehouse. This inventory system is incompatible with certain remote-deduction workflows like if you depend on third-party software to ship your orders when you can't or won't be scanning or verifying orders in SKULabs.

How can I tell which inventory system I use?

If you signed up after October 2018, the default inventory system is "warehouse-based". Prior to that, the only option was "location-based" and those accounts remained on "location-based" inventory. Click Settings, then click Inventory to see your current inventory system setting. Contact SKULabs support to get the process started for converting from one inventory system to another.

Warehouse-based inventory control

Under warehouse-based inventory everything is tracked in a virtual location in the background which is the warehouse default location. Each item then has a "location alias" which is where you're able to define a picking location name for each product in each warehouse. You can list as many individual locations as you want here.

Warehouse-based inventory is best when you have consistent locations for each product and when you have fewer than 3 locations for a single product. It has a much lower operational overhead with there being no need to create a transfer order or swap transaction to move inventory within the warehouse. It also seamlessly functions with our Auto-deduct, ShipStation deduction, and POS deduction services.

If you ship or fulfill outside of SKULabs, you must use warehouse-based inventory control.

Location-based inventory control

This inventory system allows tracking stock levels at each bin/shelf location in your warehouse. Best for ad-hoc receiving warehouses where "any shelf will do" or where products are too bulk to consistently store in the same location.

This inventory system requires operational overhead not suited for many operations. Cycle counts, cycle count reconciliation, transfer orders, and regular maintenance of the inventory system are required to keep up to date with transactions made in the warehouse.

Location-based inventory is incompatible with Auto-Deduct, ShipStation, and POS software which will be required to deduct from effectively uncontrollable locations without careful operations control mandating an order of operations to occur prior to fulfilling/shipping orders in third-party software. (Warehouse-based inventory system is perfectly compatible with these operations)

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