What are stock reservations?

Stock reservation is an essential feature in the WMS that enables the control and organization of order processing. When a picking list is created after receiving an order, the required inventory is reserved in the system. This prevents issues such as processing orders without actual inventory, which can lead to negative inventory levels and errors in sales or purchasing. In this way, the system ensures the delivery promise to the customer, and you can always fulfill your commitments.

Minimize inventory errors.

In the WMS, you can see how many units of inventory have been reserved when you update the inventory. The system does not allow you to reduce the inventory below the reserved quantity. This helps ensure accurate inventory management and minimizes the risk of errors.

Benefits for order processing in the warehouse.

Another important (internal) feature is that the WMS also allows us to transfer reserved inventory between locations, which enhances the flexibility and efficiency of our warehouse management. The location on the picking lists is automatically updated to reflect the new inventory location.

If we want to make changes to the reserved inventory—for example, if we want to write off the inventory—we must first cancel the pick list or remove the relevant products from the pick list.

The products are then placed on backorder, and we can then write off the inventory. Inventory reservation within the WMS ensures accurate, flexible, and error-free warehouse management.