ERP vs. IMS: everything you need to know

Running a successful ecommerce store is no small feat. Especially for mid-to-large size enterprises, the If you’re running an ecommerce business in 2026, chances are you’re tired. Tired of keeping tabs on inventory levels across five different channels. Tired of refreshing your warehouse dashboard to see if that long-awaited purchase order finally arrived. Tired of promising customers the world… only to discover that the SKU they ordered is actually sitting in a different warehouse, or worse, not sitting anywhere at all.

Running a business today often feels like juggling supply chain management, customer service, order processing, and inventory management software all at the same time—while hoping nothing crashes to the floor. And when things do get messy (because they always do), the suggestions start pouring in from every direction.

“Maybe you need an ERP system.”
“Have you considered ERP inventory management software?”
“You should look into enterprise resource planning.”
“Just move everything into an ERP inventory system and automate the whole thing.”

Which sounds great… until you’re staring down glossy ERP vendor brochures talking about multi-year implementations, finance modules you don’t need, and features that feel like they were designed for a manufacturing plant in the 1990s.

But here’s the thing: you don’t need a PhD in business process optimization to understand ERP software for inventory management. You don’t need to become an expert in inventory transactions or warehouse management systems overnight.

You just need a clear explanation, in plain English, of what ERP inventory management actually does, when it makes sense, and when something more ecommerce-native—like Linnworks—is the smarter, faster option.

Let’s break it down in a way that won’t put you to sleep.

What ERP software for inventory management actually is

Think of ERP software as the big umbrella that tries to cover your entire business. The “E” stands for enterprise, which is a fancy way of saying it was originally designed for big companies—businesses with accounting teams, procurement departments, warehouse managers, supply chain analysts, and lots of specialized roles.

The idea behind an ERP system is this: instead of scattering your business processes across different apps, spreadsheets, and disconnected tools, you put everything—from finance to HR to procurement to inventory—under one roof. One system. One database. One record of truth.

When people talk about an ERP inventory management system, they’re talking about the part of the ERP that handles stock. It tracks your inventory data, your inventory levels, your purchase orders, your warehouse operations, and all the complex inventory that flows through your business every day.

In a perfect world, ERP inventory management helps you understand exactly what’s happening across your supply chain. You know how much inventory you have, where it’s stored, how fast it’s moving, what’s on the way, and what you need to reorder. You know whether you’re about to deal with excess inventory because demand forecasting is pointing downward, or if you need to reorder faster because customer demand is accelerating.

That’s the ideal. But it’s not always the reality—especially for ecommerce sellers.

Why inventory management has become a total beast

There was a time when inventory was simple. You stocked shelves, you made sales, you wrote things down. Maybe you counted items once in a while to make sure nothing went missing.

Today? Completely different story.

Inventory lives everywhere now—on Amazon, on TikTok Shop, on your website, in your warehouse, inside your 3PL partner’s system, halfway across the world on a shipping container, and sometimes (if we’re being honest) lost somewhere between “it arrived” and “someone moved it.”

And the faster your business grows, the faster the chaos expands.

You’re dealing with:

• Real-time inventory tracking needs across every channel
• Customers who expect next-day shipping
• Return cycles that impact inventory accuracy
• Supply chain disruptions you have zero control over
• Inventory control issues caused by manual processes
• Purchase orders arriving late or incomplete
• Warehouse management challenges caused by incorrect inventory records
• Operational efficiency problems caused by outdated tools

Every order, every return, every transfer, every exception creates another data point, another opportunity for something to go wrong. Inventory isn’t just “what you have”; it’s a living, breathing operation tied to every part of your business.

This is exactly why brands start looking at ERP software or a modern inventory management system—to truly track inventory across all these moving pieces.

What ERP inventory management can do for retailers (the good stuff)

ERP systems aren’t bad. In fact, when used correctly, ERP inventory management software can be incredibly powerful.

The biggest advantage is visibility. Because ERP software sits at the center of the business, it ties your inventory operations directly into the processes around them—purchase order workflows, order management, financial reporting, supply chain management, and even customer relationship management.

You’re no longer guessing whether inventory accuracy is off because someone forgot to record a transfer. You’re not digging through spreadsheets hoping that last week’s inventory forecasting was correct. Instead, ERP software shows you inventory data in real time and connects it to every business process that depends on it.

This unified view helps retailers:

• Understand inventory turnover trends
• Avoid excess inventory through better demand forecasting
• Improve inventory control by reducing manual work
• Track inventory movement through every step of the inventory process
• Strengthen warehouse management by organizing operations more effectively
• Reduce errors caused by outdated, manual processes
• Maintain reliable, real-time visibility for customer service teams

For the right business, ERP inventory management feels like a breath of fresh air.

So why doesn’t everyone use it?

Because ERPs come with major trade-offs.

When ERP software is more than you need (and when it isn’t)

Here’s the uncomfortable truth: most ecommerce retailers don’t actually need a full enterprise resource planning solution. Not right away, at least.

ERP systems were built for companies with multiple departments, layers of approval, procurement teams, and highly complex supply chain operations. They were not designed for fast-moving ecommerce sellers who list products across marketplaces, need instant inventory updates, and rely on automated order management to survive high volume.

This is where things usually fall apart.

ERP implementation is long, expensive, and disruptive. It doesn’t matter whether the ERP vendor promises a fast rollout—integrating finance, procurement, supply chain, order management, and inventory operations into one system is inherently time-consuming.

And most ecommerce brands don’t need all of that on day one. What they do need is a system that helps them:

• Manage inventory across every channel
• Track inventory in real time
• Sync stock levels to prevent overselling
• Improve order processing speed
• Keep warehouse operations efficient
• Create purchase orders easily
• Reduce inventory errors
• Automate repetitive tasks
• Handle complex inventory with less manual work

These aren’t “enterprise resource planning” needs. They’re “I run a modern ecommerce business and I need my inventory to behave” needs.

That’s why platforms like Linnworks exist.

Inventory management platforms vs. ERP systems (the practical difference)

If ERP systems want to cover the whole business, inventory management platforms like Linnworks want to cover the part you’re struggling with right now—the part that’s actually holding back your growth.

Instead of forcing you into a giant, multifunction ERP module structure, Linnworks focuses on what ecommerce sellers need most: managing inventory and orders in real time across every channel you sell on.

If you imagine ERP as a skyscraper full of departments and office floors, Linnworks is the sleek, modern operations center right next to it—the one designed specifically for fast, accurate ecommerce workflows.

It helps retailers:

• Track inventory across all sales channels automatically
• Maintain clean, accurate inventory levels without spreadsheets
• Improve operational efficiency by syncing orders, shipments, and returns
• Connect warehouse management to real-time marketplace demand
• Automate order routing and fulfillment
• Create smarter inventory forecasting through real-time insights
• Reduce excess inventory by improving inventory performance visibility
• Strengthen the entire supply chain by improving data accuracy
• Scale into new marketplaces without breaking your inventory operations

Most importantly, Linnworks gives you control without the complexity of a full ERP implementation.

But that doesn’t mean ERP systems don’t have a place—they absolutely do. It just means retailers now have another choice when managing inventory.

How to know whether what’s right for you

Think of this less like an “ERP vs. inventory management” decision and more like a timeline.

If your business is scaling fast, and your biggest problems involve tracking inventory across channels, managing rapid order processing, and keeping warehouses running efficiently, then a dedicated inventory management system will probably solve 95% of your headaches.

But if you suddenly find yourself:

• Running multiple companies under one umbrella
• Handling complex supply chain operations
• Managing global procurement processes
• Requiring financial consolidation across business units
• Integrating manufacturing or assembly workflows

Then ERP inventory management software becomes much more relevant.

Many retailers actually end up using both—Linnworks as the operational engine for inventory and orders, integrated with an ERP for financial reporting and enterprise-wide processes.

It doesn’t have to be one or the other.

How a good system gets implemented successfully

The biggest mistake retailers make is thinking that software alone solves inventory problems. It doesn’t. What solves problems is aligning the software with the real-world way your team manages inventory.

Before you implement anything, you need to understand your inventory operations deeply. Start by documenting your inventory process: where stock arrives, where it goes, how it moves, who touches it, where the bottlenecks are.

You’d be surprised how much inefficiency hides in manual processes—things like “we adjust the stock later when we have time” or “the warehouse staff just knows where items are.” These small gaps create huge inventory accuracy issues.

Clean your inventory data. Build clear workflows. Train your team. Roll the system out in phases. Start where the pain is highest—usually real-time inventory tracking and order management—and expand into warehouse operations, forecasting, supply chain workflows, and reporting once the core system is stable.

Whether you’re working with an ERP vendor or the Linnworks onboarding team, the principles remain the same.

Inventory control techniques that make any system better

Even the best software can’t magically fix inventory on its own. You still need good inventory control disciplines behind the scenes. Techniques like ABC analysis, cycle counting, proper safety stock planning, and smart inventory forecasting go a long way toward improving inventory accuracy and reducing excess inventory.

Demand forecasting becomes more accurate when you feed your system good data. Supply chain management becomes smoother when your purchase order process is structured and consistent. Customer service becomes easier when inventory levels are reliable and predictable.

This is where the marriage between software and operations matters most. The system gives you visibility, but your internal processes maintain control. Together, they help you scale without losing your mind.

The real inventory challenges we’re trying to solve

No matter which solution you choose, the problems you’re trying to solve are universal.

Overselling.
Stockouts.
Misplaced inventory.
Unreliable forecasting.
Cluttered warehouses.
Slow order processing.
Supply chain surprises.
Inaccurate inventory records.
A mountain of manual processes that no one has time for.

Every retailer eventually hits these walls. What matters most is how quickly and confidently you can break through them.

ERP systems try to fix these issues by connecting inventory to everything else in the business. Linnworks fixes them by focusing deeply on the part of your operations that moves the fastest: your inventory, orders, and warehouse management.

Both approaches have value. But only you know which one aligns with where your business is today—and where it’s headed next.

The future of inventory management

As ecommerce continues to grow, inventory complexity will only get worse—more channels, more SKUs, more warehouses, more customer expectations. The idea of “one system to rule them all” is becoming less realistic every year.

Instead, retailers are gravitating toward flexible, connected systems. ERP inventory management software that integrates with best-in-class platforms. Inventory management software that integrates with enterprise resource planning tools. Warehouse management systems that plug into everything else.

Linnworks is part of that future. It sits at the heart of ecommerce operations—managing inventory in real time, optimizing order flows, strengthening warehouse operations, and giving retailers the control they need to scale.

If you eventually add an ERP? Great. Linnworks will work alongside it.
If you don’t need one yet? You can run your entire commerce operation through Linnworks alone.

That flexibility is the new standard.

Final thoughts: get inventory right before anything else

If you take one thing away from this guide, let it be this:

Inventory is the backbone of your entire business.

Everything—from customer service to cash flow to operational efficiency—depends on your ability to track inventory accurately, maintain strong inventory control, forecast customer demand, and manage your supply chain effectively.

You don’t need the biggest, most expensive ERP system to get there. You don’t need to overhaul your entire business process. You don’t need to suffer through years of ERP implementation before your team can finally breathe.

You just need to take control of your inventory operations with a system that makes sense for where you are today.

If that’s ERP inventory management software, great.
If that’s an ecommerce-focused inventory management system like Linnworks, even better.

Either way, the sooner you get inventory under control, the sooner everything else starts running smoother.

When you’re ready, Linnworks can help you:

• Track inventory accurately across channels
• Simplify your order management workflows
• Improve your warehouse operations
• Forecast inventory needs more reliably
• Maintain cleaner, more accurate inventory records
• Eliminate time-consuming manual processes
• Create a supply chain that actually works
• Meet customer demand with confidence

Because at the end of the day, managing inventory shouldn’t feel like juggling with fire.
It should feel like running a business.

And with the right system in place, it finally can.

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