For manufacturing companies, efficient management of resources and materials is an essential factor in maintaining optimal productivity and meeting customer demands. Two essential aspects of this management are Work-in-Process (WIP) tracking and inventory tracking. While these terms are often used interchangeably, they actually represent two distinct processes. This article delves deep into the definitions, purposes, and key differences between WIP tracking and inventory tracking, highlighting their respective benefits and implications for your business.


Increase Your ROI by Investing in AirFinder OnSite

  • Low Cost. AirFinder OnSite XLE is a fraction of the cost of competitors' pricing.
  • Long Battery Life. XLE lasts up to 7 years with hundreds of location updates daily.
  • Increased Efficiency. Spend less time looking for assets, and more time being productive.


Understanding WIP Tracking

Work-in-process (WIP) tracking is a comprehensive and systematic approach used in the manufacturing industry to monitor and manage goods that are in the process of being produced, but have not yet reached the final stage of completion. WIP represents partially finished products that are undergoing various stages of production, such as assembly, testing, or customization. A WIP tracking software provides manufacturers with real-time visibility into the status, location, and progress of each order or batch, enabling your company to make informed decisions and optimize resource allocation. By implementing WIP tracking systems and utilizing IoT technology, your company can gather accurate and up-to-date information about each WIP item. The primary purpose of WIP tracking is to streamline production processes and enhance operational efficiency. This is accomplished by closely monitoring the progress of WIP to provide manufacturers with insights into the health of their production lines, identify potential issues or inefficiencies, and take proactive measures to promptly address challenges as they arise. 

Key Components of WIP tracking

A few key components of WIP tracking include routing and sequencing, real-time monitoring, resource allocation, and quality control. 

Routing and Sequencing

Work in process tracking plays a crucial role in optimizing routing and sequencing in various industries and workflows. By accurately monitoring the status and progress of ongoing tasks or projects, WIP tracking provides valuable insights and enables better decision-making in managing the flow of work.

Routing refers to the process of determining the most efficient path or sequence for work items to move through different stages or workstations within a production environment. WIP tracking facilitates routing by providing real-time visibility into the status of each work item. It allows managers and operators to identify bottlenecks, delays, or idle resources in the workflow and make informed decisions on how to adjust the routing to maintain a smooth and efficient flow. By understanding which tasks are in progress, which are completed, and which are awaiting further processing, your team can ensure that work is routed to the appropriate areas or individuals, minimizing unnecessary movement or delays.

Sequencing, on the other hand, involves determining the order in which work items should be processed to optimize productivity and meet deadlines. WIP tracking helps with sequencing by providing information on the current status and estimated completion times of different tasks. With this data, managers can prioritize and schedule work items based on their urgency, complexity, or dependencies. This clear understanding of the work in progress helps your company prevent bottlenecks or congestion by sequencing tasks in a way that maximizes resource utilization and minimizes idle time. This improves overall efficiency, reduces lead times, and enhances customer satisfaction.

Real-time Monitoring

A WIP tracking system significantly aids in real-time monitoring by providing up-to-date and accurate information on the status of ongoing tasks or projects. In a fast-paced and dynamic environment, real-time monitoring is essential for proactive decision-making and swift responses to changes or issues. By continuously tracking the progress of work items, WIP tracking systems offer real-time insights into the current state of affairs. Your company's managers and team members will have the ability to easily access live data on task completion, work queue length, resource allocation, and any potential bottlenecks. This level of visibility allows them to identify emerging problems promptly and take immediate corrective actions to maintain efficiency.

Real-time monitoring through WIP tracking also promotes transparency and collaboration within your team. SInce everyone involved will be able to access the same information simultaneously, effective communication and coordination will occur. Your team members can quickly update task statuses, exchange feedback, and adjust their activities in response to evolving priorities or unexpected challenges. Moreover, real-time monitoring helps your company meet tight deadlines and address potential delays before they escalate into bigger issues. This is especially important in a fast paced manufacturing plant environment. By having access to instant progress updates, project managers can allocate resources more effectively and implement contingency plans if necessary, ensuring that projects stay on track and that customer expectations are met.

Efficient resource allocation

Another area where WIP tracking excels is in facilitating efficient resource allocation within your organization. With WIP tracking, you can accurately assess the workload of individual team members or workstations. They can identify which tasks are in progress, which are completed, and which are pending, allowing them to understand the current distribution of work and identify potential bottlenecks or underutilized resources. Having a comprehensive view of  workload helps with assigning tasks to the most suitable individuals or teams based on their expertise and capacity. This prevents overburdening certain resources while others remain idle. WIP tracking also helps identify areas where additional resources might be needed. If a particular stage of the workflow is consistently experiencing high work-in-process levels or longer lead times, your managers can proactively allocate extra resources to that stage to prevent delays and maintain a smooth workflow.

Quality Control 

Work-in-process tracking not only helps provide efficient resource allocation, but also is an invaluable tool in ensuring effective quality control. By closely monitoring the various stages of a project's development, process tracking systems provide a clear way to identify and address potential issues and bottlenecks early on, minimizing the chances of defects and errors escalating through the production process.

As we previously discussed, one of the key advantages of a WIP tracker is its ability to provide real-time visibility. This visibility allows project managers and stakeholders to promptly spot any deviations from the planned schedule or quality standards. Consequently, they can take immediate corrective actions, preventing the proliferation of defects and reducing the risk of rework, which can be costly and time-consuming.

Understanding Inventory Tracking

Understanding inventory tracking is crucial for businesses of all sizes to effectively manage their stock levels and ensure smooth operations. Inventory tracking refers to the systematic process of monitoring and managing the movement of goods within a company's supply chain, from the point of procurement to the final sale. By accurately tracking inventory, your company can optimize their stock levels, reduce carrying costs, prevent stockouts, and avoid overstock situations. This process involves using various tools and technologies to track and update real-time stock information. Like WIP tracking, effective inventory tracking empowers you to make informed decisions, forecast demand accurately, and enhance customer satisfaction by ensuring products are available when needed. Overall, a well-implemented manufacturing tracking system is a fundamental aspect of modern business operations, promoting efficiency and profitability.

Key Features and Components

Inventory tracking systems encompass a variety of key features and components designed to efficiently manage and monitor a company's stock levels. Some of the essential elements for a given system might include:

  • Barcode Scanners or RFID Technology: These are used to scan product barcodes or RFID tags, allowing quick and accurate data entry into the inventory system. They streamline the process of updating inventory information and reduce the likelihood of human error.
  • Inventory Management Software: This software acts as the central hub for all inventory-related data. It helps track product quantities, locations, and movement, enabling real-time visibility of stock levels. Additionally, it may include features such as automated reorder points and inventory forecasting.
  • Real-time Tracking: The system must provide real-time updates on inventory levels and movements to ensure that information is up-to-date at all times. This capability allows your company to respond promptly to changing demands and avoid stockouts or overstocking.
  • Stock Control and Alerts: Inventory tracking systems should offer stock control features, such as setting reorder points and safety stock levels. They should also generate alerts or notifications when inventory levels reach critical thresholds or when specific products need replenishment.
  • Integration with Sales and Purchasing Systems: Seamless integration with sales and purchasing systems allows for automatic updates of inventory levels when sales are made or new stock is received. This integration streamlines the entire supply chain process.
  • Batch and Serial Number Tracking: Particularly useful for industries with perishable goods or items with warranties, batch and serial number tracking allows your company to trace individual items back to their origins, making recalls and warranty management more manageable.
  • Multi-location Support: If your business has multiple warehouses or store locations, the inventory tracking system should support multi-location management. It helps in efficiently transferring stock between locations and optimizes stock allocation.
  • Reporting and Analytics: Comprehensive reporting and analytics features provide valuable insights into inventory turnover, sales trends, slow-moving items, and other critical inventory metrics. This data-driven approach aids in making informed decisions to improve inventory management strategies.
  • Mobile Accessibility: Many modern inventory tracking systems offer mobile apps or web access, allowing employees to access inventory data on-the-go, conduct stock checks, and perform tasks from anywhere with internet access.
  • User Access Control: To maintain data integrity and security, the system should have user access controls that limit certain functionalities to authorized personnel only.

Key Differences between WIP Tracking and Inventory Tracking 

While both WIP tracking and inventory tracking contribute to efficient resource management, they differ in several key aspects.

Timing: WIP tracking focuses on goods in process during the production process, whereas inventory tracking deals with finished goods and raw materials held in stock.

Focus: WIP tracking primarily emphasizes optimizing production flow and resource allocation, while inventory tracking centers around stock level management and demand forecasting.

Resource Allocation: WIP tracking involves allocating resources such as labor and machinery within the production process, whereas inventory tracking allocates resources for warehousing and storage.

Impact on Lead Times: WIP tracking aims to minimize lead times within the production process, while inventory tracking focuses on reducing lead times in order fulfillment and delivery.

Cost Considerations: WIP tracking helps control production costs by optimizing resource utilization, while inventory tracking focuses on minimizing holding costs and obsolescence.

Visibility: WIP tracking provides real-time visibility into the progress of individual orders or production batches, while inventory tracking offers visibility into overall stock levels and availability.

While WIP tracking and inventory tracking share the common goal of optimizing resource management, they serve different purposes and operate at distinct stages of the production and supply chain. Implementing both WIP tracking and inventory tracking systems can significantly enhance manufacturing operations, resulting in improved productivity, reduced lead times, and increased customer satisfaction.

Link Labs Solution

Link Labs provides cutting-edge IoT solutions that play a pivotal role in transforming WIP tracking and inventory management for manufacturing and logistics operations. Leveraging state-of-the-art sensor technology and wireless connectivity, we offer an ecosystem of devices and software that enables unprecedented real-time visibility and data collection. With our advanced solutions, your company can effortlessly attach IoT sensors to workpieces or inventory items, creating a web of interconnected devices that relay crucial information at every stage of the supply chain or production process. These sensors capture an array of data, including location, temperature, humidity, and other environmental factors, delivering a comprehensive understanding of the WIP and inventory items' conditions and handling. This real-time visibility empowers companies to proactively monitor their assets, identify potential issues or delays, and promptly respond to supply chain disruptions, ultimately ensuring an efficient and streamlined operation.

Moreover, the seamless integration of Link Labs' technology with existing inventory management systems and other software platforms offers unmatched efficiency and accuracy. Data synchronization between the IoT devices and inventory systems occurs automatically, ensuring that inventory levels and WIP information are constantly up-to-date and accurately reflected in all company records. This integration eliminates the need for manual data entry, minimizing errors, and enabling businesses to make data-driven decisions based on precise, real-time data. One of the standout features of our solution lies in our advanced analytics capabilities. The vast amount of data collected by the sensors is harnessed through sophisticated analytics algorithms, providing your company with actionable insights into WIP and inventory performance. 

Our next-level solutions are adaptable and scalable, catering to the needs of businesses of all sizes and complexities. Whether it's a small business seeking enhanced inventory tracking or a large enterprise with intricate supply chain management needs, our solutions can be tailored to meet specific requirements. The system can be easily expanded to accommodate new sensors or additional tracking points as the business grows or evolves, ensuring that the IoT infrastructure remains future-proof.

Link Labs' IoT solutions bring a transformative approach to WIP tracking and inventory management. As IoT technology continues to advance, our company remains at the forefront of providing innovative solutions that drive efficiency and productivity for businesses worldwide. Want to learn more about our solutions? Visit our website and book a demo today!How Does WIP Tracking Compare to Inventory Tracking?

Written by Carson W. Garner

Carson W. Garner is a proactive business development and marketing professional with the goal of turning opportunities into sales. At Link Labs, Carson is heavily involved with project management, sales, customer success, and he hosts Link Labs' podcast Get Linked. Holding a Bachelor of Business Administration Degree in Marketing, Carson brings creativity, vision, organization, and dedication to the Link Labs team.

Related Blogs

Asset Tracking, BLE Asset Management logistics

Is Your Fleet Management Strategy Powered By 5G?

Asset Tracking, BLE Asset Management logistics

Easing the Search For the Best Asset Tracking Solution

Subscribe to Link Labs' blog weekly update!


Subscribe to Link Labs' blog weekly update!