Keeping track of inventory from manufacturer to warehouse to stores and the point of sale can be a daunting process.
At any given point, more than $1 trillion is locked up in inventory globally, which means management of inventory and tools to help accomplish this are in high demand.
This is where inventory management software comes in.
Table of Contents
What is Inventory Management Software?
Inventory Management Software enables businesses to track and manage inventory, and handle sales, purchasing decisions, and deliveries.
Monitoring inventory levels is essential to the efficient production and distribution of goods and resources, whether wholesale or retail.
Inventory management tools are often integrated in with inventory control software. It is used to detect and get rid of any inefficiencies in the transport of inventory between different locations.
Inventory management software can automate and streamline these processes by integrating with other business software, such as your accounting software or enterprise resource planning (ERP) system.
With all this information in one place, inventory management becomes much easier and you can make decisions based on real-time data.
Features of Inventory Management Software
There are many features that Inventory Management Software can offer businesses. Some of the most common features include:
– Tracking inventory levels across multiple locations
– Managing orders and deliveries
– Generating reports on sales, stock levels, and more
– Setting reorder points to ensure adequate stock levels
– Forecasting future demand
Why Use Inventory Management Software?
There are several reasons why businesses might choose to use Inventory Management Software.
Some of the most common reasons include:
Improved accuracy
Inventory management software can help to improve the accuracy of your inventory records.
This is because the software can automate many of the tasks involved in tracking inventory, such as counting stock and recording sales and purchases.
Reduced costs
Inventory management software can help to reduce the costs associated with inventory management.
This is because the software can automate many of the tasks involved in managing inventory, such as ordering stock and generating reports.
Increased efficiency
Inventory management software can help to increase the efficiency of your inventory management processes.
This is because the software can automate many of the tasks involved in managing inventory, such as counting stock and recording sales and purchases.
Improved decision-making
Inventory management software can help to improve your decision-making when it comes to inventory management.
This is because the software can provide you with real-time data on your inventory levels, sales, and purchases.
This data can then be used to make informed decisions about how to manage your inventory.
Choosing Inventory Management Software
There are a few things you should consider when choosing Inventory Management Software for your business.
Some of the most important factors to consider include:
The size of your business
The Inventory Management Software you choose should be able to scale to meet the needs of your business.
If you have a small business, you might not need all the features offered by a larger software package.
Conversely, if you have a large business, you might need a more comprehensive package that offers more features.
The type of business you have
The Inventory Management Software you choose should be designed for the type of business you have.
For example, if you have a manufacturing business, you will need software that is specifically designed for managing inventory in a manufacturing environment.
Your budget
The Inventory Management Software you choose should be within your budget.
There is no point in spending money on software that you can’t afford to use.
Your needs
The Inventory Management Software you choose should meet your specific needs.
For example, if you need software that can help you manage inventory across multiple locations, you will need to find software that offers this functionality.
How to Use Inventory Management Software
Once you have chosen the Inventory Management Software that is right for your business, you will need to learn how to use it. There are a few things you should keep in mind when using Inventory Management Software:
Familiarize yourself with the software
The first thing you should do is familiarize yourself with the software.
Take some time to explore the features and functions of the software and get comfortable with using it.
Train your employees
If you have employees who will be using the Inventory Management Software, you will need to train them on how to use it.
This will ensure that they are able to use the software correctly and efficiently.
Set up your inventory
Once you have installed the Inventory Management Software, you will need to set up your inventory.
This process will involve adding your products and services to the software and setting up your Inventory records.
Start tracking your inventory
Once you have set up your inventory, you can start tracking it.
This process will involve recording sales and purchases, counting stock, and generating reports.
Make sure to keep your inventory records up to date
It is important to keep your inventory records up to date.
This means that you should regularly update the software with new sales and purchases, count your stock, and generate reports.
Inventory management software can be a valuable tool for businesses of all sizes. By taking the time to choose the right software for your needs and learning how to use it correctly, you can ensure that your business runs smoothly and efficiently.
What Is the Best Inventory Management Software?
#1 Quickbooks Commerce (fka Inventory Management)
Quickbooks is widely regarded as the best inventory management software for small businesses.
Quickbooks offers a wide range of features, including:
– Inventory management
– Sales tracking
– Purchases tracking
– Inventory reports
Quickbooks is easy to use and can be customized to meet the specific needs of your business.
Plans start out at $40 per month.
#2 Zoho Inventory
Zoho Inventory is a comprehensive inventory management software that is designed for businesses of all sizes.
It has accounting, CRM, and shipping integrations.
There are plans that run from $0 to $239 per month.
#3 Katana
Katana gives thousands of manufacturers a live look at their business with visual, intuitive, and easy-to-use ERP software.
It is a great inventory management software for manufacturers as it offers features such as:
– Inventory management
The price of the Katana Inventory tool starts from $99 per month for Essential and $299 per month for Pro.
They also provide a 14-day free trial.
#4 nChannel
nChannel is a great inventory management software for businesses that have multiple channels of sales.
It is a cloud-based inventory tool that helps you integrate your sales with your order fulfillment channel.
Your inventory will update instantly, which will help you avoid overselling inventory, which will help create a better customer experience.
Some features of nChannel include:
– Inventory management
– Multi-channel sales
nChannel’s pricing plans aren’t clear, as you have to fill out a form to get a custom quote.
#5 Fishbowl Inventory
Fishbowl Inventory is one of the most popular inventory management software solutions for small to medium businesses.
Fishbowl serves as a manufacturing and warehouse management solution for QuickBooks.
It integrates with QuickBooks and offers features such as:
– Inventory management
– Barcoding and scanning
– Manufacturing
The software starts at $4,395, which gives you permanent ownership of the software and becomes more cost-efficient the more users you add.
#6 ChannelAdvisor
ChannelAdvisors works as not only inventory management software but as a digital marketing tool for your business.
It syncs with multiple channels and is one of the best inventory management software systems for e-commerce businesses.
Some features of ChannelAdvisor include:
– Inventory management
– Listing management
– Order management
The price of ChannelAdvisor will depend on your needs. You will receive a free demo.
#7 SellerCloud
SellerCloud is a popular inventory management software tool for ecommerce.
It has features such as shipment handling, scheduled listings, customer feedback management, and more.
The pricing plan starts at $1,000 per month. Pricing might increase if you need more services.
#8 SkuVault
SkuVault is an inventory management software that is designed for businesses of all sizes.
It offers features such as:
– Inventory management
– Warehouse management
– Order management
Skuvault has four pricing plans: Growth ($299 per month), Pro ($449 per month), 3PL ($599 per month), and Enterprise ($899 per month)
What Should You Look for in an Inventory Management System?
When you are looking for an inventory management software, there are a few key features you should look for, such as:
– Inventory management
– Sales tracking
– Purchases tracking
– Inventory reports
The best inventory management software will offer a free trial so you can test out the features before committing to a paid plan.
Inventory Management Software – FAQs
What are the four types of inventory management?
The four types of inventory most commonly used are:
- Raw Materials
- Work-In-Process (WIP)
- Finished Goods, and
- Maintenance, Repair, and Overhaul (MRO)
You can practice better inventory control and smarter inventory management when you know the type of inventory you have.
What is Inventory Management Process?
Inventory management is the process of tracking inventory levels, sales, and purchases to ensure that you have enough stock on hand to meet customer demand.
It also involves forecasting future inventory needs so that you can avoid stock-outs and overstocking.
What are Inventory Management Software?
Inventory management software (IMS) is a system used to track inventory levels, sales, and purchases.
IMS systems can be used to forecast future inventory needs and create purchase orders.
IMS systems typically include features such as barcode scanning, real-time alerts, and Inventory reports.
What’s the best Inventory Management Software for small business?
The best Inventory Management Software for small businesses will depend on the specific needs of your business.
Some Inventory Management Software products are designed for businesses of all sizes, while others are specifically for small businesses.
When choosing an Inventory Management Software product, be sure to consider your budget, the number of users you need, and the features you need.
You should also look for a product that offers a free trial so you can test out the features before committing to a paid plan.
What’s the best Inventory Management Software for e-commerce?
The best Inventory Management Software for e-commerce businesses will depend on the specific needs of your business.
Some Inventory Management Software products are designed for businesses of all sizes, while others are specifically for eCommerce businesses.
When choosing an Inventory Management Software product, be sure to?
Some Inventory Management Software products are designed for businesses of all sizes, while others are specifically for e-commerce businesses.
When choosing an Inventory Management Software product, be sure to consider your budget, the number of users you need, and the features you need.
You should also look for a product that offers a free trial so you can test out the features before committing to a paid plan.
What’s the difference between Inventory Management and Warehouse Management?
Inventory management is the process of tracking inventory levels, sales, and purchases to ensure that you have enough stock on hand to meet customer demand.
Inventory management also involves forecasting future inventory needs so that you can avoid stock-outs and overstocking.
Warehouse management is the process of managing the storage and movement of goods within a warehouse.
This includes tasks such as receiving goods, picking orders, packing orders, and shipping orders.
While both Inventory management and warehouse management are important for businesses that have inventory, they are two distinct processes.
How can I improve my Inventory Management?
There are a few key things you can do to improve your inventory management:
1. Know your product mix.
2. Understand your customer demand.
3. Use data to make decisions.
4. Automate your processes.
5. Communicate with your team.
By following these tips, you can improve your inventory management and avoid stock-outs and overstocking.
Summary – Inventory Management Software
Inventory management software (IMS) is a system used to track inventory levels, sales, and purchases. IMS systems can be used to forecast future inventory needs and create purchase orders.
Inventory management is the process of tracking inventory levels, sales, and purchases to ensure that you have enough stock on hand to meet customer demand.
Warehouse management is the process of managing the storage and movement of goods within a warehouse.
Inventory management and warehouse management are two distinct processes.
Some Inventory Management Software products are designed for businesses of all sizes, while others are specifically for small businesses or eCommerce businesses.
When choosing an Inventory Management Software product, be sure to consider your budget, the number of users you need, and the features you need.
You should also look for a product that offers a free trial so you can test out the features before committing to a paid plan.