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You may think ofÌýtheÌýword “inventory” andÌýsee well-stocked warehouses inÌýyour mind’s eye, but really anyÌýretail business has inventory ofÌýsome type. Whether you’re aÌýcrafter with just aÌýfew items onÌýhand atÌýaÌýtime, aÌýlocal small business with multiple locations, orÌýanÌýonline retailer with access toÌýlarger warehouses, effective inventory management isÌýaÌýnecessary part ofÌýestablishing andÌýrunning aÌýprofitable business.

What IsÌýInventory Management Software?

Inventory management involves more than just tracking items inÌýyour warehouse orÌýretail storeroom. ItÌýextends toÌýyour parts department, including individual components andÌýtheir combinations used forÌýbuilding products andÌýservices.

Additionally, itÌýentails keeping track ofÌýtheÌýinventory held byÌýyour supply partners andÌýtop customers. For small toÌýmidsize businesses (SMBs), relying solely onÌýspreadsheets can quickly become challenging. Integrating inventory product information with other data platforms requires dedicated inventory management software. Choosing theÌýright software package forÌýyour business can beÌýdifficult, asÌýyou need toÌýbalance required features with cost-effectiveness.

Inventory management involves more than just tracking what you have. ItÌýdelves deep into various aspects. The software should seamlessly integrate with your accounting ´Ç°ùÌý±ð²Ô³Ù±ð°ù±è°ù¾±²õ±ð resource planning (ERP) package. Its primary function isÌýtoÌýtrack warehouse items throughout theÌýacquisition, sales, orÌýuse processes. Additionally, itÌýhelps locate items across multiple warehouses andÌýassigns pricing (in multiple currencies ifÌýneeded), ensuring accurate accounting ofÌýyour inventory’s value.

How Does Inventory Management Work?

Inventory refers toÌýtheÌýgoods orÌýmaterials that aÌýbusiness plans toÌýsell toÌýcustomers inÌýorder toÌýgenerate profit. Managing inventory isÌýaÌýcrucial aspect ofÌýtheÌýsupply chain, involving theÌýtracking ofÌýinventory from manufacturers toÌýwarehouses, andÌýfrom these facilities toÌýtheÌýpoint ofÌýsale. The ultimate objective ofÌýinventory management isÌýtoÌýensure that theÌýright products are available atÌýtheÌýright place andÌýtime. This necessitates having visibility into inventory, knowing when toÌýorder, how much toÌýorder, andÌýwhere toÌýstore theÌýstock.

The fundamental steps ofÌýinventory management encompass:

• Purchasing inventory: Acquiring ready-to-sell goods that are then delivered toÌýeither theÌýwarehouse orÌýdirectly toÌýtheÌýpoint ofÌýsale.
• Storing inventory: Holding inventory until itÌýisÌýrequired, with goods orÌýmaterials being transferred across theÌýfulfillment network until they are ready forÌýshipment.
• Capitalizing onÌýinventory: Exercising control over theÌýquantity ofÌýproducts available forÌýsale. Finished goods are retrieved toÌýfulfill customer orders, andÌýproducts are subsequently dispatched toÌýcustomers.

What are theÌýTypes ofÌýInventory Management?

• Periodic inventory management. The periodic inventory system isÌýaÌýmethod used forÌýfinancial reporting toÌýdetermine theÌývalue ofÌýinventory. ItÌýinvolves conducting physical counts ofÌýinventory atÌýspecific intervals. This accounting approach involves taking inventory atÌýtheÌýstart ofÌýaÌýperiod, adding new inventory purchases during theÌýperiod, andÌýdeducting ending inventory toÌýcalculate theÌýcost ofÌýgoods sold (COGS).
• Barcode inventory management. Barcode inventory management systems are widely employed byÌýbusinesses toÌýallocate aÌýunique number toÌýeach product they offer. This number serves asÌýaÌýreference point forÌývarious associated data, including supplier details, product dimensions, weight, andÌýeven dynamic information like stock availability. ByÌýutilizing such systems, businesses can efficiently organize andÌýtrack their inventory, ensuring smooth operations andÌýaccurate data management.
• RFID inventory management. RFID, orÌýradio frequency identification, isÌýaÌýwireless system that transmits aÌýproduct’s identity asÌýaÌýunique serial number. This enables item tracking andÌýprovides comprehensive product information. Implementing aÌýwarehouse management system based onÌýRFID can enhance efficiency, boost inventory visibility, andÌýfacilitate prompt self-recording ofÌýreceiving andÌýdelivery.

Why Effective Inventory Management Processes are Vital toÌýYour Bottom Line

Many small businesses underestimate theÌýimportance ofÌýinventory control. InÌýanÌýeffort toÌýcut startup andÌýoverhead costs, they dismiss inventory systems asÌýaÌýluxury that they cannot afford. But effective asset management, including tracking loss from internal orÌýexternal theft, relies onÌýthis foundation.

The objective ofÌýinventory management isÌýtoÌýstreamline andÌýautomate theÌýentire process ofÌýobtaining, creating, and/or selling your products. When your inventory optimization isÌýeffective, you will have aÌýperpetual inventory management system that requires little manual maintenance. This will save you money inÌýareas you probably haven’t considered.

Signs ofÌýPoor Inventory Management andÌýHow toÌýFix Them

You don’t have toÌýwait forÌýanÌýaudit ofÌýyour inventory processes toÌýdiscover areas ofÌýopportunity inÌýyour current inventory management systems. The signs ofÌýpoor inventory management can beÌývery obvious inÌýsevere cases, but forÌýstart-ups orÌýbusinesses with less inventory may not notice theÌýomens right away.

The following issues could beÌýhappening onÌýaÌýmicro level, not drawing theÌýawareness ofÌýaccounting, purchasing, orÌýshipping. Take aÌýhard look atÌýyour current inventory tracking processes. Are they really effective? Here are some things toÌýlook forÌýwhile you review:

Excess stock that doesn’t sell

IfÌýitÌýseems asÌýthough your inventory ofÌýaÌýparticular product just isn’t decreasing, it’s aÌýsign that those purchasing inventory are not taking customer demand into account. Retailers ofÌýall types will experience more demand inÌýsome seasons than others. Accurate demand planning isÌýtheÌýonly way toÌýavoid this excess. Excess stock can also indicate that your price isÌýnot competitive. Check your local competition forÌýclues.

Too little stock orÌýtoo many backorders

Poor demand planning could also beÌýresponsible forÌýaÌýlack ofÌýproduct sufficient forÌýtheÌýdemand, but more often having too little stock isÌýtheÌýresult ofÌýaÌýbreakdown inÌýtheÌýpurchasing andÌýsupply chain. IfÌýyou can effectively manage supply, stock, andÌýorder management remotely, your customers will experience shorter delivery times andÌýreceive aÌýhigher level ofÌýservice. All ofÌýthat means more sales, andÌýaÌýmore profitable business.

Your books are stacked upÌýwith aÌýbacklog ofÌýunentered items

Inventory tracking andÌýorder management isÌýsoÌýimportant forÌýaÌýsuccessful business. That means you should not leave itÌýupÌýtoÌýmanual processes byÌýfallible humans toÌýmanage these inventory records. IfÌýyou are aÌýsmall business trying toÌýhandle all ofÌýyour accounting yourself, you probably don’t have time toÌýmanually enter every order. Automating theÌýprocess isÌýtheÌýbest way toÌýfree upÌýyour time forÌýmore important tasks.

Even ifÌýyou automate your business processes asÌýmuch asÌýpossible, you should still have aÌý, either outsourced orÌýin-house, asÌýwell asÌýaÌýlicensed accountant forÌýtaxes andÌýannual reporting. Saving those hours through automated inventory tracking definitely benefits your bottom line.

Benefits ofÌýIntegrating Your Inventory System

Effective inventory management isÌýcrucial forÌýtheÌýsmooth operation ofÌýaÌýthriving product business. ByÌýdiligently tracking stock onÌýaÌýregular basis, you can steer clear ofÌýstock errors andÌýaÌýhost ofÌýother issues. Let’s explore theÌýremarkable benefits that come with implementing anÌýinventory management system:

• Achieve Enhanced Inventory Accuracy: ByÌýimplementing robust inventory management practices, you gain precise visibility into your stock levels. This empowers you toÌýprocure just theÌýright amount ofÌýinventory toÌýfulfill customer demand efficiently. Embrace theÌýpower ofÌýaccurate inventory management andÌýoptimize your operations forÌýsuccess!
• Mitigate theÌýRisk ofÌýOverselling: Take advantage ofÌýeffective inventory management toÌýkeep aÌýclose eye onÌýstock levels andÌýbackorders, ensuring you never run theÌýrisk ofÌýoverselling your products.
• Save onÌýCosts: Did you know that stock costs money until itÌýsells? It’s true! But theÌýgood news is, byÌýconsidering carrying costs such asÌýstorage handling andÌýtransportation fees, insurance, andÌýemployee salaries, you can optimize your inventory management. Not only that, but you can also minimize theÌýrisks ofÌýtheft, loss from natural disasters, orÌýobsolescence. SoÌýwhy wait? Take action today andÌýstart maximizing your cost savings!
• Prevent Stockouts andÌýExcess Stock: Effective planning andÌýmanagement are essential forÌýbusinesses toÌýreduce theÌýoccurrence ofÌýout-of-stock items andÌýavoid excessive inventory.
• Discover Greater Insights: With advanced inventory tracking andÌýprecise stock control, you gain theÌýpower toÌýeffortlessly identify sales trends, track recalled products, andÌýmonitor expiry dates. Uncover valuable data andÌýmake informed decisions toÌýdrive your business forward!
• Enhance Vendor andÌýSupplier Relationships: Effective inventory management not only offers valuable insights into product popularity andÌýdemand, but also empowers you toÌýleverage this knowledge toÌýnegotiate more favorable prices andÌýterms with your suppliers. Maximize your profitability andÌýstrengthen your business partnerships byÌýutilizing theÌýpower ofÌýinventory management!
• Boost Productivity: Implementing effective inventory management solutions not only saves valuable time but also frees upÌýresources forÌýmore important tasks. Experience theÌýbenefits ofÌýstreamlined operations andÌýmaximize efficiency inÌýyour business!
• Maximizing Profits: ByÌýgaining aÌýcomprehensive grasp ofÌýavailability andÌýdemand, you can significantly boost inventory turnover, resulting inÌýsubstantial profit growth. Embrace this opportunity toÌýelevate your business toÌýnew heights!
• Experience aÌýMore Organized Warehouse: Boost efficiency byÌýstrategically organizing items based onÌýdemand, frequent item pairings, andÌýother key factors. This simple yet powerful approach reduces labor costs andÌýsupercharges order fulfillment. Get ready toÌýstreamline operations andÌýachieve new levels ofÌýsuccess!
• Enhanced Customer Experience: Ensuring timely delivery ofÌýorders fosters greater customer loyalty. Experience theÌýbenefits ofÌýprompt andÌýaccurate deliveries.

What toÌýLook For inÌýaÌýQuality Inventory Management Software?

InÌýgeneral, inventory management systems provide aÌýmethod forÌýtracking all ofÌýyour inventory, orders, shipments, sales, andÌýbuyers. However, your inventory management processes should beÌýunique toÌýyour business. The most flexible options are those set upÌýasÌýSaaS like this solution from ºÚÁÏÃÅ.

IfÌýyou manufacture your own products, you will need specific manufacturing inventory management features that will track both raw materials andÌýgoods toÌýbeÌýsold. OnÌýtheÌýother hand, aÌýretail arbitrage business will need toÌýtrack inventory through theÌýentire supply chain. Effective supply chain management isÌýofÌýutmost importance toÌýsuch aÌýbusiness. InÌýeither case, don’t forget toÌýaccount forÌýexpenses like procurement andÌýstorage ofÌýyour materials orÌýproducts andÌýtheÌýoverhead costs associated.

Chain stores will also need toÌýtrack multiple locations orÌýsalespeople, with aÌýcombination ofÌýmulti-location inventory management andÌýwarehouse management. Warehouse inventory management software specifically assists bigger retailers toÌýserve aÌýbroader range ofÌýcustomers through various sales channels.

Quality inventory management software tracks theÌýproduct you have onÌýhand atÌýdifferent locations andÌýyour warehouse, orders forÌýthose products, andÌýcost ofÌýgoods sold. But itÌýshouldn’t stop there. Through integrated reporting, your inventory software could also track profit margins, which campaigns orÌýproducts are theÌýmost successful, andÌýcalculate expected future demand.

InÌýaddition, theÌýbest inventory management software consists ofÌýthese key features:

• Remote Multi-level Access. Good inventory management software will allow you andÌýyour sales reps toÌýmanage inventory remotely forÌýaccurate inventory levels atÌýall times, noÌýmatter where you may beÌýwhen theÌýorder isÌýplaced orÌýtheÌýitem isÌýsold. Make sure that theÌýapp isÌýavailable forÌýyour smartphone’s operating system.
• Accounting System Integration. ItÌýshould beÌýable toÌýintegrate naturally with your accounting software. Your bookkeeper will beÌýglad forÌýtheÌýmore accurate accounting. IfÌýyou are aÌýsmall business, integrating accounting andÌýinventory activities decreases theÌýtime you must spend onÌýadministrative tasks.
• Sales andÌýMarketing United. You also want your inventory management toÌýbeÌýlinked toÌýyour sales andÌýmarketing efforts. This can beÌýofÌýgreat assistance when you want toÌýknow how effective aÌýparticular digital marketing campaign isÌýdoing. This can also help you offer products through additional sales channels with little additional effort.

How Much Does Inventory Management Software Cost?

Based onÌýrecent research conducted byÌý, itÌýhas been found that theÌýaverage cost ofÌýanÌýinventory management system isÌýUSD$175Ìýper user license, per month. This investment not only streamlines your operations but also enhances efficiency andÌýproductivity.

InÌýaddition toÌýtheÌýuser license cost, there are other expenses associated with inventory management systems, such asÌýcustomer support fees. These fees are often billed separately, andÌýyou can expect toÌýpay around USD$80Ìýper month forÌýaÌýcomprehensive support package. This ensures that you have dedicated assistance whenever you need it, guaranteeing aÌýsmooth andÌýhassle-free experience.

Furthermore, it’s important toÌýconsider theÌýone-off set-up costs forÌýyour inventory management system. The initial customer onboarding process typically starts atÌýUSD$789, ensuring aÌýseamless transition andÌýimplementation. For more complex orÌýcustomized software set-ups, you may require theÌýexpertise ofÌýaÌýthird-party integration consultancy. Reputable software integration houses typically charge between USD$10,000ÌýtoÌýUSD$40,000ÌýtoÌýprovide you with aÌýrobust andÌýtailored software stack that perfectly aligns with your business needs.

Investing inÌýanÌýadvanced inventory management system isÌýaÌýstrategic move that empowers your business toÌýoperate atÌýits full potential. With streamlined processes, dedicated support, andÌýtailored solutions, you can unlock new levels ofÌýefficiency andÌýdrive unprecedented growth.

The Best Inventory Management Software (Top 5)

ToÌýidentify theÌýultimate inventory management software, weÌýextensively examined numerous review websites, delving into theÌýthoughts andÌýopinions ofÌýusers regarding various inventory management solutions.

#1Ìý³¢¾±²µ³ó³Ù²õ±è±ð±ð»å

¾±²õÌý²¹Ìý³ó¾±²µ³ó±ô²â sought-after company that offers anÌýexceptional inventory management solution catered specifically toÌýretailers. ItÌýisÌýtheÌýperfect choice forÌýsmall businesses that deal with aÌýdiverse range ofÌýproducts, effortlessly supporting aÌýcatalog ofÌýcustom product variations encompassing size, color, material, andÌýmore. With Lightspeed, you can effortlessly track items across multiple locations, ensuring streamlined operations.

Moreover, its intuitive order-management tools empower you toÌýeffortlessly replenish stock from suppliers with just aÌýfew clicks. Take advantage ofÌýits customizable reorder points feature, which automatically generates new purchase orders when your stock falls below your specified threshold.

The icing onÌýtheÌýcake isÌýtheÌýcomprehensive pricing control, allowing you toÌýeffortlessly set rates, offer discounts, andÌýrun promotions toÌýmaximize profitability.

Reviews

• Forbes points out that Lightspeed has excellent inventory management andÌýcustomer support. (Source: )
• TrustRadius mentions that Lightspeed’s inventory management isÌýconsidered theÌýbest inÌýclass. (Source: )

#2Ìý²Ï³Ü¾±³¦°ìµþ´Ç´Ç°ì²õ

isÌýanÌýincredibly valuable tool forÌýonline sellers, seamlessly integrating with all major e-commerce platforms such asÌýAmazon, eBay, Etsy, andÌýºÚÁÏÃÅ. AsÌýexpected, itÌýeffortlessly connects with QuickBooks accounting software. With QuickBooks Commerce, you can effectively track inventory across multiple locations andÌýsales channels. It’s aÌýsimple yet powerful inventory management solution that’s perfect forÌýsmall businesses.

QuickBooks integrates with Pogi byÌýSimplyRFID. This integration offers QuickBooks inventory management users aÌýseamless way toÌýimport critical data about inventory whereabouts andÌýtheÌýstatus ofÌýkey deliveries.

Reviews

• NerdWallet highlights QuickBooks Online’s solid set ofÌýfeatures, including inventory management, making itÌýaÌýversatile solution forÌýsmall businesses. (Source: )
• value="3">Software Advice mentions that QuickBooks provides anÌýinventory management component that simplifies inventory tracking andÌýprovides essential data. (Source: )

#3Ìý°ä¾±²Ô7

â€ÈÙ cloud-based inventory management software offers seamless integration with various modules, including point-of-sale software, warehouse management tools, andÌýe-commerce platforms. ItÌýprovides aÌýcompetitively priced solution that can effortlessly scale alongside your business, eliminating theÌýneed forÌýsystem migration when expanding toÌýnew locations orÌýstorage facilities.

With Cin7, you can utilize aÌýrange ofÌýeffective tracking methods, including barcode, batch, first-in, first-out, andÌýserial tracking. Moreover, Cin7Ìýboasts robust reporting tools that not only provide valuable insights into your inventory but also offer relevant data from other integrated systems, such asÌýyour accounting software.

Reviews

• G2: Users describe Cin7ÌýOmni asÌýsuper easy toÌýuse andÌýuser-friendly, with anÌýefficient andÌýknowledgeable support team. Compatibility andÌýease ofÌýintegration are also highlighted. (Source: )
• TrustRadius: Users appreciate theÌýease ofÌýuse andÌýcustomization options offered byÌýCin7Ìýsoftware. The competitive pricing forÌýcloud-based software isÌýalso mentioned. (Source: )

#4Ìý¹ó¾±²õ³ó²ú´Ç·É±ô

inventory management software provides anÌýexceptional solution forÌýsmall businesses inÌýtheÌýretail, manufacturing, andÌýwarehousing sectors. Whether you’re using third-party software like QuickBooks orÌýSalesforce, Fishbowl offers aÌýseamless integration that enhances your operations.

With features such asÌýlot andÌýserial tracking, asÌýwell asÌýtheÌýability toÌýtrack items byÌýexpiration date forÌýperishable goods, Fishbowl ensures efficient inventory management. What’s more, theÌýplatform can beÌýeasily integrated with scanning hardware, empowering you toÌýbarcode your products effortlessly.
IfÌýyou’re aÌýsmall orÌýscaling business looking forÌýsoftware that can grow with you, Fishbowl isÌýtheÌýperfect choice.

Reviews

• G2Ìýreviews highlight Fishbowl Inventory asÌýaÌýgreat software forÌýtracking inventory, shipping, andÌýreceiving. ItÌýoffers features such asÌýlot number tracking andÌýexpiration date tracking. (Source: )
• GetApp reviews indicate that Fishbowl isÌýaÌýsolid warehouse management system with theÌýnecessary functionality forÌýinventory andÌýwarehouse management. (Source: )

#5ÌýOracle NetSuite

isÌýaÌýcomprehensive enterprise resource planning (ERP) system with advanced inventory management features. It’s designed forÌýbusinesses with multiple locations, warehouses, andÌýsales channels. IfÌýyou’re aÌýlarge business inÌýneed ofÌýrobust inventory management, NetSuite isÌýtheÌýperfect fit.

NetSuite provides aÌýcomplete view ofÌýyour inventory across all locations andÌýseamlessly integrates with other modules like point-of-sale (POS) andÌýaccounting software. With batch, serial, lot, andÌýbin tracking, you’ll always know where your items are stored.

Automated prompts forÌýcycle counts andÌýinventory catalogs ensure accurate andÌýup-to-date data. Experience theÌýpower ofÌýOracle NetSuite andÌýtake control ofÌýyour inventory management with confidence.

Reviews

• ERP Research explains that theÌýNetSuite inventory management system allows users toÌýeasily transfer andÌýdistribute items between different locations while providing warnings forÌýshortages. (Source: )
• Protelo Inc. mentions that byÌýleveraging NetSuite, businesses can gain aÌýreal-time view ofÌýsuppliers andÌýshop floor performance indicators, asÌýwell asÌýautomate inventory management processes. (Source: )

ºÚÁÏÃÅ isÌýtheÌýEasiest Inventory Management Solution forÌýOnline Store

ºÚÁÏÃÅ isÌýmore than anÌýonline store, itÌýisÌýalso software forÌýmanaging inventory. ItÌýcan integrate with many other applications andÌýprocesses. You can manage your inventory, orders, shipments, marketing, invoicing, product sourcing, manufacturing andÌýsourcing raw materials, andÌýyour online website from one dashboard.

Perhaps theÌýbiggest benefit ofÌýºÚÁÏÃÅ byÌýLightspeed isÌýthat you can start small andÌýscale up. AÌýcrafter orÌýsomeone just dipping their toe into theÌýretail waters may not want toÌýstart with aÌýfull scale enterprise solution.

Our platform allows you toÌýstart atÌýaÌýlevel that makes sense forÌýyour business size, market share, andÌýbudget. Furthermore, ºÚÁÏÃÅ makes itÌýeasy toÌýscale upÌýwith aÌýsimple upgrade inÌýyour package asÌýneeded. The monthly SaaS format puts you inÌýtotal control toÌýswitch between memberships asÌýneeded.

Ìý

• Edit Products inÌýBulk
• Everything You Need toÌýKnow About Inventory Management Software (+ÌýTop 5ÌýBest Solutions)
• Inventory Control Procedures: How toÌýControl Your Store Inventory
• SKU Explained inÌýSimple Words
• How GS1ÌýGTINs Can Power Your Ecommerce Business
• Forecasting Demands: Strategies toÌýAvoid Stockouts andÌýOverstocking
• Finding theÌýOptimal Way toÌýStore Your Products
• How toÌýOptimize Inventory Levels Without Sacrificing Sales