What Is Inventory Management Software?
An Inventory management software is a software specifically designed to track the inventory of a business, that is the software manages various items across multiple stages of the supply chain. A simple inventory management software typically includes features like inventory item categorization, stock level management, barcode scanning, tracking of sales and purchase orders, and automatic reorder point purchasing.
While retail businesses generally use a basic version of the inventory management software for perpetual optimization of inventory data, businesses having complex supply chains commonly use the inventory management function integrated with their ERP systems or along with their warehouse management integration. An effective inventory management software ensures that your business runs in an efficient and profitable way.
Benefits of Stock Management Software
There are many internal management processes in the inventory management system of a business. Doing all these processes manually not only increases the time required but also can lead to inaccuracies, for example, data duplicity. By adopting an inventory management software, the risks of inaccuracies are minimized through automated data recording and tracking processes, and it considerably reduces manual effort.
By streamlining the internal process and enabling you to access analytics and reports, inventory management software assists you in making smarter business decisions and thus enhances the overall productivity of your business.
Inventory management software enables you to normalize a decent stock management methodology that ensures optimum customer satisfaction. It will help you to keep up with the expectations of your customers and clients when they return for more of your services and items.
An inventory management software not only ensures reduced expenses caused due to inaccuracies and human errors but also opens up the possibilities of further profit through cost-savings. It lets you avoid deadstock & overstock situations and minimize revenue loss, overspending, etc.
Enhanced data security
The inventory management software allows you to restrict the use according to particular interests and ensures lessened errors. This also ensures data security at all levels of the process.
Well, maintenance of your inventory through an inventory management software does more than just reducing unnecessary expenses. It contributes to an enhanced benefit ratio and considerably paves the way for an increased profit margin.
Competitive Advantages of Using Inventory Management Software
A good inventory management software is of utmost importance if you want to provide your business with a competitive edge. It can definitely change the prospects of businesses like e-commerce retailers, logistics providers, and other industries with thin profit margins.
Inventory management software provides businesses like e-commerce retailers the opportunity to synchronize inventory across multiple digital channels, while physical retailers can synchronize multi-channel inventory across multiple stores in a better and more efficient way.
Inventory software delivers a competitive edge to the businesses by ensuring greater efficiency in the processes by integrating with point-of-sale systems to update stock levels in real-time whenever the sales are made.
Advanced features in ERP-integrated inventory management software enables end-to-end tracking of goods. This ensures reliable tracking and optimum asset management benefits.
Business Sizes Using Inventory Management Software
Businesses across multiple industries, of all shapes and sizes, can use inventory management software. The smaller businesses generally use a scaled-down inventory management solution that works in line the sales and the accounting system. On the other hand, larger businesses, including enterprise businesses typically prefer an inventory management tool that is well-integrated with an ERP or supply chain system that significantly simplifies the process of inventory tracking across multiple links in the supply chain.
Software Related to Inventory Management
Inventory management functionality can be found across a diverse group of software categories that make inventory management more effective and optimized.
- Accounting software:
Accounting software typically helps businesses to automate and streamline their core accounting functions. It provides billing, invoicing, and standard report production abilities to the business and ensures a stable financial standing.
- Distribution ERP systems:
Many businesses across industries require a distribution Enterprise Resource Planning (ERP) software that streamlines the supply chain operations of the business between the manufacturers and the customers. This type of software is often built with features like inventory control, warehouse management, order management, CRM, and accounting.
- Manufacturing ERP systems:
Manufacturing ERP software, unlike distribution ERP systems, enables the businesses to plan and execute manufacturing projects from the beginning till the end, through automation, scheduling, and tracking.
- Retail management systems:
The retail management system allows the vendors to combine point-of-sale systems with inventory management systems within a single platform.
- Warehouse management systems:
Warehouse management software is inventory management systems specifically designed to streamline, automate, and optimize important warehouse processes.
A-List of Common Inventory Management Solution Features
- Barcode scanning:
Integration with barcode scanners offers easy and effortless product identification, labelling, and product tracking.
- Inventory optimization:
It enables you to maintain the right amount of inventory for each product, often in line with seasonal demands and other aspects, ensuring that you avoid over-stocking or under-stocking.
- Stock notifications:
It enables you to receive alerts and notifications regarding the availability of stocks beyond a predefined threshold.
- Report generation:
An inventory management solution offers you with sales history and allows you to access detailed reports on each product.
- Multi-Location management:
It also enables you to manage multiple warehouses and point-of-sale (POS) across various locations within an integrated system.
- Material grouping:
Using inventory management software, you can easily organize items on your inventory into predefined categories and remain updated on the category specifications.
The Inventory Management Solution Features You Really Need
Inventory management software for small business
- Perpetual inventory:
This feature can be extremely advantageous in inventory management software for small businesses, including small retailers and e-commerce sellers, as it enables them to synchronize their product levels across multiple locations, and even across different sales channels. It, furthermore, optimizes purchase orders, reports, and invoicing, allowing small businesses to make smarter business decisions.
- RF support:
This feature helps the medium-sized businesses significantly through barcode scanning that in turn, improves accuracy and speeds up processes.
- Lot traceability:
This feature helps large businesses to effectively track their products throughout their supply chain processes.
Faq’s on Inventory Management Software
- What is the best software for inventory management?
There is much software for inventory management in the market that suits the requirements of businesses of all shapes and sizes. FieldEz’s inventory management software is extremely efficient, as well as easy to use. It is one of the best inventory management software in India that enables you to streamline the entire process of inventory control by reducing errors, additional expenses, and improves the RoI.
- What does inventory management software do?
An inventory management software is specifically designed to deliver optimized management capabilities across the entire supply chain of a business. It manages various items throughout multiple stages of the process and ensures a secure and strong inventory control.
- What is the best free inventory management software?
There are several vendors that provide simple inventory management software for free. However, these inventory management software for small businesses is typically scaled down to deliver only the basic functionalities of inventory control. By utilizing FieldEz’s inventory management system, one of the leaders in inventory management software in India, you can try out the different inventory control features and determine the most suitable one for your business.
- What are the 4 types of inventory?
The 4 types of inventory that are most commonly used are:
- Raw Materials
- Work-In-Progress (WIP)
- Finished Goods
- Maintenance, Repair, and Overhaul (MRO).
Determining your particular type of inventory helps you to optimize your supply chain accordingly and allows you to make smarter financial decisions.
- Why do we need inventory management software?
Inventory management software helps businesses of all shapes and sizes to manage and organize their entire inventory. It ensures optimized control over the inventory items, products, stocks, market demand and more. Inventory management software with integrated functionalities provides a more secure and efficient way to control the supply chain processes across various locations and sales channels. Hence choosing a strong inventory management software is critical to the smooth and profitable running of your business. However, you can choose an inventory management software for free to check out its compatibility with your business.
- How do you create an inventory system?
Even though you can create an inventory system manually, it can lead to certain inaccuracies and data duplicity. This will, in turn, affect the entire organization and effectiveness of your inventory system. But using an inventory management software to create and optimize your inventory provides you with accurate results, data insights, analytics, security, flexibility, and more.
- How do I calculate inventory?
An inventory management software allows you to systematically calculate your inventory without any risk of manual errors. It not only minimizes the risk of inaccuracies, but also makes the entire process faster, simpler, and more efficient. Inventory management software integration with accounting systems also helps you to calculate your financial prospects and enables you to make sound financial choices.
- How do you control inventory?
Controlling inventory is a critical task for ensuring organized and effective supply chain processes. Leveraging an inventory management software for achieving end-to-end control over your inventory allows you to streamline and optimize the items and the processes as per specific requirements. Additional integration also enhances the functionality of a simple inventory management software to its optimum level.