The global cost of inventory disruption (shrinking, stockouts, overstock) is estimated to be $1.1 trillion. The massive number of waste is approximately the gross domestic product (GDP) of Australia.
Even then, according to Wasp Barcode, a whopping 43 percent of U.S. small businesses didn’t have inventory tracking or used a manual inventory tracking system. With such a staggering amount of waste - imagine how much money can be saved with an efficient inventory management system!
It is time to put those days of labor-intensive, manual, and error-prone stock counting behind us. It is time to upgrade from tedious spreadsheets to an inventory system that presents your stock level at a glance. We are also acutely aware that small businesses are different from large organizations. Hence, we have done some legwork to bring you everything you need to know about inventory management software for small businesses - from what they do, what the best features are, and how to filter one that fits your needs like a glove.
An inventory management system is a comprehensive digital tool that automates inventory control processes, enabling businesses to efficiently oversee stock levels, streamline reordering tasks, and maintain accurate accounting records. It ultimately ensures precise inventory tracking and prompt identification of restocking needs.
No matter what industry you’re in, if you’re dealing with raw materials and products, you need to know how to manage inventory effectively. Inventory management systems help you:
The mentioned benefits are achieved with the help of 5 key features:
Warehouse management is a broader term than inventory management, as it involves aspects of daily warehouse operations. It involves organizing the warehouse space, fulfilling orders, scheduling labor as well as inventory management. Effective warehouse management, whether it is managing multiple warehouses or a single one, means integrating the processes effectively to keep productivity at a high level while costs are low.
One of the most critical features of inventory management software solutions is its capability to collect and provide real-time data regarding stock levels, their movements, sales, and shipments. It also provides a comprehensive insight into the level of stocks and sends stock alerts to avoid obsolete inventory - the inventories that have reached the end of their product cycle. Rest assured that you always have your customer’s favorite products in stock.
Barcodes are highly useful in inventory management as they encode product information into bars and alphanumeric characters. This makes it a lot faster and easier in case you need to ring up items at a store or track inventory in a warehouse. Besides the ease and speed they offer, barcodes have several business benefits, including improved accuracy, better inventory control, and significant cost savings.
A strong inventory management software solution not only collects and shows you raw data but also automatically analyzes it to generate insightful reports, like inventory rate reports and order lead time reports.
Depending on their specific niche, regulations, and demands, small business owners have distinct needs when managing inventory. In addition to the major functions we mentioned, here are more inventory management features for small manufacturer and retailer businesses.
Manufacturers should make sure that their inventory software has the three following advanced features:
Manufacturers should keep track of raw materials and finished goods to reorder them when they reach minimum levels. A complete grasp of the items you will need to purchase to build your products (the bill of materials) is necessary for effective manufacturing inventory management. A well-managed bill of materials helps avoid production delays, forecast expenses, organize material purchases, and enhance the capacity to respond to supply chain delays and sourcing errors.
E-commerce tools are no longer exclusive to retailers. More manufacturers are selling directly to customers via multiple sales channels, which is why there is a need to discover inventory management systems that work well with e-commerce sites.
Integration with third-party tools is crucial, even for small business inventory software. While the inventory software is there to notify you of reordering points, you need to build a strong partnership with your suppliers yourself. Active collaboration with your suppliers drives value for the business, consolidates any related business strategies, and even increases the overall profits.
Retailers should look for customer-centric inventory software. We suggest you look for Point-of-sale (POS) system integration and inventory catalog as additional features for your inventory management capabilities.
It can be challenging to choose the right inventory management software for your business. After all, there is plenty of commercially available software. No two software are the same, so take into consideration the following when you are looking for one.
A quick note: don’t settle for the first inventory software you come across. Always take a look at other inventory management software before making the final decision. If you cannot find suitable software after having gone through several options, the next option is to build one from the ground up. You can discuss your goals with your in-house team or consult a dedicated professional team of developers like Orient Software and let us take care of all the hard work.
Sifting through the massive ocean of inventory software management in the market can be overwhelming. Therefore, to help you save some time and effort, we have compiled a list of our top inventory software picks.
Zoho Inventory offers a 14-day free trial for all its plans. Its plans start from $29 per organization per month.
Sortly inventory management software offers free usage for personal use.
You can get started for free with Ordoro inventory management software.
Efficient inventory management ultimately translates to less costs and time spent and increased sales and customer satisfaction. If you’re looking to upgrade your inventory system, the Orient Software team can be your partner. We understand the importance of building resilient supply chains and are committed to supporting our customers’ growth. Contact us today to get started and see how we can optimize your inventory management system.
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