Inventory management software is a type of software that is used to track orders, inventory levels, deliveries, and sales. In manufacturing enterprises, it is used to create materials’ bills, work orders, and some other documents.
- Periodic inventory system: in this system the team physically counts the items, records the quantity of each item, and compares it with an inventory of the previous period.
- Perpetual inventory system: this decent inventory software provides real-time data. It centrally updates the facility with quantities of products.
- Barcode systems: in this system, the tags marked on products are scanned to maintain the inventory data automatically.
- Reorder point
This is the threshold point where the program notifies the expected shortage of a product in the upcoming days. When the quantity of a specific product reaches that level, software alarms managers to reorder that product to avoid any problem related to its deficiency.
- Asset tracking
This feature is helpful when the product is in any storage station or a warehouse. Several tracking criteria including revision number, lot number, serial number, and barcode tracking are used to track such products. In the current era inventory management software uses wireless tracking technology, radio frequency identification (RFID), and barcode tracking.
- Service Management
Enterprises that are more service-oriented than product-oriented find this feature very beneficial. Through this feature, companies can track the cost of the substance used in providing the service, like cleaning supplies.
- Product identification
The data of orders and products are entered into the inventory software through barcodes. The barcode reader reads the barcode and exhibits the inventory of the associated product. Production identification through wireless methods or radio-frequency identification (RFID) is also gaining importance. Advanced inventory management software uses NFC tags or QR codes for product identification.
- Inventory optimization
To automate the demand forecasting and optimize the inventory, the following optimization metrics are used:
- Reorder point
The number of units that trigger managers for replenishment orders
- Order quantity
The number of units that tell the quantity of the product need to b reordered
- Lead demand
The number of units that are going to be sold in lead time
- Stock cover
It tells the duration left for stock-out condition in case no order is made
The primary benefit of inventory management software is its simplified aspect. The procedure of inventory management becomes easy, cost-effective, and less time-consuming. Supply and demand changes throughout the business’s lifespan causing stock level fluctuations. Inventory management software automatically forecasts the stock-out condition.
- Risk of overselling reduces
The main challenge an online seller faces is overselling. This leads to disappointed customers, loss of control, and sometimes being withdrawn from the marketplaces like eBay or Amazon. Inventory management software helps in eradicating this problem. It synchronizes inventory and orders across each of the e-commerce outlets. This is how it ensures the proper inventory of the product at the time when it is sold.
- Greater cost-savings
Inventory management software eliminates several costs such as human error-associated costs. Through reorder point features, it reduces the cost of obsolete and excess stock. Impoverished inventory management involves stock-outs and overstock conditions that can lead to considerable revenue loss. Good inventory management software is a great solution for all these problems.
- Eliminates less or excess stock conditions
Inventory management means maintaining the appropriate balance between purchasing and selling products. Less stock of a certain product leads to a stock-out situation, dissatisfied customers, and potential damage to sales. On the other hand, excessive stock incurs needless costs and covers valuable space in the warehouse. Luckily, inventory management software identifies the low levels of stock and reorder points. That is how it prevents stock-out conditions in the business.
Best providers of inventory management software (2)
- NetSuite ERP’s inventory management software
This tool is efficient in streamlining the supply chain of business and related financial management operations. Due to its efficient functionalities and convenient native tools, this software is progressing and is utilized by several large and mid-sized businesses.
- The tools come with various functionalities and features that can be integrated with demand planning and financial operations to optimize inventory.
- The cloud-based protocol permits real-time availability across different locations.
- It provides no live support but favors its clients via emails and calls.
- The pricing of this software is on a quote basis. It is customized according to the features taken by enterprises.
It is strong point-of-sale software that helps in retail and inventory management. It is built on a cloud-based platform, run on an iPad. It is popular for its convenient and flexible features. Small businesses find this solution best for them. These can integrate this software with existing hardware and equipment such as receipt printers, barcode scanners, etc. It has gained high customer reviews for its competitive equipment support, e-commerce, and customer loyalty. It has:
- Impressive capabilities for inventory management
- The single console is available to add diverse product variants
- Sale of products from the different catalogue is maintained by a central product catalog
- Centralized management of data permits customized and robust reporting
- Only the English language is supported in this software
- It is not functional in mobiles like Windows, Android, and Linux.
It offers three POS packages according to the size of the company.
- The Lite version is for retailers having single outlets. It costs $99 per month
- Pro version is for retailers having more than one outlet. It costs $119 per month
- Quote-base package is available for large enterprises
- ProfitBooks inventory management software
This software is specifically for those companies that develop and sell their products online. It is best suited for wholesalers and manufacturers. It integrates inventory management and accounting. This integration allows a manufacturer to generate purchase orders as well as track routine business expenses. Some top features of this software are:
- User-friendly interface
- Supports multiple currencies and warehouses
- Delivery challans and sales orders
- Detailed purchase management workflow
- Comprehensive inventory reports
- Comprehensive financial reports like profit and loss and balance sheet.