Having the right stock, especially in today’s complex business climate is essential for the sustainability of any small business firm. Implementing inventory management software can enhance the organization of your inventory process, decrease cost, and increase revenue and profit. When you apply the necessary software, it is possible to monitor the product in real time, control the stock across different areas, and make the right decisions when it comes to purchasing the stock, hence avoiding stock out or cases where there is excess stock.
In this article, I’ll explain in detail what inventory management system is, why it is necessary, and what core functions you should pay attention to. We will then proceed to talk more about each of the 10 inventory management software products that are actively being used today, the features of using software and its strengths and weaknesses, and how and when it is used. After today you should have a really clear idea of how using these software can improve your business.
What Is Inventory Management Software?
Inventory management is an application that is aimed at managing and tracking inventory flow within businesses. It provides accurate information on the inventory, enabling managers to track the availability of the stock in different places and specify the points for ordering and handling orders. From the stage of purchasing raw materials to transforming them into products, this software offers information on the inventory that is so beneficial to reduce human interferential errors, storage problems, and internal cash cycles.
Why Do You Need an Inventory Management System?
Inventory remains a critical component to any business, especially for small businesses where it becomes so important to meet the right stock at the right time without buying excess inventory. This makes sure that other incidences that are so expensive such as stock out and huge inventory are avoided. It also facilitates effective demand forecasting, increases order precision, and satisfies the customers by making sure they receive their goods on time. Also, it reduces the time used to complete repetitive tasks and in the process, saves more time to improve business strategies.
Benefits of Using Inventory Management Software
- Increased Efficiency: When stock levels are monitored and purchase orders are prepared manually, there is a high chance of making wrong decisions and taking a lot of time respectively which can be avoided when using inventory software.
- Real-Time Data: It provides real-time tracking of stock levels hence enabling organizations to avoid situations with either too much or too little inventory.
- Cost Savings: Having improved control over inventory can lead to a decrease in wastage, recurrent stock out, and wrong orders all of which are costly implications in business.
- Better Customer Satisfaction: That means improving demand management through optimistic but also accurate stock levels and faster order processing results in happier customers because the stock is always on the shelves, and products are delivered on time.
- Enhanced Decision-Making: The aspects of reporting and analytics provide detailed values that are necessary for the business decision-making process and the turnover of stock, which boosts general business performance outcomes.
Key Features of Inventory Management Software
- Real-Time Inventory Tracking: Facilitates real-time tracking of stock which helps avoid occurrences of stock out or overstocking.
- Order Management: Holds and processes all sales and purchase orders, and can also be linked to e-Commerce platforms.
- Warehouse Management: It tracks inventory not only in many storeroom locations but also provides the options of transfer and restocking.
- Demand Forecasting: Controls supply and purchase orders, along with constructing future sales forecasts based on the information from the past.
- Integration Capabilities: Interfaces well with other systems such as accounting, customer relationship management, and point of sale systems among others.
Comparison Table
| Name | Free Plan | Starting Price |
| Fishbowl Inventory | No | Contact for Pricing |
| Zoho Inventory | No | ₹12,999/year |
| QuickBooks | No | $17.50/mo |
| Cin7 | No | $349/mo |
| Ordoro | Yes (Shipping) | $299/mo (Drop shipping) |
| Square | Yes | $0 |
| inFlow Inventory | No | $89/mo |
| Lightspeed | No | Contact for Pricing |
| Katana | No | $179/mo (billed annually) |
| Sortly | Yes | $0 |
Top 10 Inventory Management Software
1. Fishbowl Inventory
Fishbowl Inventory is an effective inventory control software that has been developed to meet the needs of small and medium-scale businesses. It provides sound functionalities that can accommodate the manufacturing, wholesale, or even distribution sectors. Fishbowl works perfectly with QuickBooks so if your company relies on QuickBooks for keeping your records then Fishbowl will be a good fit for your company. Inventory tracking, order management, and special purpose reports are some of the capabilities of this product. It also provides multiple locations inventory that enables businesses to assess their stock.
Key Features:
- Reliability of multiple locations` inventory management in a central warehouse location
- Allows integration with Quick Books making the tracking of financial aspects easy.
- The enhancements of the barcode scanning feature make stock checks and inventory updates even quicker.
| Pros | Cons |
| Great coupling with QuickBooks, easy-to-handle accounting. | Users typically learn that operating the product comes with a steep learning curve. |
| Report writing capabilities are enhanced to improve the insight. | Difficult, particularly for small business firms who might not afford the high costs of the advertising medium. |
| Manufacturing, production, and logistic management capabilities. | Does not offer a trial period which is difficult to test before a purchase. |
Ideal for:
Manufacturing SMEs, wholesalers, or distributor SMEs.
Pricing:
- Contact For Pricing
Website: https://www.fishbowlinventory.com/
2. Zoho Inventory
Zoho Inventory is an affordable cloud-based inventory management software that has impressed its users with its simplicity and flexibility. Primarily targeted towards small and emerging companies, Zoho Ship allows tracking of real-time shipping status and orders and is integrated with other Zoho tools, including Zoho Books and Zoho CRM. The software facilitates multiple channel orders by enabling sellers to handle sales from various channels.
Key Features:
- Multiple channel stock control
- Integration with other Zoho apps, besides other third-party apps such as Amazon, Shopify, and others
- The integration of real-time generational tracking of inventory levels and generation of the status of the orders.
| Pros | Cons |
| Cheap for small businesses owing to the prices set. | It is used mainly by small companies since it is missing some features for large companies. |
| Integration with other Zoho applications and a variety of the most used external platforms for e-commerce. | Response time to customers may also be long. |
| Simple to use dashboard with an interface. | Compared with the other tools it has few automated facilities. |
Ideal for:
Retail stores, restaurants, grocery stores, and other businesses that use multiple selling points including the internet are existing Zoho customers.
Pricing:
- Standard: ₹ 12,999 per organization/year
- Professional: ₹ 26,999 per organization/year
- Premium: ₹ 45,999 per organization/year
- Enterprise: ₹ 89,999 per organization/year
Website: https://www.zoho.com/in/inventory/
3. QuickBooks
QuickBooks is the inventory and order management software designed primarily for small and mid-sized businesses. Some of the features include demand forecasting, a platform for business-to-business online sales, and the ability to operate with multiple currencies, and that is why it’s perfect for companies involved in the global market. It also gives sales orientations meaning that, users of the platform can make relevant sales decisions based on the purchasing habits of their customers.
Key Features:
- B2B e-commerce solution facilitating placing of large orders in an organization
- Fully integrating the system with QuickBooks that ensure proper financial and inventory managing grades.
- Further, multi-currency and multi-location support mechanisms for existing international enterprises.
| Pros | Cons |
| Good particularly for companies with operations across the globe because of the support of multiple currencies. | Relative costs may be considered higher by many small businesses because of the better deals they might be using currently. |
| Seamless connectivity with QuickBooks, best suited for businesses currently handling QuickBooks. | Has limited features which those found on the QuickBooks site map can only be accessed by users with a QuickBooks subscription. |
| It helps generate useful information on the demand side of customers and stock conditions. | Relatively few choices when it comes to customizing the reports and the associated dashboard. |
Ideal for:
Accounting firms seeking easy-to-use software for accounting and tracking inventory for small to medium-sized markets.
Pricing:
- Simple start: $17.50/mo
- Essential: $32.50/mo
- Plus: $49.50/mo
- Advanced: $117.50/mo
Website: https://quickbooks.intuit.com/quickbooks-commerce/
4. Cin7
Cin7 is one of the powerful inventory management systems is designed to meet the needs of businesses that require full-featured inventory control. It has inventory tracking, order management, and point-of-sale integration and therefore can be used for retailing, wholesaling as well as e-business. Some key performances of this software are handling production flow, controlling costs, and tracking the supply chain.
Key Features:
- Inventory production planning and control systems for developing and tracking the manufacture of goods inside the production unit.
- Connecting with popular online marketplaces for easy product selling
- In trip reports for enhanced inventory and sales understanding
| Pros | Cons |
| Well-developed production control capacities. | The higher price is not advisable especially when the organization is in its infancy and may not afford to charge its clients high prices. |
| Connectivity to every ecosystem related to e-commerce and accounts. | There is usually a need to train in order to run all these features to their full potential or complexity. |
| Very good attitudes towards multi-channel and multi-location inventory management. | Fewer online customer support response times. |
Ideal for:
Small business growth and mid-level enterprises with intensive inventory management requirements.
Pricing:
- Standard: $349USD/month
- Pro: $449USD/month
- Advanced: $749USD/month
- Omni: Contact For Pricing
Website: https://www.cin7.com/
5. Ordoro
Ordoro is an effective inventory management software specifically developed for use by e-commerce enterprises. They offer a better method of inventory control, easy order processing, and provision of shipping services. Being an excellent order management tool, Ordoro is best suited for online retailers thanks to its dropshipping features and supplier management tools. It also has special features such as kitting (bundling items together as one) which is important when dealing with companies with many variants. Ordoro shipping automates shipping to workflows, thereby cutting down on time and errors that are commonplace when dealing with many orders.
Key Features:
- Should small businesses stock physical products?
- The key elements of Supplier management tools for efficient management of vendor relationships
- Kitting and bundling help in the directives that underpin the selling of product adaptations
| Pros | Cons |
| Able to be integrated automatically to work with both Shopify and other e-commerce platforms with drop shipping functionality in-built. | It has some restricted functionalities for non-e-commerce stores. |
| Inventory replenishment processes are done by adopting the automation equipment required for shipment. | Additional packages are required for additional functionality. |
| Is easy to use and tends clear reporting and analytics. | This is because integration options are limited compared to rival solutions. |
Ideal for:
Small businesses and especially those companies that engage in dropshipping.
Pricing:
- Shipping: Free
- Inventory: $349/mo
- Drop shipping: $299/mo
Website: https://www.ordoro.com/
6. Square
As an inventory as well as a retail POS system, Square is available for small, independent sellers. Complex functions that are included are inventory management, employee management, and customer creation/retention programs, making it an even more suitable solution for physical shops. Square for Retail is compatible with the Square POS, enabling it to facilitate transactions while handling customers. It is easy to navigate, the mobile application is developed making it easy to control the sales and stock from the palm of your hand.
Key Features:
- Inventory tracking is in real-time and makes it easy to manage products in all the stores.
- Single platform Point of Sale system with customers and employees management.
- A responsive website for managing stock in a mobile environment
| Pros | Cons |
| Reasonable pricing factor especially for small retail businesses. | Good only for retail business structures; not suitable for other business models. |
| State-of-art POS solution with the best inventory management feature. | This application lacks some of the most important features of inventory that are useful in large operations. |
| Provides customer incentives to increase sales volume. | Not many links with other programs. |
Ideal for:
Small retail stores require an easy-to-use inventory and POS solution.
Pricing:
- Free: $0
- Plus: $29+/mo
- Premium: Contact For Pricing
Website: https://squareup.com/us/en/point-of-sale/retail
7. inFlow Inventory
inFlow Inventory is an effective inventory management software aimed at small and medium-sized enterprises eager to manage stocks and order flows. It contains tools for inventory management, orders, and reporting pertinent to sales, purchases, and customers Using inFlow Inventory, companies in the field of retail, wholesale, or distribution can benefit from multi-location tracking, barcoding, and specialized reports. It also allows for integration with other e-commerce approaches, which makes it versatile for businesses with online as well as offline approaches.
Key Features:
- Inventory tracking software with facility for barcoding in multiple locations
- Order management for tracking the selling and buying orders more conveniently.
- Compatibility with the most used online store solutions like Shopify and Amazon
| Pros | Cons |
| Clean layout with plain graphics which should be easy for a new user to navigate. | Lack of many automated services especially when it comes to the lower-end subscription plans. |
| Management of comprehensive inventories of the firm’s stock and generation of appropriate reports. | Small delays during periods of high traffic, can be cited with any large-scale system. |
| Supports multiple locations, bar coding, and easy integration points. | Basic customer support seems to be available only for paid subscriptions, more advanced ones are usually integrated into the paid options only. |
Ideal for:
Companies of small and medium size, or those operating in the retail and wholesale sector.
Pricing:
- Entrepreneur: 89 USD/mo
- Small businesses: 219 USD/mo
- Mid Size: 439 USD/mo
- Enterprise: 1055 USD/mo
Website: https://www.inflowinventory.com/
8. Lightspeed
Lightspeed POS is an integrated POS software for retail stores and online stores with an effective inventory management system. The use of spreadsheets also makes it possible to control inventory, monitor sales information, and purchase accordingly. Lightspeed is built for multi-location businesses and provides a way to track customer data, employee data, and real-time reports.
Key Features:
- ERP for inventory and point of sales to both physical and online outlets
- Multiple locations so that it will be easier to track and manage stock across different entities.
- Client management and analysis for enhanced business sales perception
| Pros | Cons |
| Amazing for retail business, where it has access to a point of sale system, and inventory tracking features. | Expensive especially for small businessmen and women. |
| Easy to use and well suited for use in companies with more than one location. | No complex options are available for report and dashboard customization. |
| Mobile accessible which must be helpful to the management on the field. | Nevertheless, there are some functions that work with additional programs; for example, loyalty programs are possible only with additional add-ons. |
Ideal for:
Small to medium-sized multi-site retail companies.
Pricing:
Contact For Pricing
Website: https://www.lightspeedhq.com/pos/retail/
9. Katana
Katana is production planning software that focuses on inventory tracking for manufacturing or small production companies. It is used in different business areas to coordinate order tracking for raw commodities up to finished products. One of the unique features that Katana provides is inventory tracking and production planning abilities that also give an additional analysis to the manufacturing processes by assisting in the listing of problems and reducing unnecessary overproduction. The system also includes compatible solutions with the most used e-commerce and accountancy systems, thus, being ideal for manufacturers B2B and B2C.
Key Features:
- Updating of real-time increased tracking inventory raw materials and finished goods
- Optimization of operating rhythms and production flow for manufactures
- Linkage to other related applications like the selling platforms, Shopify as well as the enterprise for accounting and financial recording, QuickBooks.
| Pros | Cons |
| Ideal for manufacturers who require the tracking of raw materials for production and scheduling of production. | Is mainly designed for manufacturing industries, although may not be perfect in industries that only deal in sales. |
| Real-time information can help manage the production process more efficiently and minimize the possibility of the manufacturing of a nonstandard product. | Expensive compared to many of the other products and services targeted at small businesses. |
| It is compatible with e-commerce and accounting software. | Some of the users are OK with it as they said it might take some time to understand the new features on production planning. |
Ideal for:
Local manufacturing companies seeking appropriate production control and inventory solutions.
Pricing:
- Starter: $179 / month, billed annually
- Standard: $359 / month, billed annually
- Professional: $799 / month, billed annually
- Professional Plus: Contact For Pricing
Website: https://katanamrp.com/
10. Sortly
Sortly is an inexpensive simple solution for inventory and assets tracking tailored for specific users. Sortly is limited compared to most comprehensive inventory solutions, which produce end-to-end order and shipping management; however, this requirement allows Sortly to stay relatively affordable in comparison with many competitors. The software is useful for registering quantities and positions of different things in offices, such as stationary and furniture, as well as goods for resale.
Key Features
- Barcode and QR Code Scanning
- Item Grouping and customer support
- Low-Stock Notifications
| Pros | Cons |
| Includes the free and affordable version as well | Lacks e-commerce |
| QR codes offer much of the information on the item for easy and safe referral. | Lacks shipping integrations |
| Barcodes enhance the speed at which stock take is conducted. | It does not include facilities for automated order purchasing or receiving. |
Ideal For:
Sortly can be used effectively with small retailers diagnostic, project-oriented companies, offices, services, etc., and nonprofits.
Pricing:
- Free: 0 USD/mo
- Advanced: 24 USD/mo
- Ultra: 74 USD/mo
- Premium: 149 USD/mo
- Enterprise: Contact For Pricing
Website: https://www.sortly.com/
Effective Tips for Using Inventory Management Tool
- Organize and Categorize: Structure inventory properly with clear labels and have a proper naming convention.
- Use Barcoding: Barcodes on the other reduce human interferences thus helping to enhance speed in tracking.
- Integrate Systems: Other tools such as accounts or POS should be synchronized with the inventory to ensure that there is cohesion in the data.
- Automate Reordering: Let the system for reorder points set to avoid stockouts and a lot of time.
- Leverage Real-Time Reports: Automate trend analyses and other tasks helping to avoid over- or under-stocking.
- Regular Audits: Inventory needs to be monitored through cycle counts to reduce the chances of data breaches.
- Forecast Demand: The fourth aspect is to use data insights in order to be able to foretell and be prepared for future requirements.
- Enable Multi-Location Tracking: If more than one department holds inventory, ensure you monitor inventory between or across departments.
- Train Employees: All the users must be properly acquainted with all the navigation tools in the software.
- Optimize for Mobile: Under flexibility, access inventory on mobile devices.
Common Mistakes to Avoid in Inventory Management
- Over-Reliance on Software: Software is a small aspect of the huge inventory management field and should not be confused as the surefire way of managing inventories. Still, officials should pay attention to fully-fledged reviews and strict audits.
- Neglecting Employee Training: The best software should be able to be implemented and used if the employees are not well trained. All users should be aware of the functionality of the system.
- Ignoring Inventory Turnover Rates: Executing a pure stock-based replenishment system without giving attention to turnover rates would result in poor control of inventory where some of the goods may be statically stored for a very long time.
- Skipping Software Updates: It means that free updates are provided to keep the software performing well and businesses get new features and improved security.
- Not Backing Up Data: While nearly all software solutions occur through the cloud, contingencies help to safeguard any paramount inventory information.
Conclusion
Selecting the most appropriate inventory management software is one of the most important factors that any organization that wishes to operate efficiently and easily by expanding its market outlets needs to consider. Tools such as tracking, order management, and multi-channel integration activities related to inventory management can revolutionize the business organizational processes by increasing efficiency and customer satisfaction. In deciding which solution to use, businesses must look at their particular needs, whether for multi-channel sales, manufacturing aid, or Point of Sale integration and go for the software that best fits their needs.
FAQs
1. What is inventory management software and how does it work?
Inventory management system is a software system used by different business entities to monitor the inventory and even its orders. It may contain elements such as tracking, quick reporting, and interface with other business applications or services.
2. Is inventory management a tool within the small business owner’s reach?
Indeed, there are lots of inventory management applications that have cheap plans in the range of $30 to $40 that include basic functionalities suitable for start-up companies.
3. In what ways does Digicon help enhance multi-channel sales?
Some inventory software can interface with websites and online marketplaces so that companies can track their inventory across different outlets (like Amazon, Shopify, eBay, and more) in one single place.
4. Do we need inventory software if we do not have physical products, and if so, what kind?
Every organization, even the ones that operate mainly in the service industry, may require the use of inventory software if they oversee resources, equipment, or materials. But it is generally even more crucial for enterprises that have physical inventory.
5. A question that keeps flooding the minds of many consumers is; what type of inventory management software should I choose?
Other important things to look into include your budget, the size of your business, the requirement of special things like barcode scanning, and multi-locational support, preferred software compatibility, etc.
