With rapid technological advancements, inventory management nightmares should be something of the past. Inventory management systems aid businesses automate inventory processes, operating efficiently, and increase profits. Every business leader and owner desires overall business profitability and inventory management plays a key role in achieving this.
Inventory management systems (IMS) is a software application that helps businesses track their inventory levels, manage orders, and optimize their supply chain.
There are three main types of inventory management systems:
Manual inventory management system
This is the simplest type of inventory management system. It involves manually tracking inventory levels, orders, and shipments. This system is often used by small businesses with a limited number of products.
Periodic inventory management system
This system involves counting inventory at regular intervals, such as once a month or once a quarter. It is more accurate than manual inventory management, but it can be more time-consuming and labor-intensive.
Perpetual inventory management system
This system tracks inventory levels in real-time. This system is the most accurate type of inventory management system, but it can also be the most expensive.
Benefits of using Inventory management systems.
Well, it’s important to be conversant about the benefits of inventory management systems so that you be sure of what to expect.
Improved inventory visibility-Real time inventory level is important for every business. It helps businesses plan better. Armed with such data, you can do better in ordering, pricing, and marketing decisions.
Reduced costs-Manual inventory tracking is very expensive. Look at it from the man-hours required, resources, and accuracy of the data. IMS reduces costs very much thus optimizing the supply chain.
Improved customer service- Have you ordered something from your favorite store only to be told it is out of stock? Yet when you check from the site or app, the stock is available. It is so embarrassing not only to the customer but also to the business owner. Inventory management systems provide accurate information that enhances the trust of customers.
Best types of inventory management software
- NetSuite– This is a cloud-based IMS that has several features that include inventory tracking, order management, and supply chain management.
2. SAP– It’s a large and popular system that has an IMS module.
3. Microsoft Dynamics
4. Fishbowl Inventory is a cloud-based IMS that is designed for small businesses.
5. SlickPie is a cloud-based IMS that is designed for small businesses and start-ups.
6. Ordoro- it is suitable for multichannel sellers
7. Inflow-best for business-to-business and wholesale businesses
8. Fishbowl inventory-best for QuickBooks users
9. Katana-best for manufacturers
10. Sortly-Best for small retailers and asset tracking
11. com-Best free inventory management software
12. Skubana-best for drop shippers and fulfillment by Amazon (FBA)
13. ShipBop merchant plus-Best for hybrid fulfillment
Factors to consider in Inventory management systems.
Due to the many varieties of software available in the market, it is important to equip yourself with factors to consider before purchasing or subscribing to one.
- Size and complexity of the business.
- Type of products they sell
- Number of locations
- Your budget
With these basic factors, now you can narrow down your choices. As a good practice, it is crucial to get quotes from the vendors of the inventory management systems and look out for reviews before making a decision.
