What Is Inventory Management Software, and Do You Need It?

Inventory management software helps small businesses reduce the risk of human error and meet customer demand without overstocking or depleting supplies. Let’s look at how it works and how to choose the right software.

What is inventory management software?

Inventory management software allows you to accurately track your current inventory levels and identify what products you need more of. The right software notifies you when you’re running short on an item, and it can automatically reorder items. It can also help organize your customer and vendor information.

Here are some benefits of inventory management software:

• Insight into your products. Inventory management software shares and analyzes your sales trends, like which items are selling quickly and what inventory isn’t moving. It can also track items that were recently recalled.
• Cost savings. The software helps you optimize your stock levels, so you aren’t overstocked or running out of items. This reduces the need for extra storage space and ensures your money isn’t tied up in unsold inventory.
• Better customer experience. The software analyzes historical data and estimates your future inventory needs, especially during peak seasons. This creates trust with your customers and increases the likelihood they’ll buy from you again.

What features should you look for in inventory management software?

• Mobile app: A mobile app allows you to track inventory, scan barcodes, and view customer information from anywhere.
• Point-of-sale (POS) integration: A POS integration shows real-time product sales. When an item is scanned or added to an online cart, the POS system automatically updates your inventory management software.
• Automated reordering: Reordering products can get tricky, because you want to place the order before you’re completely out, but you also don’t want an oversupply. An automated reordering feature is especially helpful if you carry seasonal products.
• Reporting features: Inventory reports give you a more detailed look at your sales history. It displays which products were the most popular and which items didn’t sell as well as you’d hoped.

Top inventory management software for small businesses

The right software can automate your inventory management and increase business efficiency, but with dozens of solutions on the market, how do you even know where to start looking? That depends on your business goals, but here are some options to consider:

• inFlow: If you’re a small or midsized business, inFlow is easy to use, and in addition to managing inventory, it can handle shipping, sales, and barcoding. It offers four different plans, making it a good choice for anyone looking for software that can grow alongside their business.
• Zoho Inventory: Zoho Inventory offers multiwarehouse management, automated workflows, and excellent integration capabilities. It’s especially useful for businesses already invested in other Zoho products.
• Square for Retail: Square for Retail could work well for small businesses needing a combined POS and inventory management system. It offers three affordable plans, including a free plan. The software includes real-time tracking, low-stock alerts, and it allows you to manage multiple locations.
• Ordoro: Ordoro offers inventory management, shipping, and dropshipping features. The interface is intuitive, and the company stands out for its excellent customer support.

How to integrate inventory tools with POS and e-commerce

You’ll get the most out of your inventory software if it integrates seamlessly with your POS system. When the two work together, your inventory updates everything when an online or in-store sale is made.

Another option is to choose an all-in-one platform that includes the POS, e-commerce, and inventory management features. Since all your data is stored in one place, it makes setup easier and reduces integration issues.

If you decide to use separate tools, look for inventory software that offers native integrations to the platforms you already use. Many systems connect directly, while others rely on third parties. Once your system is set up, test it with a few simple transactions to ensure it works as expected.  

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