Businesses selling physical goods have a lot to manage. Besides designing, marketing, and building their product, they need to effectively control their inventory. Inventory management systems are at the heart of supply chain logistics and critical to growing your physical goods business effectively.
What is an inventory management system?
An inventory management system helps businesses manage how many products they have and where the product is stored. Some systems can coordinate between brick-and-mortar stores, multiple warehouses, and storage facilities, and even track products in transit and items purchased but not shipped out yet.
The system is also used to make decisions about how and when to order replacement inventory. Inventory management systems can track raw materials, materials being made into a product, finished goods that are ready to be sold, and/or merchandise.
Each type of business has different inventory management needs based on the product they sell, so there isn’t a one-size-fits-all solution. But any business that sells products, whether they are a small company or a multi-national corporation, needs to have some type of inventory management system in place.
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Inventory management used to be done with a pen and paper. While this may still work for smaller companies with limited product selection, a manual system can rapidly become outdated and too difficult to manage. Today, most businesses use inventory management software to manage their inventory more efficiently and accurately.
Uses of an inventory management system
Successfully managing your supply chain is one of the most important parts of running your business. After all, if you don’t have any product in your warehouse, you can’t complete orders, you can’t make sales, and you can’t earn customers.
When used correctly, an inventory management system enables you to control your inventory in the most beneficial ways for your company. It can be difficult to find the balance between too much and too little inventory, but the right system can make this job a little bit easier.
Your inventory also counts as an asset for accounting purposes. Since you’ve already spent money on it, and you’ll use it to generate revenue, knowing what inventory you have, its cost, and where it’s located ensures your business records are accurate.
Benefits of an inventory management system
If you operate multiple warehouses or retail locations, your inventory management system synchronizes the data so you have accurate information. This allows you to move product between locations as needed, order more from wholesalers, or gives enough time to create more product.
It can also sync data across sales channels so you always know how much product you have, whether you’re selling online, through one or more brick-and-mortar locations, or through other third-party sellers.
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Your inventory management system can provide insights, such as seasonal fluctuations or buying trends, that can help inform your ordering choices. This can prevent you from overstocking while ensuring you still have enough products to meet the demand.
A good inventory management system can also keep your warehouses stocked at the right level. If you have too much product, you risk having a reduced cash flow, overpaying for storage costs, or inventory lost due to spoilage, expiration, or a disaster such as a fire or flooding.
Best inventory management options to choose from
Every business has different needs and different types of inventory, so there isn’t a single system that will work for every company. Every business should use inventory management software to streamline and simplify its management process.
There’s a lot to think about when selecting the right software for your company. It’s an important decision because your software dictates how you can use your inventory management system, what insights it can provide, and the cost of the system itself. They also have unique features which could save your business time and money.
Here are a few of the best inventory management systems and their features to help you narrow down your decision.
Zoho Inventory
Features
Zoho Inventory is an easy-to-use inventory management software. It integrates with Amazon, Etsy, Shopify, and eBay out of the box, simplifying multichannel selling. Users can create purchase orders and drop shipments, generate shipping labels and shipping rates, and receive notifications when stock runs low.
Its mobile app gives real-time updates, and your team members can use their phones as barcode scanners to make management even simpler. Your Zoho Inventory account can sync with Zoho Analytics to give even more insightful data about your products, sales, customers, and more.
Prices
Zoho offers a 14-day full-featured free trial. After that, it has a range of prices and packages. The cheapest is $0 per month, which includes 50 orders, shipping labels, and after-ship tracking. You’re limited to 2 users and one warehouse with this package. But Zoho has six different pricing options, with the most expensive Ultimate package at $329 per month topping out at 25,000 orders. Zoho Analytics is included in the Ultimate package but priced separately for all other packages.
How to gain access
You can signup through their website or download their app.
inFlow
Features
inFlow is another popular inventory management system. It integrates with dozens of apps for eCommerce, accounting, shipping, and other types of platforms to simplify running your business. In addition to tracking inventory, managing order fulfillment, and notifying you when you purchase stock, businesses can automate reminder emails for abandoned carts, potentially increasing sales without requiring human resources.
A unique feature of inFlow is its B2B sales portal, Showroom. Users can create customized showrooms for their B2B customers, including specific items, with just a few clicks. The B2B portal can simplify the purchase process for both businesses.
Prices
inFlow also offers a free 14-day trial, during which you can experience all of its features. Each plan includes inventory, purchasing, and sales. The smallest plan supports up to 100 orders per month for $89/month, while the largest supports up to 5,000 orders per month for $439/month.
How to gain access
Sign up to try inFlow through their free trial on their website. You can also contact their sales team to learn more about inFlow before making a commitment.
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Cin7
Features
Cin7 isn’t just an inventory management system. It’s also a comprehensive solution for enterprise resource planning, which can lead to increased productivity and clarity throughout the enterprise by pulling in data from multiple sources. Cin7’s inventory management system includes over 700 integrations for accounting, eCommerce, marketing, and third-party logistics (3PL).
Unlike its competitors, Cin7 offers customized solutions for enterprise-level businesses. Their point-of-sale system, combined with inventory management, B2B online stores, and ERP make it the comprehensive solution larger businesses may be looking for.
Prices
Cin7 doesn’t have a free option, and its prices start higher than many of the inventory management systems listed in this guide. Its smallest package starts at $399 per month for two users. However, Cin7 offers support for larger customers, which is not available from the inventory management services focusing on smaller businesses. Its enterprise-level package supports as many users as needed, as many B2B online stores as needed, and pricing is customized to the organization, making it a great choice for large businesses looking for a customized solution for their inventory and ERP needs.
How to gain access
You can request a demo of Cin7 through their website or contact sales through their pricing page.
Ordoro
Features
Ordoro is an all-in-one platform perfect for eCommerce vendors. Besides the inventory management services you’d expect, Ordoro offers discounted rates for UPS and USPS shipping. It integrates with dozens of platforms, including Amazon, Shopify, USPS, and Quickbooks.
Ordoro gives users the option to create customizable shipping labels and packing lists with their logo. Users can connect sales channels to bring orders to the sales process, ensuring everything from ordering to picking and packing is handled accurately and efficiently.
Prices
Ordoro’s starter package is free. While it only supports one sales channel and 1,000 orders per month, it may be perfect for startups or smaller companies. For larger companies or those with more than one sales channel, it offers packages ranging from $59/month up to $999+/month for enterprise-level businesses.
How to gain access
Ordoro offers a free trial through its pricing page, and you can also contact the sales team to request a demonstration.
Lightspeed Retail
Features
Lightspeed Retail is a point-of-sale (POS) system, but it includes a robust inventory management tracker. Lightspeed is known for its ease of use and setup. It’s also targeted to certain types of businesses, so it offers customized solutions for a range of business types like clothing stores, pet shops, toy stores, and more.
Its inventory management system allows users to create product variants for different sizes and colors, allows users to order with built-in purchase orders, and simplifies bulk pricing changes.
Prices
Like many other inventory management companies on our list, Lightspeed Retail has a free trial period where users can gain full access to their products risk-free. Once you’re ready to commit to Lightspeed, prices vary based on the needs of your store. ECommerce users can set up shop with a free online store at no cost, while prices for a brick-and-mortar retail store requiring a POS start at $69/month.
How to gain access
Signup with Lightspeed through their website. Since they offer so many different products and price points, use the website or their chatbot to help you find the product you’d like to try or sign up for.
Other inventory management systems
These are just a few inventory management systems. Depending on your business type, you may be best served by a niche inventory management system such as Katana for manufacturing, Upserve for restaurants, or Crystal Commerce for game and hobby stores.
Staying on top of your inventory is one of the most important parts of managing your business. Whether you choose to do it with a spreadsheet or inventory management software, put a system in place and ensure it’s as up-to-date as possible. This will enable your business to make wise choices about ordering and decrease the risks of over- or under-buying.