Effective inventory control is an essential component for any business that deals with tangible products. No matter how small an eCommerce business may be or how large an organization may be, messy inventory management carries a downside. Evidence suggests that problems associated with the lack of easy access to supply chains are common. 69% of companies stated that they do not have complete access to their supply chains which affects their bottom line by 62% of profitability.
The right inventory control system will ensure that this activity flows seamlessly hence saving time, mistakes, and profits. Even though you could face some challenges in implementation, how do you determine which one fits your organization? This guide walks you through the essential considerations in selecting an inventory management system and assists you in making the right choice.
What is an Inventory Management System?
Inventory Management System helps in the movement and storage of material goods and is mainly focused on inventory levels, stock, orders, sales, and delivery control. This enables the firm to achieve and maintain the desired levels of inventory, avert stockouts, and ensure normal operations in its supply chain.
A good IMS also extends beyond inventory management by connecting with other software such as ERP and CRM systems as well as accounting programs to give one platform to manage all aspects of the business.
Signs Your Business Needs an Inventory Management System
When do you know that it is time to invest in an inventory management system? Here are clear telltale signs:
Difficulty in Tracking Stock Levels: If you still manage inventory through some manual process or with spreadsheets, then it’s time to upgrade. Human error is prone to mistakes and is estimated that this kind of error accounts for almost 46% of all mismanaged inventory.
Increases in Stockouts and Overstocking: Both are equally bad as they reduce the bottom line. Overstocking swallows up capital, and stockouts mean missed sales. A good inventory management system helps balance inventory based on demand forecast.
More Manual Mistakes: Manual inventory management normally leads to increased errors and, therefore huge losses. An IMS helps to automate the inventory tracking process, hence minimizing such errors by 25%.
Difficulty in Scaling Operations: While it is challenging to scale the operations yourself, an IMS will support expansion without radical changes needing to be made to your entire operations.
Key Factors to Consider When Choosing an Inventory Management System
Finding the best inventory management system for your business is challenging indeed. With these factors into consideration during selection, you can make your choice easier:
Business Size and Industry Needs: The decision should be based on the size of your business and what you deal in. A small eCommerce business might need a simple system at low prices such as Zoho Inventory. Larger companies dealing in manufacturing or retail will be better suited to the more robust system offered by Odoo ERP with much advanced options for customization and integration.
Integration Capabilities: It is part of an inventory system that has integration with your pre-existing business tools, which comprise ERP, CRM, eCommerce platforms, and accounting software. Indeed, the reduction of manual entry makes for smooth information flow. The requirement of excellent integration capabilities wherein it falls in line with preferring quality and value usually wants rapid scaling businesses like the ones offered by NetSuite and Odoo ERP.
Customization & Flexibility: All businesses are different, so not all needs can be exactly the same. Customization allows you to adapt the system exactly to fit every workflow, fitting you like a glove. For businesses whose needs somehow vary or are continually evolving over time, great systems like that of Odoo ERP prove to be wonderful.
Real-Time Analytics: Real-time data enables modern organizations to make sense of the world. Firms that apply real-time data in managing their inventories cut their stock by 10% to 30% while improving customer service. The system that you choose needs to give you detailed analytics for better-informed business decisions.
Cost & ROI: Although cost is a huge factor, consider an IMS as an investment rather than a cost. Firms implementing inventory management software experience drastic increases in productivity and fewer stockouts. Ensure that you calculate the return on investment at both the initial and long-term.
Comparison of Popular Inventory Management Systems
Top 5 best Inventory Management System options based on business size, needs, and industry include:
| Software | Best For | Device Compatibility | Integrations | Free/Demo | Pricing |
| Odoo ERP | Large and mid-sized businesses | Windows, Mac, Linux, iOS, Android | Shopify, QuickBooks, eBay, Amazon, and more | Free demo available | $20/user/month onwards |
| Zoho Inventory | Small to mid-sized businesses | Web, iOS, Android | Amazon, eBay, Shopify, Zoho Suite | Free up to 50 orders | Free up to 50 orders, $39/month |
| NetSuite ERP | Large enterprises | Web, iOS, Android | Shopify, Salesforce, QuickBooks, and others | Demo available upon request | Custom pricing |
| QuickBooks Commerce | Small and medium enterprises | Web, iOS, Android | WooCommerce, Amazon, Shopify, QuickBooks | Free trial available | Starts at $39/month |
| Fishbowl Inventory | Manufacturers and wholesalers | Windows, Mac, Web, iOS | QuickBooks, Salesforce, Magento, Shopify | Demo available | One-time fee of $4,395 |
Odoo ERP:
Odoo ERP is highly customizable and fully open-source software that supports ERP and CRM, among other business applications it integrates with; it’s perfect for large and mid-size businesses.
KeyFeatures: Open-source software, customizable, integrated with ERP, CRM, and many other business tools.
Pricing: $20/user/month onwards.
Zoho Inventory:
The multi-channel inventory solution is low-cost and perfect for small to mid-sized businesses.
Key Features: Reasonably priced and multi-channel integration.
Pricing: It is Free for organizations having up to 50 orders a month and premium charges begin at $39/ month.
NetSuite:
It is a powerful system that provides for seamless integration of ERP and CRM to reach the large-scale enterprise’s needs.
Key Features: Strong features, and seamless integration with ERP and CRM software.
Pricing: Custom pricing.
QuickBooks Commerce:
QuickBooks Commerce (TradeGecko) is focused on being a robust tool for small and medium enterprises using QuickBooks for accounting purposes with an added focus on managing orders, inventory, and stock.
Features: Suitable for companies employing QuickBooks for accounting.
Pricing: Starts at $39 per month.
Fishbowl Inventory
It is a system that gives technical specs such as order management, scan of the barcode, and real-time inventory tracking among others, hence suitable for industries with huge amounts of stock.
Key Features: Scans for barcodes, and has the capacity for real-time inventory management for manufacturers and wholesalers.
Pricing: Starts with one-time cost of $4,395.
Conclusion
An effective inventory management system can be very important for maintaining operational efficiency and improving profitability as the business grows. Consider your business size, industry needs, integration capabilities, and long-term costs in making the right, informed decision that really boosts your productivity and helps you keep ahead in today’s fast-paced market.
Interested in how an inventory system can make a difference in your business? Contact us today to find the best inventory management tool to fit your needs.