8 Inventory Management Software Solutions (With Benefits)

By Indeed Editorial Team

Published 4 June 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

A robust inventory management tool can help businesses monitor stocks and inventory to increase the efficiency and accuracy of processes. With several tools available in the market, it can be challenging to select the one that meets your expectations. Discovering different tools and the scale of their operations can help you identify a solution that is suitable for your unique business requirements. In this article, we define inventory management software tools, discuss their benefits, explain the steps to choose one and list popular tools for different business purposes.

What are inventory management software tools?

An inventory management software solution helps companies track their product stock level, monitor purchase behaviours and predict future requirements. These tools enable businesses to avoid overstocking or under-stocking their raw materials and finished products. Businesses in several industries, including retail, health care, manufacturing and apparel, extensively use inventory management solutions. Most inventory management tools have additional features that allow users to perform critical business processes such as managing orders, ensuring quality control and tracking finances.

Related: What Does An Inventory Manager Do? (Plus How To Become One)

Benefits of inventory management tools

An inventory management system helps businesses better organise their processes and functions. Here are some of the benefits of using an inventory management tool:

Provides flexibility

Inventory management software provides real-time data and makes it easy for businesses to track the movement and quantity of stocks. Apart from tracking inventory, these systems can help you manage orders and coordinate with vendors through a single dashboard. Several inventory management tools are available on the cloud, making it easier to securely access them remotely.

Ensures accurate tracking

Managing inventory can help businesses allocate funds judiciously and make decisions backed by data. Accurate tracking allows companies to anticipate future inventory requirements and prepare accordingly. It also helps identify products that are not generating enough sales, which may lead to gradually stopping their production or running promotions to sell existing stocks. Managing perishable inventory becomes easier as inventory management systems help track the expiry date of such goods.

Increases efficiency

An inventory management system can help increase the efficiency of managing goods in a warehouse, manufacturing unit or retail store. A robust inventory management tool can help businesses place timely orders for raw materials, restock products at warehouses and ship customer orders promptly. This helps make the company more efficient as it helps utilise the maximum production capacity and minimise delays related to shipping. Inventory software solutions improve coordination between different business units, which also helps productivity and prevents wastage of resources.

Related: Top Business Analyst Tools For Improving Efficiency

Benefits customers

With the ability to process orders quickly, businesses can provide a high-quality experience and service to their customers. Shipping and logistics teams can find it easier to process orders, returns and customer requests using a comprehensive inventory management tool. This can help improve the customer experience, boost sales and help salespersons engage prospects and leads using real-time product information.

Related: What Is Customer Service? Definition And Career Advice

Tips to remember before investing in an inventory management tool

Finding the appropriate inventory management system can be crucial to a business. Here are some tips that can help you make the right choice while choosing an inventory management tool for your specific requirements:

Unique business challenges

Before you begin shortlisting inventory management tools, it is essential to understand why you require one. It may be a good idea to audit the current business processes and assess the expectations from a new tool. While choosing a solution, focus on the number of people who may use the tool and how it may ease their work. Gaining complete knowledge of the impact expected from the solution can help you evaluate the necessary technicalities before making a purchase decision.

Ease of use

It is vital to choose a tool that is easy to learn. This helps minimise the time and resources spent onboarding software and getting familiar with it. Also, inventory management solutions get used at various levels in the organisation, making it crucial to be user-friendly and simple to work with regularly.

Additional features

Invest in a tool that allows you to do more with it than simply keep track of the stocks. Many inventory management systems offer numerous features, like finance management, order management and warehouse management. Understand the capabilities necessary for the organisation and purchase a service that meets most of the requirements. Also, ensure that the cost of the tool justifies the features it offers.

Integrations and scalability

If you are already using software to manage finance, inventory and warehouse, it is essential to pick one that seamlessly integrates into the existing framework. If you expect the business requirement to grow in the near future, understand the ease of scaling and expanding software capabilities to meet organisational requirements. Similarly, businesses that use sales tools can select solutions that integrate with different sales channels and record their data on one dashboard.

8 common inventory management tools

There are several inventory management tools available in the market. It is essential to understand their features and suitability before you invest. Here are eight softwares that you may consider to manage inventory:

1. Zoho Inventory

Zoho Inventory is a cloud-based inventory management software that offers inventory tracking, order management, goods and services tax (GST) bill handling, warehouse management, e-invoicing, inventory reports and forecasting. It integrates with e-commerce accounts that help streamline customer orders. It also includes features like business reporting and data analytics to understand customer purchase behaviour. Zoho Inventory is suitable for e-commerce businesses and small or medium-sized businesses.

2. Intuit Quickbooks

Intuit Quickbooks is suitable for small businesses to manage their inventory. It allows users to optimise inventory, schedule orders, manage suppliers, forecast, manage multiple warehouses and generate real-time reports. The inventory values automatically update every time a sale or purchase occurs. It follows the first-in-first-out (FIFO) method to calculate the cost of the product sold. Also, the extensive reporting features allow users to study purchase patterns, sales and taxes.

3. Vyapar

Vyapar is for small and medium enterprises to manage inventory, generate GST invoices and handle accounts. The robust system is simple and does not require extensive technical knowledge to operate. It allows businesses to track inventory, create sales and purchase orders, scan barcodes, record expenses and get real-time inventory updates. Vyapar predominantly functions through a mobile app, which helps ease management and access.

4. Unicommerce

Unicommerce is an inventory management solution that allows users to route, update and replenish stock. It helps organisations control inventory and prices across multiple sales channels and locations. Businesses can also manage vendors, rotate stocks and integrate with their enterprise resource planning (ERP) solutions to streamline the entire supply chain. Unicommerce also offers a centralised view of the inventory to help businesses make informed decisions, improve processes and reduce costs.

5. Focus

Focus is a cloud-based inventory management system that helps enterprises transform ERP solutions for finance, business, supply chain and sales. The inventory management module operates across locations and currencies. It allows businesses to maintain inventory based on custom attributes. You get the option to automate stock allocation and transfer for reconciling stock inside and outside the warehouse. Focus is suitable for almost all industries, including manufacturing, healthcare and retail management.

6. Kazito

Kazito offers business solutions for retail management, including warehouse management, inventory management, POS, accounting, sales, e-commerce and supply chain management. The cloud-based retail solution allows businesses to configure the platform to suit their requirements. Organisations get real-time updates, manage inventory across multiple sales channels and make informed decisions through the analytics panel on the software. Kazito can function online and offline, which minimises the dependency on the internet network.

7. Oracle NetSuite

Oracle NetSuite is ideal for large enterprises with extensive inventory management requirements. It offers real-time inventory visibility to monitor supply chain management measures, inventory trends and orders. NetSuite also tracks the order journey from placement to shipment and revenue. It allows organisations to reduce IT costs by providing a robust system to manage all their requirements.

8. TallyPrime

TallyPrime is a business management solution that helps organisations manage inventory, raise GST compliant invoices, generate reports, monitor cash flow and manage payroll. Its inventory management module enables businesses to monitor inventory across multiple locations, groups and categories. TallyPrime has flexible inventory units, manufacturing journal entries and bills of material to monitor all inventory in detail. TallyPrime is suitable for small and medium businesses as it helps them monitor growth.

Please note that none of the companies, institutions or organisations mentioned in this article are associated with Indeed.

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