Table of contents

The Best Inventory Management Software for 2023

What Is Inventory Management?

Sales management — management of setting certain goals and close monitoring of the implementation of the tactical marketing tasks related to sales of goods and services. This type of management is not particularly different from others. The main thing is to understand the principle of operation of the process and have a certain amount of experience. This field will help you gain experience in trading completely from 0 through the use of top-notch inventory management software (for instance, Bitrix 24), which also includes a set of various robust tools.

Why Is Inventory Management Important?

As a whole, regardless of whether the company is large or small, and regardless of the industry (i.e. public catering and its production, or the retailing of any type of goods or products) the quality and quantity of stock are extremely important for the business because a lack of product stocks can cause many harmful consequences. This could be in the form of a decrease in sales revenues, significant losses, or even bankruptcy or closure of the company altogether. Also, shortages can become a risk, because all kinds of damage, spoilage, and theft often occur. Too much inventory can also cause a number of problems - again, such as reduced sales, losses, etc. In this case, it is very important to master a proper management system of the entire inventory.

Inventory Management Challenges

In any trade sphere, as already mentioned above, many unpleasant situations and challenges can arise. We consider some of them in a little more detail below:

Inability to locate any trade inventory stocks. One of the most common problems is tracking parcels ordered by customers in warehouses, which they need to despatch within the appropriate terms.

In the event that the delivery of parcels with orders is delayed for certain reasons, such situations usually contribute to a significant decrease in the company's reputation in all possible known ratings.

1.    The possibility of choosing the inventory process. About "manual" selections - choosing processes to track can just get confusing.

If it is impossible to track a product in the absence of an update, then the customer cannot order a new product due to the already predicted inefficiency. All this can be corrected by certain innovations, such as the ability to track several parcels at the same time, etc.

2.    Expiration of products. Product updates do take place after some time, as everything has to meet the expectations and requests of customers.

In this case, the unsold goods must be recorded in accordance with the clauses of the declaration, which indicate the rules of the write-off.

If you leave expired products and do not handle them correctly, it can lead to the same losses and costs and clutter the warehouse.

3.    Expansion of the product range. Updating and adding products requires effective management of all stocks. Updating the stock list and shipment info in the absence of data can lead to process inventory errors.

Managers need to check the contents of packages (if possible) and their integrity, and track shipments in the program to ensure that deliveries are on time and everything is fine.

4.    Incorrect management. To avoid trouble, it is necessary to do everything on time and according to the requirements with the use of inventory control software: accepting parcels; sending; tracking.

What Is Inventory?

The term "inventory" means the accounting of all the necessary component parts, materials, and items that are used in production.

In order to make sure that the product is available in full quantity and to avoid possible shortages (by counting the products) you need to resort to managing the remaining stocks. By monitoring the entire process, specialists collect important data that affect further production and the sales process.

What Are the Different Types of Inventory?

The inventory sales operations go through a number of certain stages that will affect the further development of the production and sale of goods. Only 4 high-level types and 13 of their sub-types are distinguished below: 

1. Raw materials. Inventory systems must consider the time frames for suppliers to deliver products created by the firm's team from raw materials.

2. Components. This concerns the materials from which the product is made and processed. Components, unlike raw materials, remain visible because they are not liquid.

3. WIP (Work In Progress). This also applies to items and components for manufacturing products and includes all possible costs and workers.

4. Finished production. This means goods that are fully ready for sale with the help of the best inventory management solution. 

5. MRO goods. These are means, in the form of consumables, with the help of which products are manufactured and business is supported.

6. Packing and its materials. Among the 3 options for product packaging, there is primary packaging, which protects the product and contributes to its long-term use. Secondary packaging contains information about the item, markings, such as labels. Tertiary — packaging for transportation.

7. Safety stock. This is bought in case of avoiding and covering unpleasant situations. Even if prices and demand for raw materials and components are rising.

8. Inventory Cycle. This is associated with the wish to receive raw materials, components, or a high-quality good in the amount needed at an affordable price.

9. Decoupling inventory process. Using components or WIP that are kept on each product station line to prevent any work stoppages.

10. Service of the inventory process. A management inventory process accounting of how much service the company is to provide and for what period.

11. Remaining stocks. This means all unsold goods or components with raw materials. Even if employees do not want to use it, they still have to be paid for.

12. Theoretical inventory. This is used in manufacturing and the food industry, because the smallest amount of stock is needed to complete the manufacturing process in the shortest possible time. It is measured by such formulas as theoretical and actual.

13. Pipeline inventory. Means the movement of stocks between warehouses, departments, manufacturers, etc. The process can last days or even weeks.

What Are the Benefits of Inventory Management Software?

Among the advantages of choosing inventory management software, six are highlighted. First, it is simple inventory management. By using such software, you can see how the optimization of the management process increases, which also includes some money-saving, which helps to avoid problems.

Secondly, order fulfillment. Meeting the deadlines for shipments and receipts is critical, as it affects the company's reputation and timing work so as not to lose customers. The program synchronizes orders with your tools, so you are able to complete order processing on time.

Thirdly, inventory control and savings. In this way, inventory management will lead to savings in time, as well as certain other savings, which should have a positive effect on the work process.

The fourth point is business negotiations. If you have good business meetings, you receive or provide information that is useful and available for your consideration, and the consideration of others, who can become excellent partners for you.

Next can be considered improved visibility. The tracking of the goods in any period of time is an extremely important point, as it is possible to identify and avoid unnecessary problems and misunderstandings with suppliers and customers. In this way, the likely popularity of the software also increases.

And the last point is decision-making in an improved form. With the help of the provided detailed information about the product, the manager can predict everything and plan future actions. One good option of software to manage the inventory is the well-known and respected Bitrix24.

When Do You Need to Use Inventory Software

We repeat again that inventory management software is used in cases of an optimized approach to the work process. This includes monitoring accounting and the availability of goods in the required quantity, shortages, correct allocation of the budget and cost accounting, and search for materials and raw materials for manufacturing products.

What to Look For When Choosing Inventory Management Software

When choosing the optimal software for the respective purposes regarding the product, it is worth paying attention to the budget you have calculated, if you have certain needs. In addition, you should not forget about a reliable supplier with excellent service. Think about flexibility to adapt to different kinds of changes and integration with other developments or tools so that everything is in one place.

Customizability and ease of understanding also play a role, as they allow you to customize the program for yourself and your requirements, and understand how it works. We should not forget about the versatility, which involves adaptation to your business needs and a free trial version of the software. The total software cost affects your wallet; if it increases too sharply then the software is not relevant to you.

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Top 5 Inventory Management Software Platforms

Inventory management software is a great support tool for businesses that aim to work harder and more efficiently, make a profit, and automate the inventory process. Such software, regardless of the scale of the company, improves its activity in the work process. 

Bitrix24

Bitrix24 software is among the best inventory management vendors in this list. More than 12 million users trust this service and leave a lot of positive reviews. Bitrix had no complaints about the workflow because its developers did everything possible to make this program perform statistical analysis on components, raw materials for goods, and its own production at a first-class level. This service can be used by placing it on the cloud or your own server, if necessary.

Oracle NetSuite

The corporation has 11 years of experience (working since 2012), and positions itself as a professional in their field that cooperate with creative, ambitious companies with the aim of improving their level of work, reporting, cash flow, and readiness for various challenges at work, and attracting hardworking people. Its location is in Amsterdam.

They use the ERP system in their work because they consider it a good inventory management solution, which contributes to the efficient operation and further development of companies, through the correct formation of products, tracking, shipping, etc. 

Zoho

Zoho Corporation considers inventory management software as its passion and craft. The company's employees are constantly working on creating decent, affordable software with programs for Apple, as well as integrations with Microsoft 360, Google Space, and other products that can be used to solve business tasks of any complexity, i.e. analysis, search for raw materials for products, tracking sending...

In addition, they invest their profits in development, not in marketing or other areas.

Upserve

This Upserve Corporation tool is designed to manage restaurants of all sizes. The program processes information about payments with the Upserve payment system, Chase Paymentech, and payments without interest, in the form of statistics, and with its help, the users can monitor the success of the business and the flow of clients.

InFlow

InFlow Corporation is the inventory control software trusted by 40,000 companies. The responsibilities of the software include inventory management to avoid confusing and unpleasant situations. The program develops designs for scanning barcodes and labels and integrates with more than 95 platforms that support your business, carefully selects each component, each milliliter of the raw materials, tracks movements, receives parcels, and tracks expenses. In addition, it can make an order online using any gadget.

How Does ERP Help in Inventory Management?

The ERP system allows companies to manage their business using one platform (such as Bitrix24) and is considered to be a good inventory management solution. This system provides complete information on spare products that are produced or sold in real-time for the development, expansion of the company, and its assortment for those companies that have certain difficulties with the work process or supplies of material and the units of the product themselves.

The advantages of this system are also highlighted:

• Transparency of the supply chain. This system can synchronize information about the product, its order, and delivery to avoid trouble.

• Quality control. This system, as an inventory control software, checks everything: from production dates, markings, and labels with barcodes to shipping and receiving, as well as more detailed information about product safety and security.

• ERP for each stage of inventory formation conducts an analytical review to identify and improve efficiency in terms of speed and reduction of turnover.

• Accuracy of calculations. The goods are checked and the relevant persons are notified about shortages, surpluses, obsolete stock, its renewal and replenishment, etc. There is also tracking of product movements in the warehouse and beyond.

• Improved reporting quality. More accurate data about spares allows you to take advantage of them, based on data to verify performance.

• Counting all cycles. Audit of stock accounting and its improvement.

• Inventory planning. In this way, the inspection of goods in warehouses is monitored. So you can easily plan more accurately and calculate the precise amount of stock that is needed.

Overall cost

The price can vary up to several thousands of dollars based on a comparison between almost all options of inventory management software and their components, which include management of suppliers, warehouse, inventory with product assembly, sales orders, the function of choosing methods of packaging, shipping, tracking both batches and in series.

·      License fee ~$175;

·      Support package ~$80;

·      Setup ~$750–$800 or more.

Integrations

The software is considered good only when all the features inventory management, all components, tools, and even the employees who develop it all are combined. Thus, this process provides stabilization of the program at the highest level — no failures, optimization, speed, and universality. Also, integration can affect the price, which may increase with the appearance of premium programs.

For example, Bitrix 24 is an affordable program containing everything and works quickly, thanks to the developers. The software is compatible with all possible technological tools, both internally and externally: books; printers, programs, etc.

Simplicity of Use 

As for ease of use, this includes the concept of the same universality, and integration with other components, programs, and gadgets. Stability will come at the moment when employees start to use it. 

Easily introduce the warehouse inventory management software into work, configure it, and start working fruitfully and responsibly, controlling the program and its actions. That way, everything will be in order: the budget and expenses for everything necessary for production, the processing of parcels and goods in warehouses, the collection and processing of important information, etc., will be correctly distributed. Then even more companies will want to cooperate fruitfully and profitably with software of this type.

Reputation

Let’s have a look at the instance of Bitrix24. The reputation of this company has never been tarnished. 12 million consumers consider this corporation to be one of the best inventory management vendors, as it has been on the market for many years. Its employees have considerable work experience, they know and take into account the wishes of companies - their customers. There are no complaints about the operation of the software either, every element is integrated, there is a set of good and varied tools, everything works stably and is controlled; tasks are submitted in the allotted time. And the prices here are more affordable than in others.

How Can Inventory Management Be Improved

1.    Here it is needed to apply the setting of the minimum amount of stocks because it is necessary to focus on the customer's requests and create only such products that will be sold and that each company will want.

2.    Do not forget that flexibility is needed in any situation, to prevent trouble.

3.    Understanding the supply chain will also help to avoid troubles and advance the work process several times. Customers will be satisfied.

4.    Remove expired products or the ones that are not in demand, because this is a waste of space and money.

5.    Choose the right inventory control software, such as Bitrix24.

Multi-Location Inventory Management

Multi-location inventory management refers to a system used by businesses to track and manage inventory processes in multiple locations.

This system usually provides a unified view of inventory across all locations, enabling organizations to monitor and manage their inventory more effectively. Multi-location is available for all types of company sizes and also is to be implanted through the Bitrix 24 inventory management solution software.

What Is Poor Inventory Management?

There are 4 types of such an inventory. It is described in more detail below:

1.    Missed sales opportunities. Several channels are used in order to inform consumers about the product, but this does not always work in the direction of a positive result. Integration is simply "click and connect", but in the case of more niche services, slightly better programs are used.

2.    Impossibility to transfer stocks. This can lead to severe confusion, and complete disruption of work, which can make the client wait for a long period of time in case of force majeure with the main parcel.

3.    Lack of stock or its surplus. If there is not enough stock, it leads to a delay in the work process and additional monetary costs in significant amounts. An excess of goods is also undesirable, as it adds even greater storage costs and a lack of space for new goods.

4.    Poor interaction with customers. Breach of trust between the seller and the client, in the case of lack of stock of goods in the warehouse. The customer may find another store and not return to you. The software will be the inventory management solution to balance and restore operations and eliminate your problems.

Analytics and Reports

Analytics is important for sales reporting, analysis of product inventory turnover, shortages, demand, etc. Bitrix 24 control inventory software quickly performs analytical analysis by collecting and grouping data and creating the result in the form of statistical graphs/tables/diagrams.

Customer support and training 

Bitrix Corporation is always happy to help its regular and future customers. Therefore, you can always contact us with a request in our Support 24 section, where you will be able to consult with the best specialists. Additionally, read the materials in the Reference, etc.

What Are Inventory Management Policies?

An inventory management software policy provides a standard set of guidelines with limitations that fully provides the basis for an organization to make the most informed decisions regarding inventory investments. Inventory management policies are generally based on an understanding of your supply chain's ability to support customer demand.

Among the types of this policy, the following are distinguished:

• Continuous review policy. It means that the policy warns that the company should gradually purchase a certain amount of raw materials and products from suppliers in advance.

• Periodic review policy. Products should be ordered only periodically according to a fixed schedule.

FAQs

What is inventory management software?

Inventory management software is a digital tool that helps businesses manage, track, and control their inventory levels, purchasing, sales, and deliveries. It streamlines the entire inventory management process, reducing human error, and saving time and resources.

Why is inventory management software important for businesses?

Inventory management software helps businesses make data-driven decisions, reduce operational costs, improve efficiency, and increase customer satisfaction.

What features should I look for in the best inventory management software?

The best inventory management software should have features like real-time inventory tracking, barcode scanning, multi-location support, stock level alerts, purchase order management, sales order management, reporting and analytics, and integrations with other software like e-commerce platforms and accounting systems.

Can inventory management software be used by small businesses?

Yes, inventory management software is available for businesses of all sizes, including small businesses. Many software providers offer scalable solutions with a variety of pricing plans, making them affordable and customizable for small businesses.

How much does inventory management software cost?

The cost of inventory management software varies depending on factors like the number of users, features, and the provider. Some solutions offer free basic plans, like Bitrix24, while others charge a monthly or annual subscription fee.