Inventory management software helps businesses monitor their stock in their stores and storage facilities, keeping track of where products are physically located, when they sell, and when more quantities need to be ordered. This software ensures that your stock of goods is updated in real time, and it can automatically import and export key data to and from other systems, like POS software or accounting software.
This type of software eliminates the double entry of data in spreadsheets and accounting software. It streamlines tracking the location of your products and raw materials, plus it helps you implement an order-management plan so you never have too much or too little of a particular item in stock. Inventory management software also offers detailed reporting so you can regularly review and analyze your business’s inventory across multiple locations.
The best software hinges on the type and size of the business. For example, a single location retail business requires a less complex software application than a manufacturer that needs to track raw materials and finished products. As a business grows to multiple locations, a more comprehensive inventory management software is needed.
Inventory management software should supplement a thorough manual process. Your staff should be properly trained on how to scan items so the system is up to date. To learn more about how to implement an inventory management plan, read our article on effective inventory management strategies all businesses should employ.
Key takeaway: Inventory management software helps businesses monitor their products and raw materials. It also implements order-management protocols so you always have an optimal amount of stock on hand.
