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Calling all business owners, decision-makers, and supply chain and logistics managers!
Stop scrolling and listen up because we're about to make your life super easy by helping you choose the best inventory management software!
When you manage inventory for a living, catering to customers with diverse demands is all in a day's work. That means keeping track of an ever-changing inventory, juggling stock levels across multiple locations and suppliers, and ensuring products reach consumers' eager hands in the blink of an eye. And that's no mean feat.
As the old saying (that we've ever so slightly tweaked and repurposed) goes, "With great responsibility comes the need for ingenious solutions." That's where inventory management software systems come in.
We'll start from the very beginning to help you gain a comprehensive understanding of your inventory management needs - all with minimal B2B fluff and business jargon. Just easy-to-digest info to help you make an informed decision about the tools and features you need to manage inventory like a pro.
Inventory management software streamlines and automates the process of tracking, organizing, and optimizing inventory, ensuring your business has the right products in the right place at the right time.
By automating mundane tasks, providing custom reporting, and ensuring optimal stock levels, the best inventory management systems free up more of your time to focus on what matters most – growing your business and delighting your customers.
The list of possible inventory features and functions is almost endless, and we'll delve into some of the most essential in the next section. But for now, here's a brief overview of some of the amazing things that the best inventory management software can do:
Inventory management software was originally developed to optimize inventory levels across multiple warehouses by determining the optimal volume for each product based on demand. So, the primary benefit is that it helps eliminate understocking issues and problems involving excess inventory and slow-moving stock. It also provides an at-a-glance inventory summary for anyone with order management system access.
But that's only part of it. Effective inventory management results in several other benefits too:
So long, tedious tasks!
Automation allows you to bid farewell to time-consuming manual processes that are prone to human error. With streamlined operations and increased accuracy, you have more time for the things that truly matter - like growing your business, perfecting your sourdough recipe, finally tackling that overgrown tree in the back yard, or just sitting back and to relax for a while. After all, you've earned it!
See it all, control it all!
You need eyes everywhere when it comes to inventory management, and pinpoint inventory tracking provides a birds-eye view of stock across all locations, warehouses, and selling channels. No more inventory mysteries, just crystal-clear visibility.
Keep your cash flow healthy and your accountant beaming with joy.
Buying 'just enough' stock reduces carrying costs and boosts profitability. No more tying up cash in excess inventory or losing sales due to product unavailability. When you strike the perfect balance, you can prepare to watch your profits soar!
Channel your inner Sherlock Holmes and crack the code to business success!
Accurate and timely financial information is the lifeblood of any successful business, offering invaluable insight into the company's overall health and performance. So, forget about fortune-telling ‘guestimates’. With historical data and trend analysis at your fingertips, you can make smart and confident order management decisions every time.
Product availability + timely error-free deliveries = happy customers.
Product availability coupled with timely, error-free delivery is the secret recipe for customer happiness. All you'll need to do is pop the kettle on, load up your review sites, and kick back while you watch those 5-star ratings roll in!
Who doesn't love to do more with less effort?
Manually processing purchase orders, invoices, and inventory counts? Pah! No thanks! With customizable automation options for all those boring admin duties, paperwork duty becomes minimal leaving staff with more time to spend on the warehouse floor or building supplier relations.
Get ready to take on the world!
The best inventory management software scales alongside your business as it grows. Scalable inventory management solutions are designed to effortlessly handle increasing demand as your ecommerce enterprise flourishes by offering flexible configuration options that allow you to tailor the system to match your unique requirements.
If you want to succeed, yes. And there's no sugarcoating that, we're afraid. Even for small businesses, investing in advanced inventory systems is critical.
Why? Because in the cutthroat world of modern ecommerce, 'staying ahead of the game' isn't just a catchphrase - it's an essential survival strategy. And without efficient inventory management software, you're missing one of the most powerful weapons in your arsenal. For example:
"We benefit from automated order fulfillment, automated invoicing, and automated inventory forecasting. These features combined make inventory management software an essential tool for efficient operations." - José Moya, Outreach Manager at Capicua Full Stack Creative Hub.
When it comes to inventory management software, one size definitely doesn't fit all.
Ecommerce businesses are a bit like snowflakes. Plentiful and similar in many ways. Yet, each one is unique and has a slightly different shape, size, and design to the next.
Thankfully, the world of inventory management software is versatile enough to cater to a diverse range of requirements. Let's take a look at how your inventory tracking needs may vary based on the size of your business.
Small businesses typically have limited resources and simpler inventory needs. They require inventory management software that is user-friendly, cost-effective, and easy to set up and maintain. Key features will likely include:
Medium-sized enterprises that have already grown beyond the infancy stage require more robust inventory management solutions. They need software that can handle larger volumes of data, integrate with other business systems, and create custom reports. Key inventory features typically include:
The larger the business, the more complex supply chain management becomes – especially when operating across multiple warehouses. Big companies require inventory systems with sophisticated automation, capable of handling high transaction volumes across various sales channels and integrating seamlessly with ecommerce platforms and accounting systems. Therefore, essential inventory features include:
It's essential to focus on key features that align with your current operational needs and your long-term goals. Remember, you’ll need inventory software that can grow alongside your business, not just track inventory in the here and now.
So, before you fall into the fatal 'buy cheap, buy twice' trap, it’s worth taking some time to consider where you’re headed in terms of scalability and expansion. For example, you're needs may be more complex than you think if you're planning to:
Whatever your current scenario and future plans, please beware of the trappings of free inventory management software. You see, while free inventory management systems may have some shiny features, we're yet to come across one that's robust and scalable enough to power any business to its full potential long-term.
Don't stress out just yet about whittling down a specific list of requirements. We'll guide you through that in just a moment. Plus, many core features are universally valuable across businesses of all types and sizes. Here are a few examples.
However, a quick word to the wise before we dive in... Remember that while the following functions are common in any good inventory management system, the depth and complexity of each feature may vary based on the specific software. So doing ample research to make sure the system you choose has the right level of functionality is essential.
Accurate costing helps businesses to determine the true value of inventory items based on the cost of goods sold. This, in turn, makes it easier to forecast revenue by ensuring products are priced competitively while still being profitable.
Costing out inventory items is also essential for compliance with tax reporting and financial statement compliance. There are three IRS-approved costing methods:
FIFO costing operates on the principle of fairness and chronology. It treats your inventory flows like a queue, assuming that the first items added to your inventory counts are the first ones sold. FIFO is especially useful for perishable goods or products with expiration dates, as it minimizes the risk of holding onto obsolete inventory.
LIFO costing is an alternative inventory costing method that flips the script from FIFO. Picture your inventory as a stack, where the newest items in your inventory counts are placed on top. Instead of selling older inventory first, LIFO assumes that the most recently acquired items are the first ones to be sold.
Particularly beneficial for businesses dealing with large quantities of identical items or items with constant price fluctuations, the average weighted cost doesn’t distinguish between individual units. Instead, it simplifies the inventory costing process by providing a single average cost per unit and assigning it to every item.
It can be exhilarating to be a decision-maker at work and call some of the shots that steer the ship. But not all adrenaline rushes are the giddy kind. The stakes are high when making critical decisions.
Every decision business owners and managers make - no matter how big or small – can impact the company’s potential for growth, profitability, and long-term sustainability. To make sound choices, it’s therefore essential to have access to accurate and up-to-date financial information.
By combining inventory and financial data, businesses can make more informed financial decisions, reduce manual errors, and improve overall economic efficiency by automatically generating:
The inventory systems needed to succeed in ecommerce differ from those used by brick-and-mortar stores. In the fast-paced realm of ecommerce, traditional inventory management systems just don’t cut the mustard.
You need real-time inventory visibility across every warehouse, sales platform, and accounting system so that website inventory levels can update correctly - and instantly - after each purchase.
With that in mind, these are our top feature picks for powerful inventory control in ecommerce.
It’s time to wave goodbye to the days of monotonous manual data entry and say hello to lightning-fast inventory tracking using mobile apps. Here's why barcode scanning is essential for your ecommerce business:
"Implementing barcode scanning technology and automated inventory tracking tools can greatly improve inventory accuracy. By reducing manual input, we have minimized the risk of errors and increased efficiency." - Ryan Mckenzie, Co-Founder & CMO at Tru Earth.
Your inventory management software needs to be the ultimate team player, acting as a conductor to an efficient and productive orchestra where each instrument plays in perfect harmony. Here are just a few reasons why successful integration will be music to your ears:
"If you want to leverage AI and automation for the future of your business, then integration capabilities are paramount. Without integrations, we create "data silos," which are databases that aren't connected to your larger operation. The more silos you have, the less you can do with your data." - Mark Varnas, Principal SQL Server DBA/ Consultant at Red9
Expanding your reach by selling on multiple sales channels is like giving your business a turbo boost! Here's why diving into multichannel selling is essential if your ecommerce business is to take flight:
“I can bulk list new products to various selling channels, ensuring that popular product ranges are available on eBay, Amazon, Shopify, Fruugo, and Wish in a timely manner. As orders come through, stock levels automatically update which means we don’t have to hold stock back or manually make updates to avoid overstocking. This eliminates any errors and delays, and provides an accurate picture of how stock is performing across all our channels.” - Mark Crowhurst, founder at Mcslots.
We know part of what makes inventory control so intimidating is all the tech speak and jargon that comes with it. Not to mention all those confusing acronyms (ugh, sooo many acronyms!). They can be the bane of many inventory management issues, we know. But don't fret it - you're not alone!
At Linnworks, we understand that you're an inventory manager, not a software or technical guru. And the thought of wrapping your head around all the scary terminology and ‘new stuff’ is often enough to push upgraded inventory systems back down to the bottom of your to-do list. So, we've made a sneaky cheat sheet to help you get down with the lingo:
Choosing the right inventory management software can be a game-changer for both small businesses and well-established industry players. But in either case, selecting an advanced inventory system doesn't come without risk.
When you get it right, it’s like finding that elusive missing piece to your inventory control jigsaw puzzle. Conversely, when you get it wrong, it’s like being left with an Allen key when what you needed all along was a screwdriver.
So, before you get too trigger-happy on any of those shiny ‘pay now’ buttons, take the time to give your decision some extra consideration. Here are some key factors to ponder before making your final selection.
Let's be real. We all love a good deal, and learning to budget like a pro is the superhero skill of money management.
As we mentioned earlier, free inventory management software is unlikely to measure up in the long term. So, here are some top tips on what to consider when evaluating paid inventory management systems:
It’s time to don your dear stalker, trench coat, and trusty monocle and start playing detective!
It's essential to ask potential software vendors the right questions so you can uncover the true potential of each system and choose the best inventory management software for your business. Some examples to ensure effective vendor management include:
Asking some tough internal questions is just as important as grilling potential vendors.
Sure, vendor sales teams can help fill in blanks (and no doubt slink in some upsells about how their ecommerce inventory processes fit the bill at the same time!). But remember, the ball is in your court. Only you can say for sure what your needs and requirements are for improved inventory control.
Still trying to figure out where to start? Here are some example questions for discussion at your next inventory forecasting meeting.
Finding ways to constantly improve inventory management is essential. But, how do you know when it's the right time to make the move? After all, upgrading your inventory management software is a big decision.
Have you been tasked with building a business case for investing in new inventory management software but need clarification about where to begin? We’ve got you! Here are the steps to work through.
Start by teasing out the pain points and inefficiencies in your current inventory management processes. Look for telltale signs like:
Estimate the financial impact of these pain points on your business, taking into account:
Evaluate the shortcomings of your existing software and how they affect your business's ability to scale and adapt. Look for red flags like:
There's no room for uncertainty. The benefits must be crystal clear and compelling. To get the sign-off from the big bosses, you’ll need to be able to thoroughly explain all of these benefits and more:
To justify the investment, you’ll need to demonstrate the financial impact of the new inventory management software. That means calculating:
A well-structured implementation plan that aligns with business goals will include detailed breakdowns of the following:
Implementing an inventory management system may feel like a daunting task, but with the right approach and vendor support, there’s no reason it can’t all go off without a hitch.
The secret to success is collaborating effectively with your chosen vendor. Remember, you chose them for a reason, and they’re the experts in this game. They know the features and capabilities of their software like the back of their hand and are best placed to customize a solution that meets your precise requirements.
Here is the list of steps you'll need to work through together.
Organizing your existing inventory data and ensuring it’s both accurate and up-to-date is crucial to preventing issues during the system integration process.
Working alongside your vendor to connect your new inventory control system with existing software like accounting systems and sales platforms is essential.
A well-trained team is the secret to smooth sailing. So make sure anyone who’ll be using your new inventory management solution is well prepared.
Before going full throttle and implementing company-wide, run a pilot test on a smaller scale to make sure everything runs like clockwork.
Don't rush it! Implement the system in phases for better control and minimal chaos so you can fine-tune as you go. Baby steps all the way!
Once it's all up and running, keep a close eye on the system's performance. Gather feedback from your team and continually asses to see how well it's helping you kick those goals.
Don't hesitate to call your vendor if you need a little backup. Software vendors worth their salt will have your back with guidance, support, and the occasional system update.
Ready to put your inventory management fears to rest and invest in a system that will unlock your company’s true potential?
With Linnworks as your trusty inventory sidekick, you'll navigate the process with ease, leaving manual tasks, data entry errors, and physical counting headaches mere specs on the horizon behind you. With the industry's top inventory management software doing all the heavy lifting for you, your team will be supercharged, and you'll have so much more time to focus on driving your business forward.
Still hesitant? Don’t be. The sooner you embark on your advanced inventory journey, the faster you reap the rewards. More streamlined operations, happier customers, and a bigger bank balance – it's all within reach!
Don’t wait any longer before taking that giant stride toward optimum efficiency. Take our 3-minute interactive product tour today and contact our helpful team to get started on your journey to better inventory control and management. We promise you won’t regret it!
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