How to Choose Inventory Management Software
LAST UPDATE: MAY 17, 2023
5 minutes reading
Inventory management software is a tool that helps businesses streamline their inventory processes, optimize their stock levels, track their orders, and improve their profitability. Inventory management software can also integrate with other systems such as accounting, e-commerce, point of sale, shipping, and warehouse management.
But how do you choose inventory management software for your business? There are many factors to consider, such as your business size, industry, budget, features, scalability, and customer support. Here are some tips to help you make an informed decision.
Benefits of using Inventory Management Software
Inventory management software is a tool that helps businesses track and manage their inventory levels, orders, sales, and deliveries. It can also help optimize inventory costs, improve customer satisfaction, and increase productivity. Here are some of the benefits of using inventory management software:
1. Better Inventory Accuracy:
Choosing an Inventory management software can provide real-time data on what products are in stock, where they are located, and how much they cost. This can help businesses avoid overstocking or understocking issues, and order only the amount of inventory they need to meet demand.
2. Reduced Risk of Overselling:
Inventory management software can also help prevent selling products that are out of stock or on backorder. This can reduce customer complaints, refunds, and cancellations.
3. Cost Savings:
Choosing the right inventory software can help businesses save money by reducing storage fees, insurance costs, employee wages, transportation expenses, and other carrying costs associated with holding excess inventory. It can also help avoid losses due to theft, damage, or obsolescence.
4. Greater insights:
Inventory software selection can provide valuable insights into sales trends, customer preferences, product performance, and supplier reliability. This can help businesses make informed decisions about pricing strategies, marketing campaigns, product development, and vendor negotiations.
5. More Productivity:
Inventory software selection can automate many tasks that would otherwise require manual labor and time-consuming data entry. This can free up staff to focus on other core activities and improve efficiency.
10 Tips and Factors for Choosing Inventory Management Software
Inventory management software is a tool that helps businesses automate inventory processes, operate efficiently, and increase profits. Choosing the right inventory management software for your business can be challenging, as there are many factors to consider. Here are 10 tips and factors for choosing inventory management software:
Identify Your Inventory Needs and Goals:
What kind of inventory do you have? How much inventory do you need to keep on hand? What are your main inventory challenges and pain points? How do you want to improve your inventory performance and customer satisfaction?
Compare Different Types of Inventory Management Software:
There are different types of inventory management software, such as cloud-based, on-premise, standalone, or integrated with other systems. Each type has its advantages and disadvantages, depending on your budget, security, scalability, and customization needs.
Look for Key Features and Functionalities:
Some of the key features of inventory management software and functionalities you should look for in inventory management software are barcode scanning, automated purchase orders, real-time inventory tracking, multi-channel integration, demand forecasting, reporting, and analytics.
Check the Usability and Compatibility of the Software:
The software should be easy to use and compatible with your existing hardware and software systems. You should also consider your staff’s learning curve and training requirements to use the software effectively.
Read Reviews and Testimonials from Other Users:
One of the best ways to evaluate and choose inventory management software is to read reviews and testimonials from other users with similar businesses or industries. You can learn from their experiences, feedback, and recommendations.
Request a Free Trial or Demo of the Software:
Before you commit to choose inventory management software, you should request a free trial or demo of the software to test its features and functionalities in real scenarios. You can also ask questions and get support from the vendor during this period.
Compare Prices and Plans of Different Vendors:
The price of inventory management software can vary depending on various factors such as the number of users, locations, SKUs, level of support, etc. You should compare the prices and plans of different vendors to find the best value for your money.
Negotiate Terms and Conditions with the Vendor:
Once you have decided on a vendor, you should negotiate terms and conditions with them such as contract length, payment options (monthly vs annual), renewal fees etc. You should also clarify any hidden costs or charges that may apply later on.
Implement the Software with Proper Planning and Guidance:
After you have chosen inventory management software, you should implement it with proper planning and guidance from the vendor or a third-party consultant. You should also involve your staff in the implementation process, train them on how to use it, and monitor their progress.
Evaluate the Performance and Impact of the Software:
After you choose inventory management software, you should evaluate its performance and impact on your business. You should measure key metrics such as inventory accuracy, turnover rate, fill rate, stockout rate, etc… You should also solicit feedback from your staff, customers, suppliers, etc. You should review these results regularly, identify areas for improvement, and make adjustments accordingly.
Best Inventory Management Software for Small Businesses
If you’re looking for the best inventory management software for your small business, look no further than New G Solution! New G Solution is a cloud-based software that helps you track, manage and optimize your inventory across multiple channels and locations. You can easily create purchase orders, receive goods, adjust stock levels, transfer items, generate reports, and more.
New G Solution also integrates with popular e-commerce platforms like Shopify, WooCommerce, and Amazon, so you can sync your inventory and orders in real time. Whether you sell online, offline, or both, New G Solution will help you streamline your operations and grow your business.
Try it for free today and see why thousands of small businesses trust New G Solution for their inventory management needs!