Best Inventory Management Software for 2025

Last updated: September 2025

Inventory management software is essential for optimizing production workflows. These inventory tracking systems enable manufacturers to monitor and manage stock levels efficiently. Compare and find the best inventory management tools by features, reviews, and pricing to find the perfect solution for you.

Cloud-based inventory management solution
Starting from: $0/mo
Free Plan
  • Easily manage orders, shipping & returns
  • Accurate stock tracking: Barcode & RFID
  • Support for multiple currencies & taxes
Zoho Inventory
Starting from:
$0/mo
Free Plan
Cloud-based inventory management solution
Built-in inventory analytics in real time
Starting from: Custom/mo
  • Automated stock replenishment feature
  • Integrate inventory with ERP & suppliers
  • Advanced demand forecasting to meet demand
Epicor Eagle
Starting from:
Custom/mo
Manage inventory across multiple locations
Starting from: $0/mo
Free Plan
  • Manage your inventory in bulk
  • Real-time tracking & item categorization
  • Automate stock alerts to avoid running out
SquareUp
Starting from:
$0/mo
Free Plan
Manage inventory across multiple locations
Manage product variations & bulk editing
Starting from: $29/mo
  • Robust analytics to forecast stock needs
  • Scale inventory management with automation
  • Automatically syncing inventory
BigCommerce
Starting from:
$29/mo
Manage product variations & bulk editing
Global multi-location inventory tracking
Starting from: Custom Pricing/mo
  • Real-time visibility into supply chain
  • Barcode scanning & RFID technology
  • Demand planning tools to forecast needs
Oracle NetSuite
Starting from:
Custom Pricing/mo
Global multi-location inventory tracking
Flexible, cloud-based inventory management
Starting from: Custom/mo
  • Trusted by 8000+ Customers
  • Quality traceability with lot and serial control
  • Quick replenishment for automated orders
Acumatica
Starting from:
Custom/mo
Flexible, cloud-based inventory management
Manage retail & online sales in one place
Starting from: $45/mo
30-Day Free Trial
  • Quick data entry with integration tools
  • Migrate product catalogs across platforms
  • Track sales across multiple platforms
SKU IQ
Starting from:
$45/mo
30-Day Free Trial
Manage retail & online sales in one place
Sync inventory across all sales channels
Starting from: $0/mo
14-Day Free Trial
  • Comprehensive reports & forecasting tools
  • Shipping software & pre-negotiated rates
  • Track stock in real-time to boost sales
Veeqo
Starting from:
$0/mo
14-Day Free Trial
Sync inventory across all sales channels
Automate low-stock alerts to stay ahead
Starting from: $349/mo
Free Plan
  • Easy dropshipping workflows & management
  • Automate order routing, splitting & tagging
  • Leverage pre-discounted shipping rates
Ordoro
Starting from:
$349/mo
Free Plan
Automate low-stock alerts to stay ahead
Leverage intuitive AI business prediction
Starting from: $19/mo
21-Day Free Trial
  • Tracking & reporting to improve compliance
  • Manage your inventory from the cloud
  • Full visibility into your asset lifecycle
Freshservice
Starting from:
$19/mo
21-Day Free Trial
Leverage intuitive AI business prediction

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Read more here Unlike many other review platforms, we conduct in-depth evaluations of the software and services we feature. Our expert team tests and actively uses the tools we review to understand their features, performance, and value comprehensively. Our assessments are based on real-world use, giving you insights beyond surface-level descriptions. Our research methodology includes analyzing key consumer factors such as pricing, functionality, device usability, scalability, customer support quality, and unique industry-specific features. This hands-on approach and dedication to transparency mean you can trust Sonary to deliver regular, up-to-date content and recommendations that are well-researched and genuinely helpful for your business needs.

What is inventory management software?

Inventory management software is a digital tool designed to help businesses track, organize, and manage their inventory throughout the entire supply chain. This includes managing stock levels, orders, sales, and deliveries, ensuring that products are available when needed without overstocking or running out of stock. By using inventory management software, businesses can optimize their inventory processes, improve accuracy, and reduce manual errors.

Top Inventory Management Software for 2025 

Zoho Inventory

Zoho Inventory is a cloud-based inventory management tool designed for businesses of all sizes, particularly small to medium enterprises. It helps streamline order management, control stock levels, and integrate multiple sales channels, including online platforms and physical retail.

Brand Logo
Zoho Inventory
Starting from:
$0 /mo
Free plan / Free trial:
Available
Learn more about Zoho Inventory review.
Zoho Inventory is a cloud-based inventory management software that supports you in organizing and keeping track of stock movement. This software is preferable for companies that depend on digital means to manage business operations.
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
API
v-pro
Barcode Recognition
v-pro
Billing & Invoicing
v-pro
Cloud Infrastructure
v-pro
Control Software
v-pro
Cost Tracking
v-pro
Customer Database
v-pro
Data Synchronization
v-pro
Machine Learning & AI
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Replenishment
v-pro
Returns Handling
v-pro
Tracking

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Manufacturing Inventory Management Software
v-pro
Multi-Currency
v-pro
Order Tracking
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Reorder Management
v-pro
Status Tracking
v-pro
Stock Management
v-pro
Supplier Management
v-pro
Vendor Managed Inventory

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real-Time Data

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Mailing lists
v-pro
Point of Sale (POS)
v-pro
Search engine submission
v-pro
Third Party Integrations
Pros & Cons

Pros

v-pro
Able to duplicate products
v-pro
Affordable business plans
v-pro
Complete features for warehousing
v-pro
Easy to use features

Cons

x-con
Plans suit big companies

Key Benefits:

  • Multi-channel management: Sync inventory across platforms like Shopify, Amazon, eBay, and Etsy.
  • Automation: Automate inventory updates, reorder notifications, and stock adjustments.
  • Order management: Manage orders and shipments from different sales channels in one place.
  • Barcode scanning: Zoho supports barcode scanning, making it easier to manage stock at the SKU level.
  • Zoho ecosystem integration: Zoho Inventory integrates seamlessly with Zoho’s suite of business applications, such as Zoho Books and Zoho CRM.

Good for:

Small to medium businesses that sell across multiple online and offline channels, needing an affordable, scalable inventory management solution.

Acumatica

Acumatica is a comprehensive cloud ERP solution with a strong focus on inventory management, designed for mid-sized to large businesses. It offers advanced features like warehouse management, inventory control, and financial integration.

Brand Logo
Acumatica
Starting from:
Custom /mo
Free plan / Free trial:
Not Available
Learn more about Acumatica review.
Acumatica has an intuitive design that supports flexible pricing and enterprise scalability. These features combine to make Acumatica a great choice for inventory management, ledger accounting, and business resource planning. 
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
Alerts/Notifications
v-pro
API
v-pro
Auditing
v-pro
Barcode/Ticket Scanning
v-pro
Billing & Invoicing
v-pro
Cloud Infrastructure
v-pro
Control Software
v-pro
Cost Tracking
v-pro
Customer Database
v-pro
Data Synchronization
v-pro
Forecasting
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Search/Filter
v-pro
Tracking

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Invoice Management
v-pro
Manufacturing Inventory Management Software
v-pro
Multi-Currency
v-pro
Multi-Location
v-pro
Product Identification
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Reorder Management
v-pro
Status Tracking
v-pro
Stock Management
v-pro
Supplier Management
v-pro
Vendor Managed Inventory

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real Time Reporting
v-pro
Real-Time Data
v-pro
Sales Reports

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Mailing lists
v-pro
Third Party Integrations
Pros & Cons

Pros

v-pro
Supports on-premise or cloud installation and deployment.
v-pro
Support for multiple databases.
v-pro
In-depth reporting.
v-pro
Non-user-based pricing is convenient for small businesses

Cons

x-con
Difficulty in license cost estimation.
x-con
Standard report filters require additional customizing.
x-con
Inconvenient pricing structure.

Key Benefits:

  • Real-time inventory visibility: Track stock levels in real-time across multiple locations and warehouses.
  • Multiple warehouse support: Manage inventory in multiple locations with precise control over quantities, movements, and stock levels.
  • Lot and serial number tracking: Acumatica supports advanced tracking to meet industry compliance standards, especially for manufacturing and distribution.
  • Full ERP integration: Combines inventory management with financial, sales, and operational modules to provide a holistic business view.
  • Automated replenishment: Automatically generates purchase orders based on inventory levels and sales trends.

Good for:

Growing businesses that need comprehensive ERP functionality alongside advanced inventory management for multi-location operations.

Epicor Eagle

Epicor Eagle is tailored specifically for small to mid-sized retail businesses, offering integrated inventory, POS, and customer management systems. It’s particularly well-suited for physical stores looking to optimize in-store operations.

Brand Logo
Epicor Eagle
Starting from:
Custom /mo
Free plan / Free trial:
Not Available
Learn more about Epicor Eagle review.
Epicor Eagle is an inventory management solution for retailers to track and manage their inventory. It offers real-time assessment of stocks so retailers can make the right decisions. With an intuitive dashboard and detailed reporting, you can optimize inventory and ensure profitable products are always available. It automates many manual tasks associated with managing inventories.
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
Alerts/Notifications
v-pro
API
v-pro
Barcode Recognition
v-pro
Barcode/Ticket Scanning
v-pro
Billing & Invoicing
v-pro
Cost Tracking
v-pro
Data Synchronization
v-pro
Forecasting
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Replenishment
v-pro
Returns Handling
v-pro
Search/Filter
v-pro
Tracking

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Invoice Management
v-pro
Multi-Currency
v-pro
Multi-Location
v-pro
Order Tracking
v-pro
Product Identification
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Status Tracking
v-pro
Stock Management

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real Time Reporting
v-pro
Real-Time Data
v-pro
Sales Reports

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Point of Sale (POS)
v-pro
Third Party Integrations
Pros & Cons

Pros

v-pro
Comprehensive, real-time data on inventory
v-pro
Customizable dashboards and reporting
v-pro
Sales-friendly functions like comparative price setting and demand forecasting
v-pro
Easy inventory planning

Cons

x-con
No free trial
x-con
Not cloud-based
x-con
Limited to Windows and mobile platforms

Key Benefits:

  • Retail-focused inventory management: Manage stock levels, track turnover rates, and ensure efficient product restocking.
  • POS integration: Real-time syncing between the POS and inventory, ensuring accurate stock tracking and avoiding overselling.
  • Demand forecasting: Helps retailers predict demand based on historical sales data and trends, reducing stockouts and overstocks.
  • Customer relationship tools: Built-in tools for customer loyalty programs and promotions, enhancing the retail experience.
  • Supplier management: Streamlines purchasing and vendor relations to keep stock levels in check.

Good for:

Retailers and brick-and-mortar shops looking for a system to integrate their POS and inventory management, offering a better customer and sales experience.

BigCommerce

BigCommerce is an e-commerce platform that includes built-in inventory management capabilities, allowing businesses to manage stock across multiple online channels. It’s well-suited for businesses looking to scale their online sales with comprehensive stock tracking.

Brand Logo
BigCommerce
Starting from:
$29 /mo
Free plan / Free trial:
Not Available
Learn more about BigCommerce review.
BigCommerce takes the guesswork out of managing your new or growing online business. with BigCommerce you can improve planning with inventory management tools and choose from leading shipping and payment providers to find your best-fit solutions, without penalties.
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
Alerts/Notifications
v-pro
API
v-pro
Auditing
v-pro
Billing & Invoicing
v-pro
Cloud Infrastructure
v-pro
Control Software
v-pro
Cost Tracking
v-pro
Data Synchronization
v-pro
Forecasting
v-pro
Kitting
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Replenishment
v-pro
Returns Handling
v-pro
Search/Filter
v-pro
Tracking

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Manufacturing Inventory Management Software
v-pro
Multi-Currency
v-pro
Multi-Location
v-pro
Order Tracking
v-pro
Product Identification
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Reorder Management
v-pro
Stock Management
v-pro
Supplier Management
v-pro
Vendor Managed Inventory

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real-Time Data

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Mailing lists
v-pro
Point of Sale (POS)
Pros & Cons

Pros

v-pro
Easy steps for inventory management
v-pro
Numerous payment options which bring about increase in sales
v-pro
Integration with Amazon, eBay, Google
v-pro
Multiple products are easily added with the aid of simple-to-use features

Cons

x-con
Not being able to track customer order information
x-con
Shipping number is not editable
x-con
Short trial periods

Key Benefits:

  • Centralized inventory control: Manage inventory from one dashboard, even across multiple sales channels such as Amazon, eBay, and social media stores.
  • Automated updates: Automatically sync stock levels across all channels, ensuring accurate stock levels.
  • Integration with shipping providers: Real-time inventory syncing with shipping tools helps businesses manage shipping and fulfillment efficiently.
  • Customizable rules: Set up low-stock alerts and automated reordering for better stock control.
  • Scalable: BigCommerce scales with your business, handling increasing product ranges and sales volumes.

Good for:

E-commerce businesses, especially those selling on multiple online platforms, looking for a system that integrates inventory management with a robust online sales platform.

SKU IQ

SKU IQ specializes in synchronizing inventory between physical retail stores and online stores. It integrates with POS systems and e-commerce platforms like Shopify and WooCommerce, making it ideal for hybrid businesses operating both physical and online stores.

Brand Logo
SKU IQ
Starting from:
$45 /mo
Free plan / Free trial:
Available
Learn more about SKU IQ review.
SKU IQ is an inventory management solution. It is a multi-channel retailing system used by offline and online businesses that connect point-of-sale data to marketplaces,eCommerce and applications. The solution offers cross-channel analytics and helps to reduce overselling with robotic quantity adjustments between eCommerce and POS.
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
API
v-pro
Auditing
v-pro
Barcode/Ticket Scanning
v-pro
Billing & Invoicing
v-pro
Cloud Infrastructure
v-pro
Control Software
v-pro
Customer Database
v-pro
Forecasting
v-pro
Kitting
v-pro
Machine Learning & AI
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Replenishment
v-pro
Returns Handling
v-pro
Search/Filter

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Manufacturing Inventory Management Software
v-pro
Multi-Currency
v-pro
Multi-Location
v-pro
Product Identification
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Reorder Management
v-pro
Status Tracking
v-pro
Vendor Managed Inventory

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real-Time Data

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Mailing lists
v-pro
Search engine submission
v-pro
Third Party Integrations
Pros & Cons

Pros

v-pro
User friendly
v-pro
Complete retail integrations
v-pro
Automated system
v-pro
Synchronisation of all data

Cons

x-con
Focuses on small or retail businesses

Key Benefits:

  • Real-time inventory syncing: Synchronize inventory between brick-and-mortar stores and online shops to maintain accurate stock levels across both platforms.
  • Multi-channel integration: Supports major platforms such as Shopify, BigCommerce, WooCommerce, Square POS, and Clover POS.
  • Data-driven insights: Provides sales and inventory analytics to help businesses make informed decisions on stock levels and reordering.
  • Order management: Seamlessly manage orders and inventory in one system across both online and physical sales channels.
  • Quick setup: SKU IQ is easy to set up and use, making it perfect for small businesses that need quick and effective solutions.

Good for:

Small to mid-sized businesses that sell both online and in physical locations, needing real-time inventory synchronization between their physical and digital storefronts.

Ordoro

Ordoro is an inventory management and order fulfillment solution designed for small to medium-sized e-commerce businesses. It supports multi-channel inventory management, shipping, and order processing.

Brand Logo
Ordoro
Starting from:
$349 /mo
Free plan / Free trial:
Available
Learn more about Ordoro review.
Ordoro is the all-in-one platform that helps growing merchants run their online businesses. Ordoro will help you optimize your workflow using specialized products and tools such as omnichannel inventory management.
Features

General Features

v-pro
Accounting Integration
v-pro
Activity Dashboard
v-pro
Alerts/Notifications
v-pro
API
v-pro
Auditing
v-pro
Barcode Recognition
v-pro
Barcode/Ticket Scanning
v-pro
Billing & Invoicing
v-pro
Cloud Infrastructure
v-pro
Control Software
v-pro
Cost Tracking
v-pro
Customer Database
v-pro
Data Synchronization
v-pro
Forecasting
v-pro
Kitting
v-pro
Machine Learning & AI
v-pro
Mobile-device access
v-pro
Multi-Channel Management
v-pro
Optimization
v-pro
Purchase Order Management
v-pro
Replenishment
v-pro
Returns Handling
v-pro
Search/Filter
v-pro
Tracking

Advanced Inventory Features

v-pro
eCommerce Management
v-pro
Invoice Management
v-pro
Manufacturing Inventory Management Software
v-pro
Multi-Currency
v-pro
Multi-Location
v-pro
Order Tracking
v-pro
Product Identification
v-pro
Purchasing & Receiving
v-pro
Real-time Updates
v-pro
Reorder Management
v-pro
Status Tracking
v-pro
Stock Management
v-pro
Supplier Management
v-pro
Vendor Managed Inventory

Reporting/Analytics

v-pro
Customizable Reports
v-pro
Real Time Analytics
v-pro
Real Time Reporting
v-pro
Real-Time Data
v-pro
Sales Reports

Integrations & Add-ons

v-pro
Accounting Integration
v-pro
Advertising credits
v-pro
Mailing lists
v-pro
Point of Sale (POS)
v-pro
Search engine submission
v-pro
Third Party Integrations
Pros & Cons

Pros

v-pro
Advanced analytics tools
v-pro
Multiple options for third party shipping
v-pro
Easy to use interface

Cons

x-con
Expensive subscription plans
x-con
No money-back guarantee
x-con
No mobile app available

Key Benefits:

  • Multi-channel management: Manage inventory across multiple e-commerce platforms, such as Shopify, Amazon, and WooCommerce.
  • Shipping integration: Built-in shipping management allows businesses to print labels and track shipments while keeping inventory updated in real-time.
  • Kitting and bundling: Easily bundle products into kits, while tracking the inventory of individual components.
  • Automated stock updates: Automatically sync stock levels and generate purchase orders based on low inventory levels.
  • Warehouse management: Manage inventory across multiple warehouses, with features that help track stock transfers and inventory movements.

Good for:

E-commerce businesses are looking for an all-in-one inventory and order management solution that integrates shipping, multi-channel inventory syncing, and fulfillment in a single platform.

Key Features of a Robust Inventory System:

The ultimate purpose of inventory management software is to reduce or eliminate human error in your inventory management processes. However, there are other added perks that you will find beneficial to both you and your business when using an IMS.

1. Real-time Stock Tracking

Track your stock on hand, its value, and profit/loss based on FIFO, LIFO, or Weighted Average logic, depending on your business’s preferred method. A reliable inventory management system allows businesses to monitor inventory changes as they happen. The software automatically updates inventory records as customer orders are filled and shipped.

Additionally, it helps you avoid deadstock by tracking the age of inventory, ensuring older stock is sold first. By keeping inventory accurate, businesses can avoid major accounting issues, such as inventory shortages or overages, which can lead to distorted financial records.

2. End-to-End Order Management

Seamlessly manage the entire order process, from capturing customer orders to receiving goods from suppliers, packing, and delivering to customers. The best inventory management software ensures that inventory levels are automatically updated when goods are sold or shipped, helping businesses meet customer demands efficiently. This feature integrates well with other systems, offering a smooth and transparent workflow across departments.

3. Barcode and Serial Management

Easily integrate barcode scanners, serial numbers, batch numbers, manufacturing part numbers, and SKU numbers into your workflow. This feature streamlines operations by allowing you to track each item throughout its lifecycle efficiently. Barcodes and serial management simplify stock intake and issuance, ensuring accuracy and preventing errors in inventory counts.

4. Stock Alerts and Reordering

Receive alerts when inventory levels drop to a certain point, ensuring you can reorder stock before running out. Many inventory management systems offer integration with accounting tools, allowing you to automate the reordering process. This saves time and ensures timely stock replenishment, preventing stockouts that can result in missed sales opportunities.

5. Multi-location Stock Tracking

Keep track of stock levels and transfers across multiple locations. This feature ensures seamless operations across warehouses, stores, or distribution centers, giving businesses a clear overview of where stock is located at any time. For companies with multiple sites, this feature is critical to maintaining efficient stock control and optimizing logistics.

6. Accounting Integration

Top-tier inventory management systems integrate seamlessly with accounting software, allowing for real-time tracking of financial metrics such as total sales, taxes, and available inventory value. With automatic syncing between the warehouse and accounting tools, your books are kept accurate and up-to-date, reducing the risk of errors and making it easier to manage cash flow and taxes.

7. Cost and Time Saving

Choosing the right inventory management software reduces the need for extensive staff to manually track inventory, saving businesses significant operational costs. Real-time reporting of inventory movements eliminates the need for manual end-of-day reporting, streamlining daily operations. Fewer staff hours spent on inventory management means you can allocate resources more efficiently, saving on labor costs.

8. Improving Sales Forecasting

Advanced inventory management systems utilize artificial intelligence and data analytics to help predict future sales trends. By analyzing past sales data, these systems allow store managers to forecast demand, preventing overstocking and understocking better. Improved sales forecasting helps to optimize stock levels, reduce waste, and maximize profitability.

Defining your inventories for the software

The most important part of using inventory management software is properly setting it up. As scary as this may seem to not-so-savvy entrepreneurs, it’s quite a simple fix. Some of the best IMS providers have elaborate guides to help you set up your inventory management tool appropriately.

After setting up, it’s crucial for you to categorize your customer demands into dependent and independent demands. This classification significantly affects your inventory needs and since most of it will be automated through the IMS, it’s best you add it to the setup.

Dependent demand includes supplies that are affected by the order of other products. For instance, when a customer orders an Apple iMac, one Magic Mouse, one Magic Keyboard, and a Type-C to Lightning cable have to be included in the package by default. Therefore, the order for an iMac will directly affect the number of Magic Mouses, keyboards, and charging cables. 

Independent demand, on the other hand, is not affected by the sales of other products. A customer ordering a MacBook Air from Apple doesn’t affect the number of Magic Mouses in inventory, except if s/he orders a Magic Mouse separately.

Defining these orders in your IMS makes it easy for it to work effectively.

How to choose the right inventory management software for your business

1. Identify Essential Features for Your Business

The best inventory management software should have features that match your specific business operations. Here are the core features to consider:

Digital Labeling and Barcode Scanning

  • Why it matters: Efficiently track and manage inventory using barcodes. This allows you to label items with barcodes and scan them to keep stock levels accurate.
  • Action step: Make sure the software supports barcode generation and works with your existing barcode scanners or mobile devices.

Consolidated Inventory Management

  • Why it matters: If your business operates across multiple locations, the software should centralize inventory management for easy control and monitoring.
  • Action step: Look for solutions that allow you to manage inventory across multiple stores, warehouses, or sales channels from one platform.

Real-Time Inventory Tracking

  • Why it matters: Real-time tracking keeps you updated on stock levels, helping you avoid stockouts or overstocking.
  • Action step: Ensure the software provides real-time visibility into your supply chain so you can track inventory levels and movements accurately.

Low-Stock Alerts

  • Why it matters: Automated low-stock notifications help you stay ahead of demand and avoid stock shortages.
  • Action step: Check if the software offers customizable low-stock alerts that notify you when inventory drops below a defined threshold.

Automated Reordering

  • Why it matters: Automated reordering ensures your business remains stocked without manual intervention.
  • Action step: Choose software that allows you to set up automated reordering rules, such as generating purchase orders when stock reaches a certain level.

Reporting and Analytics

  • Why it matters: Detailed reports help you understand your sales trends, customer preferences, and overall business performance.
  • Action step: Ensure the software offers in-depth reporting on inventory turnover, stock movement, sales performance, and forecasting.

2. Consider Your Business Processes

Your industry and business model play a significant role in the features you need from inventory management software.

Industry-Specific Requirements

  • Why it matters: Managing inventory for perishable goods like food or cosmetics requires features different from those for nonperishable items like clothing or electronics.
  • Action step: Choose software that accommodates your business’s specific needs (e.g., expiration date tracking for perishable goods, lot control, or serial number tracking for high-value items).

Fulfillment and Shipping Needs

  • Why it matters: If you handle a lot of shipments or customer orders, you’ll need software with advanced shipping management and order fulfillment features.
  • Action step: Ensure the software integrates with shipping carriers and offers real-time shipment tracking. Look for features like multi-carrier support, shipping label creation, and order management.

3. Ensure Seamless Software Integrations

To maximize efficiency, your inventory management software should integrate seamlessly with other platforms your business uses.

E-commerce and POS Integrations

  • Why it matters: Integration with e-commerce platforms and POS systems ensures that stock levels stay updated across all sales channels, preventing overselling or missed orders.
  • Action step: Verify that the software integrates with your e-commerce platforms (e.g., Shopify, WooCommerce) and POS systems (e.g., Square, Lightspeed).

Vendor, Shipping, and 3PL Integrations

  • Why it matters: Integration with suppliers and third-party logistics (3PL) services can automate procurement and streamline shipping operations.
  • Action step: Ensure that the software offers integrations with suppliers, vendors, and shipping providers to automate reordering and track shipments in real time.

Accounting and Financial Software

  • Why it matters: Seamless integration with accounting systems like QuickBooks or Xero helps maintain accurate financial records and simplifies tax reporting.
  • Action step: Check if the inventory management software integrates with your accounting software to sync inventory costs, sales, and expenses.

4. Evaluate Scalability for Future Growth

Choose a solution that will grow with your business to avoid the disruption of migrating to new software as your business expands.

Plan for Growth

  • Why it matters: Inventory management needs can grow quickly, and software that scales with your business helps avoid costly transitions.
  • Action step: Look for inventory management software that offers scalable pricing plans, feature add-ons, or modules for multi-warehouse management, dropshipping, and more complex supply chains.

Multi-Warehouse and Multi-Channel Support

  • Why it matters: As your business grows, you may need to manage inventory across multiple warehouses or sell on additional platforms.
  • Action step: Ensure the software supports multi-warehouse management and integrates with additional e-commerce platforms, marketplaces, or sales channels as needed.

5. Assess Usability and Support

Ease of use and customer support are critical when it comes to using inventory management software effectively.

User-Friendly Interface

  • Why it matters: A complex system can slow down your operations and frustrate your team.
  • Action step: Look for software with an intuitive interface that is easy to navigate, and consider whether it provides adequate training or tutorials for onboarding new users.

Customer Support and Reliability

  • Why it matters: Reliable customer support ensures that you can quickly resolve issues and keep your operations running smoothly.
  • Action step: Check the availability and quality of customer support, including live chat, phone support, and online documentation. Look for software that offers 24/7 support if your business operates around the clock.

6. Consider Your Budget

Finally, weigh the costs of the software against the value it provides.

Pricing Structure

  • Why it matters: Inventory management software often comes in different pricing tiers, depending on features and the number of users or sales channels.
  • Action step: Compare the pricing models (monthly, annual, or per-user fees) and make sure the software fits within your budget. Factor in any extra costs for integrations, training, or upgrades.

Return on Investment (ROI)

  • Why it matters: The right inventory software can save you money in the long run by reducing stock discrepancies, automating processes, and optimizing operations.
  • Action step: Estimate the potential ROI by considering how the software will improve efficiency, reduce errors, and save time on manual inventory management.

Automated inventory replenishment systems

When choosing an inventory management software, you should consider the type of replenishment feature included in the tool. Some of the widely used inventory replenishment systems used by leading brands include:

The calendar method of replenishment:

This feature allows you to automatically reorder some stock on specific calendar days (e.g. every first Tuesday of the month) or at intervals (e.g. every 45 days). With this, you don’t have to manually reach out to suppliers every time.

Point-of-command replenishment

This type of replenishment is triggered when the quantity of items in inventory drops to a particular number, called the “control point”. It’s particularly important to make sure that items are never out of stock.

Order-based replenishment

This replenishment command is triggered by customer demands. The frequency of reordering stock, as well as the quantity of each item, will depend on the demands of customers. This feature is one of every drop shipper’s favorites.

Conclusion

Using inventory management software helps save the chunk of time spent on routinely tracking inventories. That way, you can spend more time building your business and ensuring everything is in order.

However, choosing the right software for this purpose requires careful consideration of the available options. We are confident that the information in this article simplifies the process of choosing.