7 Things You Need To Consider When Choosing An Inventory Management Software
Managing inventory is more complex than you think. It needs precision and accuracy because errors in inventory tracking can lead to excess stocks, insufficient inventory, and shipment delays. Small businesses can’t afford to pay for the costs associated with poor inventory management.
Manually managing your inventory is no good either. These days, it’s highly recommended to have inventory management software. In this way, you don’t have to deal with physical records, Excel sheets, and ledgers. A good inventory management software has different features that are accessible, accurate, and transparent. To find the best inventory management software for your company, here are seven things you should consider.
1. Know What You Need
How can you find the best software for you if you don’t know why you need one? Before scouting for inventory management software, assess your business to know your needs. You need to understand your requirements; find out the challenges in managing inventory and the kind of solutions you’re looking for. Do you only need to track inventory? Do you need to monitor shipment status? Knowing what kind of features you need in an inventory management software can easily streamline the process.
2. Software Cost
There are many different types of inventory management software in the market with varying price ranges. The price of each software depends on the features it offers. As you scout different options, figure out the market price of inventory management software to know which ones are worth the price and which ones aren’t.
Before you decide to invest in inventory management software, make sure that you have enough working capital. Check your budget plan and assess whether investing in management software is worth the expense. Fortunately, it’s more affordable for businesses to acquire an inventory management system, thanks to Cloud-based solutions.
But if you need one but you don’t have enough cash on hand, consider applying for inventory business loans. There are different types of inventory financing options suitable for every business need.
3. Inventory Tracking
Inventory tracking is the primary feature of every inventory management software. Managing inventory gets more complex as your business grows. You’re going to deal with an increased volume of products and data. Ideally, the software you choose should grow with your business.
A great software solution should not only have the basic inventory tracking, but it should also have a user-friendly interface and intuitive functionalities to make inventory tracking easier and more streamlined.
As your business expands, you may need additional software solutions to help run your business. For instance, you may need one to keep track of payroll, recruitment, reimbursement, marketing, bookkeeping, and other important aspects of running a business. It’s important to have a scalable inventory management system that can grow with your company. If the tool you’ve chosen is scalable, you can easily add these features without purchasing another tool.
The ability to integrate with other software tools is another feature you may want to check out. Small businesses may not need these integrations, but it will come in handy as your company grows. On average, most startup companies use four software tools to help streamline business operations. For this reason, it’s important to choose software that can easily integrate with other tools. Most inventory management software can be usually integrated with accounting, purchasing, eCommerce, and warehouse management systems.
Reporting is one of the most sought-after features of every inventory management tool. This feature lets you pinpoint product supply and demand, helping you create a more organized workflow. The most common and most basic inventory reports found in most tools are product sales and product purchases. Make sure to look for these reports when choosing an inventory management software.
7. Support And Training
Business owners often disregard the importance of accessible customer support and training. Buying software for your company is a significant investment, so make sure you have access to 24/7 support.
Inventory Financing Options To Help You Find The Best Inventory Management Software
With hundreds of inventory management tools claiming to be the best, finding one for your company is not an easy task. Now that you have an idea of what features to look for, you are better prepared to find a tool that’s suitable for your needs.
An inventory management tool is a significant business investment. If you’re running a product-based company, having an efficient tool at your disposal can help your business grow and expand. As mentioned, there are different types of inventory financing options to choose from if you need additional working capital for inventory-related expenses. This includes purchasing inventory, as well as getting an inventory management software.