Inventory Management Tools: Definitions, Types, and Free Inventory Tools

INVENTORY MANAGEMENT TOOLS
Giddh

Some organizations don’t have inventory management tools or know their usefulness. Inventory management assists organizations in managing inventory control at various inventory levels. This article teaches about inventory management tools, free Amazon software, and IT tools for small business firms. Before we proceed, let’s know the meaning of “inventory.”

Inventory is what your company accumulates anytime it purchases items that it does not immediately sell. Inventory refers to the raw materials, components, and finished commodities that a company sells or consumes in production.

Read Also: INVENTORY INVESTMENT: Types, Formula & Examples

What Are Inventory Management Tools?

Inventory management software assists firms in keeping track of order fulfillment, purchase orders, sales, incoming stock, and inventory levels in order to run operations smoothly. However, it provides a 360-degree picture of your business processes in a single SaaS solution, similar to ERP systems and CMMS software.

Inventory managers, service technicians, self-service requesters, and maintenance professionals are frequently working in the inventory management process. It also entails tracking, ordering, managing, and utilizing the goods required for your business to run successfully. It is also a strategy for keeping the correct inventory in the correct proportion at the appropriate moment at the appropriate cost. Inventory managers are responsible for the following duties:

  • Inventory object creation and maintenance, including locations, inventory items, inventory batches, inventory groups, and cost items.
  • It also includes Requests, adjustments, and swaps can be possible to move things into inventory.
  • Quick-fill tickets, work tasks, issues, transfers, adjustments, and cycle counts are all used to move products out of inventory.

Software Inventory Management Tools

The process of keeping track of all the software and applications that are useful in an IT environment refers to software inventory management tools. However, it is a component of IT asset management that allows the recording of software installation type, size, date, vendor, and other associated data. Inventory management software is a type of online application that assists organizations in controlling and monitoring inventory from the producer through the warehouse to the point of sale. They also assist with other procedures such as accounting, invoicing, report creation, fulfillment, shipping tracking, and much more.

Inventory management software tools remove human error and automate key activities, allowing you to keep adequate inventory on hand at all times to fulfill sales fast while not overburdening you with stock you can’t move. The following are the most well-known and well-liked inventory management software providers on the market:

#1. Acumatica

It is a comprehensive enterprise resource planning (ERP) application with inventory management and accounting capabilities. It is also part of the best SLM tools.

#2. Inventory Management Software CIN7

It is appropriate for medium and larger organizations that require a user-friendly system to manage inventory tracking, reordering, and accounting.

#3. Lightspeed

It is a lightweight, yet effective POS system with integrated inventory management software that is ideal for small enterprises, particularly those in the retail industry. It integrates and provides APIs with many popular accounting software systems.

#4. Inventory Management Software From Oracle Netsuite

It is ideally suited for large businesses, and it does provide a basic pricing package. It also features a unified accounting platform for financial tracking.

#5. Accounting Software, QuickBooks

Its additional and premium plans have rather few inventory management abilities. It’s a reasonable choice for small and medium-sized enterprises that already use QuickBooks for accounting.

#6. SAP

It is the preferred inventory management software and ERP platform for major organizations and enterprises. SAP is difficult to use but highly comprehensive: it can handle everything.

#7. Syspro

It provides a scalable inventory management software tool and an ERP platform for enterprises of all sizes. It also offers a robust reporting tool for keeping track of your inventory and bookkeeping.

#8. Inventory Zoho

It is inventory management software that works in tandem with other Zoho products. It is also best for firms that currently use Zoho’s software package.

Inventory Management Tools for Small Business

If you are starting a new inventory management process or looking to improve an existing one, the following inventory management solutions for small businesses listed below will help;

#1. Forecasting Demand

Demand forecasting (also known as sales predictions) assists you in determining how much of each product you must keep on hand at all times to meet consumer demand.

Demand forecasting is critical in inventory management because it allows you to establish the minimum amount of a product you should have on hand and set reorder targets after you achieve that level. Your demand forecast should be reviewed periodically to alter your minimum quantities and reorder targets.

#2. Safety Stock Inventory

Safety stock inventory is linked to sales forecasts and determines to reorder quantities. It is especially critical for your best-selling or most crucial products. Safety stock is extra inventory ordered in excess of predicted demand. While over-ordering is never a good idea, it’s useful to have a few more units than you think you’ll need, especially if you think the item will continue to be popular.

#3. Dropshipping

Dropshipping is the process of receiving a customer’s order and having your supplier send the products directly to the customer. It also eliminates the requirement for a storage facility and the necessity to keep inventory on hand. It is best reserved for rare orders or things that cannot be accommodated in your warehouse, as it means that your customer’s happiness is in the hands of your supplier rather than your own company.

#4. Cross-Docking

Cross-docking is an efficiency-focused strategy. A delivery truck will unload directly into trucks that will transport your sales to customers. It also eliminates the need for new things to be brought into your storage facility and bypasses your inventory management procedure. Instead, the things are dispatched as soon as you receive them. This option is best for things that will be shipped “just in time.”

#5. ABC Evaluation

An ABC analysis can assist you to determine which goods are the most profitable and which are the most expensive. It categorizes things into three groups, as the name implies;

  • A: These are the most valuable and least expensive things to store long-term. However, these products have a significant impact on a company’s profitability.
  • B: These are midrange products with significant sales potential but not as high ticket values as products in the A category.
  • C: These are typically low-ticket items with high turnover. Individual sales of these products are not as crucial to a company as sales of A or B products, but big amounts of C product sales are critical to profitability.

IT Inventory Management Tools

An inventory management system integrates various software packages to track stock levels and movements. The solution is compatible with multichannel sales and shipping systems. Inventory management systems optimize inventory levels while also ensuring product availability across multiple channels.

Inventory management assists businesses in determining which and how much merchandise to order and when. It keeps inventory records from the time it is purchased until it is sold. The technique also identifies and responds to trends to ensure that there is always enough stock to fulfill client orders and that any shortages are properly announced.

An inventory management system optimizes inventory levels and ensures that products are available across numerous channels. It also offers a unified, true perspective of all products, inventory, and customers throughout all locations and selling channels. This allows organizations to keep less inventory on hand, freeing up capital for use in other areas of the business. An inventory management system assists in reducing inventory expenses while meeting consumer expectations.

The Process of Inventory Management

Inventory management’s purpose is to comprehend stock levels and stock locations in facilities. Its software monitors the flow of products to the end user from the manufacturing process.

Inventory Management Tools Free

Pen and paper, an inventory spreadsheet, or free inventory management software can all be used to keep track of goods for free. Some advanced inventory management apps, such as Sortly, provide free memberships to their services. Here are some free software to use with management software;

  • Inventory Zoho
  • inFlow
  • Odoo
  • Stockpile
  • Delivrd
  • Fishbowl Inventory
  • Unleashed
  • Mirror Listing
  • Asset Management by GoCodes
  • System DEAR

Amazon Inventory Management Tools

Through FBA, Amazon provides a free suite of inventory management tools to e-commerce business owners. This collection of tools is accessible via the Seller Central dashboard.  The Amazon inventory management tools are listed below;

  • Veeqo is one of the free Amazon inventory management tools for business firms.
  • Orderhive
  • Sellbrite
  • Stitch Laboratories
  • Brightpearl free inventory management tools or software for business.

What Are the 4 Types of Inventory Management?

The four inventory management methods are as follows:

  • The components
  • Works-In-Process.
  • Operations, Maintenance, and Repair (MRO).
  • Finished Goods.

What Are the 3 Major Inventory Management Techniques?

They are the three most fundamental inventory management techniques, and their strategies provide businesses with various options for meeting customer demand. They do;

  • The push method.
  • Pull method.
  • The just-in-time delivery method.

What Are the 5 Types of Inventory?

There are five types of inventory namely:

  • The raw materials.
  • In-Progress Work
  • Finished Products
  • Supplies.
  • Waste.

What Are the 6 Types of Inventory?

The six categories of inventory are listed below;

  • transportation inventory.
  • inventory buffer
  • anticipation inventory.
  • inventory decoupling
  • inventory cycle
  • Inventory of MRO products

What Is MRO Inventory?

MRO, or Maintenance, Repair, and Operations refer to the inventory needed to manufacture and sell finished items that are not built into the product itself. The inventory includes consumable materials, equipment, and supplies required for maintenance, repair, and operations. MRO covers items that are used in the manufacturing process but, unlike raw materials, are not incorporated into the finished products of a company.

What Is MRP Used For?

Material requirements planning (MRP) is a method of determining the materials and components required to produce a product. It comprises of three major steps: It comprises of three major steps: 

Inventory Management Advantages

Companies must understand the advantages of inventory management. There are some;

#1. It Saves Money

Understanding stock trends allows you to invest in the appropriate amount of shares at the appropriate moment. This strategy saves money while also maintaining the organization’s cash flow. It also enables you to keep fewer stocks at each location, whether store or warehouse.

#2. Enhances Cash Flow

Inventory management enables you to invest in inventory that sells. Thereby having more income in your business.

#3. Customers Are Satisfied

Inventory management ensures that the needs of the consumer are addressed without delay. This makes the business grow.

Inventory Management Difficulties

The following are a few inventory management challenges:

#1. Stock Specifications

It is critical to have accurate stock information of physical inventory and periodic inventory to know when to replace the stock or which stock trades well.

#2. Procedural Errors

Inventory system operations that are outdated or manual might be error-prone and slow down the work process.

#3. Customer Demand Variation

Following inventory system trends is critical for catering to changing client tastes and needs. Inventory management also faces difficulties in determining customer preferences.

Conclusion 

Having inventory management tools in your workplace is a good thing because it helps develop your work and keeps records of all the items in it. Without inventory tools, your products can be stolen or used without your knowledge. This article talks about inventory management tools.

Inventory Management Tools FAQs

What are the best ways to manage inventory?

  • Sort your inventory by priority.
  • Keep track of all product details.
  • Examine your inventory.
  • Examine the performance of suppliers.
  • Maintain consistency in how you acquire stock.
  • Keep track of sales.

How do you track inventory in Excel?

  • Construct a spreadsheet.
  • Create columns for any appropriate product categories.
  • Fill in the blanks with each product you sell.
  • As sales come in, adjust the quantities.

How do you solve inventory problems?

  • Determine the Issues.
  • Increase your investment in a larger team.
  • Purchase software.
  • Avoid having dead stock.
  • Spend less on storage.
  • Constant auditing
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References

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