Demand for inventory management software is on the rise, with the market size expected to reach $2.8 billion by 2026.
As the power of software to transform business becomes clearer, businesses are investing more in these solutions. In particular, inventory management systems have proven highly valuable to businesses.
The fact is inventory is a critical component of a business. Its no wonder that poor inventory management is among the top reasons small businesses fail. Failure to manage your business well usually leads to many problems that directly impact your cash flow.
Choosing inventory management software can help improve accuracy and foresight in handling inventory. It can help avoid unnecessary purchases, shipment delays, and inadequate stocks. As a result, customer satisfaction remains high.
But how do you determine the best inventory management system for your company? This inventory management software buying guide has all the information you need.
Read on to learn more.
Understand Your Business Needs
One of the best places to start when determining the best Inventory Management Software is to assess your current needs.
Have you outgrown your inventory management software? Are you experiencing slower business growth than expected? Do you lack the ability to track essential inventory KPIs so you meet your business goals?
Identifying your business challenges helps you determine your pain points. This way, you can track down inventory management software that has the features necessary to solve your challenges.
Choose Between Server-Based and Cloud-Based Management
Businesses continue to rely heavily on cloud deployment, with 94% of enterprises today saying they use a cloud service. But when it comes to inventory management, some companies opt for on-premise systems. Determine which of the two will benefit you more.
A cloud-based system packs many benefits. For instance, it helps you avoid massive capital expenditure, which is a great thing when youre a small business working with a limited budget.
Consider Customization
Every enterprise is unique, so its always a huge benefit to choose an inventory management system thats customizable. This is especially important if your company has complex specifications.
Enquire from your vendor whether their solution allows a high level of customization. Where you already have inventory management software but are looking to upgrade, ask whether the features of the new system can be combined with your existing system.
Consider Capacity for Integrations
Its very likely that youre already using various tools to run your business. The inventory management software small business establishments use needs to be connected to all the back-end applications already in use.
Without integration with other platforms, data has to be entered into the system manually. This can cause serious delays.
Choose an inventory management system thats easy to integrate with your:
- Accounting software
- Purchasing system
- Warehouse management software
Ensuring that your various systems can talk to each other makes your supply chain more streamlined. Ultimately, you end up saving more time and money.
Consider Usability
One of the commonly overlooked inventory management software tips is the importance of ease of use. The usability of an inventory management system is a significant determinant of how effective the entire software will be.
If the system requires extensive training for your team to learn how to use it, it may not be a good investment. After all, youre looking for a system that helps simplify things in your company, not complicate them. A high learning curve ends up costing you money, energy, and time.
Think of the Cost of the Inventory Management Software
A top-quality inventory management system seldom comes cheap. Take a careful look at your finances to ensure that your business is ready to invest in this technology.
Note that the price of inventory management software depends on the features on offer. If your requirements are many and complex, you may need a powerful system with many relevant features. Such software will generally cost more than other software solutions that back only a handful of basic features.
That said, it helps to do comparison shopping when shopping for inventory management software. The goal is to avoid overpaying.
The recent proliferation of notable software vendors in the industry has lowered software prices. It has made it possible to find exceptional inventory management solutions at reasonable rates. Get a few quotes from reputable vendors and compare them before opting for a solution that works perfectly for you.
Consider Quality of Support
Having access to top-notch customer support can prove helpful once youve deployed your new system. Chances are youre going to run into situations where you need technical help. Knowing that theres always someone ready to offer support can make a huge difference.
Without readily accessible customer support, issues take a lot of time to get resolved. This leads to bottlenecks in your supply chain management, which can prove costly. Its the reason you need to insist on partnering with a software vendor who guarantees you complete support, including staff training and 25/7 assistance.
Buy the Right Software for Managing Your Inventory
The right inventory management software can dramatically improve efficiency in your business. It can resolve the inaccuracies that lead to missing, lost, or damaged inventory in your business.
But finding the ideal inventory management system for you may seem like a challenge. By using the guidelines weve outlined here, you can be more strategic in your search and find the right software for you.
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