Business Operations

Software to Support Inventory Management at Small Businesses

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<p><span style="font-weight: 400;">Savvy small business owners know when to use tools to make life easier, including inventory management software. But what is inventory management software, what problem does it solve, and how do you choose it?</span></p>
<h2><span style="font-weight: 400;">The Problem: Local Businesses and Inventory Management</span></h2>
<p><span style="font-weight: 400;">Small businesses face a number of challenges when it comes to inventory management, many similar or identical to those that larger businesses face. The issue is that small businesses may not have the resources to overcome these challenges like a larger company would.</span></p>
<p><span style="font-weight: 400;">The following are some of the biggest </span><a href="https://eswap.global/inventory-management-challenges-for-small-businesses/"><span style="font-weight: 400;">inventory management challenges</span></a><span style="font-weight: 400;"> for local businesses:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>Lot tracking issues</b><span style="font-weight: 400;">: Lots are groups of products with similar characteristics, whether that’s the source, expiration date, or another factor. Lot tracking involves labeling and tracking, a task small businesses don’t typically have the resources to do.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Inconsistencies in inventory levels</b><span style="font-weight: 400;">: There are plenty of opportunities for inconsistencies in inventory levels, such as differences between items in the system and those on the shop floor or in the back. Local manufacturing businesses may also have inconsistencies between the manufacturing numbers and inventory.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Irregular inventory inspections</b><span style="font-weight: 400;">: Inventory inspections are a good way to minimize inconsistencies, but some small businesses don’t practice these regularly. If you have too many tasks to perform, inspections can get neglected.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Infrequent internal audits</b><span style="font-weight: 400;">: Just like inspections, internal audits must take place regularly, but they can sometimes be skipped, given the bulk of operational tasks that comes with small businesses.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Supply chain coordination: </b><span style="font-weight: 400;">Depending on your budget and suppliers, it can be hard for small businesses to coordinate the supply chain well.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Over-reliance on spreadsheets</b><span style="font-weight: 400;">: For small businesses looking to cut costs, spreadsheets are a popular tool for inventory management. But you can quickly end up with dozens of spreadsheets that are disorganized and inconsistently updated. This solution is also not scalable.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>No strategies: </b><span style="font-weight: 400;">Every business needs to be prepared if an issue with the inventory arises, such as those inconsistencies. However, small businesses don’t always have a plan in place.</span></li>
</ul>
<p><img loading="lazy" decoding="async" class="alignnone wp-image-25132 size-large" src="https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-1024x555.png" alt="woman managing inventory" width="640" height="347" srcset="https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-1024x555.png 1024w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-300x163.png 300w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-768x416.png 768w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-600x325.png 600w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-360x195.png 360w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-160x87.png 160w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-350x190.png 350w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-100x54.png 100w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory-633x343.png 633w, https://cms.podium.com/wp-content/uploads/2022/12/woman-managing-inventory.png 1200w" sizes="(max-width: 640px) 100vw, 640px" /></p>
<h2><span style="font-weight: 400;">The Solution: Inventory Management Software</span></h2>
<p><span style="font-weight: 400;">Nearly all the inventory management challenges that small businesses face can be overcome or improved by inventory management software. The best </span><a href="https://www.businessnewsdaily.com/15868-what-is-inventory-management-software.html"><span style="font-weight: 400;">inventory management software</span></a><span style="font-weight: 400;"> can automate many of the functions and help you keep better records.</span></p>
<p><span style="font-weight: 400;">Simply put, inventory management software is a piece of software that automates various tasks related to managing the inventory and warehouse. This inventory software streamlines the tasks you need to complete to track inventory and handle reordering. With a good </span><a href="https://www.veeqo.com/inventory-management/system-tools"><span style="font-weight: 400;">inventory management software</span></a><span style="font-weight: 400;">, you can easily check the status of your stock at any time.</span></p>
<h2><span style="font-weight: 400;">What to Look for in an Inventory Management Solution</span></h2>
<p><span style="font-weight: 400;">Since numerous inventory management solutions are available, it’s crucial to learn how to choose the right inventory software for your business.</span></p>
<h3><span style="font-weight: 400;">Inventory Tracking</span></h3>
<p><span style="font-weight: 400;">Start by looking at the inventory tracking available in the inventory software. This will be the primary purpose of your system, so you need to make sure it can meet your inventory management needs.</span></p>
<h3><span style="font-weight: 400;">Barcode Scanning</span></h3>
<p><span style="font-weight: 400;">One of the most efficient ways of updating information in the inventory system will usually be scanning barcodes. So, always look for inventory management systems that support barcode scanning.</span></p>


<h3></h3>
<h3><span style="font-weight: 400;">RFID Capabilities</span></h3>
<p><span style="font-weight: 400;">RFID tags are the other most efficient method of tracking your inventory with your inventory management software. RFID compatibility is common in advanced inventory management systems, and it can save you a great deal of time.</span></p>
<h3><span style="font-weight: 400;">Low-stock Alerts</span></h3>
<p><span style="font-weight: 400;">The inventory management software should let you set up low-stock alerts when your stock drops below a given level.</span></p>
<h3><span style="font-weight: 400;">Automated Reordering</span></h3>
<p><span style="font-weight: 400;">Some of the best inventory software options not only give you low-stock alerts but let you set up automated reordering. You set the limit for automated reordering to occur, and then the system will make sure you never run out of that item.</span></p>
<h3><span style="font-weight: 400;">Purchase Management</span></h3>
<p><span style="font-weight: 400;">You want to also be able to manage purchases in the inventory management software, as this is closely related to inventory management.</span></p>
<h3><span style="font-weight: 400;">Reporting Features</span></h3>
<p><span style="font-weight: 400;">The best inventory management software should provide useful reporting. You want to be able to see trends, like changes to stock levels, information on sales, and items that need to be ordered. Reporting in your inventory software lets you plan your future orders and what items to keep in stock.</span></p>
<h3><span style="font-weight: 400;">A Mobile App</span></h3>
<p><span style="font-weight: 400;">Choosing a system with a mobile app adds a great deal of convenience to your inventory software. This is especially true for small business owners who may need to check their inventory when away from their physical store or warehouse.</span></p>
<h3><span style="font-weight: 400;">Data Security</span></h3>
<p><span style="font-weight: 400;">Your inventory management software will handle sensitive data about funds, your stock, and more. As such, the best inventory management software will be secure.</span></p>
<h3><span style="font-weight: 400;">Compatibility With Other Tools You Use</span></h3>
<p><span style="font-weight: 400;">It goes without saying that any system you use should be compatible with other tools, including your inventory software. Just some of the integrations and compatibilities to look for include shipping, eCommerce platforms, marketplaces, accounting software, point-of-sale systems, and more. Make a list of what compatibilities you need from the best </span><a href="https://www.hashmicro.com/blog/how-to-choose-inventory-management-system/"><span style="font-weight: 400;">inventory management software</span></a><span style="font-weight: 400;"> before comparing options. </span></p>
<h3><span style="font-weight: 400;">Ease of Use</span></h3>
<p><span style="font-weight: 400;">Look for an inventory system that doesn’t have a steep learning curve. Whenever possible, opt for something that doesn’t require extensive training. The best inventory management software is intuitive to use. </span></p>
<h3><span style="font-weight: 400;">Cost</span></h3>
<p><span style="font-weight: 400;">When looking at the cost of inventory management software, remember that you will have to pay more to get more features. Carefully consider your budget, as well as your requirements. The good news is that there are now plenty of cloud solutions, and those tend to be more affordable.</span></p>
<h3><span style="font-weight: 400;">Support</span></h3>
<p><span style="font-weight: 400;">Don’t forget to consider customer support as well. You want to be able to reach the support team if an issue with your inventory management system arises. It is also helpful if there are useful articles and tools to help you resolve issues before consulting customer support. So, the best inventory management software will have resources to help you resolve your issues yourself and good customer support if you can&#8217;t. </span></p>
<p><img loading="lazy" decoding="async" class="alignnone wp-image-25133 size-large" src="https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-1024x555.png" alt="inventory management" width="640" height="347" srcset="https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-1024x555.png 1024w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-300x163.png 300w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-768x416.png 768w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-600x325.png 600w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-360x195.png 360w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-160x87.png 160w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-350x190.png 350w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-100x54.png 100w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management-633x343.png 633w, https://cms.podium.com/wp-content/uploads/2022/12/inventory-management.png 1200w" sizes="(max-width: 640px) 100vw, 640px" /></p>
<h2><span style="font-weight: 400;">Other Things to Consider</span></h2>
<p><span style="font-weight: 400;">In addition to the above points, think about a few other aspects of your business when choosing small business inventory management software. </span></p>
<p><span style="font-weight: 400;">Most importantly, think about the size of your business at the moment and your plans. If you currently have multiple locations, you will need software that supports this. If you plan to grow and open additional locations, you want software that can scale with your business.</span></p>
<p><span style="font-weight: 400;">You should also think about the software you are already using that may help with inventory management. This is where compatibility with your other tools becomes crucial.</span></p>
<p><span style="font-weight: 400;">Overall, you need to consider the requirements of your local business. Not every business will need the same features from an inventory management system, especially if you already use a system with some inventory management features. Remember that some companies may decide that a simple option is still a good inventory management system. Others may need more advanced inventory functions. Be aware of what your business needs, including specific advanced features. </span></p>
<h2><span style="font-weight: 400;">Happy Customers Lead to a Thriving Business</span></h2>
<p><span style="font-weight: 400;">Why is inventory management so important? When your inventory is well-managed, your customers will be happy. Happy customers lead to a thriving business.</span></p>
<p><span style="font-weight: 400;">Are you wondering what else you can do to improve customer satisfaction and grow your business? Check out our</span><a href="https://www.podium.com/guides/customer-retention-and-acquisition/"> <span style="font-weight: 400;">Guide to Customer Retention</span></a><span style="font-weight: 400;">.</span></p>


Software to Support Inventory Management at Small Businesses

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