Month: July 2023

What is inventory management software? + Top benefits

Posted on | by chrisqureshi | Leave a Comment on What is inventory management software? + Top benefits

Managing inventory may not be the most glamorous part of running a business, but it’s crucial, to say the least. Too often, business owners continue managing stock levels and product movement in spreadsheets long after the company has outgrown these tools.

When you use solutions that no longer suit your business, it’s like crippling your company and then asking it to run. As you grow, it becomes necessary to shed some of the old tools and invest in solutions that help you create a competitive advantage and enable real growth.

Inventory management software is one of the critical investments business owners should make if they want to have room to scale. It makes tracking your products easier than ever, giving you more control over your business.

Let’s dive into the benefits of inventory management software, the features to look for, and how to pick the right software for your business.

> What is inventory management software?

> Why effective inventory management matters

> Benefits of an automated inventory management system

> What to look for in your inventory management software

> How to find the best inventory management software for your business

> Final thoughts: What is inventory management software? + Top benefits

> Frequently asked questions (FAQs)

What is inventory management software?

Inventory management software is a tool that provides visibility into your stock levels, gives you a way to order more items when needed, can connect you to additional sales channels, and lets you automate different parts of the inventory management process.

The software works by tracking your inventory levels so that you can see what’s going on with your stock at any point in time. Most providers also include features that help streamline inventory management activities, such as procurement and production, reporting, forecasting, selling and order fulfillment.

Why effective inventory management matters

Before we take a closer look at the benefits of investing in the latest inventory management software, it’s vital to understand the importance of effectively handling inventory for your business.

At a glance, inventory management seems like a must-have part of operations — to sell products, you need to have them in stock. Seems basic, right?

In truth, effective inventory handling is a crucial success factor that touches all other elements of your business, from the customer experience to your finances.

To better understand its impact, let’s look at what can happen if you have inefficient inventory management:

 

  • More human errors: To err is human. Inputting information manually is more likely to result in mistakes that lead to issues like stockouts, lost inventory, and more.
  • Too much manual work: Running your business out of spreadsheets or low-performing inventory software means your team has to spend most of their time running inventory instead of focusing on growth.
  • Difficulty scaling: With inefficient inventory, opportunities to expand and grow your revenue become complicated logistical problems that can overwhelm your team.
  • Negative customer experience: Mistakes accompanying manual or inefficient inventory processes include late or missing orders and inaccurate product availability. These can decrease consumer trust and send customers to a competitor.
  • Sluggish finances: Without proper visibility into your stock levels, you can end up spending more money than you need to on storing products or discounting inventory items to clear up space.

In short, inefficient inventory ties your business’s hands when it comes to growth. Slow, manual processes can quickly consume your team’s time and lead to errors that push customers away.

Benefits of an automated inventory management system

If you want to set yourself up to scale your business, you need to think beyond the basics of inventory management and toward connected inventory performance.

Inventory performance includes everything within management, but it goes further to leverage automation, visibility, and data-based insights to give you a strategic advantage.

Let’s explore the benefits of leveraging inventory management software in a way that focuses on performance.

Access to real-time data

As the trend towards omnichannel shopping increases, access to real-time inventory data becomes vital for sellers.

McKinsey found that 81% of all shoppers research and browse products over multiple channels before they make a purchase. As a result, it’s more important than ever to create seamless customer experiences across your various sales channels.

With the right software, you can take the guesswork out of inventory tracking. Real-time visibility means you always know what items are available and where they are, ensuring your product availability information is always accurate and up-to-date to reduce issues like unfulfilled customer orders.

For example, Cin7 Core and Omni plans provide real-time inventory levels across all sales channels, including stock levels for e-commerce platforms like Shopify and Amazon. Not to mention, you can get in-depth sales reports that track stock movements so you know where your products are at all times.

Reduces manual errors

Manual inventory tracking can be subject to mistakes, but you’ll get the correct numbers every time with reliable software. That’ll save you time and money since you won’t have to allocate resources to undo these mistakes.

Using software to track inventory gives you a better idea of what products to reorder, and the over- and under-ordering problems will be a thing of the past.

More efficiency

By implementing inventory management software, your business will become exponentially more efficient. You’ll have near-immediate access to your numbers, simplifying the process of ordering new inventory.

Additionally, you can spend less time preparing for meetings with vendors, as your figures will all be in one convenient place. You’ll also be able to fulfill orders more quickly and easily, improving customer relationships.

Lastly, by having a birds-eye view of your entire inventory process, you can analyze the efficiency of your warehouse locations and layouts. That enables you to identify opportunities to improve warehouse management and increase the overall efficiency of your entire operation.

Better sales tracking and forecasting

You need to be able to evaluate what’s happening to your products quickly. What’s selling and what’s not? What’s in demand during certain times of the year?

Inventory management software makes it easy to track these trends and order your products accordingly. Over time, you can use this information to improve demand and sales forecasts and better predict how much stock you’ll need to support each channel at certain times during the year.

Supports relationships

Two of the most important business relationships are those with your customers and vendors. Using inventory management software can solidify both of these vital partnerships.

Invoca’s Buyer Experience Report found that 76% of consumers will stop purchasing from a brand after one bad customer experience. Having better control of your inventory means customers can get the products they want when they want them.

It also means shoppers have access to accurate product availability information. Consistently delivering a positive customer experience enhances your brand’s value and creates more customer loyalty.

When it comes to suppliers, inventory management software gives you full access to your numbers when dealing with existing or potential vendors so you can approach deals confidently.

Moreover, being prepared and giving your vendors enough lead time to fulfill orders can establish you as a preferred customer, netting you access to priority treatment and better products.

Enables scaling

Automating your inventory system makes growing your business and increasing revenues possible without piling on more manual work for your team. Since the software handles tasks like asset tracking and inventory data management, you can scale with fewer complications.

You can use features like stock alerts and reorder points to notify your team when it’s time to procure more inventory. This way, you’re not checking inventory levels every day, and you can still avoid issues like stockouts.

One 2023 consumer study by Mirakl found that 55% of products have been out of stock more frequently in stores. With frustrating stock levels becoming the norm, businesses that sell products in-store can create an advantage by managing inventory better and ensuring product availability.

With Cin7 Omni, you can fully customize your inventory management with features like native EDI and third-party logistics (3PL) integrations  to accommodate the needs of your growing business.

Reduces costs

When your stock levels aren’t optimized well, you end up paying the price. Whether it’s costs associated with storing deadstock or loss of customers from incorrect availability information.

You can avoid that type of spending when you have software that gives you real-time visibility into your stock levels so you can replenish items at the right times.

Another one of the benefits of inventory management software is it gives you the power to operate more cost-effectively in the long run.

By automating inventory management, you can reduce overhead costs associated with sales. Not to mention, you have access to inventory reports that help you make data-driven decisions that can lower your operations costs.

What to look for in your inventory management software

The perks mentioned above won’t do you any good if the features of your inventory management software aren’t up to par. Keep an eye out for the following features that support connected inventory performance:

Inventory tracking

Your inventory management software should help you purchase, store, and track all the items you keep in stock.

Look for features like barcode scanning. These eliminate the need for manual inventory tracking and give you real-time insights into your inventory levels. Not to mention, you’ll be able to locate your items across various locations and keep track of shipping, receiving, and transfers.

Supplier management

Managing multiple vendors can be challenging, especially if your business is growing. Choosing an inventory management software that helps you organize your suppliers’ information can reduce manual errors and make purchasing more efficient.

At the least, you want to be able to store each supplier’s contact and billing information in one place. Additional supplier management features include auto-fill for purchase orders and purchase histories for each supplier.

POS and e-commerce integration

If you have multiple sales channels, your inventory management software must integrate with them. Specifically, look for software that integrates with your e-commerce provider and point-of-sale (POS) systems.

By connecting these systems, you ensure a faster customer checkout experience and have one centralized place for all of your inventory data. Cin7 comes with POS technology that integrates seamlessly with your inventory management system and lets you sell from anywhere.

Procurement automation

Features that automate low-stock alerts and reorder points can help you streamline purchasing and ensure you always have enough items to meet customer demand.

Look for software that generates reorder reports so you can place all your orders simultaneously with enough lead time. That way, you can ensure that the new items arrive before you’ve sold out of your remaining stock.

Inventory reporting

Cut down on manual data analysis by choosing software that automatically generates inventory reports for you. The right software for you should have a combination of basic reports and customizable options.

For basic reports, look for:

  • Inventory turnover rate
  • Inventory forecasting
  • Cost of goods sold
  • Inventory value
  • Sales reports
  • Stock age

Usability

When introducing any new technology to your business, you want to choose intuitive and user-friendly software. It shouldn’t be so complicated to learn or difficult to use that it creates more problems instead of solving them.

Be sure to compare providers based on their ease of use, customer support, and learning resources so you end up with a tool that your team can get the most out of.

How to find the best inventory management software for your business

To find the best inventory software, start by identifying the key features for your business based on your inventory performance needs.

For instance, if you sell in-store and online, you want to look for a system that offers POS technology and integrates with e-commerce platforms like Shopify and Amazon. Businesses looking for more streamlined fulfillment support might prioritize including warehouse management software (WMS).

Keep in mind that a small business’s inventory needs will look different from that of a global seller with both direct-to-consumer and business-to-business channels.

Once you’ve figured out what your business needs in terms of inventory control, look for a reputable provider that offers the functionality you want. For instance, Cin7 was named the best overall inventory management software provider of 2023 by Forbes.

Our two cloud-based solutions, Core and Omni, are built to meet the inventory demands of small and mid-size businesses

Cin7 Core provides a simplified yet comprehensive solution for small businesses looking to improve their inventory tracking with a solution that can scale with them as they grow.

With Core, you can integrate with your POS system and e-commerce platforms like Amazon and Shopify, letting you take control of your inventory. It also comes with more than 70 customizable reports giving you unprecedented insight into your inventory processes.

Cin7 Omni, on the other hand, is a top-rated choice for companies that need support for native EDI connections and third-party logistics (3PL).

You can tailor your Omni solution to meet your company’s specific needs and sell products online, in-store, and through wholesalers. It’s a powerful solution that connects your inventory, order fulfillment, and accounting workflows all in one place.

Final thoughts: What is inventory management software? + Top benefits

Inventory management software can prove to be a critical tool in today’s world, keeping your company on the cutting edge and ensuring success.

Save time, money, and sanity by streamlining your inventory management, and use this phenomenal technology to your advantage to put yourself at the forefront of your industry.

Frequently asked questions (FAQs)

What is the best way to manage inventory?

Using inventory management software to monitor inventory levels at all times and forecast demand can help you better manage your inventory to reduce overstocking and stockouts.

What problems does inventory management software solve?

Inventory management helps you solve problems related to inefficient inventory handling. These can include difficulty scaling your business, costly manual errors, and over- or under-stocking.

You can also reduce data overwhelm when you use inventory management software. Using technology to generate reports gives you access to the most relevant and actionable insights without having to sift through spreadsheets to gather the information.

Is Excel an inventory management software?

Small businesses may be able to use spreadsheet tools like Excel and Google Docs to manage inventory early on. However, these tools are not inventory management software. As your business grows and your inventory needs become more complex, it’s best to use software like Cin 7, which is specifically designed to manage and automate inventory.

That eliminates much of the manual work that goes into managing spreadsheets and puts your inventory on auto-pilot so you can focus on the activities that bring in new customers and drive revenue growth.

Why use inventory management software?

By using inventory management software, you can automate repetitive tasks and reduce the chances of manual errors affecting your inventory levels.

Automation can help eliminate some of the time-consuming manual work of keeping your inventory running. You can also integrate your inventory management technology with other tools like your e-commerce platform, POS system, and accounting software to streamline orders, fulfillment, and financial tracking.

21 top manufacturing ERP software for 2023

Posted on | by chrisqureshi | Leave a Comment on 21 top manufacturing ERP software for 2023
The three top manufacturing ERP software are Cin7, Oracle Cloud ERP, and NetSuite ERP. These solutions offer a comprehensive library of advanced features coupled with strong onboarding and customer support.

Enterprise resource planning (ERP) software is often described as the central nervous system of a company. While you may be skeptical of this comparison, it makes sense.

Like the central nervous system controls the human body and mind, ERP systems use business intelligence to regulate a company’s operations — centralizing the core processes that spur company growth and success.

Manufacturing ERP software helps a company with every aspect of its business operations, from accounting to finance, procurement, supply chain management, HR, and more. And with modern ERPs operating predominantly through cloud-based technology, it’s easier than ever to take the manual work out of running a business, so you can focus more on growing it.

With technology like this readily available, small business owners can benefit significantly from cloud-based ERP software, but these systems aren’t one size fits all.

In this post, we’ll break down the 21 best manufacturing ERP software solutions, who they’re best for, some pros and cons, and what you should look for when selecting a manufacturing ERP software.

Methodology: To create our list, we considered ease of use, features and functionality, specializations, customer support, and cost.

Best manufacturing ERP of 2023:

  1. Cin7: Best comprehensive solution for small to midsize companies 
  2. Oracle Cloud ERP: Best for large manufacturing companies
  3. Netsuite ERP: Best for enterprise-level companies 
  4. SAP Business One: Best for sustainable supply chain management
  5. xTuple: Best for small to mid-sized manufacturers 
  6. ERPNext: Best for retailers and wholesalers 
  7. Microsoft Dynamics 365: Best for current Microsoft customers 
  8. Striven: Best for small businesses 
  9. Acumatica: Best for small manufacturers
  10. SYSPRO: Best for startups 
  11. Epicor Prophet 21: Best for warehouse management 
  12. Infor Syteline: Best for enterprise-level companies 
  13. Sage Intacct: Best for finance and accounting 
  14. IFS Cloud: Best for process manufacturers 
  15. Odoo: Best for customizable ERPs
  16. Plex ERP: Best for plant floor visibility 
  17. Deacom: Best for batch and process manufacturers
  18. Global Shop Solutions: Best for customer service 
  19. QAD Systems: Best for markets with regularly changing demand 
  20. Aptean: Best for food and beverage companies
  21. Aquilon: Best for startups and growing companies
A list of the three best manufacturing ERP software and who they’re best for.

1. Cin7

Best for: Small to midsize businesses looking for an easy tool to maintain that’s quick to get up and running

While traditional ERPs can often be expensive and complicated, Cin7 makes enterprise planning simple and affordable. Perfect for small to mid-sized businesses, Cin7 only takes a few weeks to implement — unlike some systems that take months.

Despite being accessible and easy to use, Cin7 doesn’t sacrifice the advanced features and automation that make ERPs a worthy investment for businesses of any size. By centralizing sales, reporting, accounting, and HR in one place, Cin7 eliminates the chance of manual error in company processes through automation. And most importantly, it empowers product sellers to do what’s most important: grow their business.

  • Pros: Affordable, easy to use, and tailored to small and mid-size businesses
  • Cons: Not ideal for large enterprise corporations
  • Price: Starting at $325/month

Request a demo or trial of our ERP and small business Inventory Management software today

2. Oracle Cloud ERP

Best for: Large manufacturing companies looking for an ERP with robust capabilities

While Cin7 is best for small and mid-sized businesses, Oracle Cloud ERP speaks more to large companies looking for a more advanced tool with features specific to the enterprise level.

Large brands like Chipotle, Cisco, and FedEx use the Oracle Cloud ERP because it understands how to manage and scale with large companies — making it a good choice for any enterprise company looking for a change in their ERP provider.

  • Pros: Robust features tailored to enterprise corporations
  • Cons: Expensive and difficult for small businesses to implement
  • Price: Available upon request

3. NetSuite ERP

Best for: Large corporations looking for a customizable ERP solution

Owned by Oracle, Netsuite’s ERP solution is a solid choice for large-scale manufacturers looking for a centralized platform for production management, supply chain management, sales, and more.

A top choice for global businesses, NetSuite’s ERP allows you to keep tight control over your business operations even as it starts to expand globally. As your business grows and sells more and more products, there’s no room for error — and a product like NetSuite ensures manual error won’t slow down business growth.

  • Pros: Easily customized to fit business needs
  • Cons: Expensive and limited customer support
  • Price: Available upon request

4. SAP Business One

Best for: Small manufacturing companies looking to emphasize supply chain sustainability

SAP Business One’s major appeal to customers is its emphasis on sustainability in the supply chain, as its software has one of the highest Environmental, Social, and Governance scores (ESG) in the software industry.

Beyond sustainable practices, SAP offers simple-to-use features for small manufacturers, allowing them to easily integrate customer management, sales, accounting, and more in the same place.

  • Pros: Includes solutions that allow businesses to operate more sustainably
  • Cons: Lacks a built-in HR solution
  • Price: Available upon request

5. xTuple

Best for: Small to mid-size manufacturers looking for easy-to-use software

xTuple offers a one-price approach, meaning all customers receive the same product for the same price. This system builds customer trust by ensuring they don’t get overcharged. Still, the system also limits xTuple’s ability to tailor their product to specific customer needs.

The product itself, however, is a solid choice for small to mid-size manufacturing companies looking to scale their business. With numerous solutions and integration features, business owners can focus on growth instead of day-to-day operations.

  • Pros: Offers all-inclusive pricing
  • Cons: Less customizable than other software
  • Price: Available upon request

6. ERPNext

Best for: Retailers and wholesalers looking for a centralized ERP platform

For retailers and wholesalers looking for more visibility into the production cycle, ERPNext is an effective solution. ERPNext speaks especially to business owners wanting more control over the production cycle — allowing users shop floor visibility and integrated purchasing, accounting, and financial reporting.

Additionally, ERPNext includes a subcontracting feature for retailers that outsource to suppliers. With the subcontracting feature, you can easily view your supplier’s operations and manage your retail.

  • Pros: Affordable platform with an easy-to-use interface
  • Cons: Fewer functionalities than more robust tools
  • Price: Cloud software starts at $10 per site per month

7. Microsoft Dynamics 365

Best for: Small and mid-sized companies currently using the Microsoft Suite

Microsoft Dynamics 365 is especially appealing to current Microsoft customers as the ERP easily accesses other Microsoft tools, like Excel, other 365 products, Power BI apps, and more.

Designed to work together with your existing systems to maximize efficiency, Microsoft Dynamics 365 is an excellent solution for businesses drowning in spreadsheets and looking to take manual work out of the day to day.

  • Pros: Easily integrates with other Microsoft products
  • Cons: Not ideal for enterprise organizations
  • Price: Starting at $20 per user per month

8. Striven

Best for: Small to midsize businesses

An affordable option for small businesses, Striven provides companies with a comprehensive platform with features for accounting, HR, CRM, and more.

Striven also offers companies a variety of business management features, including a calendar hub, social media integration, an internal news feed, and more. The tool also integrates with Google Calendar, so you don’t have to worry about shifting internal operations to a new system.

  • Pros: Comprehensive platform available for an affordable price
  • Cons: More difficult to learn than other comprehensive platforms
  • Price: Starting at $35 per user per month

9. Acumatica

Best for: Smaller manufacturers looking for a comprehensive solution

Acumatica differentiates from competitors by offering certain features that other manufacturing ERPs don’t, like field service, service management, and project accounting modules.

Acumatica strives to adapt to changing technology to stay ahead of the curve. The tool offers an augmented reality feature, virtual reality, AI, and IoT to add the most modern technology to its ERP.

  • Pros: Offers out-of-the-box features that many competitors don’t
  • Cons: Advanced features are difficult to learn
  • Price: Available upon request

10. SYSPRO

Best for: Young companies using an ERP for the first time

SYSPRO appeals primarily to young and growing manufacturing and distribution companies as it allows you to purchase the tool in modules and add more as you need them. As a result, companies can purchase the exact module that fits their current business needs and increase as the company grows and shifts.

As a young company, your needs will fluctuate regularly. SYSPRO’s modular framework is great for young companies experimenting with an ERP for the first time.

  • Pros: Sold in modules so businesses can invest in only the modules they need at a given time
  • Cons: Expensive and lacks certain standard features, like HR
  • Price: Available upon request

11. Epicor Prophet 21 

Best for: Manufacturers looking to create a more efficient distribution process

Epicor Prophet 21 aims to streamline the distribution process for manufacturers, offering beneficial modules including warehouse management, inventory modules, supply chain management modules, and more.

Epicor Prophet 21’s warehouse management module includes multiple features that can significantly improve the distribution process. Offering barcoding, label printing, and more, Epicor Prophet 21’s library of modules is a reliable tool for manufacturers looking to boost efficiency in current processes.

  • Pros: Includes a variety of features for streamlining distribution
  • Cons: Emphasizes distribution over production
  • Price: Available upon request

12. Infor Syteline

Best for: Enterprise-level manufacturing companies looking to streamline manufacturing processes

For manufacturing companies tasked with juggling lots of moving parts, Infor Syteline is a solid choice for maximizing efficiency. With features ranging from quality control to planning, scheduling, and more, Infor Syteline’s platform can be great for manufacturing companies looking for a tool with a complete set of features.

Infor Syteline lends itself more to companies with complex manufacturing processes — which makes it less relevant for small and mid-size companies. For large companies looking to move to a new ERP that can adapt to their complex processes, Infor Syteline is a strong choice.

  • Pros: Equipped with advanced features built to handle complex manufacturing processes
  • Cons: Modules are typically too advanced for small manufacturers
  • Price: Available upon request

13. Sage Intacct 

Best for: Manufacturers looking to centralize finance and accounting

Sage Intacct’s strength is as a financial management software, making it an excellent choice for manufacturing companies looking to automate monotonous finance tasks to improve efficiency and reduce the chance of manual error.

Sage Intacct provides detailed financial reports that give you insight into your business performance, so you can see your exact bottom line. Beyond that, the software additionally prioritizes security, so you never have to worry that your financials are at risk.

  • Pros: Automates financial management for businesses in multiple industries
  • Cons: Specifically a financial management software; less comprehensive than other solutions
  • Price: Available upon request

14. IFS Cloud

Best for: Manufacturers looking for an end-to-end solution

IFS Cloud offers a range of industry-specific solutions for businesses in a variety of different verticals, including manufacturing, aerospace and defense, telecommunications, and more.

For manufacturers, IFS Cloud tailors its product specifically to automotive, chemicals, food and beverage, high-tech manufacturing, industrial manufacturing, and life sciences. IFS Cloud can be a great option for streamlined inventory management for businesses in these verticals.

  • Pros: Includes industry-specific solutions to fit specialized business needs
  • Cons: Less applicable to companies outside of their five core industries
  • Price: Available upon request

15. Odoo

Best for: Manufacturers looking for a customizable ERP

Odoo is unique because it’s an open-source ERP, meaning that developers can build apps directly within the solution. As a result, Odoo is constantly growing and evolving with new apps and features.

Beyond the open-source framework, Odoo provides an all-in-one solution for manufacturers looking to centralize their business operations. Doubling as a CRM, Odoo makes it easy for businesses to manage customers, processes, and more.

  • Pros: Relies on an open-source framework, so apps are constantly being added
  • Cons: Charges for each additional application
  • Price: Starting at $24.90 per user per month for all apps

16. Plex ERP

Best for: Manufacturers looking for more plant floor visibility

Plex ERP works especially well for manufacturers who are looking for a centralized view of all parts of their operation — from the plant floor to the c-suite.

Plex ERP’s smart manufacturing platform automates business processes and tracks data so business owners can make more informed decisions. Plex ERP lets manufacturers focus solely on growth by automating tasks and connecting processes in a single system.

  • Pros: Designed specifically for manufacturing processes
  • Cons: Less user-friendly than competitor software
  • Price: Available upon request

17. Deacom

Best for: Batch and process manufacturers

A solid choice for startups and growing manufacturing companies, Deacom provides a system that reduces time spent on manual processes and simplifies complex manufacturing processes.

Used primarily by process manufacturers and distributors, like food and beverage companies and cosmetics companies, Deacom thrives in creating process control so that companies can build efficient and repeatable processes.

  • Pros: Full transparency on pricing
  • Cons: More difficult to use than competitors
  • Price: Available upon request

18. Global Shop Solutions

Best for: Manufacturers looking for a customer-first software solution

Global Shop Solutions is one of the more approachable companies on our list as a family-owned business operating out of Houston, Texas. Their comprehensive solutions streamline production, finance, and order management into a single solution, making it easy for manufacturers to view all their operations.

Able to track shop floor data and forecast changing market trends, Global Shop Solutions is designed so business owners can focus on growing their businesses instead of managing operations.

  • Pros: Family owned, offers a customer-centric approach
  • Cons: Limited onboarding
  • Price: Available upon request

19. QAD Systems

Best for: Enterprise manufacturing companies that see regular demand fluctuations

QAD Systems appeals to companies that they deem “adaptive enterprises.” These companies regularly see demand swings and market shifts — either from macroeconomic changes or general market instability.

QAD Systems strives to be the best software for companies that regularly need to adapt to new demand planning and changing market conditions.

  • Pros: Keeps “future-proofing” at the forefront of its strategy
  • Cons: Exchanges some basic functions for more advanced functionality
  • Price: Available upon request

20. Aptean

Best for: Enterprise food and beverage companies

While Aptean has solutions tailored to companies in a variety of verticals, food, and beverage is their bread and butter.

Named the Customer Value Leader in Food and Beverage ERPs by market research Frost and Sullivan, Aptean offers solutions for different segments within the food and beverage industry, like bakeries, beverages, and produce — to name a few. With solutions tailored to whatever food and beverage vertical you’re in, Aptean will likely fit your needs.

  • Pros: Customized solutions for multiple segments within the food and beverage industry
  • Cons: No free trial
  • Price: Available upon request

21. Aquilon

Best for: Small and mid-sized businesses looking to streamline distribution processes

Aquilon’s manufacturing ERP rounds out our list — a solid choice for small to mid-size manufacturers looking for integrated manufacturing, distribution, and financial management.

Claiming to be easier to use than competitor software, Aquilon appeals to small businesses as a simple and customer-centric solution. Aquilon can be an effective choice for young companies ready to invest in their first ERP.

  • Pros: Easy platform for small business owners to navigate
  • Cons: Less advanced features than competitors
  • Price: Starting at $120 per user, per month

What does ERP mean and how does it work?

A woman works on a tablet in a warehouse next to the definition of Manufacturing ERP software.

ERP means Enterprise Resource Planning, which describes an organization’s system or software to plan and manage business operations.

The best manufacturing ERPs aim to seamlessly integrate into a company’s processes and centralize them into a single source of truth, thus streamlining operations and bolstering productivity.

What are the benefits of a manufacturing ERP? 

When it comes to manufacturing, the most effective ERPs are typically able to:

  • Automate manual processes to reduce manufacturing lead time and manual error.
  • Centralize processes across departments.
  • Track data in real time and generate reports.
  • Adapt to changing market conditions.

The benefits of an ERP are plentiful, and although you may be able to accomplish these tasks yourself, an ERP’s greatest advantage is the time it gives back to you to grow your business.

What to look for in ERP software

The best ERP software is cloud-based, well-rounded, and customer-friendly.

Manufacturing ERPs should check a few essential boxes. When selecting an ERP software, be sure you’re looking for a tool that is:

Cloud-based 

Cloud-based solutions have largely replaced on-premise solutions as the ideal way to manage resources — and rightfully so. While on-premise software runs on a company’s hardware, cloud-based solutions run on the provider’s servers — making them accessible through a web browser.

Because of the ease of use, cloud-based solutions are a more robust option than on-premise solutions. This technology reduces labor and time spent on resource planning through automation and increases agility, giving you the time and freedom to grow and scale your business.

Well-rounded 

Before you select software, consider your needs. Are you just looking for supply chain management? Or do you need HR, sales, finance, accounting, and more centralized in a single platform?

Resource management is a headache, so your goal should be finding software that allows you to not think about it. As a result, make sure you’re looking for well-rounded software that accounts for all your business needs.

Customer-friendly 

Software companies won’t, and shouldn’t, expect you to be experts in their software right after you buy it. And even the most straightforward software can be difficult to implement and use right off the bat.

When browsing software, look at companies that offer a thorough onboarding process and dedicated customer support. This not only helps you quickly get your team up to speed on how to use the platform, but it also helps you to get the most out of the service.

FAQ

Still have questions about the importance of ERP software? We’ve got you covered. Here are some common questions and answers about everything ERP.

What does ERP stand for in manufacturing?

ERP stands for “Enterprise Resource Planning” in manufacturing. It refers to a system of organizing all resources and processes related to manufacturing, like shipping, financial management, supply chain management, and more.

Why is ERP important?

ERP is important because it can be essential in helping businesses grow. ERPs work to maximize efficiency in an organization and bolster productivity, so your company can gain more customers and revenue.

How much does a manufacturing ERP system cost?

The cost of a manufacturing ERP system depends on the number of users, the type of software, the included features, and more. As a result, the software can range from free basic plans to upwards of $10,000 per month for the most advanced plans.

What is the difference between MRP and ERP software?

While MRPs focus exclusively on manufacturing, ERPs streamline broader organizational processes along with manufacturing processes, like accounting, HR, finance, and sales.

What is the best manufacturing ERP software? 

The best manufacturing ERPs are tailored to your business needs, easy to use, equipped with great customer support and onboarding processes, and adaptable. Your ERP should grow as your business grows, so it’s crucial to find a system designed to scale with you.

At Cin7, we know growing a small business is no easy task. Our ERP and inventory management software takes the headaches out of your usual day to day, letting you focus on driving growth.

Start your free trial today to see Cin7 in action.

Cin7 Core is now a Walmart Approved Solution Provider

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We proudly announce our latest integration with Walmart Marketplace as an approved solution provider. This expands our existing marketplace connections that include Ebay, Amazon, and Etsy.

This partnership allows Cin7 Core customers to continue to expand their omnichannel reach without the need for additional software systems, extensive integrations, or manual processes. Adding Walmart marketplace to their channel strategy, sellers can reach approximately 220 million customers each week.

“Thanks to Cin7, managing our inventory and fulfillment has never been easier. The seamless integration with Walmart has allowed us to reach new customers and increase awareness of our products effortlessly.”

– Patrick Hothersall, Liftmode

Through this new standard integration, Cin7 Core customers can easily manage their orders and returns from the Walmart Marketplace, as well as manage their product catalogs.

  • Load sale orders from walmart.com in real-time or in batch mode to see all orders from all sales channels in one interface
  • Export shipping information to Walmart and enhance customer visibility
  • Capture and process returns and refunds for simpler accounting and inventory management
  • Manage product catalogs through the Cin7 Core interface, including listing and unlisting products
  • Update stock levels for up-to-date availability
  • Update product mapping to improve product visibility

Adding the integration of Walmart Marketplace to the collection of over 50 integrations available with Cin7 Core supports our mission of reducing the cost, time and effort of selling products for businesses around the world.

“Partnering with Walmart allows Cin7 customers to expand their businesses and growth – with the software systems they already use and trust. This is an exciting advancement that reinforces our commitment to supporting our customer’s growth.” 

– Ajoy Krishnamoorthy, Chief Product Officer, Cin7

The integration also opens the doors for even more product sellers to join the Walmart Marketplace which offers the opportunity to reach millions of shoppers who have become loyal customers over the years to the instantly recognizable household name – Walmart.

The true winners in this announcement are the product sellers who have the opportunity to quickly expand their reach and customers who have access to a broad assortment through Walmart’s endless aisle. The Cin7 Core and Walmart Marketplace integration is available now as a seamless integration with no additional development work is required.

Recommended Resources:

 

Link Walmart to Cin7 Core

link walmart to cin7 core

Manage the Walmart catalog

Link products

Load sales from Walmart

Configure the integration settings

Inventory control: Your guide to basics and best practices

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Inventory control is the process of shipping products to customers in a way that maximizes profit and limits costs. There are a variety of different inventory control methods that companies can use, but some make more sense for specific industries than others.

Did you know Amazon ships 1.6 million packages a day—totaling a little over 18.5 orders a second? If you’re wondering how that’s possible, you’re not alone. Companies try and fail to nail a systematic approach to getting mass quantities of orders to customers on time, and it doesn’t help when supply chain issues are mainly out of the company’s control.

When companies learn a method and type of inventory control that works for their business, it can be a game-changer. Inventory control is an operational process that includes daily activities such as receiving raw materials and products, checking for discrepancies, and storing and transporting inventory to and from customers and within the warehouse.

When done well, inventory control ensures you have enough stock to meet your business needs while keeping inventory costs low and forecasting changing market demand.

In this post, we’ll explore what inventory control is, how it differs from inventory management, and the methods your company can use to optimize inventory control.

Key Takeaways: 

  1. Inventory control ensures customers receive products on time at the lowest cost to businesses.
  2. A solid inventory control system ensures companies keep enough stock, maintain customer satisfaction, and stay on top of changing demand trends.
  3. While inventory management holistically describes the inventory process, inventory control focuses more on day-to-day inventory operations.
  4. Businesses use different inventory control methods depending on their product and industry.

What is inventory control? 

Inventory control is the process of keeping enough stock to meet customer demand while minimizing inventory costs.

Inventory control ensures that a company has enough stock to meet inventory demand. While inventory management looks at inventory more holistically, inventory control focuses specifically on studying market demand and using insights to make informed decisions about the stock.

When creating an inventory control system, you should have one goal: Maximize profit while incurring as little inventory costs as possible and prioritizing customer satisfaction. It’s a tricky balance, and businesses too often save costs but at the expense of retaining customers or vice versa.

However, getting inventory control right is one of the most critical elements of scaling a business. Stick with us as we explain why good inventory control is pivotal for growing companies.

Why is inventory control important? 

Inventory control reduces costs and improves service while managing working capital to maintain adequate and consistent cash flow. Effective inventory control means having the right product in the right place at the right time — and a solid strategy is essential to meeting customer demands.

The primary objective of inventory control is to keep only the necessary units on hand without overspending or compromising customer satisfaction. However, whether you’re an online retailer or wholesaler or manage inventory throughout the supply chain, you’re bound to run into some unique circumstances that require you to create a tailored inventory control system. Later, we’ll break down how different product sellers deploy different inventory control techniques depending on their industry and market share.

Inventory control vs. inventory management

The difference between inventory management and inventory control

Inventory control falls within the larger concept of inventory management. While inventory management involves more high-level inventory oversight, inventory control involves more targeted activities, like sending orders, receiving stocks, and handling other day-to-day order management processes.

Inventory management and inventory control aim to improve a company’s bottom line. Still, they approach it in different ways:

  • Inventory management works to stay atop market trends and make informed inventory decisions.
  • Inventory control focuses on efficiently managing stock at a given time to maximize profit.

Benefits of inventory control  

Implementing a structured inventory control system can support companies in a few ways. Here are some of the benefits of inventory control:

1. Ensures enough stock to meet business needs 

The primary purpose of an inventory control system is to ensure that all raw materials and finished goods are available for production or sale. This includes all the inventory types necessary for your business to operate without a glitch.

Internal stock handling is a nightmare for many inventory managers because it is challenging to keep pace when all internal handling, recording, and tracking happen manually. An inventory control system can quickly show spikes in sales, promotions, and other factors to alert management to the necessary inventory response, thus, improving efficiency.

2. Keeps inventory costs low 

The different costs associated with inventory include:

  • Labor
  • Storage
  • Ordering
  • Supply chain costs

All costs incurred by a business are either passed onto the consumer or can be responsible for the company’s failure. Businesses can use an inventory control system to prevent unnecessary costs and determine where to save money along the supply chain from acquisition to consumer.

Inventory directly or indirectly impacts almost everything that happens in your company. Employing an inventory control system will save money at multiple touchpoints.

3. Improves customer satisfaction

Exceeding customer expectations is one way to stand out from the competition. A detailed inventory system can be key –– knowing what you have, where you have it, or how long it will take to get it.

An essential advantage of having real-time inventory control reports is that they provide businesses with instantly actionable data. Additionally, real-time inventory management allows you to analyze trends and pinpoint where you need improvements. Real-time reporting gives your business a competitive edge and improves sales by minimizing or eliminating stockouts.

4. Optimizes product sales through forecasting 

Inventory control is vital in estimating future sales volume or evaluating what items to put on sale racks. Forecasting is essential for retail businesses and a huge part of optimizing product sales. Business managers can review historical purchasing data to make assumptions based on product performance when using an inventory control system.

The inventory control process 

Creating a successful inventory control system requires structure and communication across different teams. Follow the three steps below to lay the foundation for your inventory control system.

The three steps to building an inventory control system

Step 1: Determine minimum inventory needs

Strong communication is the key to smooth processes, and when it comes to inventory control, effective communication between the production, sales, and marketing teams is critical to success. Marketing departments have a pulse on demand, whether through customer interaction or data. Similarly, production teams have access to critical timelines and material supply. Collaboration between these departments ensures minimum and maximum inventory limits get met without overproducing or undersupplying.

Step 2. Find the reorder point 

The reorder point (ROP) is a specific level at which you need to order stock so you do not run out of inventory. A big part of determining the ROP is keeping a pulse on raw materials, work-in-progress goods, and finished goods. A robust inventory control system forecasts the ROP for all the components you’ll use in production and finished goods.

Step 3: Employ an effective inventory management strategy  

There are various tried and true inventory control techniques that companies find success with, and you can select the one that best meets your needs. Whatever approach you choose, the strategies must help determine your minimum inventory needs and ROP.

Inventory control methods  

Inventory control methods evaluate the accuracy of your inventory records against the actual physical inventory on hand. Here are some different ways to assess your inventory.

Periodic inventory control

The periodic inventory control method reconciles inventory periodically with merchandise recorded in the purchase account. In this method, the inventory account and cost of goods sold (COGS) update at the end of the accounting period — which is determined based on business needs.

The inventory account is adjusted to match closing stock, calculated using the first-in, first-out (FIFO) method or the last-in, first-out (LIFO) method.

Best for: Small businesses that hold smaller amounts of inventory

Perpetual inventory control 

The perpetual inventory control method uses sophisticated equipment and software that tracks inventory in real time. Updates happen automatically whenever a product is received or sold. Unlike periodic inventory control, perpetual inventory has a built-in checks and balances system.

A perpetual inventory system makes sense for businesses with multiple product lines and high sales volumes.

Best for: Large companies that typically see high sales numbers

Just in time inventory control 

The just in time inventory control method helps companies limit costs by only holding inventory when needed.

This method works well for companies that experience seasonal demand or small businesses looking to limit inventory costs as they’re just starting to grow. It can be costly to store inventory for extended periods; the just in time method ensures companies don’t see costs from holding inventory in-house.

Best for: Retailers that experience seasonal demand and small businesses trying to minimize inventory costs as much as possible

Economic order quantity (EOQ) analysis 

Companies use the EOQ formula to determine the optimal quantity of inventory that satisfies market demand and minimizes inventory costs as much as possible.

The EOQ formula assumes that demand will remain relatively constant over time, so companies in industries that see lots of demand fluctuation and seasonal changes can’t use it.

Best for: Companies in industries that don’t see demand fluctuation

ABC analysis 

ABC analysis is a process companies use to prioritize products and materials based on their worth. Using ABC analysis, companies make informed decisions about the inventory that’s most valuable to have on hand.

In ABC analysis, the “A” represents the goods with the most value, the “B” represents goods with slightly less importance, and the “C” is goods with the least value. Companies consider goods with these categories in mind when making inventory control decisions.

Best for: Product sellers and manufacturers looking to segment products by revenue to increase profit margins

Inventory control challenges 

Developing a sound inventory control strategy involves overcoming organizational challenges. Here are a few challenges you may face when implementing an inventory control strategy:

Inventory control challenges and solutions for each

Lack of visibility 

If you move large amounts of stock, work with multiple suppliers, or have a more complex warehousing system, it can be difficult to see the entire inventory process.

Without proper visibility into stock movement, you can easily find yourself with too much, insufficient, or the wrong type of stock. As a result, it’s important –– first and foremost –– to ensure you have visibility into all moving parts of your inventory process.

Supply and demand fluctuations 

Inventory control only works if you understand how supply and demand works in your industry. As mentioned above, companies that experience seasonal supply and demand shifts will want to deploy a different inventory control method than those with a more regular supply schedule.

Understanding the nature of supply and demand will allow you to make an informed decision about the correct inventory control method, so you can build an internal system that makes the most sense for your business and industry.

Human error 

Inventory control helps reduce human error primarily through automation. By creating an inventory control system rooted in an automated inventory management system, you can mitigate mistakes by automating invoicing, purchasing, and stock count.

Additionally, the best inventory management software will alert you if there are any inaccuracies or discrepancies in your physical inventory count and financial records.

Overstocking 

Overstocking increases holding costs or when an opportunity is missed for the sake of something else. In terms of inventory, overstocking one product reduces the capital available to purchase new products, meaning there’s a loss of opportunity to profit from new products. On top of missed opportunities, there’s a risk of being stuck with obsolete inventory, plus an increase in holding costs, including storage, possible theft, or damage.

Stockouts 

Stockouts occur when you need more inventory to cater to the market demand. Like having too much inventory, not having enough also affects cash flow. But more importantly, insufficient stock directly affects the customer experience. Today’s shoppers expect same-day and next-day delivery. When they don’t, they’re quick to try other vendors or to write poor customer reviews.

Inventory control best practices 

Inventory control methods will vary between companies in different industries, but there are a few universal best practices that companies should adhere to when implementing an inventory control system. When working to build an inventory control system, you should always:

Three best practices for inventory control

Audit inventory records regularly  

You should check that your physical stock aligns with your inventory reports to ensure no discrepancies. If you’re using inventory management software, perform a year-end inventory count to ensure your physical stock count aligns with the information in your software.

Audit high-value items more regularly than others. You can also audit fast-selling items through the process of spot-checking, which involves checking items on a more regular basis than the rest of your inventory.

Establish a solid relationship with suppliers  

If you have a good relationship with your supplier, you can improve your inventory control system, as your supplier can help you solve problems that may occur during inventory management processes.

For instance, let’s say you have a product that doesn’t sell nearly as well as others, but you still need to stay stocked with it. If you have a good relationship with your supplier, you can negotiate a beneficial minimum order quantity so you can appease customers without taking a loss on obsolete inventory.

Leverage automation  

Automating your inventory control process is an excellent way to stay on top of market trends, mitigate human error, set automatic reordering, and more.

Once you determine the inventory control method that makes the most sense for your business, automated inventory management software can allow you to take a hands-off approach to inventory management and focus more on adding value to your business.

What are the main objectives of inventory control? 

The main objective of inventory control is to maximize profits while incurring as little inventory costs as possible — all while ensuring customers receive the correct products promptly.

While determining the right inventory control method will depend on your business and industry, you can enhance your inventory control method by integrating it with an inventory management software designed to work to the needs of your business. Cin7’s versatile software solutions help companies to sell more products to new customers — at the lowest cost possible.

Get a demo to see what our products can do for you. 

Welcome to the next era of Cin7 – a note from CEO David Leach

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It’s already been a big year of change for Cin7. As part of our shift to one unifying brand, we’ve:

  • Integrated and simplified our business to make things easier for our customers and partners
  • Invested heavily in product performance, customer service and support improvements (with more to come)
  • Renamed our two mission-critical products: Core and Omni
  • Launched our product vision for Intelligent Commerce

We were also recognized globally by Forbes magazine as being the Best Overall Inventory Management Software of 2023 and, in our own backyard, Hi-Tech Company of the Year in New Zealand!

And now, launching this week, we have a new story, new branding and a new vision for inventory operations designed to help unlock the next generation of global product sellers.

Let’s talk about what’s different, where we’re going next and what it means for you.

New vision, same mission

Our mission hasn’t changed: we’re still laser-focused on empowering product sellers to thrive in a complex and evolving digital world.

But two important things have happened.

First, digital commerce is accelerating at a staggering pace. New channels, new technologies, new customer demands and volatile markets amount to a lot of challenges and opportunities for product businesses to navigate.

Second, Cin7 has grown alongside these shifts to become the technology and growth partner for 8,500 product sellers in 100+ countries. And the more businesses we’ve helped, the more “inventory management” only seems like part of the story. It only scratches the surface of what we offer today (and our vision for the future).

It’s time to reframe what we do for ambitious and growing product sellers. The thing we do best is to help product sellers transition from simply managing inventory to maximizing business performance.

Introducing … Connected Inventory Performance

If you’ve tried to grow a product business then you know the more you sell, in more places, the more complex inventory becomes — and that complexity becomes the enemy of growth.

Traditional inventory management systems do little to address this complexity. While they handle all the finicky, manual, error-prone tasks of inventory management, they sap the time and resources you need to actually grow your business.

On the other hand, Cin7 is built to radically simplify the complexity of inventory management at any scale. That’s why we’re calling what we do Connected Inventory Performance. Here are some of the ways it benefits your inventory operation:

  • Drives efficiency, traceability and automation across every stage of your inventory lifecycle
  • Tracks every product from supplier to storage to shipment to whatever channel customers buy through
  • Integrates with over 700+ applications across the commerce ecosystem
  • Provides deep, real-time insights into your inventory performance to make data-driven decisions

The big picture is that Connected Inventory Performance is designed to help you transform complexity into performance. It’s like the difference between getting your learner’s permit and racing a Formula One car. Sure, both involve driving — but one is about the basic fundamentals of getting from A to B, and the other is the science of creating a competitive advantage through speed, efficiency, and automation.

There are a lot of ways Connected Inventory Performance helps product sellers win — and we’re excited to explore them with you in the coming months.

I’m immensely proud of all that Cin7 has achieved together with our customers and partners so far. I want to say thank you to all of you for allowing us to be a part of your journey.

We believe that Connected Inventory Performance is going to fundamentally change the way that product businesses sell to customers — and we can’t wait to see where it takes you.

If you’re ready to take the next steps with us, take a look around our brand new Cin7.com site and sign up for our August Launch Event here.

Retail inventory management: 15 best practices for 2023

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Retail inventory management refers to the systems and processes used by retailers to ensure stock levels meet customer demand. The goal is to have enough inventory to meet customer demand while optimizing your warehouse for profitability.

Every retailer wishes they could see into the future. Imagine knowing exactly how many items to carry to meet customer demand. Unfortunately, this is impossible without a magic crystal ball. The good news is that every retailer shares the same concern. The answer to this problem is retail inventory management. This is different from inventory management, which covers the entire supply chain.

The retail inventory management process has two main concerns: Retailers need enough stock to meet demand, and they must manage the stock efficiently. Basically, you don’t want too much or too little inventory. Depending on the size of the retail business, there can be multiple retail and warehouse locations to consider.

No matter what you sell, retail inventory management is the key to profitability and customer satisfaction. Research shows that sales can grow by an average of 6% when companies correct their retail inventory errors. The same study revealed that 60% of inventory records are inaccurate. Businesses can make improvements by following best practices, so let’s explore the best practices for retail inventory management.

An illustration with the definition of retail inventory management.

What is retail inventory management?

Retail inventory management refers to the systems and processes used by retailers to ensure stock levels meet customer demand without wasting storage space. The goal is to have just enough inventory to satisfy customers while optimizing storage and ordering for profitability. Many businesses use inventory management software to stay efficient and competitive.

Retail management is more than just inventory management but inventory plays a huge role for obvious reasons. Businesses can’t survive without the inventory available for customers to buy. Modern businesses can manage inventory for multiple locations, including online stores, and proper retail inventory management is key to customer satisfaction.

Types of retail inventory

Retail inventory accounts for more than the finished goods a business sells, it also includes items for on-site repair and maintenance services. Knowing what types of inventory you have is an important part of the management process.

There are many types of retail inventory, such as:

  • Raw materials
  • Unfinished (work in progress)
  • Finished
  • MRO (maintenance, repair and operations)
  • Packing
  • Excess
  • Safety stock

Many retailers can have in-house manufacturing, especially small businesses. Woodworkers, jewelers, and microbreweries often have multiple types of in-store retail inventory.

For example, a craft beer company can store raw materials (hops and barley), work in progress (fermenting beer), finished goods (bottled products), packing materials (bottles, cans, boxes), and more. The Winery use inventory management to leverage retail data and streamline operations.

Retail inventory management best practices

The complexity of retail inventory management increases with scale. Establishing best practices early will set you up for success, whether your business is big or small. Consider how each best practice below can apply to your organization.

1. Evaluate your systems

Evaluate your retail inventory management system at a macro level before diving into specific issues. A total system audit can provide up-to-date information on your inventory, vendors, and more. You can use this data to update your current retail inventory management system or populate a new system.

A thorough system evaluation can highlight the strengths and weaknesses of your current retail inventory management processes. It’s helpful to know where you struggle the most so you can choose the best system for your needs. For example, a business struggling to meet seasonal demand might want a platform with advanced reporting analytics.

2. Set goals

Establishing KPIs is important for tracking performance, monitoring issues, and meeting important business goals. KPIs help businesses communicate with stakeholders, set quarterly goals, and keep themselves accountable. KPIs should be S.M.A.R.T., which means they represent business goals that are specific, measurable, attainable, relevant, and timely.

Establish S.M.A.R.T. retail inventory management KPIs, like:

  • Supplier lead time
  • Supplier defect rate
  • Holding costs
  • Inventory shrinkage rate
  • Stockout rate
  • Demand forecast accuracy

3. Analyze your sales

Hindsight is 20/20. This is especially true for retail inventory management, but only if you keep accurate data. You can learn a lot by analyzing past sales and spotting trends, and demand forecasting will help your business make informed inventory management decisions.

Look for trends in:

  • Seasonal demand
  • Customer favorites
  • Unpopular items

Sales data can be useful for strategic planning and pricing. For example, strategically timed in-store offers can help clear out valuable storage space when demand dwindles for seasonal items. With sales analysis, you can pinpoint the most optimal time to do this.

4. Be proactive with forecasting

You wouldn’t plan a picnic without checking the weather. And you shouldn’t order inventory without forecasting demand. Proactive forecasting is about looking ahead so you can make smart inventory decisions. This way, you can order the ideal inventory to keep customers happy while maximizing storage space.

Just like forecasting the weather, you want reliable data. Spreadsheets and file folders aren’t enough to stay competitive in the modern business landscape. Choose a platform with advanced reporting capabilities to put your data to work and make better decisions.

5. Prioritize the customer

The customer is always right. By keeping your customers top of mind, you can feel confident that you are making the right business decisions. Maximizing profits is important but should never detract from the customer experience. Customers are delighted when they can buy what they want but will never be impressed by your optimal storage space.

Retail inventory management can ensure customers always get what they want, even if you don’t have it in store. Outlets with multiple locations can pull available stock from other stores. Dropshippers can use vendor information stored within their inventory management system to ship items directly to customers.

A list of retail inventory management best practices.

6. Document your products

Thoroughly documenting your inventory and vendor details is the first step in retail inventory management. But don’t set it, and forget it. Up-to-date documentation is a key part of accurate forecasting.

Your retail inventory documentation should include details such as:

  • Product name
  • Product code
  • Retail price and cost
  • Wholesale price
  • Vendor information
  • Minimum stock amount
  • Reorder level
  • Supply days or estimated time of delivery

Log your products with as much detail as possible. Even photos can help sales staff impress customers and move inventory. Consider every department’s needs and create processes for updating inventory details. You can share this up-to-date information across systems for order fulfillment, point of sale, and more.

7. Build strong relationships with suppliers

No system is perfect, and errors happen. Strong supplier relationships make addressing things like delayed orders, missing or damaged items, stock outages, or missing payments easy.

Communication is key to a solid relationship. Suppliers appreciate when you update them, and a positive relationship can improve communication and create trust. A relationship built on trust will help you negotiate prices with suppliers. Retailers need suppliers, so consider these relationships as part of your retail inventory management process.

8. Choose your inventory technique 

Choose the inventory technique that best suits your business. It’s important to consider things like the stability of your cash flow, cost fluctuations, and your business’s location.

Examples of popular inventory management techniques include:

  • ABC Analysis categorizes inventory by its level of importance. A is the most important, followed by B, and then C.
  • 80/20 states that 20% of your inventory drives 80% of your profits. This method helps businesses prioritize inventory in relation to profitability.
  • FSN classifies inventory as fast-moving, slow-moving, or non-moving. This can be useful for planning orders and organizing storage.
  • XYZ categorizes inventory by demand variability. X items have the most consistent variability and are therefore easy to forecast.

9. Create a functional warehouse layout

Functional warehouse layouts allow clear visibility, smooth transfer of goods, and easy access to inventory and equipment. This helps make order fulfillment fast and easy.

Some examples of warehouse layout designs include:

  • U-shaped
  • I-shaped
  • L-shaped

Read up on warehouse layout best practices to make the most of your space. A well-organized warehouse helps improve retail inventory management. Functional warehouses let employees focus on important things like receiving inventory and updating tracking information.

10. Be strategic when storing inventory 

Warehouses can improve functionality when you store goods logically based on their type or category. Clear categorization can help you store important goods for easy picking, while you may store less important goods in harder-to-reach areas.

Best practices for storing inventory:

  • Make popular items easy to access
  • Keep heavy items close to the floor
  • Track storage with inventory management software
  • Categorize inventory for optimal storage and retrieval

Storing inventory with no strategy can chew up profits because it slows down everything. Items become hard to retrieve or, even worse, impossible to find without a thorough audit. You want a system that ensures all products are retrievable and in good condition.

11. Eliminate deadstock

Deadstock should be eliminated immediately. Holding inventory costs (also known as inventory carrying costs) typically equal 15%–30% of the inventory’s total value. It can feel like a loss to sell deadstock at a low price, but there is little benefit to inventory that takes up valuable storage space.

You can get rid of deadstock in a few ways:

  • Put deadstock items on sale
  • Bundle deadstock with popular items
  • Check with suppliers about returns
  • Do a free giveaway
  • Donate deadstock
Why is inventory management important in retail

12. Plan ahead for surplus stock

Surplus stock is a necessary part of giving customers a great experience. Better to have too much stock than too little. And to avoid deadstock, planning for surplus stock is important.

Seasonal forecasting can give you a clear picture of demand, including when it begins to slow down. Account for these times and get creative about moving your surplus stock.

Think of strategic ways to move stock and keep customers excited:

  • Promote a big sale ahead of time
  • Create fun in-store displays of surplus stock
  • Encourage sales to move surplus stock with KPIs and rewards
  • Promote specific surplus items on social media

13. Track moving inventory 

Tracking in-transit inventory supports accurate forecasting and budgeting. Understanding the length of time between ordering and receiving inventory is important. The more data you have, the better your ability to plan.

Tracking moving inventory is also important for relationship management. Suppliers and retailers both share concerns over inventory transportation. Customers will also appreciate knowing where an item is and when to expect it. Inventory tracking this way can put customers at ease and stop them from going to another retailer.

14. Schedule regular inventory audits

For best results, you should audit inventory once every quarter. This need can vary depending on your industry and how fast stock moves. Every business should perform a thorough inventory audit at least once a year for accurate data as part of their retail management process.

When you properly account for inventory, you can optimize storage and increase profit opportunities. Inventory audits also reveal damaged, out of date, and recalled goods. Remove these items because you can’t sell them. You can account for deadstock and subsequently put it on sale to create more storage space for on-demand items.

15. Automate retail inventory management with software

Automation can improve accuracy, streamline processes, and provide actionable data for your business. Automated retail inventory management software can help you handle production and management with automated dashboards, reports, and reminders. Integration abilities can even sync inventory data across all your stores and devices.

Almost 46% of small and medium-sized businesses track their inventory manually or don’t track it at all. Retail inventory management software can save you lots of time but also help you make smart, data-driven business decisions.

Retailers, wholesalers, and online sellers use products like Cin7 Core for:

  • Inventory management
  • Point of sale
  • B2B Portal
  • Commerce integration
  • Accounting efficiency
  • Robust reporting

Frequently asked questions (FAQ)

Alongside best practices, we want to answer some frequently asked questions about retail inventory management.

How do you keep inventory in retail?

You can monitor inventory levels in retail stores with a system called retail inventory management. Inventory gets counted when it arrives at the store and when customers buy it.

Businesses also need to perform inventory audits regularly to ensure their counts are accurate. Audits will account for inventory that is missing, damaged, or recalled.

What is the retail inventory method?

Accountants use the retail inventory method to estimate the value of a business’s current inventory over a specific period. The process is simple, but the results are only an estimate. Businesses use this method to avoid a costly manual process.

What are the benefits of retail inventory management?

The main benefits of retail inventory management are:

  • A clear view of inventory levels
  • Improved customer satisfaction
  • Increased profits
  • Reduced deadstock
  • Improved use of storage space
  • Powerful data for business insights

What tools to use for retail inventory management?

Retail inventory management software provides tools for:

  • Retail inventory management
  • Point of sale (POS)
  • B2B e-commerce
  • Warehouse management
  • Reporting and forecasting
  • Third-party logistics (3PL)
  • Direct Electronic Data Interchange (Direct EDI)

What is the best retail inventory management software?

The best retail inventory management software can scale alongside your business as it grows. Switching platforms can be time-consuming and create room for error, so you’ll want to consider where your business will be in the future.

Your software should also provide features that help your business grow. Choose a solution that supports your ability to streamline operations, increase sales, lower operating costs, and improve customer satisfaction.

If you are a small or medium-sized business that wants to increase sales and be more efficient, book a demo of Cin7 today. Let us help you reach your business goals quicker and easier.

Cin7 Named 2023 Hi-Tech Company of the Year by NZ Hi-Tech Awards

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Cin7 is humbled and honored to be chosen as the PwC New Zealand Hi-Tech Company of the Year at the 2023 NZ Hi-Tech Awards. As a New Zealand-based company with strong ties to our local roots as well as global ambitions, we’re proud to be recognized by the PwC NZ Hi-Tech Awards as “a shining example of how Kiwi companies can win in global markets.”

The five international judges who chose us as the Hi-Tech Company of the Year winner further highlighted our ability to compete against large international brands by being ahead of the curve in understanding changes in e-commerce and omnichannel selling and supply chains.

At Cin7, we see this as a stepping-off point for global growth for our brand and our customers. We strive to be growth partners for our customers by providing mission-critical software that keeps the business running so they can invent new products and generate more revenue, not just locally, but globally. We want to help create tomorrow’s famous brands.

That being said, we’re especially proud of our New Zealand roots which have been a key source of our “get stuff done” culture. We first applied for this award in 2022 and were honored to be listed as one of six finalists. Going from a finalist to a category winner in one year has been a real honor.

“We’re blown away by this big win and local recognition in New Zealand. As a business founded in New Zealand in 2012, the win is deeply meaningful to all of us here at Cin7. We are very humbled and proud of our brand, our business, our software, and especially our people,” said Cin7’s CEO, David Leach.

“It was great to see so many amazing tech companies from all around NZ getting recognition for their achievements locally and internationally. It was one of those special moments we’ll remember for a very long time.”

Getting to this point has truly been a team effort for Cin7. Over the past 12 years, our company has grown to employ more than 350 people across six countries, and each and every individual contributed to our growth and impact on the industry.

About the NZ Hi-Tech Awards

The NZ Hi-Tech Awards were originally launched in 1994 as the VSI Electronics Excellence Awards. Since its inception, the awards recognize success and excellence in New Zealand’s tech industry at the annual ceremony gala. The NZ Hi-Tech Trust manages the Awards Programme and celebrates the tech sector’s role as a significant driver of New Zealand’s economic and export success.

About Cin7

Cin7’s inventory and order management platform (including Cin7 Omni and Cin7 Core) connects more than 800 e-commerce platforms, online marketplaces, 3PL warehouses, and native EDIs in one solution, helping retailers and product sellers quickly and efficiently get their products to customers wherever they are, from any channel. Cin7 was founded in New Zealand and supports product sellers in 25 countries. In early 2020, Cin7 established a significant US presence to serve its growing customer base and accelerate growth in the North American market. Every month, millions of orders flow through the platform, representing billions of dollars in product sales, as Cin7 helps growing brands sell more products, to more customers, in more places.

In addition to being named Hi-Tech Company of the Year in 2023 by the NZ Hi-Tech Awards, we’ve been named a Great Place to Work in Sri Lanka and a Best Place to Work in Colorado by Built In.