Gone are the days when inventory was managed through manual stock takes and Excel spreadsheets. Today, various inventory management systems track inventory levels, demand, forecast, etc. When choosing an inventory management system for your business needs, here are a few questions you need to ask yourself to select the right option for your business.
The first important question is to know what size and stage of growth your business is in. If your business is small, paying a lot of money for an inventory management solution would not be worth the investment. Until your yearly sales are over about $100k, a spreadsheet is enough for your inventory needs. If your projections predict imminent growth past $100k, begin to start looking at inventory solutions.
However, many SMBs having yearly sales between $100k and $100 million find that their inventory complexity is alleviated with a robust inventory solution.
Take your time to define your budget: inventory management systems range from free to six figures. If you know the investment you’re able to make, it’s much easier to refine your search to a few offerings that best suit your budget, size and operational capacity.
With huge variation in price comes a significant variation in quality and capability. So, make sure you invest wisely by doing your homework.
You must have a clear idea of your business needs. The mode of operation of each business is different. For instance, if you run a clothing store, the areas you may need help with are going to be different from a restaurant.
The specific needs of the business must be taken into consideration. If you need software that helps print barcodes for your products, check if you can get one that offers you both inventory management and barcode printing.
If you buy an inventory management solution, make sure you know what problems the tool will solve. It’s important to be familiar with successful inventory processes and the challenges that prevent growth.
Knowing the problems you’re trying to solve will make it easier to ask the right questions when choosing an inventory management system.
Any good inventory management system like Cin7 will connect with the tools your business uses daily. For instance, multichannel sales through eBay, Amazon and other online marketplaces must be supported so that you can monitor inventory across third-party sales channels.
You also want to connect your accounting software like Xero or QuickBooks. Seamless integration with eCommerce platforms like Shopify, Magento or BigCommerce is necessary for an online store. The right solution will help you manage every product, order and customer in one place and across multiple stores.
To fit your business and your team’s requirements, it’s essential to know who will be accessing the system. With a cloud-based inventory management system, any employee or business partner can gain up-to-date information without emails, texts or phone calls to double-check orders. The system has it all.
With the above six questions at your disposal, you are on course to determine the best inventory management solution for your business. Cin7’s cloud based software can handle all the needs of any company, size or industry.
Our system offers countless more features than any other standard inventory management system. Not only does Cin7 offer inventory management, but it also assists you with accounting, sales, POS, purchasing, manufacturing and eCommerce.
We have proudly assisted thousands of clients from around the globe to move their business forward. Our dedicated service team is always available to help you answer any questions you have.
Lost, obsolete or overstocked inventory drives up costs and destroys margins. Without inventory visibility, you won’t know your business is suffering until it’s too late.
The year 2020 marked the highest-level Working Capital Index in 10 years resulting from the Covid-19 pandemic, reported J.P. Morgan. The findings highlight how real-world events impact inventory levels and the availability of working capital. Working capital is defined as inventory, debts, cash, and cash equivalents. A business needs working capital to be able to […]
