Many companies are using inventory management systems software. As a result, they keep records and report on inventory to plan, predict, and fulfill customer orders and increase profitability. From all the options available, how can you choose the one that is best for your business? What features should you prioritize? We have got you covered here!
Inventory and purchasing software is a valuable tool for small businesses looking to streamline their operations and increase efficiency. When selecting a software solution, it is crucial to consider the vital features of your business.
Here are some key features to look for in inventory software for small businesses:
Inventory Tracking And Management
The software must track and manage inventory levels, including reorder points and generating purchase orders.
It is the most fundamental requirement for an inventory management system. Your software must depict what you have. Also, its location reflects any stock movements or allocations made by your business in real time. It signifies that your stock position reflects sales orders. As a result, you won't sell the same item more than once or stuff you can't deliver.
As the incoming products scan at the warehouse, your inventory management software automatically updates. Real-time warehouse moves are shown.
Suppose you are a manufacturer. So, set aside components for production. So, you avoid beginning a fresh assembly run to discover that half of your parts were used up on another project.
Even if the consignment product is kept at another store, your system tracks it.
Purchase Order Management
Check that the software generates and tracks purchase orders, including:
- Tracking delivery status
- Approving or rejecting demands
- Generating reports
A critical business efficiency you unlock is gaining control of your purchasing. So, when you know what you have, what it is worth, and where it is, you are in a far better position to buy more.
But you must ensure that you don’t waste time and make mistakes transferring your inventory data into your purchasing process or copy-and-pasting your supplier details.
The top inventory management programs enable you to:
- Create and automatically fill up your purchase orders
- Put all your supplier information in one place
- To make optimal purchasing simple, produce any quantity reductions your suppliers give you
- View the supplier's transaction history
- If products are delivered in bits and pieces, only accept the purchase order
Barcode Scanning And Mobile Compatibility
The software should support barcode scanning and be compatible with mobile devices, allowing for easy inventory management.
A barcode is a graphic, computer-readable way to represent data. It involves scanning data into a computer and entering it. The information in the barcode links to an SKU, lot number, client shipping, or purchase order. After being scanned, the data is retrieved and displayed. As a result, the user may either learn more or take action.
It is impossible to exaggerate the value of a user-friendly interface. It is impossible to get back the time (and money) invested in training or adjusting your workforce to a cumbersome platform.
The maxim less is more should guide your e-procurement system. A streamlined software stack enables more rapid onboarding at all levels and a smoother transition. As a result, they won't interfere with your organization's regular operations.
Integration With Accounting Software
The software must integrate with accounting software, such as BusinessBid's procurement software. So, it streamlines financial operations and reduces manual data entry.
What vital interfaces and integrations are necessary for your project if it can't receive all its essential functionalities from a single source system? Do you need any more add-on systems? What costs are associated with implementation? So, you must consider these.
Reporting And Analytics
The software should provide detailed reporting and analytics, including inventory turnover and cost of goods sold, to help with decision-making and forecasting.
Selecting new inventory management software is pointless if you manually extract all your data each month. After all, the main goal of every software system is to minimize administration and boost the effectiveness of scaling operations.
- Look for built-in reporting capabilities that can provide data such as:
- Your stock turnover percentage
- Days on average to sell each SKU
- Backorder rate you
- Unit sales
- Stock age and more
Product And Supplier Management
See that the software manages product and supplier information, including:
- The ability to track lead times
- Contact information
Automate supplier relationship management via the purchasing software you use. Sending communications, completing transactions, and resolving problems with suppliers must be simpler. Suppliers will start to favor your company when they can get in touch with you and finish the purchasing procedure fast. Time spent on purchasing will decrease if your suppliers remain friendly.
By considering these features and how they align with your business needs, you can choose an inventory and purchasing software. As a result, these systems can help improve your operations and increase efficiency.