The Importance Of Keeping Inventory For Small Business?

how to keep track of inventory for small business

It offers real-time visibility, a compliance-ready platform, and integrations with popular business tools, including QuickBooks, Salesforce, and Shopify. Basic inventory management software can help your business run more smoothly, but industry-specific options will maximize efficiency. For example, managing perishable inventory, like food or cosmetic products, is very different from managing nonperishable products, like clothes. The type of inventory you work with will dictate how long it can stay on the shelves, how much of it you should order and how frequently you should order it.

But since EZOfficeInventory is focused on asset tracking—versus other systems that are mainly retail-focused—it’s for a specific kind of business. If you’re looking to keep track of assets and not retail products, this is great software for any sized business. Only three users are included in the midsized business plan (the least expensive option from Unleashed) and B2B ecommerce costs an extra $129 per month. Add to that the compulsory managed onboarding at $329, and you’re buying software that will run you $737 for the first month! If you’re a smaller business using warehouses, it’s probably not worthwhile. The base cost is $999 per month, and that takes many businesses out of the running.

What kind of business do you operate?

With a powerful solution like Cin7 Core inventory management software (formerly DEAR Systems), small businesses are poised for success. We hope these seven small business inventory management tips will help you and your small business continue to grow! If you’re interested in making your inventory management even simpler and more effective, consider Finale Inventory. Several of our successful clients report growing their business four times with the help of our powerful inventory management tools. Raw goods include materials, parts and ingredients used to make or repair finished goods. Product packaging and shipping supplies can also be tracked as inventory items.

how to keep track of inventory for small business

Dropshipping is the process of receiving an order from a customer and having your supplier ship the products directly to the customer. This cuts out the need for a storage facility or for keeping any inventory on hand. It is best reserved for rare orders or items you cannot accommodate in your warehouse, because it means your customer’s satisfaction is in the hands of your supplier rather than your own business. Any business that sells physical goods needs a place to store items, whether that’s a warehouse or your own store.

Copyright ©2023. Planergy

As a small business, inventory management starts as an intuitive process – counting and tracking – but can devolve into a challenge as operations become more complex. Savvy SMBs should work to stay one or two steps ahead of any budding issues to be in a position to fully capitalize on high-growth phases. A common misconception is that inventory management tools are only suited for large-scale companies. Today, there is enough data to show that small and midsize businesses (SMBs) stand to gain a lot by streamlining their operations using the latest technology. Inventory management is actually a major pain point for businesses large and small.

Businesses of all sizes need to track inventory to help them manage costs and ensure they have an ample supply of products to meet customer demand. Effective inventory management allows businesses to save money and improve cash flow. Keep in mind, though, that free software options may not include all the order management, warehousing, and production features your business needs—and very few offer accounting software integration. To find out more, read our comprehensive guide to the top free inventory management software options. The best way to keep track of inventory for a small business is to use inventory management software that offers features such as real-time tracking, low-stock alerts, and analytics. If you have a low budget, you may want to research free inventory management software options.

How can you prevent shoplifting in your small business?

For example, one inventory worker may make an entry in his notebook as soon as replenishment stock is received. However, he may forget to inform the rest of the team or update the master ledger, leading to a discrepancy in the numbers. The team may think the item is still out of stock and even refuse sales orders, while the item has actually been replenished and is ready to be shipped. POs (Purchase Orders) are the most straightforward method for managing the buying or procurement side of inventory.

  • This software can help you monitor stock levels, sales patterns and place orders for new merchandise when necessary.
  • Some businesses own their whole supply chain — such as a producer and seller of handmade messenger bags.
  • Ideally, you should focus your spot checks on your fastest-moving and your most expensive products.
  • One of the key factors for the loss was that Cisco’s inventory management modeling was way off and it poorly forecasted its sales figures.
  • SKUs generally use a combination of letters and numbers which are arranged to deliver key details about an item at a glance.

Whereas some inventory management software products only accommodate businesses in a particular industry, Cin7 can be a good fit for a variety of businesses, thanks to its robust set of features. The system supports multichannel orders, warehouse management and custom inventory fields, along with a suite of reports that help you plan out future inventory orders based on past data. Lightspeed Retail is a POS system with strong, built-in inventory management features. In addition to keeping track of stock, business owners can fill out purchase orders from within the software and make bulk price changes across sales channels.

The platform has its own accounting software and can directly integrate with more than 100 POS systems. Restaurants, especially those with multiple locations, might consider the platform if they can take advantage of some bookkeeping for startups of its more advanced features. The three crucial things to consider are integration, data quality, and training. Inventory management software can integrate with existing systems, such as an ERP or accounting software.

We will be happy to hear your thoughts

Leave a reply

New Home Gift
Compare items
  • Total (0)