The Most Comprehensive Guide (17 Points) on Building the Best Inventory Management System for Your Ecommerce

In this detailed post, I will run you through the nitty-gritty of the inventory management system. In my experience, inventory management is the key to business success. Retail and manufacturing industries benefit the most from effective inventory handling.

So, what is an inventory management system?

An inventory management system streamlines the flow and management of inventory. Control your stocks with ease using a centralized automated inventory tracking system.

I’m not exaggerating when I say an inventory management software improves efficiency. You can always ensure that you have enough of the required quality stocks at the right time.

Simply stated an inventory management system blends technology, processes, and procedures. This approach enables you to track and maintain your inventory.

What makes an inventory system successful?

So what are the signs of an inventory management system that checks all the boxes for your business?

Here are some simple, yet powerful features of an inventory management system, consider them the essentials of getting started in setting up an inventory management system.

Quick Guide:

1. Does your business need to build an inventory system?
2. You Need the Ability to Expand your Business
3. You Need the Ability to Do Advanced Reporting
4. You Need the Ability to Receive Purchase Order and Manage Orders
5. You Need the Ability to Print Barcode Labels
6. You Need the Ability to Be Able to Automatically Reorder
7. You Need the Ability to See a Big Picture Overview to Maintain Stock levels
8. You Need the Ability to Proactively Avoid Stock Issues
9. You Need the Ability to Grant Role-Based Permissions and User Access Restrictions
10. You Need the Ability to do Barcode Scanning
11. You Need the Ability to do Drop Ship on Demand
12. You Need the Ability to set Pick Order Requisitions
13. You Need the Ability to Get Bottom Line Reporting & Analytics
14. You Need the Ability to Get and Set Predetermined Alerts & Notifications
15. You Need the Ability to See What is Coming Next with Forecasting
16. You Need the Ability to See the Details on Your Suppliers
17. You Need the Ability to Manage Your Marketplaces Inventory

1. Does your business need to build an inventory system?

Inventory tracking systems get utilized in many applications. All these applications involve monitoring the delivery of items to consumers.

Most retailers use inventory management software. Have you noticed? The big retailers have a vast number of products for sale. Automation helps them to keep track of these items.

Here’s something else. Warehouses also use the inventory management system to watch orders and shipments. The software streamlines order processing for warehouses as well.

I think you’ll agree with me when I say:

Inventory tracking software drives the success of an online store.

Oh, and did I mention an inventory management software integrates

• desktop system
• barcode scanners
• barcode labels
• mobile devices

This feature makes sense if you think about it. Here, all the devices and software get integrated. There are no loose ends causing inefficiency in the inventory management workflow.

Why use a customized automated inventory management system?

Your business is unique and because your business is unique it has unique processes. And although those unique processes have probably led to what has made you successful as a business it also has led to logic that’s not really capable of being filter cookie-cutter solutions.

2. You Need the Ability to Expand your Business

An inventory software integrates POS inventory management and barcode inventory management system. Tracking features get blended with other capabilities.

Do you realize how incredibly valuable that is? The automation empowers your business with scalability to grow your business.

3. You Need the Ability to Do Advanced Reporting

An inventory management system software can automatically generate reports whenever you need them. Create, manage, schedule and share reports using an intuitive dashboard.

4. You Need the Ability to Receive Purchase Order and Manage Orders

Create purchase orders using the software. And you’re done! At least with the right software.

Order management is easy with accessibility to all the details through a single, centralized system.

5. You Need the Ability to Print Barcode Labels

A barcode inventory management system allows you to read barcodes and update inventory.

I have great news:

The software conveniently connects your system with your barcode printers. Using the data in the software, it prints the necessary barcode labels automatically.

6. You Need the Ability to Be Able to Automatically Reorder

Can I tell you my worst nightmare? I dread facing the situation of shortage of stocks when we miss out reordering items.

Fortunately, the inventory tracking system comes with an automatic reordering functionality. It prevents a situation of low stocks. You can set the limit of reordering as per the estimated inventory need, that is with a good inventory system, ensuring you stay on top of inventory automatically.

7. You Need the Ability to See a Big Picture Overview to Maintain Stock levels

As I mentioned earlier, the inventory tracking system is essential for online businesses. This way, you can monitor and maintain optimum stock levels.

8. You Need the Ability to Proactively Avoid Stock Issues

This benefit makes sense if you think about it: You know how much inventory you have with you in real-time.

Do you need to clear the inventory or add more to meet the demand? Your inventory management system alerts you. It automatically manages the stocks for preventing issues on time.

9. You Need the Ability to Grant Role-Based Permissions and User Access Restrictions

This is pretty straightforward:

Admins can set role-based permissions and interface settings to control the workflow.

When it comes to security, prevention of unauthorized access is critical. Grant employees access to data that allows fulfilling their functions in the process.

Which means that your users can receive products, make orders, transfer items, and so on. They can carry out their tasks without compromising company security.

This way David in accounting and Larry in warehouse management only see what they need to see.

10. You Need the Ability to do Barcode Scanning

Now, listen to this very carefully:

You can use the software to scan barcodes, QR Codes and RFID tags with mobile apps or external scanners.

Oh, and did I mention this feature helps you to discover picking errors at the source. Imagine the benefit for tasks that need counting huge numbers of physical items.

So, why use a Barcode Inventory Management System?

As I said before:

Get accurate data on stock takes, receiving shipments, packing orders, and shipping orders. You will know what is there in stock and what isn’t.

Other than that, improve your decision-making process with automated barcode inventory management software.

11. You Need the Ability to do Drop Ship on Demand

Drop shipping becomes more manageable with automated inventory management software.

Now, convert the pick order to a purchase order instantly. The goods get shipped directly from your vendor to your customer. You don’t have to adjust your stock levels, receiving items in, or modify the current pick order.

12. You Need the Ability to set Pick Order Requisitions

Inventory management services let you easily prepare pick orders requisitions for inventory items. It ensures the right order, product, and customer. You may consolidate purchased items and services on a single pick order and pass them to inventory pickers to ensure the order is filled with full accuracy.

Use an inventory management system. Ensure the right product, right order, and right customer every time.

13. You Need the Ability to Get Bottom Line Reporting & Analytics

Let me tell you the reason why you need automated inventory management and reporting?

• Get status updates with real-time global inventory visibility for all users
• Manage logistics billing and storage fee billing reports
• Gain built-in business intelligence with insight into trends

Are you a multichannel seller? Automated inventory systems and product reporting are crucial for you. Here’s why:

Data analytics enables your business to control inventory levels. You can maximize the use of warehouse space as well.

If you use spreadsheets to run inventory, you lose the accuracy of real-time data tracking. So, what happens? An out of stock item may go on sale in your store.

If customers buy a stocked-out item, your team will encounter many issues such as:

• Delayed delivery to customers
• Challenge of managing an impatient consumer in case of a delay
• Trying to get the item at a higher cost to offer on-time delivery
• Negative reviews by unhappy customers if the shipment gets delayed
• Dealing with customer unhappiness (Imagine if you have to inform the customer of the unavailability of the purchased product.)

14. You Need the Ability to Get and Set Predetermined Alerts & Notifications

Receive timely alerts about inventory levels, order fulfillment, and other activities. This functionality in inventory management software enables strategic decision-making.

15. You Need the Ability to See What is Coming Next with Forecasting

Save time by using an automated inventory tracking system. Avoid struggling with data pulled from disparate systems and many locations.

But that’s just the beginning. Here’s something more:

• You can forecast future demand accurately with automated inventory management software.
• Anticipate shopping trends and automate discounts for customer segments. Also, set up seasonal promotions in advance.
• Identify your old inventory and move inventory faster.

16. You Need the Ability to See the Details on Your Suppliers

Gain control of your supply chain across your entire organization. Inventory management software includes manufacturing and purchasing functionalities.

The thing is your suppliers, need a system to keep all of their information in one place. Name contact, when you last purchased from them a good system will have all of these set almost as supplier contact profile, so you don’t have to remember all of the contact information of the details of your last conversation.

17. You Need the Ability to Manage Your Marketplaces Inventory

Manage one central product catalog and sync your products across all your channels. This approach eliminates double data entry and reduces human errors.

So to conclude to get the best out of your inventory management system, you will need the following components:

1. Does your business need to build an inventory system?
2. You Need the Ability to Expand your Business
3. You Need the Ability to Do Advanced Reporting
4. You Need the Ability to Receive Purchase Order and Manage Orders
5. You Need the Ability to Print Barcode Labels
6. You Need the Ability to Be Able to Automatically Reorder
7. You Need the Ability to See a Big Picture Overview to Maintain Stock levels
8. You Need the Ability to Proactively Avoid Stock Issues
9. You Need the Ability to Grant Role-Based Permissions and User Access Restrictions
10. You Need the Ability to do Barcode Scanning
11. You Need the Ability to do Drop Ship on Demand
12. You Need the Ability to set Pick Order Requisitions
13. You Need the Ability to Get Bottom Line Reporting & Analytics
14. You Need the Ability to Get and Set Predetermined Alerts & Notifications
15. You Need the Ability to See What is Coming Next with Forecasting
16. You Need the Ability to See the Details on Your Suppliers
17. You Need the Ability to Manage Your Marketplaces Inventory