What is inventory management software?
Next to payroll expenses, inventory is usually the second largest expense for companies. Inventory management is a critical business function that controls the procurement and warehouse inventory processes.FactsInventory management systems help companies track each individual product line and how well the company sells inventory. Business technology has greatly increased the accuracy of inventory management.FeaturesInventory management software transfers information electronically between company facilities and other businesses in their supply chain. Inventory software may also link inventory management systems directly to retail sales systems for real-time information purposes.BenefitsElectronically transferred information helps companies plan for future inventory needs. Shortening the lead time to procure inventory prevents stock outs of essential production materials or produced goods.MisconceptionsBusiness technology and software prices have greatly decreased over the past few deca
Inventory management software is a system for tracking and reporting on the use and distribution of supplies or products. Software suitable for larger, multi-location operations is sometimes referred to as warehouse management software, but it generally performs the same functions on a larger scale. Inventory management software features Before you start investigating inventory management software, decide which features are most important to your business. Here are some of the standard features you should expect: • Inventory control – sets locations and shelf or bin numbers for each item in inventory. Tracks incoming and expiration dates as applicable. • Shipping – creates or imports sales orders to generate pick lists, packing slips, and shipping information. First in, first out (FIFO) or last in, first out (LIFO) as appropriate. • Receiving – manages the placement of incoming inventory, generates put lists. • Multiple units of measure – allows incoming items to be measured in pallets
