How to Choose the Right Inventory Management Software

Who Should Use Inventory Management Software?

Businesses best suited for IMS integration are typically medium- to large-sized organizations with high‑volume fulfillment needs, often shipping 50,000 or more parcels annually.

Its ability to manage complex inventory and fulfillment operations makes inventory management software perfect for:

• Retail businesses—Gain real-time visibility into stock levels across locations to help prevent low stock, reduce overstock and improve in-store and online sales.
• E‑commerce brands—Sync stock across online marketplaces to avoid overselling, and secure customers with a smooth and speedy order fulfillment.
• Manufacturing—Reduce production delays, minimize waste and improve demand forecasts to efficiently manage materials and finished goods.
• Warehousing and logistics teams—Easily track inventory, optimize storage facilities and improve picking accuracy to increase operational efficiencies across the supply chain.

We’ve created this checklist to help you find the perfect software for your company.

5-Step Inventory Management System Checklist

1. Set a Budget

Like any business decision, choosing an IMS will have a financial impact on your company. Consider the following when making your choice:

• Research the top IMS for your industry to gauge a price range.
• Determine how much money an IMS could save your company.
• Set a limit on how much you’re willing to spend.
• Create a list of 5–10 inventory management systems in your price range.

Plus, remember to carefully review the extent to which the inventory management system you are considering might help reduce potential liability of various risks related to, for example, the shipping of hazardous materials and various export control requirements.

2. Pick Software Tailored to Your Needs

There are countless IMS software options on the market, many of which are industry specific. An e‑commerce IMS, for example, will have different features from a retail IMS. Consider the following when making your choice:

• List the problems you’re trying to solve. Possible examples include overstocking/understocking, incorrect inventory levels, disorganized reporting and using incompatible platforms, as well as potential liability related to the shipping of hazardous materials and various export control requirements.
• Schedule a call with the IMS vendors on your list and request a one‑on‑one demo of their software.
• Ask the vendors about features that will help you address your biggest issues. Possible issues include monitoring current stock levels, running restocking and sales reports, allowing multiple users to access the IMS, establishing a barcode system, creating invoices and sales orders, integrating multiple platforms, and handling shortpaid mail and potential noncompliance fees.

3. Find Software That Will Grow With Your Business

When vetting your IMS options, it’s crucial to find a system that can scale. Why spend the money on expensive software, if it won’t be able to service your needs as your business expands? Consider the following when talking to your vendors:

• Ask if the software allows you to add new store locations, product lines and new sales channels, like e‑commerce.
• Ask them about the limitations of their IMS and what features they’re working to add in the future.
• Ask about their knowledge of and experience with issues that may arise in relation to laws and regulations concerning hazardous materials and various export control requirements.
• Ask them how frequently they update their software with respect to such evolving laws and regulations.
• Narrow your list to three IMS vendors that would suit your business for years to come.

4. Decide on a Level of Customizability

Some IMS have a static number of features, while others are configurable and can be tailored to your company’s needs. Consider the following when making your choice:

• List the modules and features each IMS comes with. Note how configurable each IMS is and whether you can add any modules at a later time.
• Rank your three top vendors by configurability (i.e., which IMS offers the most flexibility when creating your inventory reports, invoices and more).

5. Establish Compatibility

Many businesses use different kinds of software programs for their packaging, accounting, returns and logistics needs. Make your job easier by choosing a system that can sync with these programs and work in unison. Consider the following when making your choice:

• Ask your vendors to list which software programs and devices they can integrate with their IMS.
• List all the programs and devices you use, then cross-check which IMS can integrate with some or all of them.
• If you’re having difficulty deciding on one IMS over another, take customer service into account. Not all companies are created equally.