12 Best Inventory Management Software for Small Businesses 2024

In the world of business today, any edge is valuable. And for small businesses, the key to success is not in the creation of large-scale marketing and advertising campaigns or costly promotions. However, it’s crucial to understand how to manage inventory. Similar to the way your heart is vital to the body, inventory is also a vital organ in your business. 

When inventory is well controlled, it’s a lifeline to business operations as it fuels growth and profitability. Failure to do so, your business will choke from excess or insufficient inventory, losing out on business, and frustrating customers. To avoid these pitfalls, the right inventory management software will not only improve your business’ flow but also help to fuel growth taking it to the next level. 

From increasing the overall profitability of SMEs to increasing the satisfaction levels of its customers, effective inventory management has a wider role to play. It’s about building the best and leanest organization possible that can become very responsive to market signals and exploit opportunities while providing superior value to your customers. 

In this article, Foundeck talks about the 12 best inventory management software for small businesses 2024. If you are running a new company and you require tips and ideas on how to create a solid foundation, this guide contains information that will be very useful to you.

Why Small Businesses Need to Effectively Manage Inventory  

Inventory management is fundamental in any business. It’s the cornerstone of all operations. It assists in keeping the right stock, cutting on costs such as shrinkage, carrying costs, and stockout costs. By implementing a dynamic inventory management system, small businesses can:  

1. Minimize the cases of overstocking and understocking of products. 
2. Optimize cash flow via increased inventory turn over rate. 
3. Improve delivery timelines to meet and even exceed customers’ expectations. 
4. Get important information on the performance effectiveness and market trend fluctuation of the product. 
5. It helps small businesses to remain relevant and competitive in the current market that is characterized by a lot of changes and dynamism.

Best Small Business Inventory Management Software for 2024  

Below, we will look at the top 12 inventory management software solutions crafted for small businesses with the emphasis on their features and advantages. 

 1. TradeGecko  

TradeGecko is a cloud-based inventory management solution specially developed for small enterprises. This is because it offers some of the best features that any growing enterprise would need and it is easy to use. 

 Key Features:  

•  Multi-channel selling support 
•  Automated order processing and order transmission 
•   Real time stock monitoring and reporting 
•  Easy integration with QuickBooks and Xero 
•  Allows the use of mobile devices to update stocks or any other item.  

 Pros: 

•  User-friendly interface  
•  Scalable for growing businesses  
•  Comprehensive reporting capabilities 
•  Excellent customer support 
•  Sustained updates with frequent new features 

 Cons: 

•  Pricing could be high especially for very small businesses or organizations. 
•  Some of the users have few choices when it comes to customizing the product. 
•  The occasional minor glitches in mobile apps. 

2. Zoho Inventory 

Zoho Inventory is one of the applications in the integrated Zoho business cloud, which allows users to work with other applications in the suite. It makes it a perfect solution for the companies that are already using some of the Zoho products. 

Key Features: 

• One  is the ability to generate automatic orders depending on the low-stock alerts. 
• Serial number and batch tracking 
• Dropshipping support 
• Custom reports and support for data analysis 
• Multi-currency support  

Pros: 

• Integration with other Zoho apps 
• Affordable pricing model 
• Robust reporting capabilities 
• Excellent customer support 
• Regular feature updates 

Cons: 

• The learning curve is relatively steep as compared to some of its competitors. 
• Few extra tools for meeting complicated inventory requirements 
• Minimal interruption in synchronization between Zoho applications 

3. Cin7 

Cin7 is an all-in-one inventory management software for B2B and B2C companies and it is suitable for all types of industries. Due to advanced features, it is ideal for small businesses that are in need of rapid growth.  

Key Features: 

• Integrated POS system 
• Multi-channel selling support 
• Reorder of items following the sales trends 
• Warehouse management features 
• Easy integration with Shopify and WooCommerce 

Pros: 

• Multiple features for different types of businesses. 
• Excellent scalability options 
• Strong integration capabilities 
• Very intuitive and easy to use despite the complexity that is inherent in the tool’s functionality. 
• Good customer support 

 Cons: 

• Prices may be steep for small scale operations. 
• Some users complain that their interface is congested. 
• Occasional system downtimes especially when handling big quantities of data.

4. Skubana 

Skubana is an innovative inventory management software, which is targeted mainly at e-commerce companies. Because of its emphasis on automation and productivity, it is ideal for online selling companies.  

Key Features: 

• AI-powered demand forecasting 
• Cross-platform order management 
• Automated shipping and order fulfillment processes
• Advanced reporting and analytics 
• Easy integration to Amazon and eBay. 

Pros: 

• Flows that are automated for effectiveness and efficiency.
• Perfect for multichannel e-commerce businesses. 
• Strong analytical capabilities. 
• Frequent updates of aesthetics and security features. 
• Good customer support.

Cons: 

• Steep learning curve due to its complexity.
• Pricing can easily become a problem for e-commerce businesses that are small in size. 
• Some users complain of some problems related to synchronization from time to time. 

 5. Vend  

Vend is an easy-to-use POS and inventory software designed specially for the retail industry. Its simplicity and flexibility also make it suitable for  traditional retail stores that are slowly transitioning  into digital inventory management.  

Key Features: 

• Real-time remote access via cloud-based services. 
• Customer loyalty program integration. 
• Gift cards and promotions integration.
• Multi-store management capabilities.
• Integration with other ecommerce platforms.  

Pros: 

• A very user-friendly interface 
• Comes in handy especially for retail businesses that are making the switch to digital solutions. 
• Good customer support. 
• Regular feature updates. 
• Affordable pricing model.

Cons: 

• Few features for advanced level inventory fulfillment.
• Occasional issues of synchronization between the online and offline modes. 
• Few options for user customization.

 6. Square for Retail 

Square for Retail is one of the solutions that make up the Square software ecosystem designed for retail. When integrated with payment processing, it presents an ideal solution for companies that are already using services provided by Square. 

Key Features: 

• Built-in CRM features 
• The application provides the tools for the management of employees and the tracking of working hours. 
• Online store integration.
• Business intelligence tools such as advanced reporting and analytics 
• Gift cards and promotions are also supported. 

Pros: 

• Compatibility with all Square payment solutions 
• Comprehensive feature set as a solution to support retail business activities. 
• User-friendly interface 
• Good customer support 
• Regular feature updates  

Cons: 

• Few extra options for the customers with the complicated requirements for inventory control 
• The cost might be higher compared to some other similar solutions 
• Occasional  slow system performance especially when handling large data sets.

7. Stitch Labs 

Stitch Labs is a robust software that helps you to manage inventory for the multi-channel selling businesses. Due to its emphasis on scalability it is highly suitable for organizations who seek to rapidly grow their market share.  

Key Features: 

• Automatic ordering that is based on the past sales performance. 
• Support for dropshipping operations 
• Multi-channel order management 
• Advanced reporting and analytics tools 
• Easy connection with most popular online selling platforms and stores 

Pros: 

• Excellent scalability options 
• Strong integration capabilities 
• Robust reporting and analytics 
• Good customer support 
• Regular feature updates 

Cons: 

• Pricing structure may be high for very small businesses. 
• Occasional loss of sync. 
• Some users have reported limited customization options.

 8. Ordoro 

Ordoro can be described as a feature-rich inventory management system developed to suit the needs of e-businesses. Due to its emphasis on automation, it is ideal for internet-based stores.  

 Key Features: 

•  Self-service mechanisms of shipment and delivery 
•  Integration of dropshipping services with automated supplier support. 
•  Multi-channel order management. 
•  Sophisticated reporting and analysis features. 
•  Integration with the major e-commerce platforms and marketplaces. 

Pros: 

• Organizational procedures can be automated and efficiently completed. 
• It is perfect for small businesses in cross-channel e-commerce. 
• Strong analytical capabilities 
• Good customer support 
• Regular feature updates  

Cons: 

• Pricing can be costly, hence may not be easily affordable by most e-commerce business enterprises. 
• Some of the users have mentioned occasional issues in the synchronization of the orders. 
• Some of the features that are not so highly developed for those who have more complicated needs for inventory apart from e-commerce. 

 9. Brightpearl  

Brightpearl is an integrated retail management solution that comes equipped with very powerful inventory management tools. Its capability to cover all aspects of omnichannel retailing makes it a suitable solution for small businesses working with several sales channels. 

Key Features: 

• Reordering system which is automatic based on the sales trend. 
• Multi-channel order management 
• Support for dropshipping operations 
• High level of reporting and analysis capabilities 
• Effective integration with the most popular e-commerce platforms and marketplaces.  

Pros: 

• It is ideal for businesses that offer multiple options for purchasing the products such as online and store. 
• Strong integration capabilities 
• Robust reporting and analytics 
• Good customer support 
• Regular feature updates 

Cons: 

• Prices can, at times, be on the higher side especially for small scale operations. 
• Some users may find the interface of this application complicated. 
• Occasional instability when working with large data sets.

10. Acctivate  

Acctivate is an effective inventory control software that is developed for the expanding commercial ventures. It can handle complexity and expandability, this tool is ideal for large businesses that want to develop their operations.  

Key Features: 

• Lot and serial number tracking 
• Warehouse management features 
• Availability of support for multi location inventory management 
• Reporting and analysis features 
• Easy Integration with QuickBooks 

Pros: 

• This is a suitable small business software for customers with complex inventory requirements. 
• Excellent scalability options 
• Strong integration with QuickBooks 
• Good customer support 
• Regular feature updates  

Cons: 

• Slightly more difficult to master because of the complexity of advanced features.
• Costs may be high for very small scale businesses. 
• Some reports of occasional sync problems with QuickBooks. 

 11. Fishbowl 

Fishbowl is an all-in-one inventory solution for manufacturing and warehouses. Due to its various features, it is particularly suitable for small businesses with complex inventory needs. 

Key Features: 

• Manufacturing work order and (BOM)bill of material documents that are issued to monitor the work in progress and control the flow of materials. 
• Warehouse management features 
• Support of multi location inventories 
• Reporting and analysis functions 
• Easy integration with QuickBooks 

Pros: 

• Very suitable for industries such as manufacturing and warehousing. 
• Feature depth for complex stock management situations. 
• Strong integration with QuickBooks. 
• Good customer support. 
• Regular feature updates. 

Cons: 

• Software pricing can be too high for the smaller businesses. 
• Slightly complicated user interface to some users. 
• Few options in the way that the product can be personalized.  

 12. Sortly 

Sortly is a simple to use tool for inventory management aimed at small businesses. Due to its simplicity and cheap price, it is best for small businesses and one man businesses.  

Key Features: 

• Flexibility in the personalization of categories of inventory 
• Barcode scanning support 
• Mobile access to the inventory control. 
• Basic reporting features 
• Compatibility with other well known accounting and inventory management software for small businesses. 

Pros: 

• Extremely user-friendly interface 
• Affordable pricing model 
• Useful for small business organizations that are adopting digital systems in their operations. 
• Regular feature updates 
• Excellent customer support 

Cons: 

• Minimal extra features for those who have more complicated inventory requirements 
• Occasional synchronization issues of the mobile and the desktop clients. 
• Restricted customization options.

How to Select the Best Inventory Management Software for Your Company 

Given the fact that there are so many amazing solutions out there it might be a real challenge to choose the right inventory management software. Here are some pointers on where and what to look for in an inventory management software;

1. Business size and its growth opportunities 
2. Industry-specific demands (e. g. manufacturing industry, retail industry, e-commerce industry) 
3. Interoperability with current systems (e-commerce platforms, accounting software) 
4. Current budget and pricing strategies 
5. Ease of use and design 
6. Flexibility and suitability for growth 

Implementing Inventory Management Software: A How To Approach 

The process of changing to, or implementing a fresh inventory management software is not an easy one and has to be done systematically. Here are some pointers on how to transition smoothly: 

1. Take a look at how your business handles its inventory today. 
2. Ensure you have clearly laid out inventory management software goals and objectives to be established. 
3. Select the proper inventory management software depending on the requirements you have. 
4. As a small business, before embarking on data migration, carry out thorough inventory records cleaning. 
5. Install the new system and implement the necessary settings and parameters. 
6. Train the employees how to go about using the new software 
7. Phase out the old systems while introducing the new one in phases 
8. Monitor the inventory management software performance and carry out changes as required.  

Tackling the Common Challenges Faced by Small Businesses in the Management of Inventory 

Despite the numerous benefits that businesses can gain from inventory management software, there are usually a number of challenges that businesses experience in the course of implementing the software. Some ways of handling the common challenges faced in the management of inventories include the following;  

1. Data accuracy: The presence of audit and automated tracking systems helps to keep the records of inventory updated and accurate.  
2. Stockouts and overstocking: Use demand forecasting tools and automate the reordering system.
3. Multi-channel management: Select software that supports multi-channel sales strategy; offering a unified inventory database.  
4. Employee adoption: Give your staff adequate training and ensure that the users give their feedback.  
5. Integration issues: Choose applications that can work with current solutions or opt for an all-encompassing set of business tools.

The Future of Inventory Management

With the rapid growth of technology, the future of inventory management  for small businesses can only get better. Here are the top most promising developments in inventory management:

1. AI (Artificial Intelligence) and ML(Machine Learning)

AI helps in forecasting the future sales and demand trends. Decisions concerning inventory are made independently by ML without any interference from human beings. These technologies control the stock levels optimally using historical information to predict the future requirements. AI & ML help to avoid time-consuming tasks and errors. 

How Does AI and ML Help With Demand Forecasting?

AI and ML help with demand forecasting in several ways: 

1. Analyzing large datasets: AI can analyze large amounts of data much quicker than human beings, such as the previous sales records, seasons, trends, and even external factors. 
2. Identifying complex patterns: Using the ML algorithms, it is possible to identify relations and dependencies in data that might be unnoticed with traditional approaches. 
3. Making predictions: Using data analysis, it is possible to come up with the right forecast of the demand that is expected in the future. 
4. Continuous improvement: Compared to other forms of AI, the ML models can improve their predictions as new data is processed. 
5. Handling uncertainty: AI is also able to give probability ranges for the forecasts and thus manage the risks. 
6. Incorporating real-time data: AI can easily take into account the recent events or changes that may have an impact on demand. 
7. Automating the process: Once AI systems are put in place, the process of demand forecasting is for the most part automated. 
8. Providing granular forecasts: It means AI can provide forecasts for specific SKUs, locations, etc. 
9. Accounting for seasonality: One of the strengths of using ML models is that it can capture seasonal patterns and trends correctly. 
10. Integrating external factors: AI can integrate weather reports, economic trends, social media response, and other factors into the forecasts.

2. Internet of Things (IoT) 

IoT employs the use of smart devices to monitor the inventory levels on a continuous basis. Stocks are recorded in real time through the use of sensors. RFID tags also assist in identification of items thus making it easier to find the item of interest. Relative to manual inventory management, IoT provides a long lasting and error-free solution. It enhances the quality of the inventory data that is being used in the organization. 

3. Blockchain 

Blockchain offers a record of the transactions which is highly transparent. It enables the seamless tracking of inventory throughout the production process until its delivery. It helps small businesses to prevent counterfeit products therefore maintaining the supply chain’s credibility. It creates confidence in the minds of consumers and hence creates trust between businesses and customers. 

 4. Mobile-first Approach 

Inventory management can be done anywhere through mobile devices. Managers are able to monitor the stock levels from the comfort of their offices or offsite. Employees can use smart phones in updating inventory, enhancing mobility, convenience and also the rates at which work is done. A mobile first approach eliminates paperwork and manual errors that are time consuming in the organization. 

5. Cloud-based Solutions 

Cloud-based solutions ensure that inventory data is always accessible anywhere. Several users can work simultaneously in one project over the Internet since cloud-based solutions can scale up or down without much trouble. Cloud-based solutions also help to minimize unnecessary expenses on equipment.

Small businesses stand to benefit in the following ways by adopting these technologies: 

1. Get better inventory decisions more quickly. 
2. Reduce cost by automating some of the processes involved in the company. 
3. Increase the accuracy and effectiveness of work. 
4. Adapt to the changes in the environment in order to be able to compete with other firms. 
5. Improve service delivery to the customers. 

Empower Your Business with Modern Inventory Management

In the present world of cutthroat competition for business, it becomes very important for a small business to manage its inventory effectively so as to survive and grow. You can improve operations, increase profitability and customer satisfaction when you adopt one among the inventory management software that we have covered above. 

Choosing the right inventory management system is not only about knowing when and where you stand in terms of stock, but it’s about knowing more about your business and setting your small entity up for success. Start implementing the aforementioned steps to revolutionize your inventory management and see your business grow.

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