– Cost and Budget Considerations

3. Let’s Scale Your Business with the Right Technology
4. Frequently Asked Questions (FAQs)

As your online business starts scaling, so do the complexities of managing it. Orders from multiple sales channels start pouring in, and you are constantly adding new SKUs to your catalog. But the real challenge comes when you want to keep track of everything. 

So far, you have been using Excel to manage your inventory, and it has worked well enough until now! You are caught in a situation where you’re spending more time updating spreadsheets, fixing errors, and trying to make sense of endless rows of data. 

Sound familiar? If so, you’re not alone!

Many business owners start with Excel because it’s familiar, flexible, and seems like an easy way to get organized. But as your business scales, you need a more sophisticated tool to manage your inventory. 

That’s where Inventory Stock Management Software comes in. It is designed to streamline and enhance the entire inventory management process by offering a number of features that exceed the capabilities of traditional spreadsheet tools like Excel.

But how do you determine which tool is the right choice for your brand? To help you make an informed decision, let’s check this detailed feature-by-feature comparison.

Side-by-Side Feature Breakdown: Excel vs. Inventory Management Software

Here, we will compare Excel and IMS side by side so you can decide which tool is the best fit for your growing business.

1. Ease of Use

• Excel Inventory Management: Excel is a tool most of us are pretty comfortable with. Its grid layout and formulas seem straightforward, right? You can set up your spreadsheets just the way you like and get to work. But here’s the catch: as your business scales, managing all that data in Excel can become time-consuming and error-prone.
• Inventory Management Software: Now, coming to Inventory Management Software. It might seem a bit daunting at first, but don’t let that scare you! Once you get the hang of the tool, it can actually make your life a lot easier. The unified dashboard helps you manage your inventory more efficiently. So, while there might be a learning curve, the long-term benefits of IMS often outweigh the initial effort. 

2. Real-Time Updates and Data Accuracy

• Excel Inventory Management: Excel is great for static data, but when it comes to real-time updates, it can be a bit of a headache. You’re constantly updating spreadsheets manually, and if you forget to sync one, your data can quickly become outdated and inaccurate.
• Inventory Management Software: Data accuracy is where Inventory Management Software shines. The solution is designed to keep everything in sync in real time. Whenever there is a change, whether it’s a new order, an inventory update, or a stock adjustment, the system automatically updates data across all the sales channels and warehouses. This means everyone on your team sees the most current data without any extra effort. 

3. Integration with Other Systems

• Excel Inventory Management: While Excel is a great tool for managing data on its own, it doesn’t play well with other systems. If you want to integrate Excel with your e-commerce platform, CRM, or accounting software, it often requires manual imports and exports. You will have to copy and paste data between different systems every day—that’s a lot of room for error and wasted time!
• Inventory Management Software: On the other hand, Inventory Management Systems are designed to seamlessly integrate with your other business tools. Whether it’s syncing with your e-commerce platform, updating your CRM, or connecting to your accounting software, IMS handles it effortlessly. These e-commerce integrations help your business establish a robust ecosystem for smooth selling. 

4. Inventory Tracking and Visibility

• Excel Inventory Management: With Excel, you can keep an eye on your inventory, but it’s a bit like peeking through a small window. You can track what’s in each spreadsheet, but if you’re selling through different channels or have multiple warehouses, you’ll need to update each one separately. It’s like trying to follow traffic from a single viewpoint; you’re only seeing part of the picture, and it’s easy to lose track of where everything is.
• Inventory Management Software: Now, imagine Inventory Management Software as your panoramic view of inventory. It pulls together information from all your sales channels and warehouses into one clear, real-time dashboard. So whether you’re checking stock in one location or across the board, everything’s in sync and easy to see. It’s like having a smart control center that shows you exactly what’s happening with your inventory. 

5. Reporting and Analytics

• Excel Inventory Management: When it comes to reporting, Excel is very useful, but you’ll find yourself spending a lot of time manually creating and updating reports. You will be able to get the job done, but it takes a lot of effort.
• Inventory Management Software: With an advanced Inventory Management Software, generating reports becomes quite easy for your team. It provides built-in, customizable reports and insights that update automatically. You also have the option to set up report subscriptions, so specific reports are sent directly to the email addresses you choose.

6. Cost and Budget Considerations

• Excel Inventory Management: Managing inventory using Excel might seem like a budget-friendly choice since you probably already have it. But here’s the thing: those “free” spreadsheets can end up costing more than you think. You’ll be spending a lot of time updating data, fixing mistakes, and manually syncing information. All that effort adds up, and if things go wrong, it can hurt your revenue. 
• Inventory Management Software: Inventory Management Software comes with a higher price tag, but it is a profitable investment. Yes, there’s an initial cost, but it automates so much of the work, keeping your inventory up-to-date, syncing data, and integrating with other systems. In the long run, it saves you time and helps you avoid costly mistakes. 

Let’s Scale Your Business with the Right Tech

So, to sum up, Excel works well for smaller businesses or those just starting out, especially when budgets are tight. But as your business scales, you might start running into challenges. When you notice that Excel is becoming more of a problem than a help, it’s a sign that it’s time to invest in inventory management software,  

Switching to dedicated tools can make a big difference. They help streamline processes, reduce errors, and facilitate teamwork. Automation isn’t just for managing inventory; it can enhance many areas of your business, leading to greater efficiency and success.

Frequently Asked Questions (FAQs)

1. Is Excel an inventory management software?

No, Excel is not an inventory management software. It can be used to track inventory manually, but it lacks automation, real-time updates, and specialized features that dedicated inventory management systems offer.

2. What is the best software to track inventory?

The best software to track inventory depends on your business needs. While choosing an Inventory Management System you should consider features like automation, scalability, and reporting.

Related Post –

• What is Inventory Cycle Count?
• Top Inventory Management Challenges & their Solutions
• Top inventory management techniques & types
• What is Inventory Tracking?
• What is an Inventory Control System?
• Real Time Inventory Sync – Benefits for E-commerce Businesses
• Top Tips for Choosing Inventory Management Software in UAE

The post Excel vs. Inventory Management Software: A Feature-by-Feature Comparison appeared first on unicommerce.com.

1. Introduction
2. What is Inventory Management System for Small Businesses
3. Why Inventory Management for Small & Medium Businesses (SMBs)
4. Top 8 Advantages of Inventory Management Software for Small Medium Businesses
– Inventory Understocking and Overstocking
– Minimized Returns
– Inventory Replenishment and Forecasting
– Analyzed Inventory Turnover
– Increased Cashflow
– Maximized Savings
– Improved Customer Satisfaction
– Stock Rotation and Inventory Management
5. How to choose the Best Inventory Software for Small and Medium Businesses (SMBs)

Inventory is like blood that flows through your business. Whether it is a small-medium or an enterprise business, the importance of the inventory flow remains critical. However, SMBs are all about what they offer, and inventory is the biggest asset of the entire industry, bringing in all the profit.

SMBs take multiple approaches to having a robust and structured process of complete inventory management. But how would you know that your approach is correct? Or how would you make sure that the structure you decided on fits the needs of your business?

When you manually strategize your approach after investing significant time, the needs may evolve by the time you take action. Let’s understand this better with an example.

For instance, you might identify a particular product as your best seller. However, if a new product launches and quickly surpasses it in sales within a week, you’ll need to reposition that newly popular item closer to the packing station. Managing this process manually can be time-consuming and increases the risk of human error. If done manually, can you analyze, restructure, and restore everything within a week? The answer might be no! Let’s explore this more!

What is an Inventory Management System for Small Businesses?

Inventory management is an essential process of tracking and maintaining the stock of multiple products in a warehouse and online and offline stores and providing smooth fulfillment of orders received by a business or brand.

To achieve accurate information on all selling touchpoints, sellers prioritize adapting technologically backed inventory management solutions to help transform their overall operations. The array of support offered by these solutions not only sorts the complete management process but makes it relatively quick and hassle-free, assisting businesses in maintaining a healthy flow of their stocks and delivering their products to customers on time at the correct costs.

The data collated by an inventory management software or system allows you to check out the pattern of customer purchasing behavior, enabling you to constantly be updated on your in-demand inventory and achieve good sales.

Why Inventory Management for Small Medium Businesses (SMBs)?

The primary benefit of inventory management for small to medium-sized businesses is the ability to streamline inventory flow effectively. Stock availability directly impacts customer satisfaction, and maximizing space utilization is crucial to operational efficiency.

However, managing these elements manually can be challenging. Relying on spreadsheets and reports is prone to human error and lacks the speed and precision needed for optimal performance. An inventory management system eliminates these limitations, reducing errors and accelerating processes for a more reliable and robust inventory system.

To meet the scalability needs of small businesses, inventory management should support seamless integration with POS and ERP systems, providing real-time synchronization across multiple channels—the comprehensive visibility into inventory outflows to optimize overall operations.

Top 8 Advantages of Inventory Management Software for Small Medium Businesses

Inventory management is vital for SMBs and big brands to prevent stockouts, manage stock across multiple sales channels- multiple B2C & B2B marketplaces, websites, and stores, and ensure accurate recordkeeping. A good e-commerce inventory management software system brings about tons of productive outcomes, including but not limited to the following:

1. Inventory Understocking and Overstocking

Both understocking and overstocking can harm your business, impacting costs and customer satisfaction. Effective inventory management ensures a balanced stock, accurately predicting optimal quantities and preventing non-sellable inventory from occupying valuable space.

Excess stock leads to higher handling, storage, and fulfillment costs, while insufficient stock can leave customers dissatisfied. A robust inventory management system uses data on purchase history and product shelf life to guide which items to restock and which to limit.

With streamlined inventory, you enhance profitability and foster a satisfied, loyal customer base that returns for more.

2. Minimized Returns

A significant task of inventory management software is ensuring that returns are processed quickly and correctly to ensure customer satisfaction.

Customers expect easy solutions for returns, and to achieve this, SMBs require a robust system to enable simultaneous updates and revisions on returned inventory and replacements made. Additionally, many small-medium businesses run on the D2C model, which should have a streamlined return process compared to what marketplaces already offer.

A reliable inventory management system swiftly identifies returned or damaged products in your warehouse. It also allows you to restock inventory based on quality, ensuring that only sellable items remain available and keeping the maximized storage intact.

3. Inventory Replenishment and Forecasting

With a good flow of inventory, you require constant inventory updates. Balancing the demand and fulfillment of inventory can accurately be done with the help of the reports and statistics provided by inventory management software based on purchase histories and customer interests. This will allow you to forecast the amount of inventory you should stock.

Once you have the exact data on how much inventory is required, you can restrict both product shortages and leftovers. You will regularly be aware of your most-selling products and never miss a sale in those categories.

4. Analyzed Inventory Turnover

Inventory management software measures your business’s overall inventory turnover and guides you on which goods to focus on.

Inventory turnover analysis helps you understand how fast your goods are being sold according to industry averages and which ones are bringing in the most and least sales.

While high turnover can mean you are right on track or have too little inventory to be sold, slow ones may require strategic attention. An inventory management system gives you complete visibility and real-time sync to target the problem areas and to take up.

5. Increased Cash Flow

Inventory management systems help increase your cash flow by suggesting the exact amount to spend on new inventory with specific data and reports based on your sales trends.

Well-managed inventory will help you determine how much to invest in stocks to ensure a smooth operation.

When you are in control of your budget, you see better cash movements, and you can utilize the money on other points of focus for your business, such as warehouse management operations that include tons of hidden costs off either stocking or handling inventory, managing your taxes, marketing your products, enhancing services, etc.

6. Maximized Savings

The most significant advantage of inventory management software is that it helps you save more while accurately maintaining your overall cash flow.

It is important to identify and adjust slow-moving inventory or items that have been sitting on the shelf for too long because these severely affect profitability.

The right inventory management system will enable real-time allocation of stocks already present in shelf spaces, enabling inventory turns that will increase your total benefits. In addition, you will be able to calculate precisely how much more inventory you require to achieve balanced overall sales.

7. Improved Customer Satisfaction

Updated inventory, managed returns, and prevention of out-of-stock items all provide highly satisfying customer experiences, which are guaranteed to be the deliverables of good inventory management software.

In this day and age, customers have many options while shopping on e-commerce platforms. To be their top choice, maintain a loyal customer base, and keep them returning, you must always have in-stock goods, fast deliveries, faster returns, and customized suggestions to remind your audience to shop for more.

When customers know about the complete cycle of their purchase with real-time updates and consistent delivery fulfilments, they repeat their purchase from you, increasing your credibility and business altogether.

8. Stock Rotation and Inventory Management

Different inventory niches have unique storage requirements, which ensure a smooth and secure inventory flow and prevent issues like pilferage. Effective inventory management for small businesses should facilitate stock rotation tailored to specific categories.

For example, apparel may need to follow a “first in, first out” approach to avoid deterioration. This system allows you to apply various stock rotation techniques, such as FIFO (First In, First Out), LIFO (Last In, First Out), and FEFO (First Expiry, First Out), to align with your product type and storage needs.

Inventory management extends beyond standard stock rotation techniques. For instance, if you manage an organic cosmetic or FMCG brand, your products likely have a shorter shelf life. In addition to FEFO (First Expiry, First Out), you may need a more advanced system.

Smart solutions in the market allow you to set tolerance levels, alerting you when items need to be sold within a specific timeframe to prevent loss and avoid customer dissatisfaction from receiving near-expiry products.

How to choose the best Inventory Software for Small and Medium Businesses (SMBs)

Every business is unique in its requirements and deliverables and has different operational needs. With the right choice of inventory software for your small and medium business, you receive exceptional technology solutions that handle your business’s complete inventory management operations.

1. Features – Look for the features that best suit your stocks’ requirements. And allows you to forecast the right stocks for you.

2. Cost – Operating a warehouse of any model, from standalone to ERP and 3PL, always involves cost. Hence, this can be your second priority, and you should choose what best fits your needs.

3. Team Support – Inventory is dynamic, requiring regular adjustments to maintain optimal flow. Minor challenges often emerge after the inventory setup, highlighting the need for a solution to adapt and support you with timely and effective responses.

You should consider these three essential factors before investing in the right solution for your business.

Precision and efficiency are essential for streamlining operations and driving scalability. The solution your inventory management adapts to plays a crucial role in this growth, as small and medium-sized businesses share the same operational demands as larger enterprises. Investing wisely in the right tools ensures your business is set for success.

Unicommerce: A complete solution package for your Small Medium Businesses (SMBs)

With Unicommerce you receive exceptional technology solutions that handle the complete inventory management operations of your business.

Get updates on online, offline and warehouse inventory operations in real-time. Automated updation of inventory ensures complete visibility of business restricting issues such as stock-outs, dead stocks, duplicate entries, etc. 

Tracked immediately and simultaneously in the Uniware app and web version, all the inventory of your business is handled with precision.

Related read on Inventory Management –

• Inventory Management Challenges
• What is Inventory Management?
• What is Inventory Tracking?
• What is an Inventory Control System?
• Inventory Management Techniques
• Benefits of Inventory Management System
• Multichannel Inventory Management Challenges

The post Top Advantages of Using Inventory Management Software for Small and Medium Businesses (SMBs) appeared first on unicommerce.com.

While the growth is phenomenal, it also threw online retailers in a fix. The rise in orders meant many struggled to handle their inventory efficiently. It took a toll on their order deliveries.

Weak stock-taking abilities can affect e-commerce players adversely. Therefore, organizations need to ensure that they do not jeopardize their orders due to poor directory handling. They should adopt an inventory management system throughout their value chain.

An inventory management system combines multiple processes throughout the supply chain. It requires organizations to adopt a robust inventory management software capable of handling the intricacies and setting up an environment for efficient reporting and inventory level management. This blog discusses the benefits of inventory management software for an e-commerce business.

Why do e-commerce businesses need Inventory Management Software?

Most e-commerce businesses deal in finished goods. Hence, they have to source from multiple vendors. Even before the pandemic struck, multichannel inventory management was one of the top challenges in e-commerce and cost 12% of sales per annum. They need a dedicated inventory management solution to escape the USD 2 trillion costs associated with stock mismanagement. 

In addition, if your e-commerce business revolves around perishables, it is difficult to organize it all manually. Hence, e-commerce inventory management software is a must in such cases. Here are the advantages of inventory management software:

1. Augments real-time inventory management
A robust inventory management software can be a crucial enabler for e-commerce businesses to undertake real-time inventory tracking. It is vital for brands that deal with a multitude of items online.

The software allows them to track product sales, develop patterns, and understand the target customer’s reaction.

In addition, inventory management software can also inform your audience about the availability or unavailability of items they are interested in. In the case of the latter, it can also inform them of the expected time slot at which the same will be back for ordering.

Also Read: How Inventory Control can Improve your Business?

2. Builds a balance between supply and demand

Some brands practice the JIT (Just-in-Time) method, where they need to coordinate supply and production schedules closely. Hence, it is critical to developing an inventory module that is in sync with demand and allows you to manage a sustainable balance. 

For example, you can tweak the inventory management software to inform about dead stock or even reorder necessary items on its own. In addition, it also lets e-commerce brands track outdated items, enables them to remove such items, and instead increases the quantity of those in demand.

Read how Businesses are growing with Unicommerce – How India’s Leading Multi-Brand Car Service Company Attained 9X Sales Growth by optimizing Dropship and Inventory management operations

3. Brings about transparency

Another vital benefit of an inventory management system is its ability for transparency throughout the supply chain. Given that it can generate real-time data, it gives you an extra leeway to manage your inventory and make more informed decisions concerning your warehouse. 

Information is easily accessible and shareable to all the requisite people, ensuring that everyone part of the process gets more time to react. It enables the team to improve overall efficiency and customer satisfaction.

If your people know about stock levels in real-time, it would reduce the chances of human error and improve decision-making. So every time you ask someone the reason behind their decisions, you are assured of greater transparency and improved data access because of a robust inventory system.

4. Reduces the instances of stock-outs

Remember the days when you would continually juggle between running out of stock for one item and having too much of another? We all do, but things have gotten a lot better now. 

Another vital benefit of the inventory management system is identifying the correct number of SKUs. It sends alerts of a possible stock-out in advance to requisite people or places the order itself. It enables curb back-orders or excess inventory levels and contributes to faster customer complaint redressal while managing stock levels and lead time issues.

5. Improves business forecasting

Forecasting is one of the most vital e-commerce functions for a business owner. To be successful, you have to be proactive, gauge what is to come, and adjust your stock accordingly to meet customer demand with ease. 

Having solutions like inventory management software allows you to draw key analytics that employs historical data and AI to predict upcoming trends and future demand. It allows you to skip stockpiling unnecessarily and save time and cost by ordering critical items in advance.

Unicommerce’s Dashboard and Reports is an intuitive e-commerce KPI dashboard that enables you to keep track of sales, returns, fulfillment, and inventory in real-time. The integration also allows you to draw key analytics that augments decision-making. 

Wrapping up
The benefits of an inventory management system are many, making it integral for every online e-commerce business. The right software can improve stock management, reduce inventory turnover, give you granular inventory control, and its advantages seep down to other functions too. But be careful to choose one that is in sync with your e-commerce goals and contributes towards achieving them.

With our powerful inventory control software features, you can increase sales and fulfill orders efficiently.

Schedule a FREE demo with Unicommerce Inventory Management consultants.

Related Read:

• Top E-commerce Trends to Watch Out
• Order, Inventory, And Logistics Management In The UAE
• Why Use Inventory Cycle Counting for Effective Warehouse Management?
• How can you Streamline Inventory Management using Barcode Scanning?
• Overcome Inventory Challenges With FIFO Based Picking

The post Why an Inventory Management Software is a Must-have for an E-commerce Business appeared first on unicommerce.com.