So your company has decided it is time to start keeping better track of inventory. Retail software can be a nice decision because it is packaged and ready to go. However, before making the decision you may want to know about the different types of retail inventory management software. This article will proceed by listing what you should look for when purchasing this type of software. It will conclude by listing the different types of inventory software available as well as some common brand names in each category.
There are really two key items you should look for when purchasing retail inventory control software: price and compatibility.
Price – This pretty much goes without saying, cheaper is not always better. However when it comes to inventory software, most of the software out there looks the same and performs similarly. This makes price more important than normal.
Compatibility – This is what really separates the different inventory software. One important compatibility issue is how the point of sale (POS) system integrates with inventory. Having the POS system automatically updates inventory is nice for two reasons: (1) it saves time and (2) it prevents errors that are often associated with manual entry.
Another compatibility issue consists of how the inventory software links to the accounting software. Again, it makes sense to have the two compatible so you don’t have to re-enter everything twice.
Now that we have discussed some of the key factors, let’s take a look at the different types of inventory software available for retailers.
Categories of Retail Inventory Software
Basic inventory control software – This type of software simply keeps track of inventory information. When you purchase inventory you enter the information and when you sell inventory you enter the information. Examples of this type of software include excel and open office.
Partially integration available – This type of inventory software interacts with the sales and purchasing cycles. When you make a sale, inventory is automatically deducted. When you purchase something, inventory is automatically increased. This type of retail inventory software falls short of complete integration with the accounting system. You have to make a conscious effort to update the accounting records.
Examples of this type of software: Rytech, InFlow
Fully Streamlined – Fully streamlined inventory software not only interacts with the sales and purchasing cycle, but also automatically updates your accounting information, a great way to avoid errors and save time. Of course, fully streamlined retail inventory software will cost a little bit more than straightforward software.
ERP – Enterprise software systems are supposed to manage all aspects of your business, including inventory control. You can see how this is a nice idea because you don’t have to match the POS system to the retail inventory software to the accounting software and so on and so forth.
Examples of Enterprise software: QuickBooks Enterprise, Accenture
You can think of these types of software as being on a continuum; basic inventory control software on the left and enterprise systems on the right. As you move to the right, the prices increase substantially. In fact, some enterprise systems, if custom built, can cost tens of thousands of dollars. Consider what your business needs and then make the purchase. Smaller companies probably only need partial integration, while larger companies will find that a full enterprise system saves them time and money due to the large amount of transactions.
If you have any questions or comments on retail inventory software please leave them below.
