Changes in computer technology creates new inventory software on a frequent basis. Therefore, businesses must stay informed of inventory software news and trends. Trade organizations provide benefits for members by searching out the latest trends in this area, saving you the labor of searching out the information yourself.

Businesses increasingly use web-based inventory software because of some of the advantages it offers such as automatic upgrades and remote capabilities. Other software for inventory management exists for very specific application whether by function or by targeted user.

Keep up on the latest inventory software news and trends by doing the following activities:

1. Join associations related to inventory software

2. Review new inventory software applications

3. Look for news about new inventory software programs.

Action Steps for Inventory Software Success
The best contacts and resources to help you get it done

Identify trade associations that research the latest developments in inventory software

Associations and news agencies often provide valuable resources for staying in touch with new developments in inventory management programs. Look at the offerings of such associations and see how you can benefit from their research.

I recommend: The North American Association of Inventory Services keeps up on the latest developments in the inventory control process. The organization also provides inventory counting services for businesses. AIM North America (Automatic Identification and Mobility Company) provides resources for developments related to automatic identification and mobility hardware and software, namely bar coding equipment. As an integral part of modern inventory practices, businesses should keep up on developments with this important tool.

Investigate new inventory software programs to automate other aspects of asset tracking

Look outside the ordinary to inventory tracking software with specialized functions. Some business inventory software integrates with other common software applications for a one-stop-shopping approach to inventory management. Other inventory management software offers unique tracking.

I recommend: Fishbowl Inventory integrates with Quickbooks accounting software. Using a product to integrate with an existing software package cuts down on training time. MIS Utilities offers Network Asset Tracker Pro, an inventory software package. This software keeps track of all the computer work stations and file servers on its network. The software completely eliminates the need for manual tracking of your company's computer assets.

Stay current on new developments in inventory control software

To stay competitive your operation must maintain efficiency. Automating your inventory control helps make efficiency gains by allowing you to serve your customers faster, even when they return something. Each inventory program has basic features but new ones develop that you should review so that you still offer the best services in your business.

I recommend: Manufacturing Software News compiles a list of new software, software vendors, and news sites in several manufacturing categories, including inventory control. Edible Software makes inventory supply programs specifically for the wholesale food distribution industry. This website provides news related to that specialized industry application, including FDA alerts and recalls.

Tips & Tactics to Master Inventory Control Software

Helpful advice for making the most of this Guide

• •  Before purchasing inventory control software, understand what you hope to gain by using such software. Consider whether you need it to integrate with other software, if the inventory management software application has free or inexpensive technical support, and if it is user friendly. Use these considerations as criteria when shopping for inventory management systems and software to resolve your inventory issues.

The biggest misconception about inventory control software is that it – in and of itself – will reduce inventory. Not true. An inventory software implementation requires a great deal of mapping and thinking before it can do any good.

1. Define the problem: What type of inventory needs to be managed? Raw materials? Work-in-process? Finished goods? Why is there too much inventory? Different solutions address different points in the manufacturing or retail process.
2. Define current inventory levels: Choose which bottlenecks to address, and set a realistic goal for reduction.
3. Get buy-in from suppliers: No matter where in the process you will reduce inventory, it will affect suppliers. They, too, may want to streamline deliveries to reduce their own inventories. Working with suppliers instead of against them will make the process easier.
4. Decide whether you want to integrate your inventory management software solution into others, buy separate inventory programs to address specific issues, or hire either a contract or staff IT professional to build a custom solution.

Action Steps
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Find where the widgets are going

Is your bottleneck in your warehouse? Then a warehouse management system (WMS) might be the inventory software you need. If your problem is only with raw materials, then a supplier-oriented solution might be needed.

I recommend: Check out Supply Chain Market for a list of WMS and supplier-management inventory software. See also Business.com’s directories of general inventory management solutions and WMS providers.

Find an online solution for inventory control

Consider the newer offerings of 'in-demand' inventory software solutions, which run on a remote server and are delivered to clients via the Internet. The advantages for small businesses here are lower start-up costs and flexible scalability, meaning that as your business grows, so can the inventory control solution.

I recommend: Mitrix and Procuri are two such company targeting small businesses. And IBM pioneered the field.

Go lean on inventory control

Lean (or “just-in-time”) methods derived from the Toyota Production System are excellent starting points for reducing inventory in any sector (not just manufacturing) and can be automated and enhanced with the use of inventory software. Computer-based 'kanban' programs look to visual signals to pull needed inventory.

I recommend: Try these software providers: Oracle, Optimum Performance Solutions which offers a "kanban calculator," and Infor. For free information on implementing lean principles for process improvement, check out the Lean Enterprise Institute. Find more “just-in-time” resources at Business.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some providers may push RFID to manage inventory. Some companies are successfully doing this, but in most they are using RFID because of a customer mandate. Many industry analysts say RFID systems do not yet have proven ROI outside of mandated implementations.
• •  Before buying into inventory management software, do all that you can do to reduce inventory by improving processes. These fixes often don't require capital investments.
• •  Look for online demonstrations of inventory programs. Many inventory management software companies give live, no-obligation demonstrations of their products via Webcasts. Ask them when the next one is scheduled.

Any company that sells products needs inventory tracking software. Tracking inventory determines which products sell and which do not. Inventory management programs can provide other benefits such as spotting employee theft, providing an accurate listing to an insurance company in case of loss by fire or natural disaster, and helping the company balance its ledger.

Using inventory software and inventory management systems allow businesses to also track consumable office supplies, building maintenance and other supplies that contribute to the cost of doing business. These items show up on the company's ledger in a different category than the product inventory. You must track these items to balance your ledger and to alert your purchasing department when to reorder parts and supplies.

Selecting the appropriate inventory supply programs generally depends on the size and type of business that you will operate. After that, you will need to decide what you want the software to do for you.

1. Consider the convenience of using web-based software for inventory management.

2. Find business inventory software programs developed for individual computer workstations.

3. Preview inventory software developed for specific types of businesses.

Action Steps
The best contacts and resources to help you get it done

Consider the convenience of web-based inventory software for your company

Web-based inventory software may offer advantages over conventional desktop software. Web-based applications offer access from any work station, including a home-based workstation or laptop, so that an employee can work anywhere. Web-based software does not require a specific operating system to operate correctly at your place of business.

I recommend: Visual Inventory, made by Web Inventory Software, provides general inventory control applications. These inventory management programs apply to warehouses and logistics companies that manage inventory systems owned by third parties. Quartex designs several web-based inventory software solutions for business, warehouses, offices and retail stores. These programs can integrate with online shopping software.

Protect your bottom line using inventory control software

Making the most of inventory control software means utilizing an inventory management software application that allows you to keep track of your inventory from the time it comes in the back door to the time it leaves the front door.

I recommend: Wasp Barcode Technologies has created several inventory software packages for small businesses. Wasp's products can be licensed for one user, five users or an unlimited number of users. InventorySoft.com makes Inventory Power for small- and medium-sized businesses such as computer stores, book stores, shoe stores and others. Track inventory, print invoices, customize invoices with company logo and track sales staff success with Inventory Power.

Choose inventory management software tailored to your specific business

Some businesses serve a special niche market with the products they sell. Others may want to track the inventory of services provided rather than physical products. Still other businesses may serve in a warehousing function only.

I recommend: Traker Inventory Systems makes several inventory programs tailored to warehouse, manufacturing and distribution businesses. This software can track charges per unit such as container, case, pallet.Inventory Solutions Online designs inventory software specifically for churches, non-profit organizations and businesses that provide inventory services for other businesses.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many inventory software products integrate barcoding features. This feature may greatly reduce your inventory tracking time. Affix labels to your product bins, read them with barcode readers, and download the information to your networked computers for greatly simplified inventory control.

Inventory software is any application that a business can use to help organize and facilitate operations associated with inventory, including storing, tracking and replenishing. Additionally, inventory software goes further by integrating with other areas of inventory management, such as bar coding and ecommerce. With so much competition for inventory software, it is imperative to learn what makes one better than another for your business needs. In doing so, you need to understand inventory software key terms so you can be confident you've purchased one that suits your needs.

Action Steps
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Point of sale, or point of purchase

Point of sale refers to the location at which the customers make their purchase in a retail environment. Inventory software can integrate with other accounting features so that information from the point of sale can be tracked in real time. This allows you to manipulate your inventory, i.e., replenish product as it sells.

I recommend: Everest Software features a point-of-sale option as part of its inventory software, and discusses how it is beneficial in the retail world, especially in regard to merchandising.

Part-detail tracking

This is a feature that tracks products that are made up of various components. Each component is recorded individually and noted as part of a whole.

I recommend: Fish Bowl Inventory describes how part-detail tracking is an effective feature.

Bar Coding

Bar coding is a way to track all products so they are easily recognized and organized. You can integrate bar code support by attaching a reader to your computer and having it fully integrate into your inventory software.

I recommend: Inventory Software Solution explains how bar coding plays a significant role in inventory-control software.

Multiple users network, or multi-user network

Inventory software often includes this feature, which allows a number of employees to access the software at the same time. By employing such a feature, your business will run smoothly and your employees will all possess the full inventory picture necessary to keep your business organized.

I recommend: InFlow Inventory provides a FAQ page that includes important information regarding benefits of a multi-user network.

Interactive reporting

Interactive reporting is a method of balancing inventory by reporting which products are not selling and replacing them with more popular items. This feature is definitely worth having, as it routinely reorganizes your inventory to meet higher profits.

I recommend: Interactive Reporting is the name of a software company that specializes in inventory tracking. It has an introduction to data analysis with its product.

Ecommerce integration

A feature that allows inventory software to integrate with ecommerce business solutions. With the rising use of ecommerce, this would definitely be a desirable feature.

I recommend: Advanceware features a section on how ecommerce integration is beneficial to inventory-control software.