Inventory Management Tools: 11 Best Software and Techniques

We all know how much of a hassle inventory management can be! A single misplaced item or stockout will cause you to start leaking the profits.

In fact, businesses worldwide lose over $1.1 trillion annually due to inventory inefficiencies; a Statista report found.

This is why you need the right tools to manage inventory — to prevent shortages, keep your business lean, and minimize waste to improve cash flow.

But which are those tools, and how do they work? Let’s explore.

What is Inventory Management?

Inventory management involves organizing, tracking, and optimizing stock levels to meet customer demand without holding onto unnecessary surplus. It gives a grip on inventory to avoid stockouts and prevents you from committing capital to overstock.

There are many inventory control tools that keep you aware of stock levels, help you respond faster to demand changes, and accurately forecast needs to reduce waste.

11 Essential Tools and Techniques for Inventory Management

With many tools in inventory management, it can be difficult to make a choice.

Let’s simplify this decision by going through some of the best.

Kladana

Kladana is a cloud‑based inventory management tool for small and medium businesses that need simple and effective ways to track inventory.

With it, you can track inventory in real time as you get automated low‑stock alerts along with quality reporting. This way, your team always knows what’s on hand and can plan without constant manual checks.

Why It’s Needed
You’ll require Kladana to keep your inventory organized and ready to meet demand, even as you grow or expand to multiple locations. If you are in a business where products move frequently, use Kladana to get stock levels and automated alerts that help avoid stockouts.

How It Works
Kladana’s cloud‑based system lets you track and manage stock from anywhere with barcode scanning and low‑stock alerts. Also, you get reports that break down sales trends and order activity to offer data‑driven insights for better planning.

Pros

• Precise, real‑time visibility across multiple locations
• Automated alerts for low stock, reducing last‑minute ordering
• Integrates with popular platforms for seamless data flow

Cons

• Advanced features take some time to learn but add real value with customization
• Limited offline access

Zoho Inventory

Zoho Inventory is a cloud‑based solution tailored for businesses wanting a hassle‑free way to track items across channels. It helps automate reorders and leverage its suite of features, which fit perfectly into your existing workflows.

Why It’s Needed
This tool offers multi‑channel support and automation with centralized inventory data across platforms, offering a unified view of stock levels that avoid stockouts.

How It Works
Zoho Inventory connects your inventory with multiple sales channels, syncing stock levels in real time to prevent inconsistencies.

Pros

• Easy integrations with Shopify, Amazon, eBay, etc.
• Order automation and shipping integrations for speedy fulfillment
• Budget‑friendly and scalable pricing plans ideal for small businesses

Cons

• Advanced reporting lacks the necessary detailing for quick decision‑making
• Limited customization limitations

QuickBooks Commerce (Formerly TradeGecko)

This all‑in‑one solution functions for inventory management, order processing, and customer relationship management. It is suitable for businesses demanding smooth integration with QuickBooks Online for accounting.

Why It’s Needed
Streamlines inventory and order management into one interface as it reduces the need to manage multiple systems. It connects inventory to accounting, keeping financial and inventory data in sync.

How It Works
In‑sync stock levels, sales, and financial records provide an accurate view of profit margins and costs. The order management features help track B2B and B2C orders, monitor fulfillment, and manage product variations.

Pros

• Easy integration with QuickBooks
• User‑friendly and easy‑to‑navigate interface
• Multiple tools to handle B2B and wholesale orders alongside retail

Cons

• Limited customization for specific workflows
• Pricing on the higher side

Acctivate Inventory Management

It is a comprehensive inventory management for businesses using QuickBooks for accounting and looking for more in‑depth inventory capabilities. Advanced features like lot tracking and multi‑warehouse management provide an extra edge to wholesale and distribution businesses.

Why It’s Needed
Acctivate helps fill the gaps in QuickBooks with advanced inventory features like tracking and reporting tools for those dealing with complex inventory needs.

How It Works
Easily connect Acctivate to your existing QuickBooks for a seamless flow of data between inventory and accounting. Its reporting and tracking features help monitor stock, manage reorders, and ensure compliance.

Pros

• Extensive lot and serial number tracking for regulated industries
• Supports multi‑warehouse management
• Customizable reporting to gain a deeper look into inventory data

Cons

• Designed mainly for QuickBooks users
• Initial setup can be time‑consuming

TranZact

Built with Indian SMEs in mind, TranZact provides an all‑in‑one platform for inventory, sales, procurement, and production. It’s specifically designed to simplify managing multiple workflows.

Why It’s Needed
Manufacturers can use it to reduce manual errors, streamline workflows, and gain greater visibility into stock and production levels.

How It Works
TranZact centralizes operations on a cloud‑based platform with real‑time data on inventory, orders, and production. Also, it tracks the production process to see what’s on hand, what’s ordered, and what’s in production.

Pros

• Simplifies complex operations with a user‑friendly interface
• Affordable pricing for SMEs
• A broad range of features for inventory and production planning

Cons

• Limited integration with external software
• Customization options remain limited

NetSuite Inventory Management

Oracle’s comprehensive ERP suite, NetSuite provides enterprise-level tools for inventory control, demand forecasting, and supply chain management. Its scalability and robust functionality make it a powerful solution for businesses with complex, multi‑location inventory needs.

Why It’s Needed
Businesses can use NetSuite’s real‑time visibility into the entire supply chain for inventory optimization at every location — from warehouse to storefront.

How It Works
NetSuite’s inventory tool integrates directly with its ERP suite that pulls data from across your business to give a complete view of inventory and supply chain status.

Pros

• Deep integration with NetSuite ERP and other Oracle products
• Scalable and flexible for growing companies
• Advanced features for multi‑location tracking, demand forecasting, etc.

Cons

• Higher price point creating a barrier for smaller businesses
• Lengthy and complex implementation may require dedicated resources
• It has a steep learning curve

Fishbowl Inventory

Fishbowl Inventory offers more advanced inventory capabilities than QuickBooks alone, with features supporting both warehouse management and manufacturing.

Why It’s Needed
Fishbowl is a go‑to for businesses that rely on QuickBooks but require a more nuanced way to manage stock, orders, and even production.

How It Works
Fishbowl integrates directly with QuickBooks, where businesses can track stock levels, manage orders, and oversee manufacturing processes.

Pros

• Works with QuickBooks to expand inventory capabilities
• Includes features for both inventory and manufacturing management
• Affordable for small businesses needing robust inventory management

Cons

• A dated user interface that lacks intuitiveness
• Limited scalability
• Inconsistent customer support, especially during peak times

Odoo Inventory

Odoo Inventory is part of Odoo’s open‑source ERP suite that provides a flexible and modular approach to inventory management. It helps businesses automate workflows, manage warehouse operations, and streamline order processing.

Why It’s Needed
Businesses looking for an adaptable system can choose this tool since its modular nature allows you to add features as needed.

How It Works
It is an open‑source platform that allows users to customize and automate specific tasks like creating unique stock rules and setting up complex reordering processes.

Pros

• Open‑source and modular design for full customization
• Quick integration with other Odoo modules
• Scalable for businesses of all sizes

Cons

• Customization may require technical expertise
• Certain advanced features come with additional costs

Ordoro

This inventory management solution is tailored for e‑commerce. It focuses on order fulfillment and shipping efficiency to help online retailers manage orders across multiple channels and track stock levels.

Why It’s Needed
E‑commerce businesses can use Ordoro to manage sales across platforms like Amazon, Shopify, and eBay with shipping and order management capabilities.

How It Works
Ordoro centralizes inventory and order management to sync stock across multiple sales channels. Its shipping integrations let you create shipping labels and track orders from one place, simplifying dropshipping or bundling.

Pros

• Excellent multi‑channel order management
• Streamlined shipping integrations for faster fulfillment
• Offers features like dropshipping and kitting for customized product bundles

Cons

• Limited features outside of order and shipping management
• Very basic inventory tracking features

Cin7

This cloud‑based inventory and order management solution supports growing businesses with complex inventory needs. Its built‑in integrations for retail, e‑commerce, and warehouse management streamline operations and manage inventory across multiple sales channels.

Why It’s Needed
Businesses managing inventory across various platforms and locations can use Cin7 for its features, which support everything from order tracking to warehouse automation.

How It Works
Cin7 connects inventory data across multiple channels for a unified view of stock levels, orders, and fulfillment status by helping you set up rules for stock movements, reorders, and shipping.

Pros

• Robust multichannel integrations help omnichannel businesses
• Advanced automation options for warehouse and inventory management
• Built‑in demand forecasting and inventory planning tools

Cons

• Setup and configuration can be time‑consuming for new users
• Customer support can be slow to respond

Pimberly

This Product Information Management (PIM) and Digital Asset Management (DAM) platform gives you advanced control over product data and digital assets. It is often used alongside inventory management solutions for accurate and enriched product information.

Why It’s Needed
Businesses with large product catalogs can use Pimberly to use and manage information across e‑commerce platforms for accurate, detailed product listings.

How It Works
Pimberly centralizes product data with PIM/DAM capabilities to manage product information across multiple channels.

Pros

• Comprehensive product information and digital asset management
• Enhances product data consistency across channels
• Best‑suited for companies with large, varied catalogs

Cons

• Demands higher initial investment
• Setup may require specialized training or support

Other Tools

Apart from those listed above, below are some tools of inventory control to know about.

Vend by Lightspeed

Vend, now part of Lightspeed, is a retail‑centric inventory and POS system designed for smooth, in‑store operations.

SkuVault

SkuVault is a warehouse management solution for businesses with large‑scale inventory needs that want to avoid stockouts and mispicks in fulfillment from warehouse to customer.

Brightpearl

Brightpearl is tailored for e‑commerce and retail businesses needing fast and efficient order management to handle high order volumes.

MRPeasy

MRPeasy is built for small to mid‑sized manufacturers who need production planning, inventory control, and supply chain management in one system.

inFlow Inventory

A budget‑friendly inventory solution for small businesses with basic stock tracking, barcode scanning, and invoicing features.

Best Practices for Inventory Management

Below are the eight essential best practices for inventory analysis tools that can give you a competitive advantage.

Gain Visibility into Your Inventory

Real‑time data at your fingertips gives you a crystal‑clear view of your entire inventory. Regular audits can help identify discrepancies between recorded and actual stock levels.

Such actions will help —

• Identify and address potential stockouts
• Optimize warehouse space and reduce storage costs
• Make data‑driven decisions about procurement and production.

And in Kladana, you can explore several features to manage and streamline your inventory. Check the video below:

Classify Inventory Using ABC Analysis

Managing inventory using ABC analysis requires categorizing products into —

• High‑value products (A)
• Fast‑moving products requiring close attention (B)
• Less critical and can be managed with a lighter touch (C)

This will help manage inventory based on value and importance to optimize stock levels.

Leverage Demand Forecasting

Knowing the demand patterns requires analyzing sales trends, seasonal demands, and market conditions to predict future stock needs.

Such data analysis helps forecast demand with precision to —

• Fine‑tune purchasing decisions
• Ensure product availability
• Optimize resources and production planning

Optimize Safety Stock Levels

Maintaining safety stock enables handling unexpected spikes in demand or supply chain disruptions.

Calculate the right amount to prevent costly stockouts without overburdening by —

• Analyzing historical data
• Assessing lead times
• Factoring in service‑level targets
• Using forecasting tools

Practice Just‑In‑Time (JIT) Inventory

JIT inventory involves ordering and receiving stock only as it’s needed to bring down the operational cost and free up the cash flow.

Implementing JIT practice can —

• Reduce inventory holding costs
• Improved cash flow
• Increase operational efficiency
• Enhanced responsiveness to react quickly to market changes

Adopt the FIFO & LIFO Principle

FIFO involves selling or using the oldest stock first — a valuable method for perishable goods that minimizes waste and prevents outdated stock from sitting on shelves too long.

LIFO is often used where inventory costs are rising, as it matches recent costs with revenue. This approach is for specific accounting scenarios to manage costs effectively.

Exploring Risks of Using Inventory Management

While using inventory management tools has benefits, it is best to stay aware of potential mistakes that can otherwise prove costly.

Failing to navigate inventory management properly can result in the following consequences:

Reporting and Accounting Errors

Inaccurate inventory counts can ripple into financial reporting, throwing off projections and cash flow plans.

Slower, Clogged Operations

Poor inventory management may cause the stock to suffer. Delays disrupt customer orders and affect service, slowing down operations.

Declining Customer Loyalty

If customers’ favorite products aren’t available, they may lose trust in your business and start shopping elsewhere.

Higher Costs from Poor Planning

Emergency restocks, high storage fees, and last‑minute shipping can drain your budget, requiring regular stock audits and automation to stay ahead.

Excess Inventory and Discount Pressure

Overstocked items often end up discounted just to clear space. Avoid being forced into markdowns by regularly assessing what’s moving and what’s not so as to run promotions or offer bundles on slow movers to free up cash for in‑demand items.

Systems for Tracking and Managing Inventory Flow

Managing and tracking inventory flow requires reliable systems that keep everything organized, accessible, and easy to locate.

Below are some essential systems for streamlined inventory management:

Barcode Scanning

Barcode scanning enables scanning each item based on its unique code upon check‑out and return. This approach provides a real‑time view of item locations and user accountability, helping reduce misplacement.

Tool and Asset Tagging

Apart from barcodes, inventory systems often support custom tags, which allow you to organize tools and equipment by categories, projects, or departments. Such tagging improves the product’s searchability within the system based on a ‘filter’ by type, location, or status.

Radio Frequency Identification (RFID)

RFID technology takes inventory tracking to the next level, using radio waves to identify and track tagged items.

You can unlock efficiency and accuracy with —

• Real‑time location tracking
• Automated data capture
• Enhanced security
• Improved inventory accuracy

How Kladana Helps Take Control of Your Inventory and Streamline Operations

With Kladana, managing inventory becomes much simpler. You don’t just track stock; you get a clear picture of where your inventory stands at all times.

Do you need to monitor product variations or know exactly when to restock? Kladana’s automated alerts ensure you never scramble at the last minute.

With it, you get real‑time reports that break down your stock status, sales trends, and order progress, giving you the clarity to make quick, informed decisions.

FAQs on Inventory Management Tools

Are you looking to start with inventory management tools or understand them better?

If so, here are some common questions… answered!

What are inventory management tools?

Inventory management tools offer solutions to track stock levels, orders, and shipments for efficient operations.

How do inventory management tools work?

Inventory management tools use real‑time data, automation, and analytics to track stock across different locations with features like barcode scanning, low‑stock alerts, and reporting.

Can small businesses benefit from inventory management tools?

Of course. Small businesses can expect to experience reduced errors, stay organized, and keep popular items in stock.

What’s the difference between inventory tracking and inventory control?

Inventory tracking is about knowing the location and status of items in your stock. Inventory control focuses on managing stock levels to optimize costs and meet customer demand.

How do barcode scanning and mobile tracking work in inventory tools?

Barcode scanning and mobile tracking simplify updating inventory in real‑time by checking in and checking out items to keep stock counts accurate.

Can inventory management software integrate with other systems?

Yes, most tools integrate with systems like accounting software, e‑commerce platforms, and ERP solutions, ensuring that the data flows smoothly across departments.

What are reorder alerts, and how do they help?

Reorder alerts will let you know when stock levels are low. This allows you to reorder before you run out and keeps inventory levels balanced.

How does inventory management software handle multi‑location tracking?

Multi‑location tracking lets you monitor stock levels across different warehouses or sites in real time by acting as a central view of inventory.

How can inventory management tools improve accuracy?

Inventory control tools improve accuracy by automating data entry coupled with regular audits like cycle counting to reduce manual errors.

How does Kladana support inventory management for small businesses?

Kladana helps small businesses stay organized with tools and features like low‑stock alerts, barcode scanning, and real‑time reporting — all from one platform.