Software Development
Inventory Management Software Development: Cost, Features, Benefits and More
Organizations - no matter small or big - across all industries build strong databases to manage and keep track of their inventory items. It’s important for them to keep a note of both slow-moving and high demand items so they can adjust inventory levels accordingly. To accomplish this task, they use dedicated database systems. These systems are profoundly known as inventory management software.
Before you team up with an expert inventory management software development company to build a custom solution for your warehouse management tasks, here are a few things you should know:
What is Inventory Management Management Software?
In simplest terms, a warehouse inventory management software allows companies to keep track of items moving in/out of their warehouses. It manages the entire product inventory lifecycle - from production, warehousing to product delivery. It is among the key shipping logistics software that you can you for tracking the movement of every key item part of your inventory.
How does it work?
Inventory management software is used as standalone software or as part of the business ERP system to manage complex inventory tasks. It is used alongside RFID tags and barcode scanners to capture order item details and store them inside the system. By using such systems, warehouse staff easily locate order items and update inventory tally accordingly. The real-time item tracking ability makes this system shine in the real-world.
In short, inventory management software solutions automate and streamline your warehouse tasks. This helps you save extra time, energy and valuable resources required for supply chain operations.
Inventory Management Software Market: Trends and Statistics
- According to GMInsights, the
value of the global inventory software market will reach 5 billion by 2025,
which is almost double the market value in 2019 (around 3 billion).
- As per estimates, the global
warehouse inventory
management software market will generate 394 million USD in revenue by the
end of 2020.
- 36% of supply chain professionals
believe optimizing inventory through software is a must for driving business
profits and growth.
- 25% increase in productivity
observed by companies while using IMS,
- 30% improvement in stock the efficiency with IMS usage experienced by supply chain firms.
These statistics clearly show that businesses today are investing heavily in inventory management software as it helps them eliminate their supply chain bottlenecks because of centralized and well-organized processes. With the presence of Inventory management tools, boosting sales productivity and order frequency becomes much easier for supply chain companies.
Areas where Inventory Management Software is Used Most
Types of Inventory Management Software Solutions
Human-driven systems
These systems rely on human
inputs for performing complex calculations. It is best suited for small
businesses with small inventory size and operations. Chances of error or
inaccuracy increase with such systems.
Barcode scanning
According to data, 45% of US
businesses use barcode scanning systems. It allows them to process a large
number of items by fetching data directly from POS and cash registers. These
are persistent systems that update inventory automatically every item an item
is scanned.
Advanced RFID systems
Big firms use these systems for
scanning thousands of inventory items faster with more accuracy. Items moving
in/out of inventory and their details are captured by RFID reader with the help
of RFID tags to update stock levels. RFID systems are better than barcodes as
they scan out-of-sight items too in real-time with data modification
functionality.
Also Read: Warehouse Management Software
Development: A Start to Finish Guide
Essential Features of Inventory Management Software
List Items
This feature is used to capture
and store stock details like availability, cost, price, and so on. Employees
can arrange items systematically with this function.
Track Items
Products inside inventory or
warehouse are tracked using this feature via barcode, serial number, or RFID
tags.
Reorder Items
Inventory items required urgently
for pick, pick, and dispatch can be tracked easily using this feature while
updating the stock lists.
Logistics Management
This feature allows data syncing
with third-party logistics and
transportation management software for better transparency in SCM.
Track Raw Materials
This feature lets inventory staff
track the availability of new material for production.
Reports and Analytics
Using this feature offers a holistic view of inventory with details like stock levels, profitability, sales
trends, and more.
Integrations
This feature allows IMS
integration with other useful business tools like CRM, ERP, HCM, and more. It
ensures seamless data exchange for accurate inventory operations.
Cloud-storage
Cloud-based
apps or software ensures robust data security and on-the-go accessibility
for inventory management.
Manage Vendors
This feature lets users add,
update, and delete vendors from the database. Companies can avoid costly errors
with updated databases.
Low-stock alerts
This feature allows inventory
staff when an item quantity goes behind the preset threshold level via system
alert, notification, or email.
Stock refilling
This feature passes automatic
refilling instructions when an inventory item is near its minimum level.
Barcode Scan
Inventory staff scan items using
barcodes when this feature is enabled.
Multi-location Support
When companies have warehouses
operational at multiple places, this feature is enabled for accurate stock
tracking and management.
Serial Number tracking
Inventory staff uses item serial
numbers for inventory update with this feature.
Inventory forecasting
To avoid out-of-stock and overstock circumstances, this feature is activated to predict the future demand of items using Artificial Intelligence, predictive analytics, and more.
Also Read: Top 6 Shipping & Logistics Software That Businesses Can Capitalize On
Advantages of Inventory Management Software
Reduce Inventory Costs
Cloud-based software lets you
track, update, and access inventory data in real-time across multiple devices
which cut down administrative costs related to inventory management.
Better Inventory Planning
IMS helps inventory managers in
mapping better planning strategies by smoothly recording and managing inventory
items.
Higher Staff Productivity
With organized data and better
tracking options, your staff productivity feels motivated to perform core operational
tasks without any administrative burden related to inventory control.
Improved Forecasting
With accurate stock tracking, IMS
assists you to plan for the future. It uses multiple data analytics tools for
identifying market trends and opportunities for various products and
services.
Increased Sales and Profitability
IMS records and updates stock
levels accurately, thereby reducing the chances of inaccurate product tracking.
This improves product delivery timelines, leading to happier customers and
boosted sales.
Robust Data Security
With Cloud-based inventory
management system software, all your inventory data gets stored securely in the
cloud. Chances of any technology security loopholes or data breach reduce
greatly with such practice.
Cost of Building Inventory Management Software
The overall cost to build an
inventory management system software ranges between $20,000 to $40000 with
basic functionality. If you need an advanced IMS with complex features, the
cost might boost up to anything between $40000 to $80000. The final software
cost would depend upon various aspects like software functionality, technical
complexity, developer location, experience, total development hours, etc.
Do note that the final software cost varies significantly depending on your dedicated development team’s geographical locations. For example, USA developer’s cost starts from $200/hr which is very high compared to the Asian developer’s, starting $40/hr.
Inventory Management Software Development Process
Building a custom inventory management system is not an easy task. It is a crucial part of your overall logistics and supply chain activities. Any small error can cause major disruption in your overall warehouse activities. Hence, you should work with an expert dedicated software development team with a proven history of building quality enterprise solutions for logistics businesses. The development of robust, reliable and sturdy software for your logistics operations requires proper planning, budget allocation and coordination between your development team.
Here are the typical development activities that are followed by dedicated developers during inventory management software development:
Conceptualization: In this phase, you need to identify what exact features you want in the software. You should have an overall summary ready for how your end-product would look like. This also helps you explain your product requirements to your development partner clearly.
Requirement Gathering & Analysis: The development partner collects and analyzes your software requirements to test its market feasibility and overall risk.
Wireframing & Design: Multiple wireframes and mockups of your software are prepared with critical features in this phase by your development partner for you to confirming the final design and architecture of the product.
Development/Implementation Here the actual coding is performed by the dedicated developers of your project. The overall functionality of the software is integrated into the system.
Rigorous Testing: After development, the QA and testing team performs rigorous testing to identify functionality, usability, and performance issues in the software. Testing is performed throughout the project after the completion of every major activity to ensure quality development.
Deployment/Maintenance: The developed software is deployed in the cloud or on-premise environment with regular updates and support as per the initial agreement.
Inventory Management Software: Build Vs. Buy Decision
Your choice among build vs buy
software should be ideally based upon your business requirements, long-term
goals, inventory challenges, and internal processes. Overlooking any of the
given aspects can lead you to build IMS software unfit for your business.
Building IMS software from scratch is often recommended as it gives you more
flexibility and suits your business needs perfectly.
Reasons to use Custom Inventory Software
Flexibility: It gives you
the option to build software that perfectly fits into your inventory
workflow.
Scalability: It has the
potential for further enhancements as your business grows. Start small with MVP
and later on add more features.
Better Control: It allows
you to control every part/element of your tool - from UI/UX to third-party
integrations and more.
Cost-effective: You don’t
need to pay monthly subscription fees and licensing fees with custom IMS
software.
Data Security: Best encryption and data security practices are applied by outsourcing vendor to protect your business information
Ready to Integrate Inventory Management Software in Your Business?
Hope the above guide has
clarified all your doubts about inventory management system software. If you
are looking for reliable and quality custom inventory management software
with bullet-grade security features, connect with us here at A3logics.
We are a leading product engineering services company with 10+ years of experience in inventory management software development for diverse industries with a 99% client
satisfaction rate.
Drop us a line to share your IMS
project idea and we’d be more than happy to help!
FAQ: Inventory Management Software
How much does an inventory management system cost?
The total cost to build an
inventory management software falls between $20000 to $40000 with basic
features. For complex IMS, the cost boost up to $80000 based on system
complexity.
How to build inventory management software?
Consider the following
development aspects carefully- project conceptualization, requirement analysis,
wireframing & design, development, testing, deployment, and maintenance
while building a tailored IMS solution. Partner with an experienced Inventory
management enterprise software development company for the best results.
Which is the best software for inventory management?
Popular inventory management
software includes Zoho inventory, ecomdash, EZOfficeInventory, etc. For better
control and flexibility in inventory operations, build custom software.
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