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What is Inventory Software?

Inventory software can make taking inventory much easier.
Handheld electronic scanners can load data directly into the latest inventory software.
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  • Written By: Shannon Kietzman
  • Edited By: Niki Foster
  • Last Modified Date: 11 December 2014
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Inventory software is a specialized computer program used in business and warehouse operations with the primary purpose of helping a business keep track of the quantity, status, and location of stock inventory. Businesses must keep proper track of their inventory in order to ensure customer satisfaction and to keep track of expenditures and gains. Inventory can include a wide variety of merchandise, tools, library books, equipment, fixed assets, or consumables.

Many modern methods used by businesses for inventory control are compatable with inventory software. Barcodes and radio frequency identification (RFID) tags are both capable of working with these programs. By scanning barcodes or RFID tags and utilizing a fully integrated software package, a company can immediately identify any item that is currently in stock without the need to open packages and inspect goods. Since the software makes it so simple to track and identify products, it assists a business in optimizing warehouse space. The location of products can be input into the program, making it possible to organize the warehouse in the most space-saving way without losing track of anything.

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The ability to immediately identify goods with this software also helps ensure the proper fulfillment of sales orders. By streamlining the role of employees, inventory software makes the entire process of shipping goods to customers quicker and more efficient. In addition, it decreases the likelihood of the wrong product being shipped by mistake and allows customers to track the progress of their shipment's arrival.

This software is also beneficial to the business when it comes to shipping and receiving. By keeping track of all incoming and outgoing products, it maintains an up-to-date record of inventory currently in stock. This makes it possible for a business to determine when additional products need to be ordered or manufactured so a complete inventory of goods can be maintained. The software helps the business determine which items are popular and during what time of year they are in the greatest demand. This makes it possible for the business to make projections for the next year and to decide whether or not the production of certain goods should be increased or decreased.

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MrSmirnov
Post 7

Can anyone recommend some good free inventory software for a small business?

I would just need something that allows for the counting of items, lets you revise labels, and can alert you when you are running low on something.

I have found that a lot of the professional software can be quite expensive. As I don't deal with a huge amount of inventory it doesn't seem like it would be worth the investment.

A simple program that just takes care of the basics would be ideal.

If anyone has experience using this kind of program I would also love any suggestions for other things I should keep track of.

letshearit
Post 6

@ivrrakesh - Inventory is a list of products that a store or company has to sell. This list keeps track of everything in stock.

Inventory can be one of the most important things to keep track of for a business. This list lets you know what you have, how much you have of it, what you need to buy more of, and most importantly, what you have sold.

If stores didn't keep inventory it would be impossible to figure out profits and losses. The store would have no way of knowing what they sold and how much they sold.

Every store I have ever worked for has always counted inventory on a regular basis.

ivrrakesh
Post 1

What is inventory?

What is the importance of inventory?

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