Benefits of Using Inventory Management Software in Distribution

For years, inventory management software solutions have had a bad rap for having limited capabilities, being complex, and cumbersome to use. There was a fear that a new software solution would add a layer of complexity in the operation of an organization thereby delaying the recognized benefits. This made a lot of managers and business owners shy away from evaluating inventory software.

That has since changed and inventory software solutions of today are built with the capability to seamlessly integrate into existing business processes as well as other software solutions your business might have adopted. Such a solution can help your business calculate product costs, create in-depth reports, and simplify inventory management. On top of that, an inventory management software can help you make informed decisions, save time, and increase revenue. Here are some of the benefits your business stands to gain from adopting the use of an inventory management software.


As the company expands, it’ll need a software that expands with it. An inventory management software solution helps your business grow without introducing a significant amount of system expenses or additional hardware. The right inventory management software should always be able to maintain pace with your business whether you expand a customer base, introduce new products, or enter new markets.

Real-Time Inventory Tracking

The ability to track inventory in real time is by far the biggest advantage offered by an inventory management software. You will be able to know exactly how much inventory you have at all time. This goes a long way towards helping you make smart decisions especially when it comes to making orders.

If you are in the distribution business, you will be able to track the merchandise straight from the source to its destination, in real time. An inventory management software will automatically update your records when you sell or buy products. Its quicker and better than having to enter the data manually.

Preventing Shortages and Production Delays

Running out of products and parts right when you need them can cause a lot of problems for a business. It may lead to delays in customer order fulfilment and manufacturing processes. To avoid such issues, invest in a good inventory management software what you have regarding products and parts which will help you be prepared in the event of an emergency. An inventory management software will help you calculate what you need to always have at hand to meet demand in the event of an outage.

Reduced Operation Costs

Inventory management software gives you complete visibility on what is on the shelf and what needs to be stocked. With streamlined logistics, barcode scanning, and automated reporting, it’s easier to make strategic decisions regarding item pricing, purchasing, and vendors and at the same time, determine promotion efficacy. In the long run, an inventory management software reduces operating costs significantly.

Inventory software solutions simplify the process of tracking and managing stock. For a distribution company, this translates to a reduction in carrying costs and improved efficiency. Being able to track goods and manage inventory levels effectively throughout the supply chain is imperative to distribution companies of all types and sizes.