Inventory management software extends beyond tracking your warehouse or retail store stock. The best inventory systems recognize combinable parts, sync with supply chain partners for consistent stock availability, and update customers with shipping estimates.
Here’s a rundown of our top picks based on user reviews and our internal review process.
- inFlow Inventory: Best Overall
- Fishbowl: Best for Manufacturers
- Zoho Inventory: Best for Retailers
- Cin7 Core: Best for Wholesalers
- Logiwa: Best for 3PL Providers
- HandiFox: Best Mobile App
- Katana: Best for Small Manufacturers
- Ordoro: Best for eCommerce
- ShipBob: Best for Direct-to-Consumer
- Sortly: Most Affordable Option
1 inFlow Inventory - Best Overall
Why we chose it: We gave inFlow Inventory a score of 9.8 and the top spot on our list because it provides a full-fledged feature set and ease of use for both small entrepreneurs and full enterprises. While testing inFlow, we noted its UI was quite intuitive. Overall, the software made navigating various tasks and modules simple with a highly visual layout.
inFlow Inventory has customizable fields, allowing businesses to tailor their inventory system precisely to their needs. Additionally, the inclusion of a mobile app compatible with iOS and Android extends its functionality, enabling on-the-go tracking and operations. We also found the system quite scalable for growing businesses, handling up to 10,000 monthly sales orders.
However, we wouldn’t recommend inFlow Inventory for those seeking an on-premise solution. Support for inFlow On-Premise will end on July 31, 2024, after which no licenses will be sold or activated; they will also discontinue support at this time, meaning users will need to switch to the cloud version for updates.
2 Fishbowl - Best for Manufacturers
Why we chose it: We gave Fishbowl Inventory a score of 8.9 because it offers advanced manufacturing tools. These include sales order management, bill of materials, and shipment tracking, making it a solid choice for manufacturing operations that require detailed part tracking and inventory control.
Fishbowl integrates with QuickBooks Online and QuickBooks Desktop. The platform was designed to “fill in the gaps” regarding QuickBooks inventory capabilities like barcode scanning. It was one of the first third parties to receive Gold Developer status from Intuit. This status with Intuit gave them key information to remain compatible with all new versions of QuickBooks that continued to roll out over the years.
We like that Fishbowl integrates with EDI software, shipping carriers, and eCommerce solutions like Shopify, Amazon, and Woocommerce. On the other hand, we found the UI slightly dated with Windows-based navigation panes. And you’ll have to manually sync Fishbowl with QuickBooks, so transactions do not post in real time.
3 Zoho Inventory - Best for Retailers
Why we chose it: Zoho Inventory made our list with a score of 8.7. It offers a free inventory management system designed for growing businesses. Additionally, Zoho Inventory handles stock management and multi-channel order fulfillment, suitable for retailers with various products and sales channels like Amazon, eBay, and Shopify.
We found the free version best for micro online sellers, drop-shippers, retailers, and distributors. Since the solution was built for any size business, various plans are available starting at $39/month billed monthly. The solution is cloud-based and can be accessed by virtually any mobile device with an internet connection. Overall, Zoho Inventory enables retailers to capture leads and prospects, create orders, and manage online marketplaces’ sales channels and inventory levels.
However, if you want to review purchase orders and invoices fully, you’ll need to integrate with Zoho Books for this functionality. Additionally, you’ll need Zoho Commerce for a shopping cart tool and Zoho CRM for comprehensive customer management.
4 Cin7 Core - Best for Wholesalers
Why we chose it: We picked Cin7 Core due to its multi-channel selling capabilities. Designed to cater to the needs of wholesalers, retailers, and eCommerce businesses, Cin7 Core integrates with over 450 platforms, including popular eCommerce sites, marketplaces, and accounting software like QuickBooks Online and Xero. This ensures seamless synchronization of stock levels across all sales channels, reducing the risk of overselling and stockouts.
Cin7 Core’s real-time inventory tracking and detailed reporting features offer a full view of your inventory, sales, and supply chain operations. The software also supports batch and serial number tracking, making it ideal for businesses with complex inventory needs. However, we found that the initial setup can be a little complex; fortunately, Cin7 offers onboarding packages, though they come at an added cost.
5 Logiwa - Best for 3PL Providers
Why we chose it: Logiwa made our list because it specializes in warehouse management and integrates with over 200 eCommerce platforms, shipment carriers, and ERP systems, useful for managing multi-client or multi-warehouse environments effectively. Specifically, Logiwa is compatible with popular systems like NetSuite and SAP S/4HANA.
We particularly appreciate Logiwa’s carrier management feature, which integrates with multiple shipping carriers, allowing 3PL providers to compare rates effectively. Capturing the tracking number lets you easily create a shipping label. Additionally, the item management feature enables you to edit product information and create unique barcodes for advanced traceability tracking.
The inbound process lets you create purchase orders and receive inventory against these purchases. All of this can be handled via a mobile device hooked up to an industrial scanner that helps speed up the processing of inbound shipments. While testing Logiwa, we found you often have to navigate through several dropdown menus to get to common functions, so it’s not always the most user-friendly.
6 HandiFox - Best Mobile App
Why we chose it: We picked HandiFox as the top mobile inventory control and sales management solution. The mobile app can send push notifications to alert users about critical events, such as low stock levels or urgent orders. We also liked that HandiFox enables quick data capture. Workers can use their mobile devices to scan barcodes or take photos of products for inventory documentation.
HandiFox’s mobile app includes an offline mode. This functionality allows users to continue their inventory and sales management tasks without an internet connection, with all data syncing back to the system once connectivity is restored. Additionally, the mobile app facilitates direct invoicing and payment collection from customers. Sales reps can generate invoices on the spot and even accept payments.
After testing HandiFox, we found the user interface a bit dated. Like Fishbowl Inventory, you’ll have to push changes manually from HandiFox to QuickBooks to view accurate data.
7 Katana - Best for Small Manufacturers
Why we chose it: We picked Katana Manufacturing ERP as a top inventory management solution for small to mid-sized apparel, electronics, food, and aerospace manufacturers. We particularly like Katana’s ability to provide real-time updates on inventory levels, including on-hand, committed, and expected stock. It also delivers manufacturing-specific capabilities like shop floor control and master planning.
The software features a visual production planning dashboard, simplifying supplier price monitoring and optimizing manufacturing processes to meet job orders. The smart auto-booking engine automatically assigns available materials to orders. We also appreciate the system’s integration with popular eCommerce platforms such as Shopify and WooCommerce, and accounting applications like Xero and QuickBooks Online.
However, Katana lacks a dedicated mobile app. It’s accessible via web browser on the shop floor, which may be a limitation for workers who prefer using an app-based interface.
8 Ordoro - Best for eCommerce
Why we chose it: Ordoro made our list a top pick for small to medium-sized eCommerce companies focusing on shipping and dropshipping. That’s because it automatically keeps track of inventory levels across various sales channels and sends alerts when stock is low. Additionally, it offers reduced shipping costs through agreements with major carriers like USPS, FedEx, UPS, and DHL.
Ordoro’s inventory management is robust. It lets you create master products with unique, branded descriptions and images for different sales channels. It supports bundling multiple SKUs into single units for sale and utilizes barcoding to help manage and adjust inventory levels. Ordoro also includes features specifically designed for dropshipping, enabling businesses to forward customer orders to product suppliers.
We also noted that Ordoro is scalable, integrating with platforms like Amazon, eBay, Shopify, and BigCommerce, as well as popular accounting software like QuickBooks. While the basic shipping services are free, advanced inventory management and dropshipping features require paid plans, starting at $299/month for dropshipping and $349/month for inventory.
9 ShipBob - Best for Direct-to-Consumer
Why we chose it: ShipBob is our top pick for direct-to-consumer (DTC) eCommerce businesses, particularly those experiencing rapid growth. One of its key advantages is a strong fulfillment network that offers 2-day shipping to most of the US population. With seamless integrations to online stores, ShipBob automatically processes orders, which are picked, packed, and shipped from strategically located fulfillment centers nationwide.
We demoed ShipBob and found it gives full visibility into your inventory, including levels, movement, and historical data across all fulfillment centers. This lets you monitor your inventory in real-time, analyze past data, and swiftly resolve discrepancies. The dashboard delivers detailed insights into SKU velocity, the number of days remaining inventory will last, and demand forecasting. Additionally, ShipBob allows you to set reorder points and store inventory in multiple fulfillment centers strategically located closer to your customers.
Online user reviews highlight ShipBob’s exceptional service for direct-to-consumer operations. However, some feedback points to areas for improvement in their business-to-business (B2B) services. Reports have surfaced concerning issues with inventory and billing discrepancies. Additionally, ShipBob is noted for effectively managing clients with low SKU counts and those not processing B2B orders from their own warehouses.
10 Sortly - Most Affordable Option
Why we chose it: We demoed Sortly and found it intuitive and simple to use. It offers a free plan that supports up to 100 item entries and one user license. Paid plans start at $29/month for 2,000 item entries and two user licenses. Targeted at individuals and small businesses, Sortly offers a cost-effective approach to inventory management without compromising on essential features.
The software enables users to track inventory using pictures, tags, and customizable fields, making it user-friendly. Sortly’s mobile app supports barcode and QR code scanning, facilitating easy item check-ins and check-outs. Additionally, Sortly offers a unique feature that allows for creating visual inventory lists.
During our testing of Sortly, we did find a few drawbacks. For example, the number of custom fields you can add varies by subscription plan. The Ultra plan allows for up to 25 custom fields, while the Enterprise plan has unlimited custom fields but requires a consultation call for pricing.
What is Inventory Management Software?
Inventory management software (inventory control software) keeps track of all information about the items your company builds, buys, stores, or sells. These systems simplify product pricing and help maintain the most effective stock levels.
Considered to be the key part of a distribution software, inventory management software lets you know exactly what you have on hand and where to find it. A smart inventory control module will also alert you when it’s most advantageous to re-order stock.
Critical business benefits enabled by inventory management systems include:
- Reduced stock level requirements and lower warehousing costs based on a better understanding of stock movement and inventory items
- Decreased expenses related to tasks such as picking, packing, kitting, and shipping of inventory based on more intelligent inventory movement management
- Higher customer satisfaction via visibility to on-hand stock levels and improved ability to set delivery expectations
- Minimization of theft and loss based on improved visibility of stock counts and movement histories that make forensic inventory loss analysis easier to conduct
Features of Inventory Management Software
The features of inventory management software can be broken down into basic features, traceability features, and advanced features.
Basic Inventory Management Software Features
- Inventory costing: Provides the means of establishing the cost value of inventory for profitability tracking and tax accounting (cost methods include: FIFO, LIFO, average costing, and others).
- Location tracking: Aids in picking/packing/shipping tasks related to inventory items and helps improve inventory loss prevention
- Stock count tracking: Provides a record of the on-hand units for each SKU and helps maintain accurate stock levels.
Traceability Inventory Management Software Features
- Bar-coding: A scanning technology that allows for greater efficiencies in inventory look-up activities compared to systems that require manual part # entry.
- Serial number tracking: Allows for identification of the particular unit being sold/repaired/built etc.
- Lot number tracking: Allows for inventory tracking of groups of inventory and is often used for management of inventory that cannot be easily tracked as individual units.
- RFID tracking: Radio Frequency Identification. Accurately track items via microchips. RFID readers send radio waves and interpret frequencies into inventory data.
Advanced Inventory Management Software Features
- Kitting: Allows for multiple items to be combined to form another item.
- Pricing management: Allows for the association of price information with particular SKUs and can be used for more sophisticated pricing tasks, such as determining discount eligibility.
- Bill of materials: Lists material quantities and assemblies needed to manufacture an end product. Can be referred to as a "manufacturing recipe.”
- Inventory audit management: Helps reconcile inventory records with actual item stock counts.
- Color/size matrix: Minimizes the number of records required to track different product combinations that vary by color or size.
- Landed cost tracking: Looks at all costs associated with acquiring inventory (including shipping, duties, and related fees) to provide more accurate per-product costing.
- Unit of measure conversion: Handles standard conversions (eg, yards to meters, pounds to kilograms) as well as user-definable ones (pallets to cases), allowing for greater flexibility in item quantity tracking.
- Catchweight tracking: Provides a means of managing items that are tracked by one unit of measure (for example, packages or cases) but priced on the basis of weight (or another measurement).
- Back order tracking: Provides the ability to reserve incoming stock to meet the obligations of pending customer orders.
- Inventory hold management: Reserves existing stock to fill customer orders and helps prevent duplicate inventory promises, which can cause customer satisfaction issues and negatively affect customer retention.
- Replenishment thresholds (reorder points): Provide a means of systematically specifying the stock count level, which should signal re-order of the inventory item; can be connected with system alert/notification capabilities to ensure that out-of-stock situations do not occur.
- Quality metrics: Track information about the condition of individual inventory items, which can be used in supplier selection and other inventory-related decisions.
Benefits of Inventory Management Software
The top benefits of implementing an inventory tracking software include:
Managing Your Products for Sales Success
Maintaining the right amount of stock is critical to meeting customer demands. But it’s not as easy as just having extra stock on hand. Over-purchasing stock can tie up valuable cash resources, incur warehousing expenses, and create losses on items with sell-by restrictions. Inventory management software provides comprehensive control of your products, including pricing lists, item counts, and location tracking.
Maintain Accurate Stock Counts
No matter the size of your company, you need to track inventory and sales accurately to maximize your profitability. When you automate your inventory, you’ll always have an up-to-date item count that lets you quickly determine which products are selling and which are not. By understanding sales trends, you can accurately plan your purchases to lower the costs of storing physical items. Stocking the right items at the right time is one of the main factors in ensuring you are meeting customer demands and enhancing your ability to increase revenues.
Save Time By Automating Inventory Tasks
Inventory management solutions offer a variety of tools for automating time-intensive tasks related to keeping track of stock. Bar-coding and RFID-compatible options are available to allow you to gather individual item information by scanning the item rather than manually keying in data. Additionally, inventory management solutions can store precise information on item locations, so you always know where to find your products and don’t lose time locating stock in your POS system.
What Type of Inventory Software Does Your Business Need?
To determine which solutions to look into, you may look at options intended for your size of business:
New Buyers and Small Businesses
Most basic accounting software will have a straightforward inventory tool, primarily for inventory costing and simple stock count tracking. Most small businesses will look to have inventory as a feature included with accounting software or POS systems, rather than purchase an expensive stand-alone.
Existing Users Desiring Functions Beyond Basic Inventory Management
Growing businesses with substantial inventory often seek standalone solutions that integrate with the financial systems they already use for purchase orders. Manufacturers need a bill of materials feature that allows them to replicate lists for goods they frequently produce. Distributors require systems that can track their assets and automatically reorder materials as their stock levels decrease.
Large Companies
Enterprise-level organizations will typically have inventory solutions included in their enterprise resource planning (ERP software) as part of a fully integrated software solution. They may also manage multiple warehouses, in which case a warehouse management system (WMS) may be the better fit for them.
If you’re looking for a more specific piece of inventory software, these related solutions may be worth looking into:
Inventory Management Software Pricing
The cost of inventory management software will depend on the:
- Number of users
- Deployment method
- Number of warehouses
- Level of inventory being tracked (total SKUs)
- Any needed implementation or training
The cheapest inventory solutions will usually be add-ons for inexpensive accounting programs such as QuickBooks, with pricing starting at around $500 upfront for purchased solutions or around $40/month for a subscription-based option. Buyers looking at stand-alone inventory systems should expect costs to go up from there, depending on the above criteria.
To figure out an honest price quote for you, software vendors will usually ask the following critical questions:
- What do you need?
- How big is your inventory?
- How many employees do you have?
For example, a simple inventory system designed for managing just a few shelves in a small ice cream shop wouldn’t be suitable for a large company that requires management across five warehouses and handles over 250,000 different SKUs.
