Inventory control has come a long way since I first worked with manual stock tracking. Today, the right systems can manage multiple warehouses, monitor product shelf life, and generate insights that directly improve operations and customer satisfaction. Picking the right tool is essential for any growing business.
In this article, I’ll explain what inventory management software is, how it differs from traditional spreadsheets, its key benefits, and the top solutions available to help you choose the one that best fits your needs.
Inventory management software
Lark for affordable, powerful, all-in-one inventory management
NetSuite WMS for complete ERP integration
Fishbowl for seamless QuickBooks integration
Odoo Inventory for open-source flexibility
Zoho Inventory for simple onboarding and interface
inFlow Inventory for reporting and analytics
Cin7 for complete omnichannel synchronization
What is inventory management software?
Imagine a digital system that takes care of all your inventory tasks, including tracking, ordering, storing, and moving stock, so you don’t have to do it manually. That is what inventory management software does.
Its main goal is to help your business keep the right amount of stock, reduce holding costs, and run more efficiently by giving you real-time visibility of all your inventory and where it is stored.
Manual inventory tracking vs. Digital inventory tracking
It’s hard to believe, but many businesses are still managing inventory with paper records, spreadsheets, and periodic physical counts. That’s scary because this manual approach often causes headaches:
Stock information is always a little behind reality
Mistakes happen when entering data by hand
It’s hard to see what’s happening across multiple locations
Staff spend lots of time on paperwork instead of meaningful work
All that headcount just to do what software can do costs
If this sounds familiar, making the switch to digital inventory management is a no-brainer. Modern systems automatically capture data, provide real-time updates, and integrate seamlessly with your other business tools.
Essential features of inventory management software
Let's take a look at the key features of a modern inventory management system that are essential for business operations.
Real-time inventory tracking
Real-time tracking is the foundation of effective inventory management. This feature provides instant visibility into current stock levels, pending orders, and inventory movements across all locations. When customers place orders or staff receive shipments, inventory levels update automatically, ensuring accurate information for decision-making.
Advanced systems also provide low stock alerts and notifications when inventory levels approach minimum thresholds, helping businesses avoid stockouts that can result in lost sales and disappointed customers.
Automated reorder points and purchase order generation
Automated reordering eliminates the guesswork from inventory replenishment. The system calculates optimal reorder points based on:
Lead times from vendors
Sales velocity and historical demand patterns
Safety stock requirements
Seasonal fluctuations
When inventory reaches the predetermined reorder point, the system can automatically generate purchase orders and send them to approved vendors, ensuring continuous availability without excessive carrying costs.
Barcode and QR code scanning capabilities
Barcode scanning dramatically improves accuracy and efficiency in inventory operations. Modern systems support various scanning technologies:
1D barcodes for basic product identification
2D QR codes that can store additional information like batch numbers and expiration dates
Mobile scanning using smartphones and tablets
Integration with handheld scanners for high-volume operations
This technology enables rapid receiving, picking, and cycle counting while virtually eliminating data entry errors.
Multi-location warehouse management
For businesses operating across multiple locations, advanced inventory software provides centralized control with location-specific visibility. Key capabilities include:
Transfer management between locations
Location-specific reorder points and vendor preferences
Consolidated reporting across all sites
Automated stock balancing to optimize inventory distribution
This functionality is crucial for retailers with multiple stores, distributors serving different regions, or manufacturers with multiple production facilities.
Demand forecasting and analytics dashboard
Advanced analytics transform historical data into actionable insights. Modern systems provide:
Demand forecasting based on sales trends, seasonality, and external factors
Performance dashboards showing key metrics like inventory turnover and carrying costs
ABC analysis to identify high-value items requiring closer management
Slow-moving inventory reports to reduce dead stock
These analytics help businesses optimize inventory levels, improve cash flow, and make data-driven purchasing decisions.
Mobile app access
Mobile access extends inventory management beyond the warehouse floor. Field teams can:
Check real-time stock availability while meeting with customers
Create sales orders and purchase orders on the go
Conduct cycle counts and inventory audits using mobile devices
Update inventory data from remote locations or service sites
This mobility ensures that all team members have access to current inventory information regardless of their location.
Types of inventory management software
Understanding the different types of inventory management systems available will help you choose the solution that best fits your business model, technical requirements, and growth plans.
Cloud-based inventory management software vs. On-premise solutions
The choice between cloud-based and on-premise solutions represents one of the most fundamental decisions in selecting inventory software.
Cloud-based solutions offer several advantages:
Lower upfront costs with subscription-based pricing
Automatic updates and maintenance are handled by the vendor
Access from anywhere with internet connectivity
Easier scaling as business grows
Built-in data backup and disaster recovery
On-premise solutions provide:
Greater control over data and security
Customization capabilities for specific business requirements
No ongoing subscription fees after initial purchase
Independence from internet connectivity for core operations
For most small businesses and growing companies, cloud-based solutions offer the best combination of affordability, functionality, and ease of use. However, large enterprises with specific security requirements or complex customization needs may prefer on-premise deployments.
Enterprise resource planning (ERP) integrated systems
ERP-integrated inventory modules provide seamless connectivity between inventory management and other business functions:
Financial integration for automatic cost of goods sold calculations and inventory valuation
Customer relationship management (CRM) connectivity for sales order processing
Human resources integration for labor cost tracking and productivity analysis
Production planning modules for manufacturing environments
While ERP systems offer comprehensive functionality, they typically require larger investments in software, implementation, and training compared to standalone solutions.
Standalone inventory software vs. All-in-one business solutions
Standalone inventory software offers:
Deep functionality specific to inventory management
Lower cost for businesses needing only inventory capabilities
Faster implementation and user adoption
Integration flexibility with existing systems
All-in-one business solutions provide:
Unified data across all business functions
Simplified vendor management with a single point of contact
Consistent user interface across all modules
Cost savings compared to multiple separate systems
The choice depends on your business complexity, existing software investments, and growth plans. However, if you're currently paying for multiple tools and looking to save costs, then an all-in-one solution is cost-effective.
Best software for inventory management at a glance
The inventory management software market offers solutions ranging from simple small business tools to comprehensive enterprise platforms. Here are the leading options across different market segments.
Best inventory management software in 2025
Lark - All-in-one cost-effective inventory and business management software
Imagine starting your day knowing exactly what’s in stock, who’s handling which task, and which orders need attention, all without digging through spreadsheets or juggling multiple apps. That’s what Lark brings to your business.
Lark makes managing inventory effortless. You can track stock, chat with your team, fill out documents, schedule meetings, contact vendors, share reports, and monitor performance—all from a single super app that works on any device. This gives your team the freedom to focus on what really matters: growing your business, delighting your customers, and making work feel a little less chaotic.
With Lark, inventory management isn’t just easier, it’s smarter, smoother, and designed for the way your team actually works.
Key features:
Stay informed instantly: Smart notifications and real-time dashboards give managers immediate visibility into stock levels, sales, and potential issues, ensuring decisions are always based on the latest data.
Process deliveries efficiently: Teams can upload receipts and photos, scan codes, and flag quality issues directly through the mobile app, reducing paperwork and making supplier communication faster and more transparent.
Keep records accurate: Inventory updates automatically in Lark Base as items are received, with batch numbers and expiry dates logged for traceability. Everything syncs across devices, eliminating time spent reconciling spreadsheets.
Automate workflows: AI and automation digitize routine tasks, freeing your team to focus on higher-priority projects and strategic work.
Fulfill orders seamlessly: Customer and internal orders trigger instant updates, while fulfillment teams coordinate through group chats and track progress with checklists. This ensures timely deliveries and keeps everyone aligned.
Handle returns smoothly: Returns are submitted through digital forms, approved with one click, and immediately reflected in the system. Teams can schedule video calls if needed, and use AI to summarize next steps.
Request with confidence: Lark Approval centralizes purchase requests, stock transfers, supplier changes, budget approvals, and more in one no-code workflow system, speeding up decision-making.
Rating:
Gartner: 4.8
G2: 4.5
Capterra: 4.4
Pricing:
Starter plan: Free forever plan that includes 11 powerful tools for up to 20 users. It also comes with 100GB of storage, 1000 automation runs, AI translations, and more.
Pro plan: $12/user/month (billed annually) for up to 500 users. It includes everything in Starter plus group calling for up to 500 attendees, 15TB of storage, 50,000 automation runs, and more. When you compare this with other solutions, Lark stands out as the best inventory management software for small businesses or for those looking to cut costs.
Enterprise plan: Contact sales for custom pricing. Supports unlimited users and includes even more automation runs and advanced security, compliance, and management features.
NetSuite WMS - Enterprise-level solution with advanced analytics
Image source: netsuite.com
NetSuite Warehouse Management System (WMS) streamlines warehouse operations by automating key tasks like barcode scanning, returns, and cycle counts. Designed for businesses handling hundreds or thousands of SKUs across multiple locations, it eliminates manual processes, reduces handling costs, and boosts efficiency.
Key features:
Complete ERP integration for end-to-end business process management.
Advanced analytics and customizable dashboards.
Multi-subsidiary and international support with currency handling.
Sophisticated workflow automation and approval processes.
Rating:
Gartner: 4.1
G2: 4.1
Capterra: 4.2
Pricing:
No fixed price available online. You must request a quote from NetSuite directly.
Fishbowl Inventory - Manufacturing and QuickBooks integration
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Fishbowl Inventory helps businesses track inventory, manage multiple warehouses, and simplify complex manufacturing—all through one easy-to-use, powerful platform. It’s ideal for QuickBooks and Xero users thanks to seamless integration, keeping your accounting and inventory perfectly in sync.
Key Strengths:
Seamless QuickBooks integration helps maintain accounting system continuity.
Bill of materials (BOM) management for manufacturing operations.
Advanced lot and serial number tracking.
Comprehensive barcode scanning support.
Rating:
Gartner: N/A
G2: 4.0
Capterra: 4.2
Pricing:
Fishbowl Inventory's basic plan starts at $199 per month for 2 users.
Odoo Inventory - Open source inventory management software
Image source: odoo.com
Odoo Inventory is a comprehensive open source warehouse and inventory management system that gives businesses real-time visibility into stock levels and automates the movement of goods. With features like automated reordering and detailed reporting, it streamlines supply chain operations while integrating seamlessly with Odoo’s other business apps.
Key features:
Manage all storage, stock, and replenishments across multiple warehouses.
Set rules to automatically trigger purchase requests and notify managers when stock is low.
Streamline picking paths using strategies like FIFO, FEFO, or nearest zone, with flexible batch, cluster, or wave picking.
Use barcode scanners for receipts, picking, packing, and inventory adjustments.
Rating:
Gartner: 4.1
G2: 4.5
Capterra: 4.2
Pricing:
Odoo has a free plan, but it doesn't include the inventory management features. Paid plans that include Odoo Inventory start at $24.90 per user per month.
Zoho Inventory - Simple inventory management software with CRM integration
Image source: softwareadvice.com
Zoho Inventory is a cheap cloud-based software ideal for small businesses to manage stock, orders, and multi-channel sales. It features real-time inventory tracking, warehouse management, and reporting to prevent stockouts and optimize operations.
Key features:
Affordable pricing with comprehensive basic features.
Integration with Zoho CRM and other Zoho business apps.
Multi-channel sales support, including online marketplaces.
Mobile apps for on-the-go inventory management.
Rating:
Gartner: 4.4
G2: 4.3
Capterra: 4.5
Pricing:
Free plan available for up to 50 orders/month. Paid plans start at $29 per user per month for 2 users.
inFlow Inventory - Mid-market solution with strong reporting tools
Image source: capterra.com
inFlow Inventory helps growing businesses manage inventory, purchasing, and orders across multiple locations. It offers easy-to-use desktop-to-cloud flexibility, strong customer support, cost tracking for serialized products, and manufacturing reports.
Key features:
Intuitive interface designed for non-technical users.
Extensive reporting and analytics capabilities.
Strong customer support and training resources.
Flexible pricing options for different business sizes.
Rating:
Gartner: N/A
G2: 4.4
Capterra: 4.6
Pricing:
No free plan is available. Paid plans start at $149 per month for 2 users.
Cin7 - Omnichannel inventory management for retail and wholesale
Image source: softwareadvice.com
Cin7 is an inventory management platform that integrates with eCommerce platforms, offering real-time tracking, B2B portals, and point-of-sale systems. With accounting integration and customizable pricing, it helps businesses scale efficiently.
Key features:
Complete omnichannel synchronization across retail, wholesale, and e-commerce.
Integrated point-of-sale system for retail operations.
Advanced demand planning and forecasting.
Extensive third-party integrations, including shipping and marketplace connectors.
Rating:
Gartner: 2.7
G2: 4.1
Capterra: 4.3
Pricing:
No free plan is available. Paid plans start at $349 per month for 5 users.
Other great software for inventory management
Sortly: A highly visual and user-friendly inventory app ideal for small businesses needing to track items and assets using photos, QR codes, and barcodes
Finale Inventory: A cloud-based platform designed for multi-channel e-commerce businesses, providing real-time stock synchronization across online marketplaces like Amazon and Shopify.
Lightspeed: A powerful inventory management system that is fully integrated into its comprehensive retail and restaurant point-of-sale (POS) platform.
Katana: A manufacturing ERP focused on giving small to medium-sized businesses real-time control over raw materials, production scheduling, and finished goods.
Square Inventory: A free, built-in feature of the Square POS ecosystem, perfect for small retailers and cafes that need basic, easy-to-use stock tracking.
QuickBooks: Offers inventory management capabilities directly within its accounting software, allowing businesses to track stock value and cost of goods sold in real-time
Adobe Commerce: An enterprise-level e-commerce platform with sophisticated, built-in inventory management for large-scale operations.
Benefits of implementing inventory management software
The transition from manual or basic inventory tracking to sophisticated inventory management software delivers measurable benefits across multiple areas of business operations.
Reduction in carrying costs and dead stock
Effective inventory software helps businesses optimize stock levels, reducing the capital tied up in excess inventory. Key mechanisms include:
Automated reorder calculations that account for actual demand patterns rather than gut feelings
Demand forecasting that identifies seasonal trends and adjusts purchasing accordingly
Dead stock identification through aging reports and slow-moving inventory analysis
ABC analysis that focuses attention on high-value items with the greatest financial impact
By maintaining optimal inventory levels, businesses typically see 15-30% reductions in carrying costs, freeing up cash for other strategic investments.
Improved order accuracy and faster fulfillment times
Automation and real-time data significantly improve order processing efficiency:
Barcode scanning eliminates picking errors and speeds up fulfillment
Real-time inventory visibility prevents overselling and backorders
Optimized picking routes reduce travel time in warehouses
Automated shipping integration streamlines the fulfillment process
These improvements often result in 50% reductions in order processing time and significant decreases in shipping errors.
Enhanced visibility across your sales channels
Modern businesses sell through multiple channels, making inventory synchronization critical:
Unified inventory view across online marketplaces, retail stores, and wholesale channels
Automatic stock updates prevent overselling when inventory is sold through one channel
Channel-specific pricing and availability management
Centralized fulfillment optimization to reduce shipping costs
This visibility enables businesses to maximize sales opportunities while avoiding the customer service issues that arise from inventory discrepancies.
Automated compliance reporting for regulated industries
Industries subject to regulatory oversight benefit from automated compliance features:
Lot tracking for food safety and pharmaceutical regulations
Audit trails that document all inventory movements and changes
Expiration date monitoring to prevent the sale of expired products
Automated reporting for regulatory submissions
These features reduce compliance costs and minimize the risk of regulatory violations that can result in fines or business disruptions.
Better cash flow management through optimized stock levels
Inventory represents a significant investment for most businesses. Optimization directly impacts cash flow:
Reduced inventory investment through better demand planning
Faster inventory turnover by identifying and eliminating slow-moving stock
Improved supplier terms through more accurate demand forecasting and order planning
Reduced emergency purchases that often carry premium pricing
Reduction in manual errors and administrative time
Automation eliminates many time-consuming manual processes:
Automatic data entry from barcode scanning and system integrations
Reduced cycle counting requirements through perpetual inventory tracking
Automated reporting replaces manual spreadsheet preparation
Electronic purchase orders eliminate paper-based processes
Staff can focus on higher-value activities like vendor relationship management, process improvement, and customer service rather than data entry and record keeping.
How to choose the right inventory management software
So you've decided you need a digital inventory management system, but don't know where to start. Fear not. Follow this systematic approach, which evaluates your needs, technical requirements, growth plans, and more to make the best decision for your business.
Assess your business size and growth projections
Your current business size and anticipated growth significantly influence software selection:
Small businesses (1-50 employees) typically need:
Simple, intuitive interfaces that require minimal training
Affordable subscription pricing with low monthly costs
Basic features like inventory tracking, reorder alerts, and simple reporting
Quick implementation without extensive customization
Mid-market businesses (50-500 employees) often require:
Multi-location support for warehouses, stores, or distribution centers
Advanced reporting and analytics capabilities
Integration with existing accounting and business systems
Role-based access control for different user types
Enterprise organizations (500+ employees) need:
Highly scalable systems that handle large transaction volumes
Sophisticated workflow automation and approval processes
Extensive customization capabilities for unique business requirements
Enterprise-grade security and compliance features
Consider your growth trajectory over the next 3-5 years to avoid outgrowing your system too quickly.
Evaluate integration requirements with existing systems
You may already have software systems that you intend to keep. If that's the case, you need to evaluate whether the inventory tracking software can integrate with your existing systems. This may include:
Accounting software integration:
Automatic synchronization of inventory values and cost of goods sold
Integration with accounts payable for purchase order processing
Real-time financial reporting that includes current inventory valuations
E-commerce platform connectivity:
Automatic inventory updates across all sales channels
Order synchronization from online marketplaces and websites
Product catalog management across multiple platforms
Point-of-sale system integration:
Real-time inventory deduction with each sale
Customer order management and fulfillment tracking
Returns processing and inventory adjustment
Create a comprehensive list of your current systems and their integration requirements before evaluating software options. Alternatively, consider the cost benefits of choosing an all-in-one business solution where you can handle inventory, accounting, sales channels, and more in one place.
Consider scalability
While you may only be able to count your business locations on one hand, there's a good chance you'll want to expand the locations you operate if your business starts to accelerate. If that happens or you already have plans to expand in the future, you need a software solution that provides:
Unlimited location support without significant cost increases
Centralized management with location-specific controls and reporting
Inter-location transfers and inventory balancing capabilities
Consolidated vs. location-specific reporting options
Even if you currently operate from a single location, consider future expansion plans in your evaluation criteria.
Budget considerations: subscription vs. one-time licensing
Different pricing models have distinct advantages and implications:
Subscription-based pricing (Software as a Service):
Lower upfront costs and predictable monthly expenses
Automatic updates and new feature access
Included hosting, backup, and technical support
Easier to scale up or down based on changing needs
One-time licensing (On-premise):
Higher initial investment, but no ongoing subscription fees
Full ownership and control of the software
Requires internal IT resources for maintenance and updates
May need additional costs for support, updates, and hosting
Consider your cash flow preferences, internal technical capabilities, and total cost of ownership over 3-5 years.
Team training and onboarding requirements
Inventory management software comes in different shapes and sizes. Some are easy to get started with, while others can be overwhelming for some teams.
Factors to evaluate:
Interface design and user-friendliness
Available training resources
Support for different user skill levels
Mobile access for field users who may be less tech-savvy
Training considerations:
Time required to train existing staff
Ongoing training needs for new employees
Creation of an internal knowledge wiki
Support availability during initial implementation
User adoption strategies to ensure successful rollout
Customer support
There's nothing worse than spending big on a product or service and realizing the customer support is garbage. Based on my experience, having a reliable support team when you're struggling to use tools and features is crucial.
Support evaluation criteria:
Response time guarantees for different severity issues
Support channel availability (phone, email, chat, online resources)
Technical expertise of support staff
Availability of professional services for implementation and customization
Final thoughts on inventory management software
Choosing the right inventory management software solution is a critical step for modern businesses. Modern systems go beyond basic tracking, offering real-time synchronization, automated reordering, advanced analytics, and seamless integration with other business platforms. While implementation can be challenging, these issues are manageable with proper planning and comprehensive training.
The key is to select a system that aligns with your specific business needs and growth goals. For businesses looking to maximize efficiency and consolidate their tools, an all-in-one platform like Lark presents a compelling solution. Instead of just managing stock, Lark integrates inventory control directly with the collaboration tools your team uses for communication, approvals, and reporting. By moving away from manual spreadsheets and disconnected apps, you can gain significant advantages in efficiency and customer satisfaction.
FAQs about inventory management software
Can I use Excel for inventory management?
Yes, you can use Excel for inventory management, and it can be a good starting point for those with simple needs. However, Excel lacks real-time updates and is prone to human error, making it a poor choice for the vast majority of businesses.
Can QuickBooks do inventory management?
Yes, QuickBooks has built-in inventory management features that are suitable for most small to medium-sized businesses. It can track inventory levels in real-time, generate purchase orders, and provide reports on sales and stock value.
Does Google have an inventory management system?
No, Google does not have a native inventory management system. However, you can use Google Sheets with templates or third-party add-ons from the Google Workspace Marketplace to create a basic, collaborative inventory tracking system.
What software is best for inventory management?
The top inventory management software depends on your business size, industry, and specific needs. There isn't a single "best" solution for everyone. However, some top-rated options include Lark, NetSuite, Fishbowl, and Zoho Inventory.
What is MRO inventory?
MRO inventory stands for Maintenance, Repair, and Operations inventory. It includes all the supplies, parts, and equipment a company needs to run its business, but these items are not sold to customers. Examples include office supplies, janitorial materials, and spare parts for machinery.
Does Microsoft Office have an inventory management system?
No, Microsoft Office does not come with a dedicated inventory management system. Similar to Google, you can use Excel to manually track inventory or use third-party applications available on the Microsoft AppSource marketplace that integrate with products like Microsoft Dynamics 365 and SharePoint.
Is free inventory management software really free?
Sometimes, but often with limitations. Many free online inventory management software options are either a freemium model with limited features, users, or monthly transactions, or they are open-source and require technical expertise to set up and maintain.
What is the best small business inventory management software?
Lark provides the most generous plans for small businesses. Its free plan allows up to 20 users to start tracking inventory, while its paid plan, which costs only $12 per user/month, allows 500 users to manage inventory as well as have full access to Lark's collaboration suite.
Which inventory management software has the best reviews?
Inventory management software reviews vary based on use cases and user needs. However, according to our list of tools, Lark has the highest score when you take the average of reviews on Gartner, G2, and Capterra, three of the most well-respected review sites around.
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