Inventory Control Software

Start with your bottleneck and choose your ammunition.

The biggest misconception about inventory control software is that it – in and of itself – will reduce inventory. Not true. An inventory software implementation requires a great deal of mapping and thinking before it can do any good.

1. Define the problem: What type of inventory needs to be managed? Raw materials? Work-in-process? Finished goods? Why is there too much inventory? Different solutions address different points in the manufacturing or retail process.
2. Define current inventory levels: Choose which bottlenecks to address, and set a realistic goal for reduction.
3. Get buy-in from suppliers: No matter where in the process you will reduce inventory, it will affect suppliers. They, too, may want to streamline deliveries to reduce their own inventories. Working with suppliers instead of against them will make the process easier.
4. Decide whether you want to integrate your inventory management software solution into others, buy separate inventory programs to address specific issues, or hire either a contract or staff IT professional to build a custom solution.

 

Find where the widgets are going

Is your bottleneck in your warehouse? Then a warehouse management system (WMS) might be the inventory software you need. If your problem is only with raw materials, then a supplier-oriented solution might be needed.
Try: Check out Supply Chain Market for a list of WMS and supplier-management inventory software.  See also Business.com’s directories of general inventory management solutions and WMS providers.

Find an online solution for inventory control

Consider the newer offerings of "in-demand" inventory software solutions, which run on a remote server and are delivered to clients via the Internet. The advantages for small businesses here are lower start-up costs and flexible scalability, meaning that as your business grows, so can the inventory control solution.
Try: Mitrix and Procuri are two such company targeting small businesses. And IBM pioneered the field.

Go lean on inventory control

Lean (or “just-in-time”) methods derived from the Toyota Production System are excellent starting points for reducing inventory in any sector (not just manufacturing) and can be automated and enhanced with the use of inventory software. Computer-based "kanban" programs look to visual signals to pull needed inventory.
Try: Try these software providers: Oracle, Optimum Performance Solutions which offers a "kanban calculator," and Infor. For free information on implementing lean principles for process improvement, check out the Lean Enterprise Institute. Find more “just-in-time” resources at Business.com.

 

• Some providers may push RFID to manage inventory. Some companies are successfully doing this, but in most they are using RFID because of a customer mandate. Many industry analysts say RFID systems do not yet have proven ROI outside of mandated implementations.
• Before buying into inventory management software, do all that you can do to reduce inventory by improving processes. These fixes often don't require capital investments.
• Look for online demonstrations of inventory programs. Many inventory management software companies give live, no-obligation demonstrations of their products via Webcasts. Ask them when the next one is scheduled.

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