What is an inventory management system?

An inventory management system, sometimes called a warehouse management system, is a tool that helps you manage and track stock through all stages of the stocking and sales cycle. This can help any business owner, no matter the size, understand what stock you have, how well it’s selling and what you should be investing in next. 

What are the benefits of an inventory management software?

• Real-time inventory tracking: No one wants to try and pay for an item only to have it be sold out. Ensure you’re keeping customers happy by knowing and importantly, being able to update, which items are back in stock, dangerously low or are coming soon.

• Cash flow confidence: Avoid costs associated with unnecessary wastage or reordering of slow-moving items or customer refunds due to unfulfilled orders. The right app works harder to improve your cash flow by highlighting where to spend your investment to ship products in and out quickly.

• Streamlined supply chain: Help your supply chain work for you with accurate ordering and delivery times from your warehouse based on seasonal peaks and dips in demand.

What are the typical features I can use with an inventory app?

• Lightning-fast stock searches: Search through your data and find SKU files with super-speed look up functionality.

• Forecasting and demand: Use historical data and metrics to predict your future stock needs, and plan for seasonal changes ahead of time.

• In-depth reports: Access real-time reports on inventory across all your sales channels, run cost comparisons to find the best suppliers for your budget and see your store profitability up front. 

• Stock alerts: Get notifications and alerts when stock is running low, when ordering has picked up, or when supply chain disruptions may slow down stock arriving. 

• Automate task management: Eliminate human error and simplify task management while getting new insights and visibility into stock, products, and ordering.

How inventory management apps work with Xero

Understanding your stock patterns is key to a successful business. Inventory management systems that integrate with your accounting software sync your stock movements to give you an insight on how your supply chain is performing in real-time, without you lifting a finger.

Connecting your inventory management system to Xero can give you access to features like:

• Automatic updates of your costs-of-goods-sold, stock orders, additional stock costs and stock on hand across all sales channels

• Petty cash and float balance management

• Syncing of all accounts receivable and payable updates directly to Xero

• Tracked real inventory and landed costs

• Direct invoice payment for all customers and suppliers from one place

Find your fit

Every inventory management apps’ integration with Xero can be different. To learn more, browse through the inventory apps in this category. Click on an app to find detailed information on how it works and integrates with your Xero account, and ratings and reviews by other Xero users. Want to try an app? You can then get started directly from the app listing page in just a few clicks.