Cloud-based Inventory Management Software

Keeping inventory in check is essential for any manufacturing business. As the industry evolves, so do the tools we use. That’s where cloud-based inventory management comes in—it’s the smart way to simplify operations, enhance efficiency, and keep your business one step ahead.

Today’s cloud solutions offer real-time insights, ensuring that you always know exactly what’s in stock, where it’s located, and how much you need. This level of transparency not only enhances accuracy but also boosts overall supply chain efficiency, helping manufacturers meet demand without overstocking or understocking.

The shift to cloud-based systems is significant. A report by Allied Market Research indicates that the global cloud supply chain management market is expected to reach $85.3 billion by 2033, growing at a CAGR of 11.1% from 2023 to 2033. This growth reflects the increasing adoption of cloud solutions by manufacturers looking to stay competitive in a fast-paced market.

Key Considerations for Choosing Cloud-Based Inventory Management Software

Choosing the right cloud-based inventory management software is a critical decision that can have long-lasting effects on your manufacturing operations. It’s not just about finding a tool that works—it’s about finding a tool that works for your specific needs. Here’s what to consider:

1. Identify inventory management feature gaps

Before selecting a software solution, it’s important to identify where your current inventory management processes are falling short. Are you struggling with tracking inventory in multiple locations? Do you need better tools for forecasting demand? Pinpointing these gaps will help you choose software that fills these voids effectively.

2. Evaluate user numbers and roles

Understanding who will be using the software and what their roles entail is crucial. Some systems are designed for a small number of users, while others can support large teams with different access levels. Make sure the software you choose can accommodate the number of users you have and the specific roles they play in your inventory management process.

3. Clarify required tool integrations

Your inventory management software won’t operate in a vacuum. It needs to integrate seamlessly with your other business tools, such as accounting software, CRM systems, and HR platforms. This integration ensures that all parts of your business are working together efficiently.

4. Define desired outcomes and measurement of success

What do you hope to achieve by implementing cloud-based inventory management software? Whether it’s reducing stockouts, improving order accuracy, or cutting down on manual data entry, defining your goals will help you measure the software’s success and ensure it’s delivering the results you need.

5. Assess software compatibility with workflows and methodologies

Every manufacturing business has its workflows and methodologies. The software you choose should complement and enhance these processes, not disrupt them. Ensure that the solution you select can be easily integrated into your existing workflows without requiring significant changes to how your team operates.

Types of Cloud Inventory Management

There isn’t a one-size-fits-all solution when it comes to cloud inventory management. Different businesses have different needs, and the type of inventory management system you choose should reflect your specific operational requirements. Here’s a closer look at the main types:

1. Centralized inventory management

Centralized inventory management is ideal for businesses with multiple locations that want to manage inventory from a single, unified platform. 

Here’s what to consider:

• Consistent inventory practices across all locations
• Simplified reporting and oversight with a single source of truth
• Enhanced control over inventory levels and movements

2. Distributed inventory management

For businesses with a more decentralized approach, distributed inventory management systems allow each location to manage its inventory while still maintaining overall visibility. This is useful for companies that operate in different regions or need to cater to local demands.

Here’s what to consider:

• Autonomy for local branches to manage their inventory
• Overall visibility into the inventory across all locations
• Flexibility to cater to regional needs and variations

3. Just-in-time (JIT) inventory management

JIT inventory management focuses on minimizing inventory levels by receiving goods only as they are needed in the production process. This approach reduces carrying costs and minimizes waste but requires precise demand forecasting and strong supplier relationships.

Here’s what to consider:

• Reduced carrying costs by minimizing inventory levels
• Less waste and obsolescence due to lower inventory
• Dependence on accurate demand forecasting and reliable suppliers

4. Real-time inventory management

Real-time inventory management systems provide up-to-the-minute information on stock levels, orders, and deliveries. This is essential for businesses that need to respond quickly to changes in demand or supply chain disruptions.

Here’s what to consider:

• Immediate visibility into stock levels and inventory movements
• Quick response to demand changes and supply chain issues
• Improved accuracy in order fulfillment and inventory tracking

Also learn: How To Effectively Use Wholesale Sales Software For Inventory Management??

Features of Cloud Inventory Management Software

When selecting cloud-based inventory management software, it’s important to focus on the features that will have the most impact on your manufacturing operations. Here are the key features to look for:

1. Real-time visibility of inventory levels

Having real-time visibility into your inventory is crucial for making informed decisions. Whether you’re checking stock levels, tracking orders, or planning for future demand, the ability to access up-to-date information at any time can make a significant difference in your operational efficiency.

Here’s what to consider:

• Instant access to inventory data across all locations
• Accurate forecasting based on real-time information
• Reduced stockouts and overstocking with timely data

2. Centralized data storage and accessibility

Centralizing your data in the cloud ensures that everyone in your organization has access to the same information, regardless of location. This is particularly useful for businesses with multiple sites or remote teams.

Here’s what to consider:

• Unified data storage for consistency across the organization
• Accessible from anywhere with an internet connection
• Improved collaboration with shared access to data

3. Streamlined inventory tracking and reporting

Efficient inventory tracking and reporting are essential for keeping your operations running smoothly. Cloud-based software automates these processes, reducing the likelihood of human error and providing you with accurate reports on demand.

Here’s what to consider:

• Automated tracking to minimize errors and save time
• Comprehensive reporting tools for detailed insights
• Customizable reports to meet specific business needs

4. Automated inventory replenishment and ordering

Automation is one of the biggest benefits of cloud-based inventory management. By automating the replenishment and ordering processes, you can ensure that you always have the right amount of stock on hand without over-ordering or under-ordering.

Here’s what to consider:

• Automatic reorder triggers based on preset thresholds
• Optimized stock levels to prevent overstocking and stockouts
• Seamless integration with suppliers for efficient ordering

5. Integration with other business systems

Integration with your existing business systems is essential for creating a cohesive operation. Whether it’s accounting, HR, or CRM systems, your inventory management software should work seamlessly with the tools you’re already using.

Here’s what to consider:

• Seamless integration with existing systems for streamlined operations
• Data synchronization to ensure consistency across platforms
• Improved efficiency with connected business processes

6. Scalability for growing inventory needs

As your business grows, so too will your inventory management needs. The software you choose should be scalable, allowing you to add more users, products, or locations without any significant disruption to your operations.

Here’s what to consider:

• Flexible scalability to accommodate business growth
• Support for additional users and locations as needed
• Smooth transitions with minimal disruption to operations

Sectors Where Cloud Inventory Management Software Can Be Used

Cloud-based inventory management software is versatile and can be applied across various sectors within the manufacturing industry. Here are some key sectors that can benefit from implementing this technology:

1. Automotive Manufacturing

• Supply Chain Coordination: Manage complex supply chains with real-time inventory tracking.
• Just-In-Time Production: Ensure parts are available when needed without overstocking.

2. Food and Beverage Manufacturing

• Expiration Date Tracking: Monitor perishable goods and manage inventory based on shelf life.
• Compliance Management: Ensure inventory practices meet food safety standards.

3. Electronics Manufacturing

• Component Tracking: Track thousands of small components across multiple locations.
• Demand Forecasting: Predict demand for electronics and optimize inventory levels.

4. Pharmaceutical Manufacturing

• Regulatory Compliance: Maintain accurate records and traceability to comply with industry regulations.
• Batch Tracking: Manage inventory by batch and lot numbers to ensure quality control.

5. Textile and Apparel Manufacturing

• Raw Material Management: Track raw materials and finished goods through the production cycle.
• Seasonal Inventory Management: Adjust inventory levels based on seasonal demand fluctuations.

Benefits of Cloud Inventory Management Software

The benefits of adopting cloud-based inventory management software go beyond just keeping track of stock. This technology can transform your manufacturing operations, leading to better efficiency, cost savings, and improved customer satisfaction. Here’s a deeper dive into the benefits:

1. Streamlined inventory processes

Cloud-based systems automate many of the manual tasks associated with inventory management, freeing up your team to focus on more strategic activities. This leads to faster processing times, fewer errors, and a more efficient operation overall.

A study by Flexera from 2024 found that 87% to 89% of businesses saw improved efficiency and reduced operational costs after adopting cloud-based solutions, underscoring the benefits of automation in streamlining processes.

Here’s what to consider:

• Automated processes that reduce manual effort and errors
• Faster processing times for inventory tasks
• Improved operational efficiency with streamlined workflows

2. Improved accuracy and efficiency

With real-time data and automated processes, cloud-based inventory management software significantly improves the accuracy of your inventory records. This leads to better decision-making, fewer stock discrepancies, and more efficient use of resources.

Here’s what to consider:

• Enhanced accuracy with real-time data and automation
• Reduced stock discrepancies through better tracking
• More efficient use of resources with accurate inventory management

3. Better inventory control, reduced costs, and increased customer satisfaction

Effective inventory management leads to better control over stock levels, which in turn reduces costs and increases customer satisfaction. By maintaining optimal stock levels, you can avoid the costs associated with overstocking or stockouts, while also ensuring that your customers receive their orders on time.

Here’s what to consider:

• Optimized stock levels for better inventory control
• Cost savings by avoiding overstocking and stockouts
• Increased customer satisfaction with timely order fulfillment

4. Increased visibility across the organization

Cloud-based systems provide increased visibility into your inventory operations, allowing everyone in the organization to access the same data. This transparency improves communication and collaboration across departments, leading to more cohesive operations.

Here’s what to consider:

• Unified access to data across the organization
• Improved communication between departments
• More cohesive operations with shared visibility

5. Greater accuracy and traceability

With cloud-based inventory management, you can achieve greater accuracy and traceability throughout your supply chain. This is particularly important for manufacturers who need to track materials from the supplier to the customer, ensuring compliance with industry regulations.

Here’s what to consider:

• Enhanced traceability from supplier to customer
• Compliance with industry regulations through accurate tracking
• Improved accountability with detailed inventory records

6. Saves time and money

By automating inventory tasks and reducing the likelihood of errors, cloud-based inventory management software can save your business both time and money. These savings can be reinvested into other areas of the business, driving further growth and success.

Here’s what to consider:

• Time savings through automation and efficiency
• Cost savings by reducing errors and manual labor
• Opportunities for reinvestment in other business areas

7. Remote and real-time warehouse management

One of the key advantages of cloud-based inventory management is the ability to manage your warehouse operations remotely. This flexibility allows you to monitor and manage your inventory from anywhere, at any time, ensuring that your operations continue running smoothly even when you’re off-site.

Here’s what to consider:

• Remote access to inventory data and warehouse operations
• Real-time monitoring for immediate visibility into stock levels
• Flexibility to manage operations from any location

8. Streamlined supply chain management

By integrating with other business systems and providing real-time data, cloud-based inventory management software streamlines your entire supply chain. This leads to faster turnaround times, fewer bottlenecks, and a more efficient operation overall.

Did you know that according to the Logistics Bureau reports businesses using cloud-based supply chain management systems experienced an average 15% reduction in operational costs? This reduction stems from fewer stockouts, optimized inventory levels, and reduced labor costs due to automation.

Here’s what to consider:

• Integrated supply chain management with real-time data
• Faster turnaround times through streamlined processes
• Reduced bottlenecks for a smoother operation

9. Scalability for seamless expansion or downsizing

Whether your business is expanding or downsizing, cloud-based inventory management software can scale with you. This flexibility ensures that your inventory management system always meets your needs, regardless of how your business changes.

Here’s what to consider:

• Scalability to support business growth or downsizing
• Flexibility to adjust to changing business needs
• Seamless transitions with scalable software solutions

10. Improves customer satisfaction

At the end of the day, effective inventory management leads to improved customer satisfaction. By ensuring that you always have the right products in stock and can fulfill orders quickly, you can build stronger relationships with your customers and encourage repeat business.

While 65% of customers expect companies to adapt to their evolving needs and preferences, 61% feel that most businesses still treat them as just a number. Effective inventory management helps bridge this gap, showing customers that you value their experience and are committed to meeting their needs.

Here’s what to consider:

• Timely order fulfillment for satisfied customers
• Consistent product availability to meet customer demand
• Stronger customer relationships through reliable service

Implementing Cloud Inventory Management

Implementing a cloud-based inventory management system requires careful planning and execution to ensure a smooth transition. 

With a powerful platform like WizCommerce can significantly enhance your business operations. WizCommerce offers robust tools for order management, inventory tracking, and customer engagement, ensuring you have everything you need to succeed at trade shows and beyond.

 Here’s what you need to focus on during the implementation process:

1. Evaluating and selecting the right cloud inventory management solution

The first step in implementing cloud-based inventory management is selecting the right solution for your business. This involves evaluating different software options, considering your specific needs, and choosing a solution that aligns with your business goals.

Here’s what to consider:

• Thorough evaluation of different software options
• Alignment with business goals and inventory needs
• Choosing a solution that meets your specific requirements

2. Data migration and integration with existing systems

Once you’ve selected a software solution, the next step is migrating your data and integrating the new system with your existing business tools. This process requires careful planning to ensure that all data is transferred accurately and that the new system works seamlessly with your existing processes.

Here’s what to consider:

• Accurate data migration to avoid disruptions
• Seamless integration with existing systems
• Thorough testing to ensure everything works correctly

3. Training and onboarding of employees for successful adoption

For your new inventory management system to be successful, your employees need to be properly trained and onboarded. This includes providing comprehensive training on how to use the new system, as well as ongoing support to address any issues that arise.

Here’s what to consider:

• Comprehensive training programs for all employees
• Ongoing support to address any issues or questions
• Successful onboarding to ensure smooth adoption of the new system

Best Practices for Effective Cloud Inventory Management

To get the most out of your cloud-based inventory management system, it’s important to follow best practices that ensure accuracy, efficiency, and continuous improvement. Here are some key practices to keep in mind:

1. Setting up accurate and standardized inventory data

Accurate and standardized data is the foundation of effective inventory management. Make sure that your inventory data is consistent, up-to-date, and standardized across all locations to ensure accurate tracking and reporting.

Here’s what to consider:

• Consistent and accurate data across all locations
• Standardized data entry to avoid discrepancies
• Regular updates to ensure data accuracy

2. Regular inventory audits and cycle counts

Regular audits and cycle counts are essential for maintaining accurate inventory records. These practices help you identify discrepancies, correct errors, and ensure that your inventory data is always reliable.

Here’s what to consider:

• Regular audits to verify inventory accuracy
• Cycle counts to maintain up-to-date records
• Correction of errors to ensure data reliability

3. Utilizing automation and analytics for efficient inventory control

Automation and analytics are powerful tools for optimizing inventory control. By automating routine tasks and using analytics to identify trends and inefficiencies, you can improve accuracy, reduce costs, and make more informed decisions.

Here’s what to consider:

• Automation of routine tasks to save time and reduce errors
• Analytics tools to identify trends and inefficiencies
• Data-driven decision-making for better inventory control

Conclusion

In the manufacturing industry, staying competitive means finding smarter ways to manage your inventory. Cloud-based inventory management isn’t just a tool—it’s a game-changer. It simplifies operations, reduces errors, and keeps your business running smoothly, all while giving you the flexibility to adapt and grow.

But why stop there? If you’re ready to take your inventory management to the next level, WizCommerce has you covered. Integrating your inventory management software with WizCommerce can significantly enhance your sales tracking capabilities. This integration can streamline your operations, reduce errors, and improve customer satisfaction by ensuring timely order fulfillment and accurate product availability.

Book a demo today to learn more!