Custom Inventory Management Software: Features and Benefits
With 31 years in custom software development, ScienceSoft provides consulting on custom inventory management software
The Essence of Custom Inventory Management Software
Inventory management software provides real-time visibility and analytics on inventory levels and costs and automates inventory management processes, such as planning, purchasing, and tracking. It helps a business better align inventory levels with the production demand, optimize inventory carrying costs, and mitigate internal and external inventory-related risks.
- Inventory tracking and real-time updates (based on barcode or RFID scanning).
- Automatic reorder points calculation.
- Bill of Materials (BOM) creation and management (for discrete manufacturing).
- Inventory transfer request management (for multi-location optimization of inventory levels).
- Inventory valuation (based on FIFO, LIFO, or other methods).
- Inventory items cataloging.
- Inventory kitting (for retail & wholesale industry).
- Filtered item search (by SKU name and description, expiration date, etc.).
Supplier and purchase order management
- Supplier assignment to an order and transaction/delivery history.
- Purchase order creation and approval, status tracking, history overview.
- Automatic inventory replenishment orders (triggered by reorder points).
Customer order management
- Sales order creation and status tracking.
- Automated invoice generation and approval.
- Automated package slips generation.
Inventory database management
- User permission configuration.
- User activity logs.
- Automated and manual inventory data upload.
- Bulk inventory data processing (e.g., data import/export).
- Inventory data backup, versioning and recovery.
Reporting and analytics
- On-hand/low-stock inventory report.
- Inventory turnover report.
- Days sales of inventory (DSI) report.
- Inventory discrepancy report.
- Average days to sell report.
- Aged inventory reports.
- Customizable dashboards.
- Alerts configuration (e.g., for low-level inventory, shipment delays, prompts for cycle counting).
Advanced AI-driven analytics
- Inventory optimization (calculating optimal inventory levels based on multiple factors, from sales data to weather conditions).
- Demand forecasting.
- Lead time forecasting (using historical data to predict lead times by items and calculating an optimal safety stock based on it).
Integrating inventory software with other enterprise systems helps boost company-wide operational efficiency (no manual data entry efforts, immediate information delivery), avoid errors (e.g., accounting discrepancies, lost orders) and functionality duplication.
Common integrations for inventory software include:
Inventory management software + ERP
Core integration, which connects inventory software with other function-specific software listed further.
Automated transfer of inventory data to ERP in real-time, which gives other business departments instant and accurate visibility into inventory-related details.
Inventory management software + accounting software
Automated transfer of inventory transaction data for accurate financial statement and shareable inventory carrying costs reports.
Inventory management software + CRM
Automated transfer of stock information to sales teams for quick customer order confirmation and order details from CRM to inventory software for a streamlined sales order and invoice generation.
Inventory management software + a supplier portal
Shared data with a summary and an in-detail overview of products/materials provided by each supplier; automated transfer of supplier current capacity information to inventory software (e.g., min and max order quantity); automated order placement for timely inventory replenishment.
A high level of workflow automation
Automated inventory data uploading from barcodes or RFID systems, automated inventory replenishment orders, invoice templates, etc. To increase the productivity of inventory and purchasing specialists and warehouse workers and decrease human error.
A predictive analytics module
To enable data-driven demand forecasting to minimize both stockouts and overstocking, detect shifting customer preferences and seasonal trends, and optimize inventory processes in accordance with overall business goals.
Tailored to each inventory workflow of the company to make user adoption easier and drive employee productivity.
The cost of large-scale custom inventory management software ranges from $250,000 to $400,000 depending on the number and complexity of functionality modules included, as well as integrations required. An expected payback period is 5-8 months with 120-190% of ROI.
Key financial outcomes
Inventory costs savings due to optimal volumes of on-hand stock and stockout costs eliminated up to 100% due to accurate demand forecasting and real-time inventory control tools.
Revenue growth due to a higher fill rate with automated and optimized inventory operations.
When Custom Inventory Software is Your Best Choice
ScienceSoft recommends opting for a custom solution in case:
- You have complex interconnected workflows that even customizable software products can’t handle efficiently (e.g., inventory management across multiple locations, omnichannel selling).
- You need to integrate inventory software with complex or legacy internal (ERP, accounting, etc.) or external systems (e.g., from key suppliers).
- Your solution requires case-specific functionality (e.g., tracking and managing perishable inventory, generating custom types of reports).
- You want to get advanced AI-driven insights into your inventory operations.
In custom software development since 1989, ScienceSoft is ready to build advanced inventory solutions tuned to business specifics.
Consulting: custom inventory software
- Defining inventory software functionality based on business needs analysis and outlining technical requirements for it.
- Choosing the best-fitting tech stack.
- Preparing a project plan with estimated costs and time budget for implementing inventory software.
- Designing a secure software architecture.
- Creating UX and UI mockups reflecting inventory workflows.
Development: custom inventory software
- Analysis of inventory needs.
- Inventory management software architecture design.
- UX and UI design.
- Development of inventory management software (web and mobile).
- Integration with other internal software (accounting, CRM, etc.) and hardware (RFID system, if required).
- End-to-end quality assurance.
- Post-implementation support and evolution.
ScienceSoft is an IT consulting and software development company headquartered in McKinney, TX. We provide technical guidance and develop inventory management software that helps meet customer demand while optimizing inventory levels and reducing related carrying costs. Check our offer on custom software development to learn more about our development approach.