- If you are looking for inventory replenishment software, one of the biggest challenges is finding a product that has all the features you need and also fits within your budget.
- You can use this software to streamline the inventory reordering and management process.
- Inventory replenishment software offers an easy-to-use interface, seamless integration and fast implementation.
Managing inventory can be one of the most complex and daunting tasks for retailers. Inventory replenishment software can help by streamlining product reorders to meet customer demand. It also takes into account important factors that affect your company's bottom line, such as by staying within inventory budgets, improving inventory turns and forecasting supply chains.
What is inventory replenishment software?
According to GMDH, inventory replenishment software is simply software that assists with the management of a company's inventory. Rather than relying on various people and programs, you can buy the right inventory replenishment software to simplify and streamline inventory processes. These are some of its features:
- Intuitive interface: Inventory replenishment software usually has an easy-to-use interface that makes managing all aspects of your inventory a cinch.
- Seamless integration: Another great feature of inventory replenishment software is that it makes the integration of company data and resources smooth and easy.
- Fast implementation: Given that successful implementation of this software depends on various factors, inventory replenishment software ensures that the process occurs as smoothly and efficiently as possible.
Cost
One of the biggest challenges in choosing an inventory replenishment application is finding one that has all the features you need but still fits your budget. Inventory replenishment software is one of the bigger software investments your company will make. Most services offer different monthly subscription packages starting at $199 per month and going up to $599. Pricing factors include the number of users, how many products you have in your inventory, how many locations your store has, integrations with retail solutions your company uses and compliance with trade regulations.
Benefits of inventory software
These are some of the benefits of using inventory management software:
- Accurate demand forecasting: One of the top benefits of using inventory replenishment software is that it allows you to accurately predict when you'll need to purchase new inventory.
- Time savings: Inventory management software can save companies 50% to 90% of the time spent on things such as forecasting, planning and ordering.
- Stock-out reduction: This software also allows for a whopping 90%-98% reduction in stock-outs.
- Projected inventory levels: It shows you how much inventory you will have in stock in the future.
- Order planning: It allows you to plan your orders in advance.
- Stock-out/overstock alerts: It sends alerts in the event that you do run out of products or if you have an abundance of any particular product.
- Inventory optimization: It helps you set up a system that allows you to order and store inventory in a way that optimizes use of your storage rooms and other inventory-related spaces.
Editor's note: Looking for the right inventory management software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
Limitations
Most plans include email customer support, but many vendors charge extra for one-on-one phone or chat support and priority email support. Expect to pay around $150 per month for premium customer support.
Another challenge is that most vendors don't list pricing information on their websites or in marketing materials. You'll have to contact them and speak with a sales representative for a quote.
Features
The primary purpose of inventory replenishment software is to make it easier for retailers to efficiently manage the flow of product orders and minimize or prevent out-of-stock items. Not all inventory replenishment solutions are the same, but here are some key features that the best applications include:
- It has an intuitive and easy-to-use dashboard to access all your data.
- It shows you exact quantities of your stock on hand, lead time for reorders and vendor servicing times.
- It tells you when to reorder products based on lead times and demand forecasts, and provides an analysis of supply-and-demand history.
- It recommends ideal quantities of reorders based on your store's needs.
- It automates replenishments with scheduled reorders.
- It lets you review and approve future orders to stay within financial constraints.
- It compares various vendors and ordering channels to minimize lead times and improve your restock rates.
- It provides inventory management tools for accurate merchandise planning.
- It lets you create reports and summaries of past replenishments to discover trends.
- It can manage inventory both at the store level and by departments or subdepartments.
- It helps you improve inventory turns to decrease markdowns and waste.
- It tests what-if scenarios to evaluate ideas and mitigate risks.
Vendor considerations
The best inventory replenishment software goes beyond your store's inventory, taking vendor data into account. This is especially important to calculate order cycles, lead times and total costs of restocking items.
Your inventory replenishment software should tell you the following information about a vendor:
- Minimum order requirements
- Pricing minimums
- Individual and bulk or warehouse pricing
- Processing and fulfillment times
- Shipping costs, times and locations
- Shipping measurements, such as whether products ship in units, cases, containers, pounds or truckloads
- Special deals or discounts
- Service and purchase order terms
By using inventory replenishment software, retailers can efficiently manage their inventory, prevent in-demand items from going out of stock, minimize overstock and stay within their budgetary constraints. The key is finding the right software that automates the process and forecasts demand by considering your store's unique needs and how your vendors ship out their products.