Efficient inventory management isn’t just a goal — it’s what sets industry leaders apart.
In this guide, we’ll break down what cloud inventory management is, how it works, and the benefits it offers. You’ll also learn how to choose the best inventory management software for your business. By the end, you can make an informed decision and take your inventory management to the next level.
What is cloud inventory management?
Imagine having a real-time, crystal-clear view of your inventory on any device. That’s the power of cloud-based inventory management software.
This type of software tracks stock levels across any location where you store product on a shared server, meaning your team can access the information from anywhere — a home office, a supplier’s assembly line, or the warehouse floor. A cloud-based solution lets everyone see updates about orders or inventory in real time, creating transparency across the organization.
But the best software is also a comprehensive solution that integrates with business systems, such as your point-of-sale (POS) system, online store, and accounting software. These integrations create a centralized hub for data from all your systems. With all this information in one place, you can track everything that happens, from returned orders to hiccups in fulfillment. That knowledge benefits your team by improving communication across departments, limiting the potential for human error and making operations more efficient.
When a customer purchases something from your online store, for example, an inventory management system automatically updates stock levels and sends the sales data to your accounting software. You don’t need to manually update multiple platforms or check them to know if stock levels and financial records are accurate and in sync — the system does it all for you.
How cloud inventory management works
Gone are the days of endless spreadsheets and manual inventory counts — cloud-based inventory management systems have revolutionized how businesses track and optimize their stock. Let’s explore the inner workings of these systems and discover how they empower businesses to control inventory like never before.
1. Centralized database
Cloud-based inventory management systems gather data from various sources, including information about inventory levels, purchase orders, and raw material accounts. Many can even offer a breakdown of how your inventory is allocated and where it’s located.
Imagine you have warehouses in Los Angeles, New York, and Denver. A cloud-based system consolidates inventory data from all three locations into a single dashboard, giving you an overview of stock. This is essential for accurate inventory tracking and informed decision-making about redistributing or reordering product.
2. Real-time visibility
A great system instantly reflects every transaction — sales, returns, new shipments, and more.
If a sudden surge in demand depletes a particular product, the system will alert you, allowing you to reorder before you run out. Setting reorder points is crucial for preventing stockouts, while the system gives you minute-by-minute data on what’s selling and being received.
3. Analytics and reporting
The best cloud-based inventory management systems analyze historical data, customer behavior, and market trends to forecast demand and identify areas for performance improvement.
You can generate reports on your best-selling products, slow-moving items, and peak sales periods to make decisions that you’re confident will boost profitability. These analytics and reporting capabilities are essential for inventory planning that maximizes your return on investment.
4. Scalability
As your business grows, your inventory management system needs to adapt. Cloud-based solutions offer the flexibility to scale up or down as needed. Whether you’re adding a new distribution center or expanding into international markets, cloud-based systems are flexible enough to meet your evolving needs.
Benefits of using a cloud inventory management system
Staying ahead of the competition requires leveraging the best tools available. Here’s how implementing a cloud inventory management system can revolutionize your operations.
1. Streamlined operations and boosted productivity
With a cloud-based system, you can save time by automating repetitive tasks like reordering, inventory tracking, and report generation. Your team can focus on strategic initiatives that drive growth and innovation rather than getting bogged down in manual updates.
2. Significant cost savings through optimization
Cloud-based systems let you optimize stock levels across multiple warehouses, minimizing carrying costs and reducing waste. Thanks to low stock alerts and comprehensive overviews, you’ll always have the proper inventory on hand in the optimal place.
3. Unparalleled accuracy for optimal stock management
Eliminate costly errors caused by manual data entry and outdated spreadsheets. With live updates and barcode scanning features, cloud inventory systems ensure your records are accurate and reliable. Those same barcode scanners let you perform cycle counts to account for any discrepancies in your inventory records from shrinkage or other problems outside your control.
4. Data-driven decisions for a competitive edge
With accurate information, you can identify trends to forecast demand. This ensures your inventory strategy aligns with market dynamics and customer preferences, and it empowers you to make informed pricing, promotion, and purchasing decisions.
5. Enhanced collaboration across your team
Cloud-based systems eliminate communication barriers by allowing multiple users to access and update inventory data simultaneously, regardless of location. Everyone can access the same up-to-date information, no matter where they’re working.
When you choose the best inventory management software, you’re not just keeping track of your stock — you’re gaining a competitive edge and a more efficient team.
What to look for in a cloud-based inventory management system
Not all cloud inventory systems are created equal. To master your inventory and elevate your business, you need a solution that aligns with your unique needs and goals. Here are the essential features to look for:
1. Real-time inventory tracking
The foundation of any sound inventory management system is the ability to monitor inventory levels in real time and see accurate information on stock availability and movements.
2. Integration capabilities
Your inventory system should seamlessly integrate with other business systems, such as accounting software (like QuickBooks), eCommerce platforms, and shipping carriers. This streamlines operations by eliminating manual data entry and offering easy, consistent reporting across all platforms.
3. Automated reorder points
The system should allow you to set automated reorder points for each item in your inventory. When the stock level reaches the reorder point, the system should automatically send a message informing you that you need to generate a prepopulated purchase order to replenish the stock.
4. Stock alerts
The system should be able to send you alerts when inventory levels are running low or items are out of stock. This allows you to proactively manage your stock, confirm that you’ve reordered stock, and avoid lost sales due to stockouts.
5. Multi-location management
If your business operates across multiple locations or warehouses, your inventory management system should be able to handle the complexity of tracking inventory across different sites. Look for a system that provides visibility and control over stock levels at each location, enabling efficient inventory allocation and transfer.
6. Mobile accessibility
Managing inventory on the go is crucial in a business environment. A cloud-based system with a mobile app allows you to access and manage your inventory from anywhere, at any time, using your smartphone or tablet.
7. Comprehensive reporting and analytics
Robust reporting and analytics tools are essential for gaining insights into your inventory performance, identifying trends, and forecasting demand. Look for a system with customizable reports, dashboards, and analytics features to make data-driven decisions.
8. User-friendly interface
The system should be relatively easy to learn and use, even for employees without extensive technical expertise. You want the system to help, not hinder, so choose something easy to adopt. Training videos, customized learning courses, and software experts are critical to the implementation process.
Elevate your inventory management with Fishbowl’s cloud-based solution
Ready to improve your inventory management? Fishbowl’s cloud-based solution, Fishbowl Drive, offers all the features that we said you should be looking for — and more. Plus, with seamless QuickBooks Online integration, you can keep your finances in sync.
Fishbowl’s inventory management software is designed to meet the needs of businesses of all sizes. It offers advanced features like lot and serial number tracking, automated reorder points, and low stock alerts.
Discover how Fishbowl, a leader in inventory management software, will revolutionize your inventory management. Schedule a demo today.