Find the best Manufacturing Inventory Software

Here's what we'll cover:

What is manufacturing inventory management software?

Is inventory management software what I need?

How to choose the right manufacturing inventory management software

Market trends to understand

Manufacturing inventory management software essentials

Manufacturing inventory management software is similar to inventory management software, but with a focus on manufacturers. They are designed to manage and optimize inventory levels, support kitting processes, and provide barcode/ticket scanning and product identification. It helps manufacturing businesses ensure accurate inventory control, maintain accurate stock levels, and improve production efficiency through real-time tracking and automated processes. 

While standard inventory management software focuses on tracking stock levels for retail and saleable consumables, manufacturing inventory software often includes additional features for niche products and non-consumables, or internal inventory such as office supplies (but not fixed asset management, such as buildings). 

Although seemingly niche, the market is substantial. We have 188 different manufacturing inventory management vendors on our site, and we’ve published 1,298 reviews for 61 products in the past year alone. The majority of user reviews (54%) come from small business manufacturers with 50 or fewer employees, and 36% have 51 - 200 employees. Construction is the largest industry represented.

First-time buyers should start their evaluation process by considering their budget, the number of users, specific use cases, and required integrations. Our seasoned manufacturing software advisors—Adrian Cantu and Saul Sanchez—share their insights into the selection process and say it's essential to consult with multiple stakeholders to compile a list of critical questions that will help you assess systems based on your unique needs, such as:

• Does this system track your specific type of inventory items? 

• Do you need the system to track your raw materials through the manufacturing process or only handle stock counts of finished goods? (This helps you identify if an MRP (materials requirement planning) system is needed instead.)

• How does the tool handle kitting, including the creation, tracking, and management of kits, and can it automate the process to ensure accurate inventory levels and cost tracking?

• Does this system integrate with the other systems you already use?

Most manufacturing inventory management products on the market are priced on a “per-month” basis, and their entry level pricing plans average around $260 per month. Premium and advanced system subscriptions can cost north of $2,000 per month. [1]

With numerous vendors available, selecting the right manufacturing inventory software can be a complex and overwhelming task. In this guide we'll walk you through the essential components of manufacturing inventory software, provide step-by-step instructions on choosing the best solution for your business, and discuss current trends in the market.

If you would prefer to speak with one of our experienced manufacturing inventory management software advisors like Cantu and Sanchez, schedule a call or start a chat with us.

Maintaining tight control over inventory is crucial for manufacturers operating in modern manufacturing environments where stock is kept at a minimum and orders are filled just in time (JIT). Manufacturing inventory software, sometimes referred to as manufacturing inventory control software, is one of the more traditional manufacturing applications. For this reason, there are more than 180 vendors that offer manufacturing inventory management software on our site.

This buyer’s guide, along with our manufacturing inventory software reviews, covers the essential information needed to make a purchase.

What is manufacturing inventory management software?

Inventory management software helps optimize supply levels so manufacturers always have what they need as orders are placed, without tying up capital in excess parts or ingredients. The systems allow manufacturers to instantly determine on-hand inventory balances, which is useful for financial planning. In addition to tracking raw materials and stocked items, the system also records work-in-progress (WIP) items, finished products and more.

Most inventory systems will track purchased material and stocked items by lot number and/or serial number. Inventory management solutions use these numbers to track and locate in-stock items and produce picking information for item retrieval. Many systems have barcode, or radio frequency identification (RFID), functionality to scan items that are received, picked or transferred. Inventory management systems can also track purchase orders and other value information that is helpful for accounting.

Is inventory management software what I need?

Before deciding on which system best fits your needs, it’s important to determine what type of software you need. If you’re tracking products from manufacturing through to the finished product, you may need to consider an MRP (materials requirement planning) system over inventory management software. On the other hand, if you're needing to manage stock counts of finished goods or repetitive manufacturing operations, a standalone inventory system might be a better fit.

Here are descriptions of related software types so you can be sure that manufacturing inventory management software is what you need.

3D computer-aided design (CAD) software: If you’re designing your own products, a CAD tool enables the creation of precise 3D models of products and components, facilitating detailed design and engineering processes. It helps manufacturers improve product quality, reduce design errors, and accelerate time-to-market by allowing for virtual simulations and modifications before physical prototyping.

Manufacturing execution software (MES): Monitors, controls, and optimizes manufacturing operations on the shop floor in real-time. It helps businesses improve production efficiency, ensure product quality, and enhance decision-making by providing comprehensive data on production processes, resource usage, and performance metrics.

Material requirements planning (MRP) software: A robust system designed to manage and streamline manufacturing processes by planning production schedules, inventory levels, and procurement activities. It helps businesses ensure timely availability of materials, optimize inventory costs, and improve production efficiency through accurate demand forecasting and resource allocation.

Warehouse management system (WMS): These systems are inventory control systems specifically designed for warehouse inventory that also offer software automation for crucial warehouse processes. Automating processes such as warehouse pick, pack, and shipping is vastly more efficient than manual methods.

How to choose the right manufacturing inventory management software

Step 1: Determine the type of buyer you are

 Understanding your buyer profile allows you to streamline the evaluation process, focus on relevant features, and make more informed decisions, ultimately leading to a more successful software implementation. According to our software advisor experts, manufacturing inventory management software buyers will typically fall into one of these three categories:

• Full-suite buyers. These buyers appreciate the integration that a solution from a single provider offers. Having a single system control all manufacturing functions improves information sharing between applications. For instance, a full-suite system can manage inventory picking, product assembly, and invoicing from a single source.

• Multi-location manufacturers. Operating multiple facilities adds a layer of complexity to the software requirements. These buyers need to track inventory for multiple facilities and balance levels across a geographic region. For manufacturers with international operations, the system should include multi-currency and multi-language support.

• Small manufacturers. These buyers have straightforward requirements and need a system to improve data entry and inventory tracking. Small manufacturers are typically transferring over from pen and paper to a more automated system and only need basic inventory control functions such as order processing and lot/serial tracking.

Step 2: Understand the benefits and potential issues

In order to remain competitive in today’s global economy, manufacturers need to reduce excess inventory and have the capability to manage stock levels with an automated system. Here are a few of the benefits and potential issues that accompany a manufacturing inventory management system.

• Time savings. An inventory system will reduce the amount of time spent processing and recording. It also enables manufacturers to immediately find the location of an in-stock item and check availability in real time.

• Improved inventory accuracy. Fewer manual entry mistakes, such as logging the same inventory item twice, are made using an electronic system. Getting a better grip on inventory management will also help reduce potentially costly manual recording errors.

• Implementation difficulties. Implementing a comprehensive inventory management solution can be expensive and time consuming. Furthermore, manufacturers have to start from a clean physical inventory so the system can work off a well-organized inventory from the beginning. This can be very labor intensive.

If you need guidance, you can chat online now with one of our advisors or schedule a phone call. You can get tailored recommendations about software that best fits your unique manufacturing inventory management needs.

Market trends to understand

Time and again different inventory management concepts, such as lean manufacturing, Kanban, six sigma methodology, and 3D printing, arise to make the manufacturing process more efficient. Inventory management is moving away from the manual process, which is onerous and prone to errors. Instead, it is moving toward digital technology, which constitutes web services, mobile, and internet of things (IoT). Therefore, manufacturers are looking for digital solutions that can help them manage their inventory efficiently.

Manufacturing inventory software is a niche market that is still evolving as its adoption in manufacturing organizations is increasing. Before buying a manufacturing inventory solution, decision makers should consider the following industry trends when they are evaluating a solution:

Smart inventory tracking. One-dimensional barcoding has gained a foothold in industrial and inventory tagging. Advanced systems use RFID, which enables remote monitoring to track the inventory status and product availability. Manufacturers can track products throughout the supply chain in real-time to help reduce instances of theft and spillage. In addition, real-time inventory report generation helps manufacturing and supply chain professionals to monitor business performance and take corrective actions.

Adoption of web-based platforms. There has been a gradual shift in manufacturer’s preferences from on-premise to cloud-based solutions. One of the reasons for this shift is that software-as-a-service (SaaS) solutions require very little upfront investment. In addition, the digital infrastructure helps companies save maintenance.

Enhanced business intelligence. Manufacturers are increasingly looking to track and analyze their inventory levels to understand lead time, analyze the variability in product demand and avoid inventory stock outs. Advanced manufacturing inventory solutions provide real-time business intelligence and analytics features to improve planning and strategic decision-making capabilities by providing timely updates.

Access from mobile applications. Inventory professionals have moved from working at a fixed, single location to mobile workstations. These mobile workstations are typically connected through wireless networks and operate in remote locations. To facilitate business operations from these mobile workstations, manufacturing inventory software vendors offer mobile applications that can be accessed 24/7 from any mobile device. Moreover, these mobile applications share notifications whenever an order is received, confirmed, packed, shipped and delivered to the user.

Internet of things (IoT). With this technology, internet-connected sensors communicate without any human intervention. Though it is still in its nascent stage, this technology is expected to grow exponentially and disrupt supply chain and manufacturing operations. Small businesses should keep a watch on this initiative and prepare themselves for IoT in the future.

Our contributors

Author

Olivia Montgomery is an associate principal analyst at Software Advice, covering program and project management with a focus on the strategic alignment of IT and operations to optimize digital transformation. Drawing from her experience as a former IT PMO leader and her background in humanities studies, Olivia delivers data-driven insights that empower business leaders to drive business growth through projects.

Olivia’s research and analysis is informed by nearly 200,000 authentic user reviews on Software Advice and over 10,000 interactions between Software Advice software advisors and project management software buyers. Olivia also regularly analyzes market sentiment by conducting surveys of project managers and PMO leaders so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

Her expertise is featured in Forbes, Bloomberg, CIO Dive, and TechRepublic, as well as in podcasts, such as The Digital Project Manager. Recently, she presented her research on emotional intelligence (EQ) and decision-making at PMI's Global Summit conference, shedding light on the crucial role of EQ in driving project success. When she's not analyzing tech trends, you can find Olivia horseback riding or re-watching Jurassic Park.

Editor

Lindsay Page is an editor at Software Advice. She specializes in editing data-driven research and tech trends reports for small to midsize businesses. She has more than a decade of experience writing and editing for a variety of industries, with particular expertise in cybersecurity, corporate and securities regulation, and finance. 

When not editing, Lindsay can be found reading a mystery novel, spending time with her family, and playing competitive tennis. Lots and lots of tennis.

Advisors

Adrian Cantu is a software advisor. He joined Software Advice in 2022, and is based in Austin, TX.

Adrian works directly with small business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking manufacturing, distribution, fleet management, and professional services software. He has a background in sales and has worked in the service industry. 

Adrian’s favorite part of being a software advisor is when the buyer sees the value in the service provided and expresses how appreciative they are. 

Saul Sanchez is a senior advisor. He joined Software Advice in 2019, and is based in Austin, TX. 

Saul works directly with small business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking a wide variety of software, including business intelligence, inventory management, manufacturing, and supply chain tools. Through one-to-one conversations, Saul provides a shortlist of potential matches. 

His favorite part of being a software advisor is experiencing a buyer’s relief when they discover how much time and energy he’s saved them by helping narrow down the list of many possible options on the market.

Sources

1. Software Advice software pricing data: Only products with publicly available pricing information and qualified software products within the category, as of November 29, 2023, are included in the pricing analysis. Read the complete methodology.