Cloud Based Inventory Management Systems

Inventory management is a critical component of any business that deals with physical products. From the smallest ecommerce stores to the largest international conglomerates, maintaining accurate and efficient inventory tracking can mean the difference between profitability and obsolescence. This article will explore what cloud-based inventory management is, the different types of inventory management systems available, and the advantages they offer. We'll also look into some leading examples in the market today, highlighting solutions for small businesses and free options.

What is a Cloud-Based Inventory Management System?

A cloud-based inventory management system is a software application hosted on remote servers rather than locally on your company's premises. By leveraging cloud technology, businesses can access their inventory data via the internet, from anywhere in the world. This system allows real-time tracking and management of stock levels, orders, sales, and deliveries. It supports operations like updating stock quantities automatically, facilitating expense recording, and analyzing sales patterns over time.

Cloud-based systems are particularly advantageous because they do not require heavy infrastructural investments for hardware and maintenance. Businesses can pay for what they use in a subscription-based model, which is often more cost-effective than traditional on-premise systems.

What Are the Four Types of Inventory Management Systems?

1. Manual Inventory Systems: This traditional method involves tracking inventory by hand. Businesses often use paper records or spreadsheets to monitor changes. It's suitable for very small businesses with limited stock, but it's prone to human error and can be inefficient.
2. Barcode Systems: Utilizing barcodes and scanners, this system automates the data entry process, reducing the chances of error. Barcoding significantly speeds up the receiving and shipping processes and is more accurate than manual entry.
3. RFID Systems (Radio Frequency Identification): RFID tags and readers provide a more advanced tracking method. These systems can update inventory levels instantaneously and monitor stocks in real-time. It’s advantageous for businesses needing to track high volumes of inventory rapidly.
4. Cloud-Based Systems: These encompass both barcode and RFID technologies but extend capabilities by integrating over the internet. They offer real-time data access, streamlined operations, and integrations with other business applications.

Is Zoho Inventory Cloud-Based?

Yes, Zoho Inventory is a cloud-based inventory management solution. It is part of the Zoho suite of business applications. Zoho Inventory is designed to help businesses manage both offline and online inventory. By integrating with marketplaces like Amazon and eBay, as well as shipping carriers, Zoho Inventory ensures seamless order management.

But there are several other cloud-based inventory management solutions available. A few examples are -

Ordoro

TradeGecko

Cin7

Finale Inventory

Extensiv

What is a Cloud-Based Management System?

A cloud-based management system is a software tool hosted on the internet platform that integrates multiple functions of a business. These systems assist in managing resources, operations, relationships, and finances. This category isn’t limited to inventory – it spans customer relationship management (CRM), enterprise resource planning (ERP), human resources management (HRM), and more.

Cloud-Based Inventory Management Systems Examples

1. Ordoro: As one of the leading cloud-based inventory management software solutions, Ordoro is favored by numerous Shopify merchants for its comprehensive functionality. It manages orders and inventory, supports dropshipping, and integrates well with other ecommerce platforms.
2. Cin7: Cin7 offers extensive integration capabilities, automated workflows, and omnichannel support. It's well-suited for medium to large retailers and wholesalers.
3. DEAR Systems: Known for its easy-to-use interface and scalability, DEAR Systems supports both small and medium-sized businesses with features like order management, manufacturing, and retail operations.
4. Zoho Inventory: With features like multi-channel selling and third-party integrations, Zoho Inventory is ideal for businesses looking to streamline their inventory processes.
5. TradeGecko (now QuickBooks Commerce): This platform offers inventory control, order management, and multichannel selling capabilities, making it suitable for growing businesses.

Cloud-Based Inventory Management Systems Free

For small businesses, it can be beneficial to first explore free or freemium inventory management solutions:

1. Zoho Inventory (Free Plan): Zoho offers a free version that includes basic inventory management features, perfect for businesses just starting out.
2. Sortly: This intuitive app offers a free version with limited features, but it helps small businesses maintain basic inventory control.
3. Odoo: While Odoo is a comprehensive ERP solution, it has open-source options that include inventory management modules.

Cloud-Based Inventory Management Systems for Small Business

Small businesses often need solutions that are both affordable and scalable. Cloud-based systems are ideal since they do not demand significant upfront costs:

1. Ordoro: By catering specifically to the needs of online sellers, Ordoro's robust inventory and order management suite is perfect for small businesses looking for comprehensive support.
2. Zoho Inventory: With its free tier and an emphasis on ecommerce integration, Zoho Inventory is a great option for small businesses.
3. Square for Retail: Known primarily for its payment solutions, Square also offers an inventory management system tailored for small retailers.
4. Fishbowl: Although not inherently cloud-based, Fishbowl Inventory integrates with QuickBooks and offers hosted services suitable for small businesses.

Best Cloud-Based Inventory Management Systems

When evaluating the best cloud-based inventory management systems, you should consider features, scalability, price, and ease of use:

1. Ordoro: Leading the list, Ordoro's versatility, ease of integration with ecommerce platforms, and efficient order management makes it a top choice.
2. Cin7: With extensive customization and integrations, Cin7 is well-suited for businesses that require flexibility.
3. DEAR Systems: Its balance of cost-effectiveness and powerful features makes it a viable choice for businesses of various sizes.
4. Unleashed: Known for its robust reporting and forecasting capabilities, making it ideal for manufacturers and distributors.
5. Netsuite: This is a comprehensive ERP with strong inventory management features, ideal for mid-sized to large businesses.

Cloud-Based Inventory Management System Projects

Developing a cloud-based inventory management project involves creating a system that accurately records and tracks inventory data over the internet. Key project components typically include:

1. Real-Time Inventory Tracking: Implementing barcode or RFID technology to instantly update stock levels.
2. Order Management Integration: Ensuring seamless integration with ecommerce platforms for automated order processing.
3. Data Analytics: Incorporating tools for analyzing sales and stock data to optimize business decisions.
4. Multi-User Access: Designing permission-based access so different users can view and edit information as per their roles.

Cin7

Cin7 is a cloud-based inventory management platform designed to handle complex inventories and integrate seamlessly with sales channels, 3PLs, and more. Its features include inventory control, point-of-sale, and B2B ecommerce. With its robust reporting and analytical capabilities, businesses can track sales performance across multiple channels. Cin7 is particularly suited for businesses looking to streamline their operations and expand across multiple markets.

DEAR Systems Inventory

DEAR Systems offers a cloud-based inventory management solution ideal for SMBs looking for a scalable and intuitive platform. DEAR provides tools for purchase order management, manufacturing, and sales order management. Its seamless integration with accounting systems like Xero and QuickBooks helps businesses maintain accurate financial records alongside their inventory data.

What Is Cloud-Based Inventory?

Cloud-based inventory refers to inventory management processes and systems that occur on internet servers. Unlike traditional systems that rely on on-premise hardware and software, cloud-based inventory solutions offer accessibility, scalability, and flexibility. Real-time updates and accessibility from any location make cloud-based inventory an appealing option for businesses globally.

In conclusion, cloud-based inventory management systems are a powerful option for businesses aiming for efficiency and growth. Selecting the right system depends on various factors such as company size, industry, and specific inventory management needs. Starting with solutions like Ordoro, which is trusted by hundreds of Shopify merchants, can provide a scalable and reliable foundation. For more on each system's specific functionalities, visit their respective websites to understand which might be the best fit for your business.