Inventory Management System Features

Inventory management software is a new-era replacement for spreadsheets. Feature-rich systems help run smart inventory management strategies and optimize processes. 

There are tons of out-of-shelf systems with a wide assortment of features available. Yet, only about 60% of inventory management software features are used by an average business. Roughly 40% of functionality remains unused.

It's vital to develop software that comprises the inventory management system features a business needs to avoid wasting resources when developing a new solution.

Find the selection of the key and advanced features to implement when developing a new system below.

Key Features	Advanced Features
1. Inventory tracking	1. Automated re-ordering
2. Identifiers issuing and scanning	2. Third-party software integration
3. Order management	3. Multi-location inventory management
4. Item storage management	4. Demand forecasting
5. Reports and analytics	5. IoT-driven inventory management
6. Backup and data import/export	6. Automated item quality check
	7. Automated workflows
	8. Bundles and multiple price tiers

Let's elaborate on the core and advanced features to implement. Discover problems they help solve and how these features are applied.

SIX KEY FEATURES OF INVENTORY MANAGEMENT SYSTEM

The vital inventory management software features help enable the basic functionality of new software. They help track items in a warehouse, manage orders, and access analytics.

1. Inventory Tracking

Track the location and movement of items in a warehouse. The feature enables an inventory management system to record information about the placement of items, their quantity, and transfer history. 

By updating items' location data in live time, you can trace work-in-progress (WIP) products. An inventory management system alerts responsible managers when the in-stock level reaches a defined minimum value. Also, this feature of an inventory management system helps track the expiry date of perishable products.

Statistics: 95% of businesses consider inventory tracking as a critical feature.

Problems Solved	Feature Application
Poor inventory visibility	Real-time serial number tracking
Manual item counting	Stock level monitoring
Stockout and overstocking	Location tracking and movement history check
Erroneous inventory data	Missing items identification
Increased product wastage	Expiry date tracking

2. Data Backup and Import/Export

Ensure data safety and enable fast recovery after unforeseen data losses. Import/export inventory data in bulk to rapidly migrate information between different systems in a supply chain. Validate and transform data to ensure its integrity for creating information exchange pipelines.

Statistics: 90% of businesses define data backup and import/export as the baseline functionality.

Problems Solved	Feature Application
Data loss	Full and incremental backup
Manual backup creation and management	Data check and validation
Poor information integrity	Automated data backup and recovery
Insufficient data-sharing capabilities	Inventory data import and export
Manual product information entry	Data transformation

3. Identifiers Issuing and Scanning

Create identifiers in the form of barcodes, QR codes, RFID tags, or SKU codes. Quickly scan packages to discover detailed information about items. Various equipment like barcode scanners, cameras, or smartphones can be used for scanning labels.

Data encoded into barcodes can be automatically fetched and input into an inventory management system. It helps enhance order fulfillment accuracy and performance.

Statistics: 87% of businesses identify efficient product identification as an important feature.

Problems Solved	Feature Application
Data entry errors	Product scanning and information update
Time-consuming or inaccurate order fulfillment	Automated data entry and data forms pre-population
Insufficient product identification	Identifier code generation and label printing
Poor item traceability	Item movement tracking
Manual inventory audit	Product identification for order collection

4. Order Management

Use a centralized system to collect and fulfill orders. The feature enables the opportunity to check in-stock inventory and discover the location of items to pick and pack rapidly. Trace the delivery of packages and manage returns effectively. 

Also, this inventory management system software feature enables the opportunity to reserve items in a warehouse and track the status of orders.

Statistics: 84% of businesses state that order management is an obligatory-to-have feature.

Problems Solved	Feature Application
Time-consuming order processing	Order processing
Order processing delays caused by stockout	In-stock inventory check and reservation
Return-handling mistakes	Order confirmation and tracking
Manual order status tracking	Customer communication
Human errors	Automated returns processing

5. Storage Management

Organize storage space and enable smart item placing to minimize the efforts and time required to pick and pack items. Easily discover the physical location of inventory. Besides, this inventory management system feature helps meet storage environment conditions requirements.

Statistics: 82% of businesses identify asset tracking features as critical functionality.

Problems Solved	Feature Application
Insufficient storage space utilization	Storage rules and policy creation
Item location challenges	Space reservation for production
Improper storage conditions	Guided item placement
Time-consuming order picking and packing	Items' physical location identification
Inventory misplacement	Smart stock rotation

6. Reports and Analytics

Collect all the data across a supply chain and extract valuable insights. Automatically create reports and visualize raw data. Also, the feature enables the opportunity to create data analysis pipelines to check inventory data in live time.

Statistics: 81% of businesses state that analytics is a key functionality of an inventory management system.

Problems Solved	Feature Application
Poor supply chain management and visibility	Data collection and storage
No real-time data	Information analysis
Lack of data-driven decisions	Data visualization and custom report generation
Improper inventory replenishment planning	Dashboards and live-time data update
Manual report creation	Trend and error identification

EIGHT ADVANCED INVENTORY MANAGEMENT SYSTEM FEATURES

Improve your inventory management system by supplementing it with top-tier inventory management software features.

1. Automated Re-Ordering

Replenish items automatically to maintain the optimal level of inventory in a warehouse. The feature monitors in-stock inventory and triggers automatic product re-ordering. It helps create replenishment requests that are sent to suppliers once approved by executing managers.

Also, the feature helps enable a vendor-managed inventory replenishment system. A supplier monitors the level of in-stock inventory. When it reaches the minimum required value, a vendor automatically delivers a new batch of products.

Problems Solved	Feature Application
Stockout and overstocking	Reorder points configuration
Manual new order submission	Automated stock level monitoring
Data entry errors	Order review and approval
Manual stock-level monitoring	New orders tracking and management
Poor supplier management	Vendor communication

2. Demand Forecasting

Apply algorithms or use machine learning models to forecast trends and demand changes by analyzing historical data. Avoid stockout by preparing for demand spikes and seasonal changes in advance. Smart adjustments of inventory replenishment strategies help decrease the wastage of perishable products.

Problems Solved	Feature Application
Stockout and overstocking	Demand change forecasting, based on historical data
Insufficient item replenishment strategies	Identification of trends and repeating patterns
Lack of information on seasonal and repetitive demand changes	Risk identification
Increased product wastage rate	Market insights discovery
Faulty market analysis	Replenishment strategies optimization

3. Third-Party Software Integration

Develop an integrated inventory management system by connecting software from different vendors. Fetch orders and inventory data from different platforms and process it in live time using this inventory management system feature. Besides, you can enhance the functionality of a system by connecting additional modules.

Problems Solved	Feature Application
Ineffective workflows	Inventory management system functionality extension
Isolated data in disparate platforms	Centralized inventory data fetched from multiple systems
Manual data collection from different systems	Automated data pipeline creation
Limited functionality of inventory management software	Real-time information synchronization
System scaling up challenges	Centralized order processing and tracking

4. Multiple Storage Facilities Management

Manage inventory stored in multiple warehouses. Choose the most optimal storage facility to fulfill and deliver orders fast, based on clients' locations. Enable full visibility across multiple facilities using a centralized warehouse inventory system. 

Besides, the functionality enables easy submission of transfer requests and automated multi-storage inventory management operations.

Problems Solved	Feature Application
Poor order picking and packing efficiency	Cross-docking stock transfer requests
One storage-focused inventory management	Centralized inventory visibility
Inefficient item storage and distribution	Multi-location items picking, packing, and replenishment
Lack of centralized visibility across disparate facilities	Multiple storage facilities management
Excess inventory turnover	Optimized order fulfillment

5. IoT-Driven Inventory Management

Internet of Things (IoT) describes a set of smart devices connected to one network. The most popular smart devices supply chain businesses use are sensors, scanners, thermostats, cameras, and robotics. They foresee the opportunity to track inventory and maintain warehouses.

Implementing robotic actuators and automatic guided vehicles enables the opportunity to move items automatically or create dark warehouses, 100 %-automated storage facilities. Also, smart sensors can alert you about emergencies like leakage, fire, or unauthorized access.

Problems Solved	Feature Application
Insufficient inventory traceability	Real-time data collection from sensors
Manual storage facility environment check and management	Item tracking and automated scanning
Lack of real-time data on work-in-progress inventory	Centralized warehouse control and management
Manual item scanning, picking, packing, and transportation	Automated item picking, packing, and transportation
Increased level of errors	Smart storage environment control

6. Automated Item Quality Check

Ensure received and distributed items have no defects and match defined quality standards. To inspect inventory, incorporate diverse devices like cameras, weight scales, temperature sensors, or computerized tomography (CT) scanners.

Problems Solved	Feature Application
Delivery of damaged or defective items	Custom item inspection workflow creation criteria establishment
Increased wastage or return rates	Automated inventory inspection
Regulatory compliance standards violation	Inventory quality check results collection and analysis
Ineffective manual random sampling inspection	Alerts on items that haven't passed an inspection
Time- and resource-consuming quality control process	Regulatory compliance standards check

7. Automated Workflows

Optimize the performance of the labor force and decrease the number of errors by implementing automation. Create custom rules that trigger actions when specific conditions are met. The feature implementation helps automate a lot of processes like item scanning, barcode creation, data update, transfer request creation, and others.

Problems Solved	Feature Application
Manual data entry, order management, and document creation	Automated order processing and transfer request creation
Increased manual error rate	Automated Inspection and return of defective items
Timely item sourcing and order fulfillment	Documents and form pre-population
Manual customer and vendor communication	Automated picking and transfer of expired items to a disposal unit
Manual item sorting and return	Automated message delivery to customers and vendor

8. Bundles and Multiple Price Tiers

Create custom offers and implement loyal customer price tiers. Using this feature, you can create product kits by bundling a group of items into a single unit. Also, the feature foresees the opportunity to set custom discounts or multiple price tiers to enable adjustable pricing strategies.

Problems Solved	Feature Application
No membership or loyalty programs	Product kitting
Inflexible pricing strategies	Quantity-based discount
Insufficient upselling and cross-selling	Custom discount creation
Decreased customer satisfaction	Customer segmentation
No bulk sales opportunity	Item cross-selling suggestions

CONNETSX — MEDICAL INVENTORY MANAGEMENT SYSTEM

The CodeIT team has hands-on experience in creating software with advanced inventory management system features.

Learn more about ConnectSx, the solution created by our team from scratch.

Problem

The client was unsatisfied with the internal processes' inefficiency. Medical staff used spreadsheets to track and manage inventory manually. The processes were time-consuming, with a high risk of making an error.

The client has hired the CodeIT team to develop an efficient digital solution.

The client has hired the CodeIT team to develop an efficient digital solution.

Solution

Our team has tapped into the existing solution development. Providing custom software development services, we've analyzed it and prepared a detailed project reboot plan. 

Our team has created three standalone applications:

1. Web inventory management app 
2. Mobile inventory management app 
3. Mobile UDI scanning app

Using the developed web and mobile applications, users can:

• Manage and trace all the inventory items 
• Import data from external sources
• Track medical product expiration dates
• Collect inventory data and analyze it
• Search lost items
• Submit transfer requests
• Scan barcodes to discover detailed information

Deep dive into the project and discover the application development processes with every step highlighted in our case study.

INVENTORY MANAGEMENT SOFTWARE DEVELOPMENT — BEST PRACTICES

Take the guesswork out of inventory management software development with best practices.

Pick Optimal Tech Stack

It's vital to pick the right tech stack for developing a new system due to the limitations of technologies used in inventory management. Choose the most optimal solution to:

• implement inventory management system features
• stay on track with budget
• release features within a defined timeline
• enable the opportunity to scale up and upgrade

For example, by considering the native app development approach, a business needs to create two distinctive applications involving two teams of software engineers. However, by opting for a cross-platform system, they may develop an app that works on different platforms using one codebase.

Understand Business Challenges and Bottlenecks

Focus on implementing inventory management software features that solve the most critical business challenges. Unlock the true potential of your business by eliminating bottlenecks in workflows.

New features of an effective inventory management system should deliver feasible outcomes or solve business problems.

Define Inventory Management System Features List

For starters, you have to consider the key features of an inventory management system to implement. Focus on critical functionality to create a system's MPV. It can be further enhanced with other less critical but helpful features.

Create a list of the most important features that should be presented in a product's MVP. Other features should be prioritized to develop and release the most valuable functionality first.  

Enable Real-Time Data Sharing

Real-time data sharing helps create centralized software that fetches data from multiple sources. Also, it helps manage inventory across multiple facilities.

The most popular ways to enable real-time data exchange between systems is by using:

• API integrations. The application programming interface comprises a set of rules that enable developers to connect software from different vendors.
• Centralized data repository. An on-premises or cloud-based server can collect all the data across a supply chain and share it with other systems in live time. Besides, data can be preprocessed to improve the performance.
• Point-to-point synchronization. A direct TCP/IP connection between two software applications for real-time data exchange.

The development of additional data mapping tools may be required to connect third-party systems.

Consider Scalability

Having a long-term strategy is important when developing a new solution from scratch. The two software architecture options to choose from are:

• Monolith: Easy to build core functionality. However, the more solutions' complexity increases, the more challenging it is to add new features.
• Microservises: Requires more effort to develop inventory management software with the baseline functionality. New features can be easily added as distinctive microservices, even if they are built using different technologies.

CONCLUSION

The key features of an inventory management system that help enable the baseline functionality are:

• Inventory tracking
• Identifiers issuing and scanning
• Order management
• Item storage management 
• Reports and analytics
• Backup and data import/export

The advanced inventory management system features that help enhance the functionality of the existing software are:

• Automated re-ordering
• Third-party software integration
• Multiple-location management
• Demand forecasting
• IoT-driven inventory management
• Automated item quality check
• Automated workflows
• Bundles and multiple price tiers