Starting out as a new or freshly started business, it is crucial that you do your research and decided if you need inventory management software, or you can maintain your supply records manually. You can use ‘older’ methods as Excel spreadsheets or paper sheets and documentation to track and analyze your inventory. Yet, as your business scales up or you intend to grow, it is important that you consider some facts and ask yourself few questions before having a final decision.

  1. Why do you need inventory management software?

Do you consider implementing an IMS as a positive purchase that will scale your business from your current point, or you maybe have an expansion plan and strategy to grow in another city where management would become more complicated without assistance from technology. However, advanced thinking and forecasting issues when it comes to inventory solutions is the right thing to do, as implementing an IMS in the start or before expanding your business would be best if done early and before old methods become a deep part of your organization

(Read more about: The 6 Best Inventory Tracking Systems & Management Software)

  1. Are you really prepared to implement an IMS solution?

Changing the standardized procedures and staff habits in the organization is always a big barrier. However, with good management skill and planning, it can easily be overcome.

If you are ready to implement an inventory management software in a small business, it is necessary to provide adequate training for the staff and managers. Even though managing a small business inventory is not really needed to be automated, an IMC solution will definitely be of huge advantage in order of tracking and analyzing transactions, as well as forecasting the supply chain needs.

  1. Does IMC you plan to acquire really fits your small business needs?

When deciding if you are going to us an IMC for your business, it is crucial that you find a solution that will be perfect for your niche and needs. Different providers have different features and expenses on the long term, so the solution you go with should cover only features you would use for your inventory management – yet always think and plan the future growth of the company, so choose a provider that will include additional features (add-ons) upon request.

  1. Did you predict the TCO? 

A key point when choosing a solution is the total cost of ownership for the software over an extent of few years.  Mostly, the choice is between cloud and local based IMC, yet you must have and anticipate the recurring costs and fees for maintenance, server management, licenses etc.

  1. What is the ROI when implementing an Inventory Management Software?

Purchasing an IMS is a great call for every business, even small businesses, however, you must measure the success and justify the need before bringing a final decision. Latest research reports show that, in average, the ROI is 0,6% of yearly revenue. Regardless of that fact, using the software in a smart and efficient way will boost your ROI on an inventory management solution purchase.

Did you get answer to your questions before investing? Inventory management software solutions are the way of future automation for every business, regardless the size, and they give you the upper hand on the market for 2017.