Custom inventory management software: when it pays

Signs your stock management could be better

Many businesses start with an Excel list. That works fine, until it does not. If you recognise a few of these points, it is time for a better stock management system:

• You sell something online that turns out to be out of stock.
• You only find out something has run out when a customer or technician asks for it.
• Money is tied up in stock that barely moves.
• The count in the list hardly ever matches what is really on the shelf.
• Several people work in the same list and overwrite each other's changes.
• Your stock is in several places: warehouse, shop, vans or at customers.
• Ordering from suppliers is manual work and depends on one person.

If the Excel problem sounds most familiar, also read replacing Excel with software. That covers the wider switch.

Which features does good inventory management software have?

The basics are the same for almost every business. After that, it varies a lot by industry.

• Current stock per item and per location, in one overview.
• Booking in received goods and booking out on sale or use.
• Minimum stock level per item, with an alert when you drop below it.
• Suggested orders or automatic purchase orders to suppliers.
• Scanning barcodes or QR codes with a handheld scanner or phone.
• Stock counts, showing differences between the system and reality.
• History: who took, moved or changed what, and when.
• Reports on turnover rate, stock value and items that are not moving.

For some businesses, extra features matter. Think of best-before dates and batch numbers in food or healthcare, serial numbers for equipment, materials per project for installers, or composite products made from separate parts.

Also consider who uses the system. In the office you want overviews and reports. In the warehouse or the van you want big buttons, scanning and as little typing as possible. So good inventory management software often has two faces: an extensive admin area and a simple app for on the go. The better that second part works, the more often staff really use it and the more accurate your stock is.

Connecting inventory management to your online shop and other systems

Stock rarely stands on its own. The real gain is often in integrations. If you sell through an online shop and a physical shop, you want stock to update in both places straight away. If you work with technicians, you want the materials they use to be booked off the van automatically and added to the invoice.

• Online shop or marketplace: update stock automatically after every order.
• Accounting: purchase invoices and stock value without entering things twice.
• Till system: book off shop sales straight away.
• Planning or work orders: record materials per job.
• Suppliers: send orders digitally or import price lists.

Such an integration usually runs through an API, a digital connection between two systems. You can read how that works and what to watch for in having an API integration built.

Start with the integration that causes the most manual work or the most mistakes right now. For an online shop that is often the stock level, for an installation company usually the materials per job. Only build a second integration once the first runs well.

Off-the-shelf inventory software or a custom build?

There are lots of ready-made packages for inventory management, standalone or as part of an accounting or ERP package. For a business with a manageable product range and standard processes, they are often a good start. They are quick to set up and maintained by the supplier.

Custom inventory management software is often the better choice if:

• your processes differ from what standard packages expect, for example with rentals, composite products or stock held at customers;
• you have several systems that a standard package does not connect well;
• your staff in the warehouse or on the road need a very simple, fast interface;
• you pay for a large package while only using a small part of it;
• the cost per user keeps rising as you grow.

There is also a middle way: a standard package as the base, with your own app or integration for the part that does not fit. The trade-offs are covered in more detail in custom or off-the-shelf software.

How to approach custom inventory management software

• Map out how you work now: where does stock come in, where does it go, and who does what?
• Identify the main problems. What costs the most time or money right now?
• Write down which features must be in the first version and which can come later.
• Clean up your item list: merge duplicate items, agree fixed codes and units.
• Have a first version built and test it in practice, in the warehouse or shop.
• Do a full stock count before going live, so you start with accurate stock.
• Then expand step by step with integrations and reports.

Common inventory management mistakes

• Introducing a new system with a messy item list. Then you just carry the chaos over.
• Only thinking about the office and not about the people who actually work in the warehouse.
• No fixed moments for stock counts, so errors pile up.
• Wanting to automate everything at once instead of starting with the biggest pain point.
• Handling exceptions outside the system, with a note or a message. Then the stock will never be right.

Having inventory management software built by Violexa

At Violexa we build custom web applications and software for SMEs, including systems for stock, planning and admin. A web application works in the browser, on computer, tablet and phone, and can connect to your online shop or accounting. Custom web applications start from €1,799 excl. VAT (€2,177 incl. VAT). A more extensive stock system with integrations costs more. For that you get a fixed price in writing up front.

Want to know whether custom inventory management software would pay off for your business? Book a free quickscan. In 30 minutes we discuss how you work now, online or on site. Afterwards you get short written advice with a price estimate, with no obligation.

Frequently asked questions