Inventory management software becomes essential when Excel spreadsheets can no longer handle stock levels, mix-ups, and stocktaking. Research shows that businesses without automated inventory management lose up to 5% of goods due to manual tracking errors. Here are 7 criteria to help you choose the right software.

When does Excel stop working for inventory?

Excel breaks down when you have more than 200-300 SKUs and 30-50 daily transactions. Three main symptoms:

• Mix-ups. The product exists but it’s the wrong one — positions, sizes, colors get confused. Customer ordered one thing, received another.
• Unknown stock levels. To know how much is in stock, you need to physically count. The spreadsheet says 50 units, reality shows 37.
• Stocktaking nightmare. Two days of manual counting, printing lists, reconciling with the spreadsheet. After stocktaking — another day fixing discrepancies.

If you recognized even one point — it’s time to look for software. More signs: 5 Signs Your Inventory Management Isn’t Working.

What 7 criteria matter when choosing inventory software?

Not all software is equal. Here’s what to pay attention to:

1. Real-time stock levels

Basic requirement — see current stock for every product at any moment. Not “as of yesterday”, but right now. In ERPJS, stock levels update instantly with every operation — sale, purchase, or write-off.

2. Mobile stocktaking

Stocktaking should take hours, not days. Look for software with a mobile scanner — scan the barcode, the system compares with records, discrepancies are visible immediately. In ERPJS, stocktaking a warehouse with 500 items takes 2-3 hours instead of 2 days.

3. Serial numbers and batches

If your products have serial numbers (electronics, equipment) or expiration dates (food, medicine) — the software must support this. Without it, you can’t track a specific unit.

4. Receipts and shipments with documents

Every product movement must be documented: receiving note, shipping note, write-off act. This is the foundation for accounting and tax reporting.

5. Financial integration

Inventory without finances is half the picture. The software should calculate product cost, margin on each sale, total inventory value. In ERPJS, inventory management is linked to management accounting — P&L, balance sheet, and cash flow account for inventory operations automatically.

6. Multi-warehouse

If you have more than one warehouse (or warehouse + store + production) — the software must support transfers between locations and show stock per warehouse.

7. Cloud or on-premise?

Cloud software — access from any device, no installation, automatic updates. On-premise — full data control, works offline. ERPJS supports both: cloud for convenience, on-premise for those who want to control their data.

Comparing types of inventory management software

There are three main types of solutions on the market. Here’s a comparison for a typical store with 500-1000 products:

More on transitioning from Excel: Excel vs ERP: When Spreadsheets Stop Working.

What to check when testing?

Before choosing software — test it with real data. Three tips:

1. Upload your products. Check if CSV/Excel import works. If loading 500 products takes more than an hour — that’s a problem.
2. Try typical operations. Receiving goods, making a sale, processing a return, transferring between warehouses. How many clicks? Is it intuitive?
3. Do a test stocktake. This is the best test — if stocktaking is convenient, everything else will work.

How does inventory management work in ERPJS?

ERPJS inventory management covers all 7 criteria from this article. Real-time stock, mobile stocktaking, serial numbers, documents, financial integration, multi-warehouse — all in one system.

The main advantage — inventory is integrated with sales, purchasing, and financial accounting. Sold a product — stock updated, cost deducted, revenue recorded. No need to duplicate data between different programs.

Free plan with no time limits — enough for testing and getting started.

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