Select Page
Home 5 Inventory Management 5 Choosing an Inventory Management System | Finale Inventory

Blog

Originally published on October 26, 2021 Last updated on March 6, 2026

Choosing an Inventory Management System | Finale Inventory

Once your business grows, makes more sales and deals with more inventory, you realize it’s time to upgrade from manual to software-based inventory management. Then, once it grows a little more, you may even outgrow the current inventory management tool and decide it’s time for a more sophisticated, feature-rich solution. The good news is that the right software can accelerate […]

Once your business grows, makes more sales and deals with more inventory, you realize it’s time to upgrade from manual to software-based inventory management. Then, once it grows a little more, you may even outgrow the current inventory management tool and decide it’s time for a more sophisticated, feature-rich solution.

The good news is that the right software can accelerate your business’ growth. Among small businesses that use business software, 73% report annual revenue over $100,000, compared to just 60% of companies that don’t use the software. In the case of inventory management software, we’ve seen many of our customers scale their business multiple times since implementing Finale Inventory.

Choosing an Inventory Management System

Choosing a sound inventory management system takes lots of consideration to ensure the software has the functionality you need. What are the inventory management systems you should be looking at? While there are many software solutions, you want to consider each option against several criteria. These include:

1. Cost and Budget

Inventory management systems come in a wide price range, with higher costs associated with more advanced solutions. It can be challenging to work with software vendors when pricing is obscure. To clarify the valuation, consider vendors that list their pricing online. This transparency helps you stick to your budget.

Besides the direct cost, consider whether the vendor locks you into a contract or lets you pay monthly. A long-term commitment with a suitable vendor can reduce your expenses and increase your return on investment. It would help if you also had the option of switching to a plan which serves you better. To assist you in saving more, look for providers that offer discounts when you pay for the entire year. Add in onboarding, setup and training costs to get the complete picture.

After considering cost, it’s critical to view your budget and decide what you can afford to spend on software. Your stock control software should pay for it and well-designed software can improve your revenue significantly by saving time and improving inventory management practices. Ask the following questions to learn more about pricing: 

  1. How many users can you add to the platform?
  2. Is there a limit to monthly orders?
  3. Does the cost include integration?
  4. How much will additional integration cost? 
  5. Which support do you get with that price?
  6. Do you have to pay extra to access premium features?

2. Customizations

Good software has a flexible, open API that integrates seamlessly with your existing business tools. Inventory management software performs even better when paired with other devices that use inventory data. Accounting software, channel managers, shopping cart platforms, online marketplaces, point-of-sale systems and shipping management software are good integration candidates. While a great solution will provide popular software integrations out of the box, you should have the option to integrate with the specialized software stack that works best for your business.

During your software exploration process, ask about the customization options if you’re considering an integration not already listed on the vendor’s website. It could be helpful to have a developer in the room with you so you can understand the various technical requirements for each software’s API and architecture. Also, get a sense of how the customization process works and if you’ll have a dedicated account representative to guide you through a smooth implementation.

3. Your Business Size

Scalable inventory management grows with your business. You must measure your business size in a few different ways. While most software provides different pricing for different numbers of users up to the enterprise level, you also need to consider other indicators of business size in inventory management.

Your software provider and chosen plan must accommodate your monthly orders and the number of unique product stock-keeping units (SKUs) in your inventory. You might also consider the number of other business software tools you use and your inventory’s complexity. Once a business hits a specific size, for example, it’s best to pair the software with a barcode inventory solution to help your staff track inventory changes throughout the warehouse.

4. System Support

A sound inventory management system is only as good as your ability to use it, which often means the support is just as important as the system itself. While the right solution should be easy to use, it may take some training and support from a product expert to get the most out of your software. You want to get answers to your questions quickly and work with a provider who understands your business and how you want to use the software.

An excellent inventory management software provider thinks beyond merely setting up the system. They pay attention to your needs. They help you learn more about the industry and understand that applying a template approach is not always successful, so the plan must continuously evolve and be suited to your type of business. The training and consulting must take into account modern trends and developments. 

At Finale Inventory, for example, all our customers work with a dedicated customer relationship manager to ensure a smooth transition. Your support specialist will answer your questions and act as an implementation consultant. They’ll get to know you and your business so they can recommend the best software configurations to make your team the most efficient. 

Some other signs of an excellent support team include:

  • Support and consulting included during the free trial period
  • A robust support video library with training videos on many of the software’s features
  • Fast replies to your questions with the ability to contact support over email, phone or online chat

5. Your Unique Needs

Inventory software can have a lot of unique features that make specific solutions better suited to certain businesses. Besides the essential ability to track inventory based on your sales and purchasing records, you may need some unique features, such as:

  • Serial or lot number tracking: If your inventory includes products with expiration dates or items that use lot IDs or serial numbers, your inventory management system needs the flexibility to track items by serial number. It should also support any numbering system you choose.
  • E-commerce solutions: E-commerce selling may involve listing live inventory counts on your online store and accepting sales from many marketplaces across the web. If you work in e-commerce, your inventory management system should have specific features to support online selling.
  • Multilocation support: Businesses with multiple warehouses may need to track inventory levels across several locations and log stock changes, such as transfers between locations.
  • Barcode solution: As your inventory gets more complex, with more individual products and unique SKUs, a barcode solution helps you track inventory as it moves throughout your warehouse, from receiving to storage to shipping.
  • Light manufacturing: If your warehouse manages light assembly, you may need to manage inventory for raw materials and finished goods alike.

6. Integration Capabilities

Finding the perfect inventory management plan would be strenuous, if not impossible. In any case, the correct way to look at this is to consider which inventory management tool is best for your business goals — that’s what you need. The reason is simple — every business is unique. The plan must be tailored according to the specific demands of your business to yield the best result. Choose a flexible customization option, and look for a software provider that already integrates with some of your current software tools. 

The essence is to have software that combines all vital aspects of your business. This is a sure way to save time, reduce errors, obtain accurate financial data and minimize order cancellation for out-of-stock products while increasing order fulfillment. The system must be designed to optimize your various tools to build a formidable brand. Businesses that manage inventory have several types of software solutions, such as:

  • Accounting software
  • Channel managers
  • Online marketplaces
  • Shopping cart platforms
  • Shipping managers
  • Point of sale systems

Finale Inventory integrates with nearly 50 solutions out of the box across each of these categories. All that’s needed for most is providing your login credentials.

7. Cloud-based

Choose an inventory management system that is cloud-based. Generally, they are a notch above the standard versions on the market. Cloud-based inventory management software uses a decentralized system that lets you and the team members you’ve granted access to manage inventory from any location without the need for an IT expert or extra cash investment. 

Cloud-based models are more secure and reliable compared to traditional software. This fact is usually thrown around without much explanation — let’s fill that gap today. Cloud systems work through data centers which means instead of storing your data on the phone, tablet or computer, it is housed in virtual servers.

Your data is automatically backed-up to the data center, which means you can immediately retrieve the information if the system is compromised. The provider takes the load off your shoulders regarding the technical IT aspects of the software. All you need to do is sign up.

8. Positive Reviews 

One great way to know if a product or service works is by checking the reviews. People outside the business share their candid experiences after using products or services. They tell you what they loved about the software and the challenges they faced while using it. They may even leave you with a rating and also tell you about how fantastic the customer service is. 

A five-star rating is a good sign, but you should also check customer testimonials and search the internet for comments from the public. Again, consider how people describe customer service and try it out for yourself. Call the provider to make inquiries and assess how well and quickly they address your concerns. You could also read social media threads regarding the product and check if the company has received any awards or worked with other businesses in your industry.

Choose Finale Inventory for Your Inventory Management Needs

When choosing your inventory management software, consider all the essential factors, such as your budget, the capabilities you need and the support you’ll receive. Finale Inventory is a flexible, scalable inventory management software that grows with you, offering the advanced, sophisticated stock control capabilities you need to expand your business. We also provide personalized support to every customer and offer affordable plans for businesses of any size.

Register for your free trial today to learn more about Finale Inventory and schedule a product demo to see our unique capabilities in action.

Last Updated on November 15, 2022 at 2:30pm EST

“The core of maturity, that I see, is starting with a unified view of inventory. I’ve got to be able to accurately represent what do I have, make sure that I know where it’s located so I can get it to my customers quickly.”

— Troy Graham, Descartes

What is the first thing I should fix if I want to scale operations?

Start with a unified view of inventory. The core of maturity starts with being able to accurately represent what you do have and make sure that you know where it’s located to get it to customers quickly. Without a unified view across your warehouses, 3PLs, and vendors, you cannot make the best decisions because you don’t have the best information at hand.

With Inventory Visibility, Businesses Can Make Smarter Allocation Decisions

Once inventory is centralized, businesses can move from reactive updates to intentional allocation. They can decide how much inventory to expose to each channel, when to use buffers, which marketplaces need extra protection, and how seasonality or campaign performance influence availability.

Once I know what inventory I have, how should I decide where to make it available?

Inventory allocation should reflect where orders are coming from, where marketing is working, and which channels carry the most risk. Once you know what you have and where it is located, you can think more strategically using centralized inventory to make prioritization happen automatically. One fertilizer company lost a little over 5,000 orders in one weekend because someone manually uploaded the wrong available inventory to Amazon.

Better Inventory Data Improves Planning, Purchasing, and Growth Bets

Better visibility turns inventory data into a planning tool. With insight into sales velocity, inventory levels, vendors, and channel performance, businesses can make more informed replenishment decisions, avoid overbuying, and test new product lines or vendor-supplied inventory without taking on unnecessary risk.

“You have to have unified inventory to know how to price your products just at that basic level. I can’t price my products if I don’t know the true cost to get it.”

— Mike Bernico, Flxpoint

How does better inventory data help me make smarter buying decisions?

It lets you measure whether your plan is working before you commit more capital. A key question becomes: “Did my plan work? Am I overleveraged in one place or another?” Centralized systems can also help businesses test new product lines or vendor relationships by looking at sales velocity by channel, allowing them to take risks in a calculated and measured way.

Intelligent Order Routing Turns Inventory Complexity Into Automation

Once inventory and supplier data are reliable, businesses can automate fulfillment decisions. Orders can be routed based on cost, speed, margin, location, warehouse priority, vendor fallback, split-shipment rules, or customer expectations. This helps hybrid fulfillment scale because every order does not need a manual review.

How do I decide the best way to fulfill each order?

There is no single answer, which is why order routing needs to account for the context of each order. Intelligent order routing is not just sending an order to someone who has stock; it is taking each and every order and treating it like its own unique use case. Depending on the order, the business may prioritize speed, margin, an internal warehouse, vendor fallback, or preventing split shipments.

Supplier Inventory Sync Extends Inventory Beyond the Four Walls

For hybrid fulfillment to work, supplier inventory needs to become part of the operating model. Supplier sync does not always require advanced technology; it can happen through automated files, FTP, email, APIs, EDI, or ecommerce storefront integrations. The key is replacing manual updates with automated, reliable supplier data.

Can supplier inventory really be treated like part of my own inventory?

Yes, but the goal is not necessarily to force every supplier into a complex integration. Real-time supplier sync can be defined as any way to get an automated update from a supplier, such as Google Sheets, email, FTP, API, EDI, or ecommerce storefront connections. The key is that accurate supplier stock is foundational. If you don’t have an accurate view of what is in stock with your suppliers, you cannot tell your sales channel accurately what’s available.

Exception-Based Workflows Keep Humans Focused Where They Matter

Automation does not remove people from the process. Mature operations let technology handle the routine majority while humans focus on exceptions, such as high-value orders, fraud risk, compliance requirements, restricted products, export rules, or unusual fulfillment scenarios.

If my business has special cases, can automation still work?

Yes. The point is not to automate every possible decision; it is to automate the routine work and surface the exceptions. Businesses should not have to look at every single order. Instead, technology can highlight high-value orders, risky locations, or compliance requirements. The goal is to take care of the 80% of workflows that are obvious while still allowing human review when specific exceptions arise.

The Right Inventory Technology Should Fit the Business, Not Overwhelm It

Software decisions should be based on business fit, not popularity, feature volume, or broad “all-in-one” promises. Growing ecommerce businesses should identify their highest-impact bottleneck, prioritize what matters now, and choose technology that is right-sized but flexible enough to support future phases of growth.

How should I choose software without overbuying or picking the wrong system?

Start with your priorities, not the biggest feature list. Avoid an all-in-one system that claims to “do everything under the sun” and look for a “best of breed approach” with systems that can scale as you add channels or vendors. The practical advice is to stack rank what matters now, make sure the system can support future phases, and choose technology that fits your business rather than overwhelming it.

How to Scale Ecommerce Operations Beyond Spreadsheets

For many growing ecommerce businesses, Finale and Flxpoint work together as a practical answer to these challenges. Finale helps centralize and manage internal inventory, purchasing, warehouse operations, and stock visibility, while Flxpoint helps connect vendor inventory, automate supplier sync, and route orders across hybrid fulfillment networks. Together, they give businesses a best-of-breed way to improve inventory accuracy, reduce spreadsheet work, and scale fulfillment without forcing every process into a one-size-fits-all system.

Ecommerce Fulfillment Operations FAQ

What Is Ecommerce Fulfillment Operations?

Ecommerce fulfillment operations are the processes that move an online order from purchase to delivery. This includes managing inventory, syncing product availability across channels, routing orders to the right warehouse, 3PL, supplier, or vendor, and making sure the customer receives the right product on time. As discussed in the webinar, fulfillment is no longer limited to “what’s in my warehouse these days”; growing businesses may rely on internal warehouses, 3PLs, marketplace fulfillment services, and supplier inventory at the same time.

What Are Ecommerce Fulfillment Operation Examples?

Examples of ecommerce fulfillment operations include updating inventory across Shopify, Amazon, Walmart, and other sales channels; allocating inventory to specific marketplaces; sending orders to an internal warehouse, 3PL, or vendor; syncing supplier inventory through files, APIs, EDI, email, or FTP; replenishing warehouse stock based on sales velocity; and flagging exceptions such as high-value orders, compliance requirements, or restricted products. In the webinar, the speakers also discussed hybrid fulfillment examples where a business may fulfill some products from its own warehouse and use vendors as a fallback or extension of available inventory.

How Can I Track My Inventory at an Ecommerce Fulfillment Center?

The best way to track inventory at an ecommerce fulfillment center is to create a unified inventory view that shows what is available, where it is located, and how that inventory connects to each sales channel. That means tracking inventory across internal warehouses, fulfillment centers, 3PLs, marketplace fulfillment programs, and supplier locations instead of relying on disconnected spreadsheets. The webinar emphasized that businesses need to “accurately represent” what they have and know where it is located so they can get products to customers quickly.

How Can I Connect My Inventory to My Supplier?

You can connect supplier inventory through several methods, depending on what the supplier supports. The webinar discussed low-tech and advanced options, including automated Excel or CSV files, Google Sheets, email updates, FTP servers, APIs, EDI, and direct connections to ecommerce storefronts such as Shopify, BigCommerce, or Magento. The key is to ask suppliers how they share inventory today, then use a system that can automate that data flow instead of manually copying supplier inventory into spreadsheets.

What Is Ecommerce Order Routing?

Ecommerce order routing is the process of deciding where an order is fulfilled from after a customer buys. In a simple operation, every order may go to one warehouse. In a more complex or hybrid fulfillment model, the best fulfillment source may depend on inventory availability, shipping speed, cost, margin, customer location, warehouse priority, vendor fallback rules, or whether the order should be split. The webinar described intelligent order routing as treating each order like its own use case, so businesses can automate the best fulfillment decision without manually reviewing every order.

Ready to Take Control of Your Inventory?

Improve inventory, warehouse, and ecommerce operations today.

Request a Demo

Ready to Take Control of Your Inventory?

Improve inventory, warehouse, and ecommerce operations today.

Request a Demo

Subscribe to Our Newsletter