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Automated Inventory Management System Guide

An automated inventory management system is software that automates certain parts of the inventory management process.


automated inventory management system


Retailers can use inventory automation to track inventory, streamline fulfillment and supply chain management. Such automation saves time and effort without using additional labor. As such, it can help businesses increase their net income.

Benefits of Automated Inventory Management System (IMS)

A retailer or D2C business can use an automated inventory management system to perform a variety of vital operations, including:

  • Automate purchase orders and replenishment
  • Automate delivery of customer orders 
  • Assign fulfillment operations 
  • Syncing order and inventory data from every sales channel
  • Multichannel inventory management 
  • Inventory tracking across warehouses


automated inventory management system


Automating time-consuming tasks and streamlining your workflow can lower inventory management costs. The best way to do this is by using an automated system that will generate work orders, shipping documents, and invoices. Traditionally you would have had to use manual documentation processes with complex spreadsheets, which could not keep up with the hyperfast growth of today’s multichannel brands.

E-commerce automation and data-powered software can help to streamline a brand’s supply chain. Click To Tweet

By optimizing inventory allocation, brands can increase the profitability of both brick-and-mortars stores and eCommerce channels for them to gain a competitive edge in today’s modern commerce ecosystem.

An automated inventory system could be the answer to your problems. If you are in any type of business, it is a way for companies to maintain customer satisfaction and minimize losses.

What Separates the Best IMS from the Rest


automated inventory management system


The best inventory management software for your business will analyze the data of your sales and KPIs to determine when it is time to replenish. Some are automated, so you don’t have to worry about creating purchase orders or managing marketplaces where you can’t fulfill orders due to a lack of inventory.

Optimize vendor relations and restocking

How do you manage replenishment and vendor relations (manufacturers or distributors)? Can better data and vendor-managed inventory improve that process? If yes, consider having a new IMS software.

The exemplary automated inventory system can help you determine cost-effective shipping rates, generate documentation for domestic and international orders, and create purchase orders whenever stock levels reach the minimum threshold.

Automate purchase orders

When it comes to buying new software, the most significant difference is how much automation there is. Good software minimizes cross-referencing and exporting data to build POs.


automated inventory management system


Meanwhile, advanced systems use sales data, real-time data, vendor fulfillment data, and inventory levels to determine to reorder point and the expected date to hit this point. All you have to do is click “send.” the system will automatically create a PO when the reorder point is reached.

Streamline order management


automated inventory management system


Eliminating waste is one of the most critical aspects of successful business management. It saves you money and time and reduces inventory inaccuracies that come from manual tasks like order routing, purchasing, and maintaining accurate inventories.

A fundamental function of an inventory management system is to track orders from the moment they are purchased through shipment. Once a sales channel signals that buy, it can update available stock counts and create packing labels for fulfillment.

Features to Look Out for in an Inventory Management System


automated inventory management system


When looking for the best inventory management software, it is essential to consider what each user will need. A warehouse manager’s criteria may differ from a retail or manufacturing company. You’ll likely find many similar options in terms of features and ease of use at an affordable price point.

  • Inventory Alerts
  • Sales Tracking
  • Automated Reordering
  • Integrations Capabilities 

When it comes to advanced features, there are a few that may be worth your time. For example, billing / invoicing automation, product forecasting, and bin tracking can make running your business much more accessible.

Final Thoughts on Automated Inventory Management System

There are many ways to make life easier for your business. One way is by using automation software to eliminate redundant tasks and even automate some of the more tedious, manual work.

When it comes to an inventory management solution, the price varies widely depending on the size of the business, volume of orders, and feature requirements. Click To Tweet

Businesses can benefit greatly from an automated inventory management system. A business owner needs to consider the cost, profitability, and growth resulting from its implementation.