Small Business Software ERP Solutions
Choosing the right inventory management software (IMS) for your business is important for streamlining operations, improving efficiency, and ensuring that your business runs smoothly. Yet whether you’re a small business owner just starting out or an established company looking to scale, selecting the right solution can be overwhelming. The right software can help you reduce waste, save time, and optimize your operations. But with so many options available, it can be difficult to know where to start.
In this article, we’ll break down various categories of inventory management software that can help any business, from small wholesalers and manufacturers to large-scale enterprises. Understanding your business’s needs, in particular your revenue and operational complexity, is key to making the right choice. We’ll go over the different categories of software, provide examples, and discuss when and why you will want to invest in each.
Categories of ERP Systems for Small Businesses
There are different categories of inventory management software tailored to the needs of businesses at various stages of growth. These range from lightweight software for small-scale businesses to robust, enterprise-level solutions for large organizations. Below, we categorize these solutions to help you find the right one based on your company’s annual revenue and operational needs.
Entrepreneurial Software For businesses generating less than $1 million annually, the focus is on simplicity and affordability. If you’re in the early stages of your business or a small wholesaler or manufacturer, a basic solution can help you manage day-to-day operations without overwhelming you with features you don’t need. In this category, we recommend QuickBooks Online or Xero. These cloud-based solutions are affordable, easy to use, and perfect for companies just starting to get their inventory systems in place.
Lightweight Inventory Management Software For small businesses generating between $1 million and $3 million per year, lightweight inventory management software is a great choice. These solutions typically offer core inventory management features, including basic reporting, order management, and sometimes barcode scanning, without the complexity of full ERP systems. While not technically an ERP, lightweight IMS solutions can still offer significant value by improving efficiency and reducing manual errors.Popular solutions in this category include:
- inFlow – A user-friendly solution that makes inventory tracking easy.
- SOS Inventory – Affordable and highly rated, this software offers core IMS features like tracking, reports, and barcode scanning.
- Odoo and Katana– Newer entrants into the market that are becoming increasingly popular for their ease of use and scalability.
For businesses seeking small business software ERP solutions, these options are cost-effective and can help improve business processes without the complexity of larger systems.
Robust Inventory Management Software For businesses with revenue ranging from $5 million to $15 million annually, it’s time to step up to more advanced inventory management software. These solutions include warehouse management features, full order management, automation for purchasing decisions, and integrations with shopping carts and marketplaces. Robust IMS solutions help improve productivity and ensure that your inventory is always optimized.Examples of robust IMS solutions include:
- Fishbowl – A powerful inventory and warehouse management system that integrates with QuickBooks.
- Cin7 – Offers comprehensive inventory management with a focus on scalability.
- Mysis Manufacturing – Perfect for manufacturers with complex inventory needs.
- Unleashed – A robust solution for wholesale distributors and manufacturers that require detailed reporting and tracking.
- Order Time – A versatile solution with excellent order management and shipping features.
These systems are perfect for businesses that are outgrowing lightweight software and need a solution that supports more complex workflows and inventory processes.
True ERP Software for Small Companies For businesses with annual revenue between $20 million and $50 million, a true ERP system for small businesses might be necessary. These systems go beyond inventory management by offering full accounting and financial management capabilities. True ERP solutions come with comprehensive tools for accounts payable (AP), accounts receivable (AR), bank reconciliation, and more, all integrated within one platform.If you’re a small business that’s ready to expand, these systems are designed to handle the complexity of larger operations without needing additional accounting software like QuickBooks.Some of the leading ERP software for small companies include:
- Odoo – A highly customizable ERP system for businesses of all sizes.
- NetSuite – A long-established ERP platform for larger businesses with global operations.
- Sage – A well-known ERP solution for manufacturers and distributors.
- Microsoft Dynamics 365 – A robust ERP system that integrates seamlessly with other Microsoft tools and platforms.
The main advantage of true ERP software is that it centralizes all business functions—inventory, accounting, HR, and more—into one platform, offering a unified view of your business. These solutions allow for greater scalability, offering everything you need to manage your growing business from one system.
E-Commerce Software If your business is heavily involved in e-commerce, managing multiple shopping carts, marketplaces, or EDI (electronic data interchange), an e-commerce-specific inventory management solution may be more appropriate. Unlike the other categories, revenue isn’t as critical in this case; what matters more is the number of sales channels and marketplaces your business operates on.Some of the best e-commerce IMS solutions include:
- Skubana (now Extensiv) – A comprehensive platform for managing e-commerce operations across multiple channels.
- SellerCloud – Excellent for multi-channel e-commerce sellers who need detailed reporting and integrated order management.
- SkuVault – A warehouse and inventory management software designed for e-commerce businesses.
E-commerce IMS software is designed to keep track of sales across various platforms, helping businesses streamline their fulfillment process and stay on top of stock levels.
Forecasting and Purchasing Software For businesses that use robust inventory management software or true ERP systems and need more advanced forecasting and purchasing capabilities, there are solutions that plug into your existing software to enhance its functionality. These systems help businesses predict future inventory needs using sophisticated algorithms, ensuring that stock levels are always optimal.Popular forecasting and purchasing software options include:
- GMDH Streamline – Offers advanced forecasting tools and inventory planning for manufacturers and distributors.
- Cogsy – A popular solution for e-commerce businesses that need to optimize their inventory and purchasing decisions.
- StockTrim and NetStock – These tools provide inventory forecasting for businesses with complex supply chains and unpredictable markets.
For businesses that require precise control over stock levels and purchasing decisions, these solutions are invaluable. When basic reorder points aren’t enough, advanced forecasting software will help determine exactly what to buy, when to buy, and how much to buy based on historical data and predictive models.
Final Thoughts on Choosing the Right ERP Software for Small Companies
When shopping for inventory management software, it’s essential to match the features and capabilities of the software to your business’s needs. Consider the following:
- Annual Revenue: Your revenue is a good starting point to narrow down your options, but it’s important to also think about the complexity of your operations.
- Business Needs: Identify the specific functionality your business needs—whether it’s warehouse management, e-commerce integrations, or advanced forecasting.
- Scalability: Will the software grow with your business? Choose a solution that can handle increased volume and complexity as your business expands.
- Ease of Use: Select software that is easy to implement and user-friendly for your team.
The best inventory management software for your business is one that fits your operational requirements, helps you optimize your inventory, and supports your long-term growth. Whether you’re just starting or are an established enterprise, there’s a solution out there that will help you streamline your processes, reduce errors, and improve profitability. Investing in the right ERP software for small companies is essential for long-term success, and with the right solution, your business will be poised for growth.
When searching for ERP systems for small businesses, be sure to understand your specific needs and choose a platform that is tailored to your operations. Whether you opt for lightweight inventory management software or full-scale ERP systems, the right choice will ensure your business runs more efficiently and is ready for the future.
