Factors Impacting Inventory Software Selection

Inventory Software Cost Considerations

There are many aspects which must be taken into consideration when selecting inventory software. Probably the first and often the simplest decision is the cost threshold for the inventory software and company budget based on what you know your firm has available to spend on inventory software. Simple inventory software functionality can range from almost free to high end systems costing millions of dollars. Many times it's easy to get caught up in all the bells and whistles of the inventory software and forget what the real processes you are trying to improve. Be wary of software vendors that won't be straight with you when you ask questions regarding how their inventory software is going to meet your requirements.

Software Functions

The second factor in choosing inventory management software is deciding what functions and processes will be required relative to how complex an inventory management program you're planning to implement. This is important as these software programs can go from simply keeping track of the inventory you have, and where it is located, to very complex systems which forecast your inventory needs well into the future utilizing neural network data such as weather forecasts etc. Unless you are shopping for a very simplistic inventory software package, it is advisable to see the services of an independent software selection firm. They can help narrow the list of potential inventory software vendors and prepare your initial assessments of implementation costs and time frames. Keep in mind that when you look at the detailed functionality of an inventory software package, it is important to have a detailed listing of those functionality requirements.

Software Integration

The third aspect is the planned level of integration between the inventory software and the other company systems. Working with IT groups that support other systems is crucial to providing reliability to the software's performance. Proper integration will result in the system being "accepted" as an important part of the overall IT strategy. It will also make it easier to get help from these other groups when changes need to be made to the system.

Software Implementation

As with the inventory software selection, the implementation might require outside assistance. The success of the inventory software implementation will based on not only rolling out the inventory software bug-free, but the people involved, the training and the overall effort put forth. Once the software is tested, a pilot should be designed around the critical factors identified in the implementation plan. Only after a successful pilot should a continued implementation occur. The training should consist of written procedures for the tasks they must perform as well as hands-on training. Some sort of "exit" examine should be designed, so that you know with confidence, that the employee understands the majority of the system.

Software Maintenance

The fourth factor in this decision process is the ongoing budget available for maintaining and operating the inventory management software system. Some of the more complex inventory software systems require many highly competent and skilled operators to maintain their accuracy and proper function.