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Inventory management is now becoming a difficult thing for any business owner as the marketplace is growing and retailers are launching new products every day. For big businesses, it is not easy to manage inventory every day. This task can become easy with the help of an automated inventory management system.

If you are an e-commerce executive, big-level supply chain business owner, or medium/small business owner, and want to manage your inventory easily in less time, then you are at the right place! In this article, you will learn about inventory management and its related disciplines.

What Is an Automated Inventory Management System?

“One of the great responsibilities that I have is to manage my assets wisely so that they create value.” – Alice Walton

Thus, An automated inventory management system lets business owners manage their inventory in real-time. This system can simplify the workflows and save time with faster performance. Inventory automation uses certain software to manage stock in real-time with minimum effort and errors. It can enhance warehouse visibility and control which provides wide business opportunities.

This system includes tasks such as:

  • Processing customer order delivery
  • Inventory demand fulfillment
  • Managing real-time data
  • Comprising warehouse management system
  • Performing tracking tasks

An automated inventory system includes many options such as:

  • Automated reordering
  • Keeping track records of stock transferring
  • Uniting multiple locations reporting within the chain
  • Processing store orders
  • Notifying about the good dispatch

Effective Ways Of Automated Inventory Management

If you are confused about which way is more beneficial to manage inventory, here is the solution. The two most common ways of automated inventory management are Barcode and Radio Frequency Identification (RFID).


With the help of special scanners, a Barcode (a visually represented picture) can read and process the inventory data quickly. You can process the data without the documents and manual counting. This way, businesses can minimize human error and simplify the stock record process.


RFID systems record product data in smart labels. Thus, all the essential information about the product is stored in the labels. It has more advantages than Barcode technology. RFID can perform off-site, and its tags can be reused.

Now, I hope you get a better idea about Barcode and RFID systems. Both systems enhance business control in a great way. You can choose any of them with doubt as per your business requirements.

Moreover, it is important to note that, for inventory management, the following essential key stages are important:

  • Items design
  • Purchase order creation
  • Goods delivery
  • Purchased product return
  • Reordering

So, What Are The Benefits Of Inventory Automation?

When it comes to your most significant assets, an effective inventory management system is highly demanding. I recommend you select the right automated inventory management system as per your business requirements.

Now, let’s dig into the benefits of inventory automation.

1.    Save tons of time

It takes hours to update your inventory on an Excel spreadsheet. But, an automated system updates all your stock counts automatically and also with precision across all your channels. Isn’t this amazing?

Automation systems register the action every time an item is sold, returned, or received. Also, it updates the system without manual instructions. Thus, these systems are very powerful and let you focus on what really matters without any burden.

2.    Gain real-time visibility

An automation systemwill help you to track your inventory levels in real-time. So, you will be able to know how much inventory you have in your warehouse. Also, you can know how many stocks you need to pick for current orders.

The main benefit of this technology is that you will never disappoint your customers with stock-outs or unfulfilled orders.

3.    Stop miscalculating stock levels

Calculating stock can be an annoying thing for a retailer. But, no need to worry now! An automated inventory management system makes this difficult task so much easier. Inventory analytics forecast inventory levels by monitoring customer data. Also, it carries out inventory stock replenishment.

4.    Increases accuracy

With the help of inventory automation, you can minimize human error. The software itself registers entries by adding, deleting, forecasting, and replenishing stock in real-time. 

5.    Bring scalability

Inventory automation can bring great scalability and opportunities for business growth. This software frees up time, is more accurate. It can deal with thousands of transactions without the risk of errors each day.

So, How To Choose an Automated Inventory Management System?

If you want to make sure you are choosing the best-automated inventory management systems, be careful to keep in mind some important features to look for before making a final decision. There are various CRM software  & Inventory Software options out there, you have to choose from them according to your business needs. Now, let me tell you some important features to look for in an automation system.

Features to look for:

  • Automatic reordering
  • Automated stock transfer
  • Inventory alerts and notification
  • E-commerce integration
  • Automated order management
  • Streamlined store reporting


1. How to create an inventory management system?

Well, You can simply use an Excel spreadsheet to create an inventory management system for that you have to follow some steps:

  1. Create spreadsheet
  2. Add necessary product categories as columns
  3. Add products that you carry to the spreadsheet
  4. Adjust the quantity as you make sales

2. How does inventory differ from the warehouse?

Inventory management focuses on products or stocks only which means it is all about having the right inventory at the right quantity, and at the right time.

Warehouse management manages raw materials, work-in-process goods, employees, products, finished goods, and shipping in the warehouse environment. Thus, the internal movement of business and material storage is covered in warehouse management.

The Bottom Line

It is said that “If you can count all your assets perfectly, you will always see a profit in your business.”

So, if you strive to achieve consistency, profit, and effectiveness in today’s competitive business environment, an inventory automation system will be the best fit for you. It can maximize the value of your business whether you are a wholesaler, retailer, or manufacturer.

I guided you through understanding what inventory automation is and its benefits. I hope you like the article and get a clear idea about inventory automation.  Also, don’t forget to stay tuned with our online magazine to read more interesting articles.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.