March 7, 2025

Best inventory management software for wholesale

Managing inventory effectively is a key ingredient of success in the wholesale distribution industry. However, it can be a complex and costly activity, especially for wholesalers that handle a large variety of products.

Thankfully, in the current digital age, a plethora of inventory management software solutions exist to help wholesale businesses streamline and optimize inventory management. In fact, the demand for inventory management software has grown significantly in recent times with the value of this market expected to reach $ 2,191 million by the end of 2024 and 7,517 million by 2034.

In this guide, we’ll break down the essentials of wholesale inventory management, explore the main types of inventory management solutions, and the key features to prioritize. Finally, we’ll tell you why Cin7 is a standout choice for small and medium-sized businesses (SMBs) looking for an efficient and affordable solution to elevate their inventory management game.

Understanding wholesale inventory management

Wholesale inventory management is the process of overseeing stock levels, storage, and distribution within a wholesale operation. The primary goal of inventory management is to maintain the right amount of inventory to maximize sales and minimize costs.

Key components of inventory management include:

Stock level monitoring: Continuously tracking inventory levels across all locations to ensure you have sufficient stock to meet demand while avoiding overstocking or shortages.
Warehousing: The physical storage and organization of goods within designated facilities before they are distributed to customers. Efficient warehousing involves organizing and storing inventory in a way that maximizes space utilization, prevents inventory damage, and maximizes accessibility for order fulfillment.
Distribution oversight: Managing the movement of goods to retailers or other distribution points.
Order management: Receiving, processing, and delivering customer orders efficiently and accurately.
Demand forecasting: Using historical data, market trends, and analytics to predict future customer demand and then optimizing stock levels based on these predictions.
Supplier management: Building and nurturing relationships with vendors to ensure consistent supply, favorable pricing, and reliable delivery schedules.

Why efficient inventory management matters in wholesale distribution

Managing inventory efficiently can translate into several valuable benefits for businesses including the following:

Cost savings

Proper inventory management prevents overstocking and understocking. Overstocking ties up valuable capital increases storage costs and risks product obsolescence. Understocking, on the other hand, can lead to lost sales and damaged customer relationships. Efficient inventory management helps you find the sweet spot, minimizing both risks and ultimately maximizing business profitability.

Improved customer satisfaction

Efficient inventory management ensures products are always available to meet customer demand. This reliability builds customer trust and satisfaction, encourages repeat business, and fosters long-term loyalty.

Operational efficiency

A robust inventory management system contributes to operational efficiency. Automating tasks like stock tracking, order fulfillment, and restocking through an advanced inventory management software like Cin7 reduces reliance on manual processes. The result? Less inventory-related errors and more time for your team to focus on other high-value tasks.

Competitive advantage

In a competitive wholesale market, efficient inventory management can give your business an edge. Wholesale businesses that master inventory management are usually able to deliver a more reliable service — a critical advantage that can result in customers consistently choosing to do business with you instead of competitors.

Key features to look for in a wholesale inventory software

Different inventory management systems come with varying capabilities and features. When comparing options, here are some of the key features to focus on.

Real-time tracking

Real-time tracking is one of the most essential features to have in an inventory management system for a business. This means that the software should:

Provide instant visibility: You should be able to see your current stock levels across all locations – warehouses, distribution centers, and even in transit – in real-time.
Reflect changes immediately: Every item received or shipped should automatically update your inventory records, to ensure absolute stock-level accuracy.

Integration with various sales channels

Modern wholesalers often sell through multiple channels including custom B2B portals or websites, E-commerce platforms, and directly to retailers. To ensure a smooth and efficient operation, your inventory management software should seamlessly integrate with all these sales channels.

This integration ensures that your inventory data is consistent and up-to-date across all platforms. Every time you make a sale — whether through an online store, a marketplace, or directly to a retailer — the system automatically adjusts inventory records across all channels. That eliminates issues such as overselling, whereby customers purchase items that are no longer available, or underselling where items are labeled as out of stock when they are available.

Analytics, reporting, and forecasting tools

Good inventory management software should provide robust analytics, reporting, and forecasting tools that empower businesses to make informed decisions.

With these tools, you can:

Analyze trends: Understand sales patterns, identify top-performing products, and anticipate seasonal demand fluctuations.
Optimize inventory: Use forecasts to maintain the right stock levels, avoiding both overstocking and stockouts.
Improve efficiency: Generate detailed reports to evaluate supplier performance, identify bottlenecks, and streamline operations.

Additional features to prioritize

Besides the three primary features described above, prioritize inventory management solutions that also include the following capabilities.

Warehouse management system (WMS)
Purchase order management
Barcode and RFID integration
Automated reordering
Customizable alerts
Returns management
AI integration
Order and shipping management
Accounting tool integrations (such as Quickbooks and Xero)

These features work together to create a comprehensive solution that enhances decision-making, boosts efficiency, and positions your business for long-term success.

Enterprise Resource Planning (ERP) tools

Enterprise Resource Planning (ERP) systems are comprehensive software platforms that integrate a wide range of business functions, including inventory management, finance, procurement, sales, and customer relationship management. These systems are designed to provide a unified approach to managing the complexities of larger organizational operations.

Key features and benefits

Holistic business management: ERP systems provide a 360-degree view of your business by consolidating data and information from various departments. With a unified platform, teams can collaborate more effectively, respond to challenges quickly, and align their efforts toward achieving common business goals.
Scalability: One of the biggest advantages of ERP solutions is their ability to grow with your business. Whether you're adding new products, expanding to multiple locations, or handling more complex workflows, an ERP can adapt to your increasing demand. As your business grows, you might need to buy extra licenses or even upgrade to an entirely new system.

Ideal use cases

Large Businesses with complex operations: For companies managing high transaction volumes, multiple locations, diverse product lines, numerous suppliers, and a large customer base, ERP systems provide the comprehensive functionality needed to handle these complexities. But with the cost and expertise needed to maintain an ERP and the long onboarding time, ERPs are best for businesses with over $100M in annual revenue.

Cin7 inventory management solution: The best of both worlds

Cin7 offers a unified platform that combines the strengths of standalone inventory management tools and ERPs making it a standout choice for wholesale businesses of all sizes.

With Cin7, you get the simplicity and focused functionality of standalone inventory management, along with the powerful scalability, integration, and reporting tools typically found in larger ERP systems, but at a fraction of the cost.

Here are a few of the many features that you can enjoy with Cin7.

Real-time inventory management: Cin7 provides up-to-date stock levels across all locations, ensuring you always know what’s in stock and where it’s located. This real-time tracking helps you avoid costly outcomes like stockouts.
Supplier management, automated reordering and stock alerts: With Cin7, you can manage all your suppliers and automate the reordering process based on predefined stock levels, reducing the chance of running out of inventory. Alerts keep you informed about low stock, so you can take action before problems arise.
B2B Portal: Cin7’s online store for B2B brings consumer-grade simplicity to the B2B and wholesale buying experience, including customized catalogs to offer B2B customers a unique, tailored experience.
Integrated sales channels: Cin7 seamlessly integrates with multiple sales channels, including E-commerce platforms like Shopify, Amazon, and eBay. This integration ensures that inventory levels are always accurate across your entire network of sales outlets.
Advanced reporting, forecasting and analytics: Cin7 comes with powerful analytics and reporting tools that provide valuable insights into sales trends, inventory performance, and future demand. This helps you make data-driven decisions that can improve your business operations and bottom line.
Customizable workflows: Cin7 allows you to tailor workflows to your specific business needs. The tool adapts to how your business operates, not the other way around.
Scalability: Cin7 is designed to grow with your business. Whether you're increasing your product lines or expanding into new regions, Cin7’s cloud-based platform scales to accommodate your needs without requiring expensive hardware or additional IT infrastructure.
A Built in Warehouse Management System (WMS): From receiving to pick, pack and shift, Cin7 takes the legwork out of efficient warehouse operations with integration to barcode scanners, automation and real time data.

Best Inventory Management Software for wholesale

The right software can help wholesale businesses streamline their inventory management, reduce costs, increase operational efficiency, reduce human errors, and scale operations with ease.

Among the available options, the Cin7 Core solution stands out as one of the top choices. It offers a powerful unified platform that provides the best of both standalone inventory management tools and enterprise-level ERP systems

Imagine a wholesale business environment where you have a crystal-clear picture of your inventory at all times, where orders are seamlessly fulfilled, and where crucial data and insights are readily available to guide strategic decisions. That's exactly what Cin7 promises.

Request a free demo of Cin7 today to learn more.

Tag(s): Inventory