Demand for inventory management software has doubled.
Poor inventory management results in a monetary loss the size of the GDP of Australia according to some sources.
We’ve researched the latest data and findings in the inventory management market, and analyzed the products in the market to provide the most relevant statistics in 2020.
Quick jump to:
- Is inventory management software popular?
- How many providers offer inventory management?
- How many small businesses use inventory management software?
- How have businesses improved their inventory accuracy?
- How much does lack of inventory management cost businesses?
- What is the leading reason for errors in warehouses?
Please see our research and findings below.
1. Demand for inventory management software has doubled over the past five years
More people have been searching for inventory management software. The demand for inventory management software has doubled with more businesses looking to implement a new solution.
2. There are currently 75 software vendors offering inventory management solutions
Our directory has 75 software vendors offering inventory management capabilities as part of their software.
A significant portion of these vendors also offer warehouse management systems or enterprise resource planning systems.
3. Only 18% of small businesses use inventory management software
Small businesses have limited resources and limited software budgets.
The same report found that 43% of small businesses don’t track their inventory, or use a manual process to track it instead. Interestingly, inventory management software leads to reduced time taken to manage stock, as well as lower capital costs of carrying excess inventory.
4. Businesses using RFID had a greater 95% inventory accuracy
Inventory management software typically offers RFID tracking to improve inventory accuracy. Interestingly, the same study found that this strategy also decreased out of stocks, and improved sales.
5. Inventory distortion results in an estimated $1.1 trillion loss worldwide
Lack of effective inventory management costs businesses an astronomical amount of money each year. Businesses implementing greater inventory controls can stand to gain a significant amount in terms of recouping on their losses.
6. Human error is the leading problem in 46% of warehouses
Almost half of warehouses acknowledge their main issue is human error. Human error contributes to a large loss in inventory with inaccurate reporting leading to poorly kept stock levels.
To find more inventory management software please view our category page where you can shortlist and make custom comparisons.
If you have an interesting piece of data you believe belongs on this report, please contact me directly at megan@softwarepath.com to let me know!
References
https://trends.google.com/
http://www.waspbarcode.com/small-business-report
https://www.prnewswire.com/news-releases/gs1-us-survey-shows-manufacturers-and-retailers-embrace-rfid-to-enhance-inventory-visibility-300052870.html
https://www.ihlservices.com/wp-content/uploads/2015/06/WeLostAustralia-Outline.pdf
https://www.peoplevox.co.uk/e-commerce-fulfilment-report/
