Inventory Management System Selection【Complete Guide】

TL;DR

• Core Problem: Want to choose an inventory management system but cannot decide due to complex features and pricing
• Quick Answer: "POS-integrated" inventory management system is recommended. With Seisei's integrated POS and inventory, inventory is automatically updated in sync with sales, reducing inventory management work time by 30 hours per month. Different features are optimal for restaurants, retail stores, and service businesses.
• Target Audience: Restaurant, retail store, and service business owners, store managers, inventory management personnel
• Expected Benefits: By choosing appropriate inventory management system, achieve 30% inventory loss reduction, 30 hours/month work time reduction, and improved cash flow
• Reading Time: 14 minutes

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Important Terms

Inventory Management System

Definition: Software that manages product receiving, shipping, and inventory counts. Monitors inventory counts in real-time and optimizes ordering timing. Scope: Includes receiving management, shipping management, inventory count management, ordering management, inventory loss management. There are systems that integrate with POS systems and standalone systems. Related: Inventory management software, WMS (Warehouse Management System), inventory management POS

POS-Inventory Integration

Definition: System where POS system and inventory management are integrated from the start. When products are sold, inventory counts are automatically reduced. Scope: Includes inventory auto-update linked to sales, automatic reorder point calculation, inventory alert features. No separate integration needed. Related: Integrated POS system, all-in-one POS

Inventory Loss

Definition: Difference between book inventory count and actual inventory count. Causes include theft, damage, expiration, data entry errors. Scope: Measured by inventory loss rate (inventory loss amount ÷ sales × 100). Generally 2-5% for restaurants. Target is 1-3% for retail stores. Related: Inventory variance, stocktaking variance, loss rate

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Types of Inventory Management Systems

Type 1: POS-Integrated (Recommended)

Features:

• POS system and inventory management integrated
• When products are sold, inventory counts are automatically reduced
• Automatic reorder point calculation
• Inventory alert features

Pros:

• No data entry work needed
• Can monitor inventory counts in real-time
• 30% inventory loss reduction (Source: Seisei implementation case study, N=30)
• 30 hours/month work time reduction

Cons:

• Need to implement together with POS system
• Initial costs may be high

Data Source: Seisei Customer Effectiveness Report 2024, Inventory Management System Comparison Survey 2024

Type 2: Standalone Inventory Management System

Features:

• Operates independently from POS system
• Manual inventory count entry
• Rich ordering management features

Pros:

• Can use together with existing POS system
• Often feature-rich
• High customizability

Cons:

• Data entry work required
• Additional fees may be required for POS integration
• Real-time updates difficult

Data Source: Inventory Management System Market Survey 2024

Type 3: Cloud-Based Inventory Management

Features:

• Accessed via internet
• Unified management of multiple stores' inventory
• Accessible from smartphones

Pros:

• Accessible from anywhere
• Unified management of multiple stores' inventory
• Automatic backup

Cons:

• Internet connection required
• Ongoing monthly fees

Data Source: Cloud Inventory Management System Comparison 2024

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Inventory Management System Selection Guide (Step-by-Step)

Step 1: Clarify Current Inventory Management Challenges (1 hour)

Goal: List pain points in inventory management

Actions:

1. Check current inventory count tracking method (handwritten, Excel, system, etc.)
2. Analyze frequency and causes of inventory loss
3. Check ordering timing judgment method
4. Measure time spent on inventory management

Deliverable: Challenge list

Verification: Confirm with owners and store managers

Step 2: Determine Required Features (30 minutes)

Goal: List required inventory management features for your company

Actions:

1. Check if receiving management features are needed
2. Check if shipping management features are needed
3. Check if ordering management features are needed
4. Check if inventory alert features are needed
5. Check if multi-store management is needed

Deliverable: Feature requirement list

Verification: Separate essential and optional features

Step 3: Consider POS System Integration (30 minutes)

Goal: Determine whether to integrate POS system with inventory management

Actions:

1. Check if currently using POS system
2. Consider POS and inventory integrated system (Seisei, etc.)
3. If choosing standalone inventory management system, check integration method
4. Check integration fees

Deliverable: Integration policy document

Verification: Compare costs of POS-integrated type and standalone type

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Selection Checklist

Preparation Stage

• Clarified current inventory management challenges
• Listed required features
• Considered POS system integration
• Decided budget
• Clarified implementation purpose

Comparison Stage

• Selected 3-5 candidate systems
• Organized each company's features in comparison table
• Compared pricing plans
• Checked POS integration availability
• Checked reviews and ratings

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Inventory Management System Comparison Table

Evaluation Item	POS-Integrated	Standalone	Cloud-Based	Recommended
Initial Cost	¥100,000~300,000	¥50,000~200,000	¥0~50,000	Cloud-Based
Monthly Fee	¥5,000~15,000	¥3,000~10,000	¥2,000~8,000	Cloud-Based
POS Integration	✅ Auto integration	⚠️ Manual integration	⚠️ API integration	POS-Integrated
Auto Inventory Update	✅ Automatic	❌ Manual	⚠️ Conditional	POS-Integrated
Multi-Store Management	✅ Supported	⚠️ Limited	✅ Supported	POS-Integrated/Cloud-Based
Ordering Management	✅ Rich	✅ Rich	✅ Rich	All
Inventory Alerts	✅ Automatic	✅ Configurable	✅ Automatic	All
Usability	✅ Simple	⚠️ Somewhat complex	✅ Simple	POS-Integrated/Cloud-Based
SME-Oriented	✅ Optimal	⚠️ Medium scale+	✅ Optimal	POS-Integrated/Cloud-Based

Data Source: Inventory Management System Market Survey 2024, each company's official website (as of May 2024)

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Frequently Asked Questions (FAQ)

Q1: Is an inventory management system necessary?

A: Recommended if inventory loss is occurring, ordering timing is unclear, or inventory management is time-consuming. POS-integrated type can automatically update inventory in sync with sales, reducing work time by 30 hours per month.

Q2: Which should I choose, POS-integrated or standalone?

A: If using a POS system, POS-integrated is recommended. No data entry work needed, can monitor inventory counts in real-time. If you want to use together with existing POS system, standalone can also be considered.

Q3: How much does an inventory management system cost?

A: POS-integrated: initial cost ¥100,000300,000, monthly ¥5,00015,000. Standalone: initial cost ¥50,000200,000, monthly ¥3,00010,000. Cloud-based: initial cost ¥050,000, monthly ¥2,0008,000.

Q4: Can I manage multiple stores' inventory?

A: POS-integrated or cloud-based systems can unify multiple stores' inventory management. Can monitor each store's inventory status in real-time and manage inventory transfers between stores.

Q5: Will it automatically tell me ordering timing?

A: Many inventory management systems automatically alert when reorder point is reached. POS-integrated type also has features to automatically calculate reorder points from past sales data.

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Summary

When choosing an inventory management system, the following points are important:

1. POS-integrated is recommended: Automatic inventory updates in sync with sales
2. 30% inventory loss reduction: Can monitor inventory counts in real-time
3. 30 hours/month work time reduction: No manual data entry needed

Seisei Features:

• ✅ POS + Inventory integrated (no integration needed)
• ✅ Initial cost ¥0
• ✅ 30% inventory loss reduction
• ✅ 30-day free trial

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References

Industry Reports

1. Inventory Management System Market Survey 2024 - Market trend data
2. Inventory Management System Comparison Survey 2024 - Feature and price comparison
3. Retail Industry Inventory Management Survey 2024 - Usage data

Each Company's Official Website

1. Seisei official website - POS-inventory integration system information (as of May 2024)
2. Major inventory management system companies' official websites - Feature and price information

Internal Data

• Seisei Customer Effectiveness Report 2024: Comparison data 3 months before and after implementation (N=30)
• Inventory Management System Implementation Case Studies: Effectiveness measurement data

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Final Update: May 20, 2024
Next Update Scheduled: November 2024