7 Features to Look for in Automated Inventory Software

Table of Contents

1. What is Automated Inventory Software?
2. How it Works
3. Who it's Built For
4. Why Choosing the Right Software Matters
5. Real World Impact
6. 7 Crucial Features in Automated Inventory Software
7. How to Choose the Right Automated Inventory Software

Managing inventory by hand worked for a time when companies had fewer stock keeping units (SKUs), smaller warehouses, and longer lead times. Given today's omnichannel fulfillment, rising labor costs, unpredictable demand, and razor-thin margins, the old way is simply broken.

Manual inventory processes—like spreadsheets, clipboard counts, and reorder guesstimates—are time-consuming, error-prone, and costly. A single miscount or missed reorder can disrupt operations, delay production, or disappoint a customer. And for organizations managing multiple sites, service vehicles, or remote job locations, these issues multiply fast.

According to an eye-opening McKinsey report, automation in supply chain and inventory operations can reduce logistics costs by up to 30% and inventory holding costs by up to 75%. That's a game-changer for companies juggling hundreds of moving parts, both literally and figuratively.

So what's the alternative? Automation. Let's look closely at automated inventory software, how it works, and what it means for your business.

What Is Automated Inventory Software?

Automated inventory software is a technology solution that streamlines the complete inventory management process with barcode or RFID scanning, AI, and real-time data syncs.

Instead of relying on human-driven processes like manual cycle counts or spreadsheet-based ordering, automated inventory systems handle routine tasks behind the scenes. This results in faster workflows, fewer errors, and more time for your team to focus on what matters.

4 Core Functions of Automated Inventory Software

1. Real-Time Tracking: Instantly shows what's in stock, what's been used, and what's on order—across all locations.

2. Auto-Replenishment: Uses AI or min-max inventory rule-based triggers to reorder inventory before you run out.

3. Cycle Counting: Replaces time-consuming annual physical counts with rolling, automated inventory checks.

4. Data Integration/ Integrated Ordering: Connects inventory data with your ERP, procurement system, or accounting platform.

How It Works

Consider this example: A contractor pulls the last two conduit fittings from a service truck. He scans the item with his phone, which automatically updates the system, adds the item to a work order, and triggers a replenishment request. The system then checks the predefined min/max levels, generates an replenishment order from the correct vendor, and queues it for approval—all without anyone opening a spreadsheet or making a call.

And because the software logs every action from receiving to usage, it creates a digital audit trail. That level of visibility is invaluable for reducing shrinkage, speeding up inventory turns, and preventing overstocking.

Who It's Built For

Modern automated inventory software isn’t only for enterprise companies. It’s also designed to scale with businesses in:

• Field service: Track tools and parts across service trucks and job sites.

• Distribution: Monitor vendor-managed inventory in customer stockrooms for either consigned or customer-owned inventory, the software can automate replenishment using min-max inventory. 

• Healthcare: Manage high-value medical equipment or consumable medical supplies with expiration dates.

• Construction and MRO: Replenish consumables automatically at the point of use.

If you want to spend less time handling inventory across multiple locations and more time serving customers, automated inventory software may be your biggest operational upgrade this year.

Why Choosing the Right Software Matters

Not all automated inventory systems are created equal; picking the wrong one can cost you more than money. It’ll slow down operations, cause miscounts, create stockouts or overstock, increase shrinkage, and frustrate your team. Worse, a poorly integrated system also creates data silos between inventory, finance, and procurement, making your business less responsive to change.

On the other hand, the right automated inventory software is a force multiplier. It cuts waste, improves cash flow, and delivers the visibility needed to make smarter decisions faster.

Here’s why the right system makes all the difference:

1. Scalability: As your business grows, your software should grow with you. Look for platforms that support multiple stockroom locations, field technicians, warehouses, and mobile users without requiring a complete overhaul every time you expand.

2. Usability: If your team finds the system clunky or hard to learn, they won’t use it consistently. Prioritize tools with an intuitive interface, quick onboarding, and mobile access for workers on the go.

3. Accuracy and Automation: Systems that rely too heavily on manual input defeat the purpose. Best-in-class solutions use barcode scanning, RFID, and AI-driven logic to automate tasks like reordering, cycle counts, pulls, and reporting.

4. System Integration: Can it talk to your enterprise resource planning platform (ERP), accounting software, or eCommerce platform? Seamless integration avoids double data entry, reduces errors, and gives your entire workforce a single source of truth.

5. Support and Training: Even the best tools need good support. Does the provider offer live support, implementation help, and ongoing training? A responsive vendor saves you time and minimizes downtime.

    

    

    

    

Real-World Impact

A 2023 report from Deloitte found that companies leveraging end-to-end inventory automation reduced inventory holding costs by up to 25% and improved order fulfillment speed.

When the stakes are that high, the right system isn’t just a nice-to-have; it’s your competitive advantage.

7 Crucial Features in Automated Inventory Software

Whether you're managing tools on a service truck, tracking medical supplies across clinics, or maintaining thousands of SKUs in a warehouse, the best automated inventory software does more than count parts. It “thinks” for you, acts before there’s a problem, and scales with your business.

Here are the seven features that separate good software from game-changing software:

1. Better Inventory Tracking and Visibility

Every second counts–literally. Real-time tracking gives you precise knowledge of what’s in stock, where it is, and how fast it’s moving.

• Why it matters: You eliminate guesswork, reduce shrinkage, and never get caught by surprise.

• Example: A national field service company tracks parts across 50+ trucks using work orders, min/maxes, transfers, and auto-replenishment. This lets them reroute supplies from a nearby vehicle or stockroom rather than losing time (and money) ordering new stock.

2. AI-Powered Replenishment Automation

Stop chasing spreadsheets. The smartest systems calculate optimal reorder points and adjust them dynamically based on usage, historical data, and supplier lead times.

• Why it matters: You'll reduce stockouts, prevent overstocking, and keep inventory lean.

• Example: Using eTurns' AI-powered Min/Max Dashboard, a medical supplier reduced stockouts by 85% and cut procurement time in half.

3. Automated Inventory Replenishment with SensorBins

Manual counting isn’t just tedious—it’s prone to error and nearly impossible to scale in remote or high-volume environments. That’s where SensorBins come in.

• Why it matters: TrackStock SensorBins use weight-based sensors to monitor inventory levels 24/7 and trigger replenishment automatically—no human intervention needed.

• Example: A medical distributor uses SensorBins to monitor inventory at a rural hospital location. The weight sensors detect when surgical gloves and personal protective equipment (PPE) fall below their minimum threshold. TrackStock instantly sends a replenishment order to the distributor’s ERP, eliminating stockouts and cutting procurement costs by up to 90%.

4. Multi-Location and Remote Inventory Visibility

If you manage stock at job sites, in vans, or across multiple stockrooms, you need inventory visibility that travels with you.

• Why it matters: Your team makes smarter decisions when they see stock levels at every location.

• Example: A national distributor tracks customer inventory remotely using IoT-enabled SensorBins, allowing reps to manage dozens of customer locations without weekly site visits.

5. Automated Alerts and Notifications

It's impossible to keep an eye on every SKU manually. Excellent software does it for you–sending alerts when thresholds are crossed, shipments are delayed, or unusual activity is detected.

• Why it matters: Alerts keep you ahead of issues instead of reacting to them too late.

• Example: A construction contractor gets a mobile alert when copper fittings drop below the reorder level. The system automatically sends a replenishment order so crews never miss a beat.

6. Seamless Integration with ERP and Procurement Systems

Automated inventory software shouldn't live in a silo. It should plug into your existing ERP, point of sale (POS), accounting, and procurement platforms to create a complete, end-to-end system.

• Why it matters: When inventory data syncs with financials, purchasing, and sales, you eliminate manual data entry, prevent discrepancies, and unlock more accurate forecasting.

• Example: An HVAC company integrates eTurns with QuickBooks. As techs consume parts in the field, inventory data flows directly into procurement and financial reports—no extra steps or spreadsheets.

Pro tip: Look for software that supports application programming interface (API) or electronic data interchange (EDI) integrations so you can connect to suppliers, automate purchase orders, and keep procurement friction-free.

7. Custom Reporting and Analytics

Inventory is one of the biggest cost centers in any business. Custom dashboards and reports help you track KPIs like inventory turnover, shrinkage, usage trends, and carrying costs—so you can make smarter decisions with hard data.

• Why it matters: Clear analytics expose inefficiencies and highlight cost-saving opportunities.

• Example: A medical distributor uses historical usage reports to negotiate better pricing with vendors and optimize stock levels for each customer site. By eliminating low-turnover items, they free up thousands in working capital.

Key tip: Choose a platform that lets you customize reports by location, item group, or user-defined fields to align insights with your business model.

How to Choose the Right Automated Inventory Software

Not every business has the same inventory challenges, which means not every solution will be the right fit. Choosing the best automated inventory software requires a strategic look at your operations, pain points, and long-term goals. Here’s a proven five-step process to help you make the right decision:

1. Identify Your Top Inventory Pain Points

Start by assessing your current inventory process. Ask yourself these questions:

• Are my employees still doing manual reorders?

• Do we regularly run into stock outs or overstocks?

• Are inventory counts too time-consuming and inaccurate?

• Would I rather have my distributor do vendor-managed inventory (VMI) replenishment in my stockrooms or would I rather have my employees do self-service customer-managed inventory (CMI)?

• Are inventory pulls or cycle counts a better way to do replenishment at our company? I.e. Is it important to have my employees track inventory usage by scanning out items from inventory or is it more convenient to do weekly cycle counts with a scanning app?

• Is it hard to track inventory across multiple sites or trucks?

Knowing your core issues helps you prioritize features that will solve real problems instead of just adding bells and whistles.

2. Prioritize Features Based on Your Business Type

The right solution for a manufacturer won’t necessarily be the best choice for a contractor with service vans or a medical clinic with remote stockrooms. Match software capabilities to how your business operates.

3. Ensure It Integrates With Your Existing Tech Stack

A great tool doesn't work in isolation—it plays well with your existing systems. Make sure the automated inventory software you're considering can integrate with:

• Your ERP (e.g., QuickBooks, Epicor, SAP)

• Your accounting software

• Your eCommerce or POS system

• Your vendor or procurement platforms

This ensures your data stays consistent, accurate, and actionable across your organization.

4. Ask the Right Questions During Demos

Don’t just evaluate features. Assess usability, support, and scalability. Key questions to ask vendors you’re considering:

• How long does onboarding and training take?

• Is there a mobile app? What can I do with it?

• Can we customize dashboards or reports?

• Do you support IoT, barcode scanning, or RFID?

• What customer support and training resources are available?

5. Test With a Trial or Pilot Rollout

The best way to know if software works for your business is trying it. Run a 30-day trial or limited pilot rollout with one stockroom or team, and do the following:

• Measure the time saved on reorders and cycle counts.

• Track the accuracy of inventory records.

• Analyze labor savings and visibility improvements.

This gives you real-world ROI before committing long-term.

Automated inventory software isn’t just a convenience anymore — it’s a competitive advantage. With the right platform in place, businesses can reduce human error, improve order accuracy, lower carrying costs, and gain real-time visibility across every warehouse, vehicle, stockroom, and remote site.

The key is finding software that delivers on all fronts: real-time tracking, AI-powered replenishment, seamless integrations, and flexibility to match the way you work.

That’s where eTurns TrackStock stands out.

Whether you're managing inventory across 10 service trucks or 1,000 stockrooms, TrackStock gives you:

• Visibility of every part, bin, and location

• AI-driven Min/Max optimization for effortless reordering

• Barcode and RFID scanning to eliminate counting errors

• Seamless integrations with QuickBooks, Epicor, and other ERP systems

• Actionable reports and alerts to prevent stockouts and over-ordering

Start your free 30-day trial of eTurns TrackStock today and discover how automated inventory software can simplify your workflow, save hours each week, and boost your bottom line.