Best Inventory Management Systems & Software (2026)

Find the best inventory management system for your business. Compare features, pricing, and integrations across top-rated platforms.

An inventory management system (IMS) helps retailers organize and manage their goods across the supply chain. It helps you keep track of products, forecast demand, and ensure you have enough supply to meet it.

As your business grows, you don't want to manage orders with an ad hoc pi-le of spreadsheets and apps. Instead, use one of these inventory management systems, which frequently use automation and AI-powered features to unify sales data and track stock as it moves through the inventory lifecycle. 

Not every inventory management system is designed for the same type of business, so understanding the different system types and capabilities is just as important as comparing software vendors. This guide shares six top inventory management systems, along with the features to consider as you explore options.

What is inventory management software?

Inventory management software provides an integrated system to track and report on stock. These tools monitor inventory, orders, and fulfillment between a retailer, its customers, and its suppliers.

Retailers can track inventory through methods like:

• Manual inventory: Teams count and update inventory records by hand, often using spreadsheets or paper-based systems.
• Periodic inventory: Inventory is counted and updated at set intervals.IMS software can then calculate cost of goods sold (COGS) and ending inventory value at those points.
• Perpetual inventory: IMS tools can automatically adjust inventory quantities when products are received, sold, and returned, rather than at set intervals.

These methods describe how and when inventory records are updated. IMS also differ in the capabilities and workflows they support.

Types of inventory management systems

Retailers need to have products in stock when customers want to purchase them. But between ordering inventory, sales, shipping, and storage, your supply chain can become complicated to manage.

There are different types of IMS designed to help:

• Spreadsheet-based systems that often require manual updates. They’re exposed to human error: counting mistakes or mistypes can throw off inventory accuracy. These systems may be sufficient for simpler operations but can become harder to maintain as inventory volume, locations, or sales channels increase. 
• Basic stock-tracking systems that track inventory. Their focus is on inventory counting and they sometimes lack advanced features like demand-forecasting and purchase order generation.
• Automated systems that update inventory quantities in real time as products are sold and returned. These are often cloud-based and accessible from anywhere, with integrations that connect inventory data across sales and fulfillment systems.
• ERP-integrated IMS support omnichannel retailers with multiple warehouses, sales channels, or retail locations. Inventory data from each is unified inside an enterprise resource planning (ERP) system.

The right type of system depends on the inventory processes, locations, and sales channels a retailer needs to manage.

What to look for in inventory management software

Here’s a shortlist of key features to look for when comparing enterprise inventory management software:

Inventory monitoring and control

Inventory management systems ensure there's sufficient stock to meet customer orders. They do this through inventory monitoring and control features like:

• Safety stock calculations
• Low-stock alerts
• Automated purchase orders sent to wholesalers before a product runs out

Cozykids combines Shopify’s native inventory management system with Shopify Flow. The team receives automated notifications when inventory levels drop. Their marketing team uses this to adjust which products they promote and send back-in-stock emails to customers who’ve placed a preorder.

“Usual stock management involves human involvement, but by using Shopify POS and setting up Flow, we have now shaved a huge amount of time and eliminated human error,” says creative director Panos Voulgaris. “When dealing with a catalog of 6,000–7,000 products, that’s incredibly helpful. Flow makes it easy.”

Multichannel sales alignment

Multichannel inventory management software unifies data across every sales channel. This includes your direct-to-consumer (DTC) store, retail locations, marketplaces, and social storefronts. Deloitte reported one-third of retail executives plan to invest in this type of real-time visibility.

Multichannel visibility inside Shopify’s unified commerce platform lets you reserve inventory to meet B2B commitments. If you have 1,500 units available to sell but 1,250 have been committed to a B2B buyer, Shopify’s IMS lets you label them as Committed. Only the remaining 250 units are made available to buy through DTC channels. 

Multi-warehouse syncing

Inventory tools capable of syncing multiple warehouse locations show exactly how much inventory you have and where it’s located. 

This visibility can also help retailers make better fulfillment decisions. Storing physical inventory closer to customers reduces the distance each product has to travel. This influences shipping costs and delivery speed, factors most shoppers consider when buying online. 

The Inspiration Company uses Shopify to treat their retail stores as mini fulfillment centers. They can track which products are most popular at each of their more than 50 stores and use inventory transfers to move stock between locations. This multi-location tracking lets them proactively replenish inventory before a stockout happens. 

Comprehensive reporting and analytics

Advanced reporting and analytics tools highlight which products have the highest and lowest sales volume. These data-driven insights can influence future stock orders.

Many inventory management systems also use AI to help retailers analyze inventory data and uncover insights more quickly. Research shows 75% of retailers say they’re willing to share or delegate inventory processes to AI. Sidekick is an AI assistant built into Shopify that can:

• Build custom explorations
• Analyze data and pull inventory insights 
• Offer personalized advice to grow your store 

Volume forecasting and predictive analytics

An inventory management system can use historical inventory data to predict sales volume. Retailers can use these predictive analytics features to:

• Identify seasonal demand patterns 
• Optimize reorder points
• Adjust order fulfillment capacity
• Optimize staff schedules
• Forecast optimal promotion periods 

Kenny Flowers uses custom reports in Shopify to track how each of their stores is performing.

“This visibility helps us monitor sweet spots in store traffic, determine optimal staffing levels, and make data-driven decisions about everything from inventory to store hours,” says founder Kenny Haisfield. “All that data lives under Shopify, which makes forecasting and planning so much easier.”

Purchase order generation

Inventory management software lets you generate and dispatch purchase orders (POs) to suppliers. This can speed up turnaround times: the IMS can automatically flag when safety stock levels dip, identify the right supplier contact, and generate a purchase order for you to review, with minimal manual intervention. 

Financial reporting and accounting integration

Finance teams use inventory valuations to calculate taxes and prepare financial statements. Choose an IMS that integrates with your financial tools to apply the same costing method across both platforms, whether that’s:

• First in, first out (FIFO)
• Last in, first out (LIFO)
• Weighted average

Inventory management software can also offer real-time visibility into financial key performance indicators (KPIs) like cost of goods sold (COGS), inventory turnover, and days sales of inventory (DSI). When these metrics come straight out of the IMS instead of a manually reconciled spreadsheet, finance and operations are working from the same source of truth.

Six best inventory management software systems

Your inventory management software should maintain your stock levels and make it easier for you to ship products to customers. It should also integrate with other retail systems, whether that's your Shopify store admin or your preferred accounting program.

Here’s a shortlist of inventory management tools to consider, with features and customer reviews to help you decide:

Inventory management software	Suited to	Pricing	Shopify integration?	G2 rating
Shopify	Omnichannel retailers with multiple sales channels and locations	Included in all Shopify plans	No integration required	4.4 out of 5 stars
ShipHero	Brands that also use ShipHero’s fulfillment services	From $1,850/month	Yes	4.5 out of 5 stars
Thrive by Shopventory	Detailed inventory reporting	From $59/month	Yes	Not available
Katana	Manufacturers	Free plan available; unlimited SKUs start at $299 per month	Yes	4.4 out of 5 stars
Cin7 Core	Growing retailers with more complex inventory operations	From $349/month	Yes	4.2 out of 5 stars
NetSuite Inventory Management	NetSuite ERP users	Custom pricing	Yes	4.1 out of 5 stars

1. Shopify

Shopify’s native inventory management system helps retailers track stock movements, update stock, and manage inventory transfers across multiple locations in real time. 

The system integrates with your existing technology stack, including ERPs, third-partner logistics providers (3PLs), and warehouse systems for centralized inventory governance and operational consistency. It syncs inventory data across every sales channel to offer accurate stock visibility and control.

Key Shopify inventory management capabilities include:

• Unified inventory management across all channels: Manage stock levels and availability for online stores, physical locations, and marketplaces from a single platform
• Transfers and inventory adjustments APIs: Maintain Shopify as the single source of truth while synchronizing stock levels and movements with external systems.
• Point-of-sale (POS) UI Extensions: Tailor in-store inventory workflows to meet your operational requirements.
• Sidekick: Use the AI-powered assistant to surface inventory insights, create custom reports, and automate routine tasks.
• Shopify Flow: Design and deploy automations to reduce manual effort and simplify inventory processes.
• Custom inventory reports: Access detailed, historical inventory data to monitor trends and generate performance insights.
• Advanced allocation and fulfillment logic: Configure rules to reserve stock and customize fulfillment strategies for each sales channel.

Pricing: Inventory management features are included in all Shopify plans. 

2. ShipHero

ShipHero is a multichannel IMS that combines inventory and warehouse management features. It supports multi-warehouse order allocation, kitting, lot and expiration code tracking. 

Standout features include:

• Integration with Shopify
• Mobile picking
• Native returns management 
• Real-time shipping carrier rate shopping
• Barcode recognition
• Multichannel management and warehouse routing

Pricing: The standard plan for brands starts at $1,850 per month.

3. Thrive by Shopventory

Thrive by Shopventory is a centralized cloud-based IMS that lets you manage and sync multiple storefronts and locations. Data updates in real time, and your inventory can integrate with POS and ecommerce systems.

Thrive by Shopventory includes reporting tools that help you understand what's going on with your stock throughout the supply chain. For example, you can view how many items you have on the shelves, how this Black Friday compares to last year's, or how profitable a particular product range is.

Standout features include:

• Integration with Shopify (including POS)
• Real-time reporting by location and channel
• Barcode-scanner integration
• AI assistance for importing purchase orders and invoices
• Demand forecasting 

Pricing: Plans vary by users, locations, integrations, and monthly transaction volume. Basic plans for up to 1,500 monthly transactions start at $54 per month. Enterprise brands with over 10,000 monthly transactions will need a higher plan starting at $249 per month.

4. Katana

Katana is an IMS designed for managing the manufacturing process alongside fulfillment. That means you can use it to manage raw materials through production into the final product, then all the way through to fulfillment.

Katana's software even handles floor-level functions like task planning and information management. You can use the IMS to calculate cost estimates and planned completion times for end-to-end inventory visibility.

Standout features include:

• Shopify integration available
• Dashboards for visual production planning
• Real-time data to manage inventory
• Floor control app to manage shop floor operators
• Inventory forecasting tools 

Pricing: Free plan is limited to 30 SKUs across three locations. Paid plans with unlimited SKUs, users, and integrations start at $299 per month.

5. Cin7 Core

Cin7 Core combines multiple dashboards to cover different aspects of your business, from inventory and manufacturing to sales integration and reporting. It can track customer orders from quote to fulfillment to provide a clear view of what's happening across all your sales channels.

Standout features include:

• Shopify integration available
• Detailed sales and stock tracking
• Branded portal for customer order tracking 
• Integrations with over 700 platforms 
• Customizable reports for sales, purchases, and inventory data

Pricing: Standard plans start at $349 per month. Extra users, integrations, POS registers, or portals may incur an additional cost.

6. NetSuite Inventory Management

NetSuite Inventory Management is part of Oracle's ERP business management suite. It's a multichannel system that shows a real-time overview of your inventory across multiple locations: retail stores, pop-up shops, 3PLs, and warehouses.

You can trace activities through every part of an order in granular detail to see where inefficiencies might occur. Or you can gain insight into the bigger picture and track inventory based on customer demand planning and sales forecasts. 

Standout features include:

• Shopify integration through the NetSuite ERP Connector app
• Real-time inventory visibility across warehouses, retail stores, and 3PLs
• Inventory replenishment tools 
• Smart Count for inventory counts 
• Detailed inventory tracking with lot numbers and serialized inventory

Pricing: Inventory management capabilities are included with the NetSuite platform license. Prices are custom quoted and may include an annual license and implementation fee. 

How to find the best inventory management software

Here are some tips for finding the right inventory software for your business:

When to upgrade your inventory system

The inventory management system you set up when your business launched likely won’t be the same one that sees you through growth. 

For example, you may not need the same inventory control features for a single channel and fulfillment center as you would for multiple channels, warehouses, or retail locations. As your operations expand, you may need an IMS that keeps inventory synchronized across them.

Run regular inventory audits and check for red flags that signal it’s worth upgrading your inventory system:

• Decreasing order accuracy caused by disconnected systems
• Time-consuming manual processes
• Difficulty managing inventory across channels or warehouses

Keen adopted Shopify after their previous setup caused friction for customers. 

“We couldn't look up inventory across locations or place orders for out-of-stock items to ship directly to customers,” says Sam Bukingham, director of digital product. “Exchanges required a full refund followed by a separate order, leaving customers waiting up to five days for their refund.”

Starlight Knitting Society experienced a similar issue. Since migrating to Shopify, they’ve cut inventory management time by two days and eliminated daily reconciliation tasks caused by their previous systems.

Pinpoint needs and features

Start by identifying your IMS requirements. Consider how many sales channels, inventory locations, and fulfillment workflows the system needs to support.

Once you've outlined your needs, match them with IMS features like:

• Real-time tracking
• Multichannel support
• Demand forecasting
• In-store POS integration
• Purchase order generation
• Financial reporting 
• Expiration date or lot tracking

Shopify retailer Jen Greenlees, owner of kidswear store Sydney So Sweet, found her IMS by looking for a specific feature: iPad compatibility.

"The most important thing was that pick-and-ship could be run from iPads, and that the picking screen included the catalog picture of the item being shipped," Jen says. "This feature cuts our order error rate down to almost zero.”

Set your budget

Factor in all potential costs when evaluating the cost of IMS. Software total cost of ownership (TCO) calculations take the following fees into account:

• Installation
• Setup costs
• Staff training
• Migration from other systems
• Hardware for warehouses and stores
• Integrations
• Ongoing subscription costs

Consider how these costs compare with the value an IMS can provide, such as reducing manual work, preventing stockouts, and improving inventory accuracy. Inventory management costs can also differ depending on whether you’re using native or third-party software. 

Shopify, for example, has built-in inventory management features with no extra subscriptions required. The platform has the best TCO in ecommerce, with up to 36% better TCO than the competition.

Look for integrations

Your new system should complement or replace your existing tech stack, and be customizable to your setup. Check for integration capabilities with your ecommerce platform and any other tools you’re using, such as:

• Point-of-sale (POS) systems
• ERP systems
• Accounting tools
• Warehouse management systems (WMS)
• Third-party logistics (3PL) providers

Gesswein found their previous ecommerce platform lacked a reliable ERP connector. Staff spent their time manually fixing unreliable product data and out-of-sync inventory data. 

Gesswein migrated to Shopify and connected their Acumatica ERP system through the Global ERP program. Inventory, order, and customer data now sync in real-time, reducing the manual work previously required to keep systems in sync.

Don't forget about usability

A system with advanced features is great, but not if it's too complex for your team. Opt for a solution that's user-friendly and simplifies your operations. Consider the cost and time you will need to spend training yourself and employees, as well as how easily teams can complete everyday inventory tasks.

Shopify brands benefit from a native IMS that already unifies inventory data across every sales channel. Staff have just one platform to learn. Tomlinson’s cut new hire training time on POS operations by almost one-third as a result. 

Benefits of using an inventory management system

Benefits of using an inventory management system include:

Reduced missed sales

Instead of second-guessing your stock levels, an IMS shows exactly how much inventory you have available to sell in real time. Combine this visibility with demand forecasting to reduce the risk of stockouts that collectively cost retailers an estimated $1.73 trillion every year. 

Unified data inside an inventory management system also allows you to capture sales that might otherwise be lost if a product is sold out on one channel but available elsewhere. Orlebar Brown uses Shopify to fulfill these orders across locations. 

“If an item isn't physically in the store, we can easily fulfill it from the Shopify POS on an iPad, take payment and ship it to their hotel the next day,” says chief technology officer Jamie De Cesare. “It's quicker, better, and offers more value than ever before.”

This connection between inventory visibility and business performance extends beyond individual orders. A leading independent research firm found that Shopify POS’s unified platform delivers an additional 5% gross merchandise value (GMV) uplift on average through integrated inventory management, improved headquarters productivity, and enhanced marketing effectiveness.

Loss reduction

Retailers lose $90 billion to inventory shrinkage each year. Without accurate tracking systems, it's easy for inventory to go unaccounted for. For example, damaged stock may not be adequately recorded, or inventory may get lost in large warehouses. 

Combine automated inventory management software with RFID tags that automatically update your IMS when a product passes each stage of the inventory cycle. Zebra’s 2025 report found 87% of retail leaders think automation and AI features like these are critical parts of their loss prevention strategies.

Optimize inventory costs

Accurate inventory control software reports show which products have the highest and lowest sales volume. By ordering fewer SKUs with low sales volume, retailers can free up more warehouse space to store inventory that brings more revenue.

Manage third-party logistics partners

Fluctuations in demand, seasonality, supply-chain logistics, and a product's natural life cycle can make managing inventory feel like a moving target. When you work with a third-party logistics company, those fluctuations can make it hard to communicate stock needs during sales rushes.

With a centralized system, retailers and 3PL partners can access the same information, keeping communications clear and organized. 

EasyStandard, for example, outsources to Shopify Fulfillment Network. The connection is powered by unified inventory data inside Shopify, which lets them distribute inventory closest to demand. They now deliver packages on time 93% of the time.

Inventory management system (IMS) and software FAQ

What is an inventory management system?

An inventory management system is software designed to track products, inventory orders, and fulfillment both to and from customers as well as with suppliers.

Why are inventory management systems important?

Inventory management systems are important because they help retailers maintain accurate inventory records, prevent overselling, reduce overall business costs, and improve supply chain management operations.

What's the difference between periodic and perpetual inventory systems?

Periodic inventory systems update stock levels at a set time—for example, once per day. A perpetual inventory management system does it automatically. Quantities change whenever a product is purchased, sold, or returned across every integrated sales channel. 

How much does inventory management software typically cost?

The cost of inventory management software depends on the software you choose, integrations required, and how many products you’re tracking. Shopify has the lowest TCO in ecommerce; unified inventory management features are included in Shopify plans with no need for third-party software. 

What is needed in an inventory management system?

An inventory management system should include features to:

• Track inventory levels
• Alert business owners to high or low stock levels
• Sync across multiple sales channels
• Integrate with an ecommerce platform
• Create advanced reports