What is Automated Inventory Management System And How it Works

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Inventory Management is vital for all business owners, especially if you’re managing different sales channels (and maybe a brick-and-mortar shop)!

Juggling all these variables on your own can lead to errors. It can also be it is time-consuming. But what if we informed the team that they could utilize the time to pursue other tasks while juggling your inventory?

This is where automated inventory management arrives in. Utilizing the power of software for retail operations such as Brightpearl,’ you’ll be able to save months of your time every year while also increasing the efficiency of your processes for managing inventory.

What Is Function of Automated Inventory Management?

It lets wholesalers and retailers manage their customers’ inventory at the same time. The systems make workflows simpler and reduce time. When you configure your retail automation to pre-designed requirements, you’ll have the freedom to concentrate on other essential tasks, safe with the assurance that everything is in order.

Retail operating systems such as Brightpearl can take things to the next level. They utilize powerful automation engines to optimize the entire distribution and inventory process. Automating everything from dropshipping, backorders, partial fulfilment, invoice customers, customer tagging, inventory counts, and much more is possible.

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These systems are comprehensive and offer additional features like automatic inventory management, PO generation, and reports. You can manage your entire backend through a simple and easy-to-use interface.

Don’t be a slave to Excel. Choosing an automatic management program or a more comprehensive retail operating system will set your business to increase productivity and efficiency in workflow.

What is The Process of Automated Inventory Management System?

It organizes and tracks supplies, inventory, and sales for the most current merchants (in both others and e-commerce)

Automated systems allow retailers to monitor inventory in real-time and make critical business decision-making on time.

For instance, if your items are out of stock and are at the reorder threshold, Then your software for managing inventory will notify you that you know (or even reorder it for you).

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The inventory automation system should be integrated with other tools for managing retail, such as order management and point-of-sale (POS) programs. If you want to attain an accurate real-time inventory management system, you have to stay at the top of your sales across every channel.

It is why an integrated retail operating system, such as Brightpearl, which includes automated inventory management, is the top choice for the most savvy retailers.

Brightpearl contains a built-in iOS Point Of Sales application developed especially for multichannel merchants. It means you’ll be able to connect all your retail or online retailers, not to mention third-party channels such as Amazon or eBay.

You’ll know which items are selling too much or not enough, how each item performs, and how much profit you earn.

It is then possible to integrate all this data with your demand forecasting, cash flow forecasts, risk management, and projected profit margins for more accurate, precise planning.

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Why should you invest in an Automated Inventory Management System?

When it comes to retailers’ most valuable assets, efficient inventory management is among the top there. Therefore investing in software for managing inventory is an excellent decision.

Advantages of Automated Inventory Management:

Save a lot of time

Imagine all the hours working, making changes manually to your inventory in Excel spreadsheets. Automated systems will ensure that every stock count will be automatically updated and accurately across all channels.

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Each time an item is bought, sold, returned, or received, your automated engine can register the transaction and update your system without manual instructions, leaving you with the time to focus on what is important.

Get real-time insight

Retail operating systems such as Brightpearl can help you track your inventory levels in real-time. You can track the inventory quantity within your warehouse(s) and the stock that must be taken to fulfil current orders and inventory ordered from suppliers.

In addition, with this higher degree of precision, you’ll never disappoint customers with unfulfilled orders again.

Stop calculating stock levels in error.

Stock miscalculations are a major source of frustration for retailers. Fortunately, the availability of this system can create this assignment vastly easier. Analytics of inventory monitors your customer’s data to help you forecast your optimal inventory levels and perform inventory stock replenishment whenever needed.

Experience greater accuracy

Manual entry is a victim of human error a lot of the time. The solution? Eliminate the need for manual inventory information entry completely. When you automatize the inventory management processes, the software manages the data entry by changing the data, deleting it, making forecasts, and replenishing stock in real-time.

Scale up easily

Ultimately, automation brings great scale and growth potential. Software for managing inventory that is automated cuts from time and is also more precise and handles hundreds of transactions every day without the risk of making mistakes.

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An operating system for retail like Brightpearl is even more adaptable. It is backed by an automated engine that is robust. Brightpearl allows you to add more sales channels to your offering without worrying about whether you have enough staff to handle the expansion of backend operations.

How do you choose the best Automated Inventory Management System?

 It’s time to tackle the most critical factor. You’ll need to select the most efficient automated inventory management system that will meet your specific business needs. While evaluating the different software choices available, Be sure to note certain factors before making a final choice.

Look for these features:

Automatic Reordering

Reordering is among the most vital backend processes of all retail businesses operating through multiple channels. It will ensure that your items are always readily available for customers to purchase. The prevention of stock-outs is vital (especially in the case of your well-known products). Automated technology for reordering makes this simple.

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It will help if you are looking for tools for managing retail operations that provide stock notifications, custom par levels, and vendor and customer relations. So you can sleep with peace of mind knowing you have the proper inventory on your shelves.

Automated stock transfer

Automated stock transfers are a useful feature. Particularly if your inventory is distributed across multiple warehouses or locations, you’ll need to ensure that distributors can locate your inventory in the correct location to satisfy the demands. Find the Inventory management software with automatic transfer controls for the best flexibility.

Alerts on inventory and notifications

With everything happening, there’s a need for a tool that keeps you up-to-date across various channels. Your inventory management tool must provide comprehensive alerts on inventory levels that cover things like inadequate inventory levels, stock overruns, and delays in shipping from suppliers.

E-Commerce Integration

For a multichannel retailer, one of the most important things to watch is the essential E-commerce integrations. The best way to manage the inventory efficiently is to use the correct information to unite your inventory management processes. Ensure the inventory management tool allows integration with other management tools such as CRM or POS systems.

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Automated order management

When you automatize your dispatching processes for orders, it will be possible to identify any issues with your warehouse right at the root. Automating dispatch helps wholesalers and retailers sort their packages according to the location they’re required to be delivered by utilizing options like scans of barcodes, printing labels, and optimization of delivery channels.

Streamlined Store Reporting 

Not least, do not compromise on the ability to report. It will assist you in making better business decisions throughout the entire process of managing your supply chain. Your inventory management software can help you track…well… basically everything. Check that your software generates real-time data and enables a real-time inventory tracker.

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The latest trends in inventory Management Automation

Automation for inventory management is continuously changing. As more businesses are moving to automation, the automation of inventory control continues to improve. Let’s look at the most popular trends you should follow.

Data analytics are here to stay

More businesses will likely switch to data analytics in the coming years. Data is becoming a valuable resource. Data collection is similar to mining gold. Why? Because data provides insights, and insights are the basis for sales. Predictive, diagnostic, descriptive, and prescriptive data inform us of business’s whats, whens, and hows.

Automated machines

Many of us have seen automated machines on the news or the internet. You might have seen it in a warehouse. Automated guided Vehicles (AGVs) are transforming how we view warehouse management and inventory in the field. Automated equipment is expected to become more widespread as a tool to help move warehouse processes.


5G will improve warehouse management as never before. The 5G wireless technology is faster than ever, meaning that warehouses in remote locations can get the most value from their automations. The retail industry will be able to accumulate information accurately and more quickly than ever.


Retail operating systems such as Brightpearl make inventory management easier and more efficient. They also make it more accurate. Through automatic inventory control systems such as those, retailers with multiple channels are given the flexibility to expand.

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In addition, it promises increased scalability and improved operational control. There’s no reason not to take advantage of the potential of automation. Anyone from small-scale businesses and SMBs to multichannel retailers with an enterprise-level structure will benefit from automated inventory.

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