Frequently Asked Questions

What is an Inventory Management System?

An inventory management system is technology that helps you manage your sales, production, inventory, and ordering etc. It’s usually a type of software that helps make the process less tedious, more efficient, and more accurate. It may be able to advise you as to when you should order more inventory before you run out, if you are missing inventory, or if you need to reduce your orders of raw materials due to a decline in sales. It’s an essential tool in any inventory-based business. 

What are the Four Types of Inventory Management?

The four types of inventory management are:

  • Raw materials: The items needed to turn your materials into the finished products you will sell to consumers or businesses
  • Works-in-process: Inventory that is being worked on and may still be in production
  • Maintenance, repair, and operation of goods: Small details that are required to make the finish product such as office supplies or package handling supplies
  • Finished products: The final product that you sell in a store, direct to a business or consumer, or online
Is Equipment Management Software Secure?

Reputable equipment management software will have security measures in place. They may require usernames, passwords, and double authentication to log in. Data protection and data security play an important role in software and keeping your and your customers and employees data safe. When reviewing software choices, check out their security features and what they do to safeguard information. 

How Much Does Equipment Management Software Cost?

The costs of equipment management software vary by vendor, by the features offered, by industry, and by the number of users who will be using the software. Some companies offer basic versions of their software for free. Others offer them as low as a few dollars per month per user. However, if you have a large company with lots of assets and software users, expect to spend thousands of dollars per year.

Is There Any Equipment Management Software Available for Free?

Yes, several companies offer free software. Keep in mind that this is usually intended for small business, new businesses, and is often offered as a trial basis or for a limited number of users. Free equipment management software doesn’t have all of the features, mobility, and integrations that the paid versions will have. It may be a good place to start, but if you find yourself needing more from the system, it’s time to upgrade to a paid version.

About the Author

Allison Bethell

Allison Bethell

Real Estate and Finance Expert

Allison Bethell is a content writer, real estate investor, small business owner, and consultant. She has a B.A. from Villanova University in Sociology and Business. She also holds several graduate certificates in early childhood development, screenwriting, and contract law.

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