By Kristjan Vilosius, CEO and Founder of Katana

There are several benefits that come with systems integration, but many modern businesses are still using pen and paper to track inventory, manage orders and shipping logistics, and balance their books. While some businesses have moved to software systems, many of the legacy options are complex and truncated, and it can be a challenge to integrate with the customer-facing tech stacks like e-commerce platforms that many businesses use today. 

According to the U.S. Chamber of Commerce, 95% of U.S. small businesses use at least one technology platform and correlate the usage with growth in sales, employment and profits. But finding an easy-to-use and easy-to-integrate solution that connects the dots between the storefront and accounting is a common pain point – especially for small and medium-sized businesses (SMBs) who operate with lean teams. However, it’s imperative that SMBs find a solution that can seamlessly merge new and existing technologies that can offer improved efficiency, enhanced security, cost savings and scalability. 

Inventory At The Core 

Inventory is at the heart of operations for many businesses. It’s the key revenue driver for any company selling a product, so effectively managing the incoming and outgoing shipments and staying connected across the sales funnel are essential. With inventory at the center of all operations, inventory management software systems are critically important to help protect and grow the business, but it can be difficult to know which one to choose. 

A cloud-based inventory management software that has customizable integrations can help SMBs stay up to date on the status of their inventory levels with real-time data from primary sales channels, like Shopify, to accounting software, such as Intuit QuickBooks. It’s common to experience bumps in the road when onboarding a new software system, or changing any operational practice, so searching for a provider with a robust support team will ensure ease of use from the start. Businesses from retail to manufacturing are focused on delivering products and value to their customers as efficiently as possible, and an integrated inventory management system allows them to focus on growing their business.

Don’t Worry, Tech Won’t Bite

According to the EY Emerging Tech at Work 2023 report, senior leaders often show reluctance to transition to new technologies. In fact, 89% of those surveyed believe that adopting emerging technologies is beneficial for their company, yet 59% of employees say senior leaders at their companies have been slow to embrace emerging technologies. Knowing the benefits of upgrading to cloud-based technology for business operations is one thing, but putting new practices in place is another. Indeed, change can be hard, but it’s a common misconception that choosing an integrated software platform will come with a challenging set up, and one that is rooted in the frustration that many modern businesses experience when they look to modernize. 

For decades, systems haven’t been made to accommodate agile SMBs that are the backbone of economies around the world. The limited set of suitable options available left many businesses feeling like they were a square peg in a round hole. But today, inventory management platforms that are made to support existing processes and integrate with customer-facing and accounting tech stacks exist. And support and onboarding teams that think like the SMBs are available to help customize the system. The belief that tech proficiency is required before you can technologize is, simply, a myth.

Why Installing Your Safety Net Is Worth It

While businesses of all sizes can benefit from inventory management, there are many advantages for SMBs who run lean operations. Carrying excess inventory, or holding too little, can have repercussions long after the initial overstocking or stockout – from initial revenue loss to losing customer loyalty. With inventory management software, businesses can use data and reporting tools to better understand the flow of supply and demand and forecast and plan for peak sales seasons, which effectively provides a safety net against major losses. 

In recent years, global economic turmoil caused by crises such as the COVID-19 pandemic and Russia-Ukraine war have impacted businesses in all sectors. From direct-to-consumer manufacturers to e-commerce behemoths, businesses have collectively experienced supply chain disruptions, erratic consumer spending, inflated costs of raw materials and staffing shortages that have challenged inventory for even the most established companies. But digital transformation is taking hold and, as reported in KPMG’s 2023 US Technology Report, digital acceleration is enabling businesses to capitalize on technology even as they navigate economic, geopolitical and customer volatility. Building a backend tech stack, held together by inventory management, is the key to preparing for external forces that impact business operations and sales. 

Revel In Revenue 

Managing a business is not for the faint of heart. It takes grit, determination, flexibility and tenacity – and you still may get knocked down more times than imaginable. But with all the challenges of our modern world come gifts of efficiency, too. Finding an integrated solution that can effectively manage inventory, provide real-time data to inform planning and forecasting, and sync with customer-facing integrations and backend essentials can not only protect businesses in crisis, but also boost revenue. With revenue growth, then comes the ability to grow and scale, and an integrated solution can help businesses make informed decisions and plan timelines as they move upmarket. 

Integrated inventory management systems today are accessible and easy to incorporate and use, and the benefits are plentiful. In today’s ever-changing business environment, it’s essential software that allows businesses to tweak, pivot and succeed.

About author

Before Katana, Kristjan was the CEO of one of the largest investment firms in Estonia and had been an angel investor for nearly a decade in technology and manufacturing. He was excited by the impact of these two worlds merging and could see the need for a more modern solution to the outdated business suites of the 90s. With this inspiration, a 10-slide presentation became the beginning of Katana.