• The Stocky Shopify app is shutting down, with new installations already disabled and a full shutdown scheduled for August 31, 2026, when the app and its APIs will stop working. Shopify will provide temporary read-only access to help merchants transition.
• Stocky helped retailers manage inventory using tools such as demand forecasting, purchase orders, supplier tracking, inventory reports, and low-stock alerts.
• Merchants relying on Stocky may face disruptions in forecasting, purchasing workflows, and inventory planning. Businesses that depended on automated purchasing or centralized inventory insights will need to rebuild those processes elsewhere.
• To prepare for the shutdown, merchants should export key data, document current workflows, test integrations, and begin evaluating alternative inventory systems well before the final shutdown date.
• Dedicated inventory management platforms provide a stronger long-term replacement by supporting multi-location inventory, barcode scanning, advanced purchasing workflows, and deeper analytics than Shopify’s native tools.

If you’ve been relying on the Stocky app for your Shopify store, you’ve probably heard the news by now: the Stocky Shopify app is sunsetting. After August 31, 2026, you’ll no longer be able to use Stocky to manage your inventory. Shopify will provide read-only access for a limited time, but Stocky’s APIs will also stop working on August 31, 2026.

For many retailers, this announcement has created uncertainty about the future of their inventory management. After all, Stocky was deeply integrated into the Shopify ecosystem and handled critical functions, including purchase orders, demand forecasting, and supplier management.

The good news? If you’re a Stocky user, you can use this as an excuse to transition to a more robust inventory management system that can scale with your business. In fact, many retailers had already outgrown Stocky’s limitations and moved to dedicated inventory systems long before this announcement.

In this article, we’ll walk you through everything you need to know about the Stocky shutdown, how it will impact your business, and what steps you can take to ensure a smooth transition to a better inventory management solution.

What is the Stocky Shopify app?

Stocky by Shopify is a first‑party inventory management app included with Shopify POS Pro. It was also free to any Merchants who could install it before May 4, 2020. Stock bridges the gap between basic inventory tracking and more sophisticated stock control.

Key features of the Stocky app

The Stocky Shopify app offered several features that made it popular among retailers:

• Demand forecasting: Stocky analyzed your sales history to predict future demand, helping you avoid both stockouts and overstock. This was particularly valuable for businesses that experienced fluctuating seasonal demand.
• Purchase order management: The app streamlined the purchasing process by generating purchase orders (POs) based on forecasted sales and current stock levels. These POs made it easy to track orders from creation to receipt, maintaining visibility throughout the entire customer journey.
• Supplier tracking: Stocky allowed you to manage supplier relationships, track lead times, and maintain vendor contact information all in one place.
• Inventory reporting: The app provided insights into product performance, helping you identify fast-moving items, slow sellers, and products that might need attention.
• Low-stock alerts: Automated notifications helped prevent stockouts by alerting you when inventory levels fell below predetermined thresholds.

While these features were helpful, many retailers found Stocky’s capabilities limited as their businesses grew. The app worked well for basic inventory management, but it struggled once things became more complex, such as managing inventory across multiple locations, using advanced barcode scanning, or supporting more sophisticated warehouse workflows.

Why the Stocky Shopify app is sunsetting

While we can’t speak directly for Shopify about why they decided to discontinue Stocky, we can make a few educated guesses about the factors that likely played a role.

First, Shopify has been consolidating its POS features and moving functionality into its core platform. Afterall, it’s easier to build inventory capabilities directly into Shopify Admin and Shopify POS rather than maintaining separate apps. It’s really more of a consolidation. 

Second, Stocky’s development had slowed considerably in recent years. Many users reported that the app felt clunky and outdated compared to modern inventory management solutions, with limited updates and very few new features.

Finally, specialized inventory management software offers a stronger alternative for most retailers. Many businesses adopted Stocky for its convenience but quickly realized they needed more robust features and deeper integrations. 

When will the Stocky app shut down?

The Stocky sunset is happening in phases, with specific dates that merchants need to be aware of:

February 2, 2026: Stocky was removed from the Shopify App Store. This means no new installations are possible, and if you uninstall the app, you won’t be able to reinstall it. If you uninstall and need it back, Shopify directs you to contact Support, who may or may not be able to help you with a reinstall.

August 31, 2026: Complete shutdown date. After this date, Stocky will stop functioning entirely, and all Stocky APIs will cease to work. There will be a period of read-only access for users to help with the transition. 

It’s worth noting that Shopify already migrated some features from Stocky. Transfer creation/management moved to Shopify Admin while historical transfers remained in Stocky until June 30, 2025. Shopify Admin transfers still lack Stocky’s replenishment workflow and don’t support setting min/max levels.

Stocky continues to document demand forecasting for purchase orders while it remains available (until Aug 31, 2026).

How the Stocky shutdown will impact Shopify merchants

The discontinuation of Stocky will affect different merchants in different ways, depending on how heavily they relied on the app’s features.

Inventory forecasting disruptions

One of Stocky’s most popular features was its demand forecasting capability. Without this tool, many merchants will lose their primary method for predicting future inventory needs.

Purchase order workflow changes

Stocky streamlined the PO process by automatically generating orders based on stock levels and forecasted demand. Merchants who relied on this automation will need to rebuild their purchasing workflows from scratch.

Inventory planning challenges

Beyond forecasting and purchasing, Stocky provided a centralized view of inventory performance across your entire catalog. Losing this visibility makes it harder to identify trends, spot problems, and make strategic inventory decisions.

How to prepare before Stocky is discontinued

To mitigate the negative impacts of your transition from Stocky, there are some proactive steps you can take:

• Export your data: Start by exporting all critical data from Stocky, including historical purchase orders, supplier information, and inventory reports. Keep in mind that supplier data cannot be exported from Stocky, so you’ll need to document this manually.
• Document your workflows: Take time to map out your current inventory processes. Understanding your existing workflows will help you evaluate alternative solutions. During this process, you may also identify inefficiencies in your workflows, allowing you to make adjustments as you transition to your new system.
• Evaluate alternatives early: Start researching inventory management software now, while you still have time to evaluate features, test integrations, and compare pricing properly. If you give yourself ample time to test different systems, you won’t be forced to make a snap decision and get stuck with software that doesn’t suit your needs. 
• Test integrations: If you’re considering third-party inventory software, test the Shopify integration thoroughly. Make sure data syncs correctly and the software can handle your specific requirements.

Best Stocky alternatives for Shopify

When evaluating Stocky alternatives, you’ll find options ranging from Shopify’s built-in tools to sophisticated inventory management platforms. There’s no one-size-fits-all solution out there. The key is to evaluate your specific needs to find something right for your business.

Built-in Shopify inventory tools

Shopify’s native inventory features have improved significantly in recent years. For basic inventory tracking, simple transfers, and straightforward purchasing, Shopify Admin might be sufficient for smaller retailers.

However, Shopify’s built-in tools lack many features that Stocky users have come to rely on. For instance, there’s no automated demand forecasting, limited reporting capabilities, and minimal support for complex multi-location operations.

Dedicated inventory management software

Specialized inventory management platforms offer the most comprehensive replacement for Stocky’s functionality. These systems typically provide advanced forecasting, purchase and sales orders, detailed reporting, and support for complex operations such as omni-channel selling, kitting and bundling.

The key advantage of dedicated software is scalability. While Shopify’s native tools work well for simple operations, specialized platforms can handle thousands of SKUs, multiple warehouses, product variants, and complex purchasing workflows.

Why growing Shopify stores need more than native inventory tools

As we’ve mentioned, Shopify’s built-in inventory features are designed for simplicity rather than operational depth. As your business grows, you’ll likely encounter limitations that require dedicated inventory software.

• Multi-location complexity: Managing inventory across multiple warehouses, retail locations, or fulfillment centers requires features that Shopify’s native tools don’t provide.
• Advanced purchasing workflows: Growing businesses need more than basic purchase order creation. You need tools that can analyze supplier performance, optimize order quantities, and coordinate with multiple vendors simultaneously.
• Barcode scanning and inventory management features: Efficient inventory control requires barcode scanning, pick list generation, cycle counting, and other features that aren’t available in Shopify’s native inventory tools.
• Detailed reporting and analytics: Making informed inventory decisions requires detailed reporting on product performance, supplier metrics, carrying costs, and other key indicators that Shopify’s basic reports don’t provide.

Using inFlow as a Stocky alternative

inFlow offers a comprehensive alternative to Stocky for growing retailers. Unlike basic inventory apps, inFlow provides the depth businesses need as they scale. In fact, every feature missing from Stocky can be found in inFlow.

• Purchase order management: inFlow streamlines purchase order creation by notifying you when items hit their reorder points, allowing you to batch-generate the necessary orders with a few clicks. You can manage multiple suppliers, track order status, and receive inventory directly into the system.
• Demand forecasting: Our software supports reorder-point-driven replenishment. inFlow helps you determine those reorder points by suggesting optimal levels based on your sales velocity and supplier lead times. For advanced forecasting beyond reorder-point logic inFlow integrates with StockTrim, which offers advanced AI demand forecasting.
• Barcode inventory management: We know how important barcodes are for inventory management, which is why we have a built-in barcode system, that allows you to create, print, and scan barcodes for receiving, picking, packing, and cycle counting.
• Multi-location support: Whether you have multiple warehouses, retail locations, or fulfillment centers, inFlow provides visibility and control across all locations. We also offer support for omnichannel sales fulfillment, which is especially helpful for retailers with more than just a Shopify store. 
• Shopify integration: Most Stocky users were drawn to the app because it was native to Shopify. This meant no hassle of juggling multiple software solutions that would require double-entry. Thankfully, inFlow integrates seamlessly with Shopify, automatically syncing inventory levels, processing orders, and updating stock counts.

How to choose the right inventory software to replace Stocky

To find the right Stocky alternative, consider your current needs and future growth plans. Key factors to evaluate include:

• SKU count and complexity: If you manage hundreds or thousands of SKUs, you need software that can handle large catalogs efficiently.
• Sales channels: Multi-channel retailers need inventory software that can sync across all platforms, including Shopify, Amazon, eBay, and others.
• Warehouse operations: Consider your fulfillment processes. Do you need barcode scanning? Pick list generation? Cycle counting? Smaller retailers may not need these things early on, but that can quickly change. 
• Purchasing complexity: Evaluate your supplier relationships and purchasing processes. Do you work with multiple vendors? Need automated reordering?
• Integration needs: Consider your current tech stack, including accounting systems and shipping software. Make sure the inventory software you choose can integrate easily with these systems.

The goal is to choose a solution that not only replaces Stocky’s functionality but also supports your business growth for years to come.

FAQs

What is the Stocky Shopify app?

The Stocky app was Shopify’s native inventory management solution designed for merchants using Shopify POS Pro. It provided demand forecasting, purchase order management, supplier tracking, and inventory reporting capabilities that went beyond Shopify’s basic inventory features.

Why is the Stocky app shutting down?

Shopify is discontinuing Stocky as part of a broader consolidation of POS features and a shift toward building inventory capabilities directly into Shopify Admin. The app had also seen limited development in recent years.

When will the Stocky Shopify app be discontinued?

Stocky was removed from the Shopify App Store on February 2, 2026, and will completely shut down on August 31, 2026. After this date, the app will stop functioning entirely.  

What are the best alternatives to Stocky?

The best Stocky alternatives depend on your business needs. Options include Shopify’s built-in inventory tools for basic operations, or dedicated inventory management software like inFlow for more complex requirements.

Does Shopify have built-in inventory forecasting?

Shopify provides analytics and guidance to help you forecast order volume and trends, but it doesn’t include the automated demand forecasting capabilities that Stocky offered.

Can you still use Stocky with Shopify POS?

No, Stocky is no longer available for new installations as of February 2, 2026, and will completely stop working on August 31, 2026.

How do I export my data from Stocky before it shuts down?

You can export most data from Stocky through the app’s export features, including historical purchase orders and inventory reports. However, supplier data cannot be exported, so you’ll need to manually document vendor relationships before the shutdown.

The post Stocky Shopify App Sunsetting: What Retailers Need to Know (And What to Use Instead) appeared first on inFlow Inventory.

• VAT in the Digital Age (ViDA) is a new initiative by the EU to modernize the VAT system for the digital economy.
• ViDA will include real-time digital reporting and e-invoicing, requiring businesses to report transactions within two days and use a standardized electronic invoice format (EN 16931). 
• Single VAT Registration (SVR) will simplify compliance for cross-border sales by allowing businesses to use a single VAT ID to fulfill VAT obligations in multiple EU countries.
• Sales platforms will take on more responsibility under ViDA, collecting and submitting VAT on behalf of sellers in some cases.
• SMBs should automate invoicing and tax reporting, and choose integrated software systems like inFlow and QuickBooks/Xero.

The digital economy continues to grow exponentially day after day, and governments are under increasing pressure to keep up. In the European Union (EU), the rise of cross-border ecommerce and digital services has outpaced the decades-old Value-Added Tax (VAT) framework. To solve this growing issue, the EU has introduced VAT in the Digital Age (ViDA). This comprehensive proposal is set to transform the way VAT is reported and collected across the EU. 

But what does this sweeping regulation change mean for small to medium-sized businesses, and how can they adapt in order to remain compliant? Today, we’ll answer these questions and a whole lot more! 

What is VAT in the Digital Age (ViDA)?

We’ve written about Value-Added Tax (VAT) before, so we won’t go into too much detail here. Essentially, VATs are a consumer tax applied at every stage of the supply chain where value is added. Think of it as a sales tax. The VAT system that we know today was introduced in 1967, long before the birth of the digital economy.

In an effort to modernize the VAT system, the European Commission has initiated a legislative project known as VAT in the Digital Age (ViDA). The idea is to address the challenges introduced by the digital economy to the VAT system. Proposed in December 2022, ViDA is expected to be implemented in stages starting from 2028, and includes reforms in:

• Real-time digital reporting
• Mandatory e-invoicing
• The platform economy
• A unified VAT registration system

It’s not an overhaul or a complete change, but it does build off what already exists. If ViDA functions as intended, it will enhance VAT collection accuracy and efficiency, reduce fraud, and level the playing field for businesses operating both online and offline.

Why is the EU making these changes?

As mentioned above, the VAT system we use today was introduced in the 1960s, long before the advent of digital platforms and online marketplaces. Back then, the idea of an instant cross-border sale was science fiction; now it’s the norm.

According to the EU Commission,  the current VAT gap (the difference between expected VAT and collected VAT) is over €93 billion annually. That’s a lot of lost tax revenue, so it goes without saying that the EU wants to close this gap as much as possible. 

Here are some of the major reasons for the introduction of ViDA:

• Combat VAT fraud through real-time reporting
• Simplify VAT compliance for cross-border sellers
• Support ecommerce growth with modern tax frameworks
• Improve tax transparency and data accuracy

Key changes introduced by VAT in the Digital Age 

Several changes are being introduced with VAT in the Digital Age. Let’s break down each one and what it means for your business.

1. Real-time digital reporting & e-invoicing

The biggest change ViDA introduces is real-time digital reporting & e-invoicing. One aspect we haven’t yet addressed is the complexities surrounding VAT.

VAT involves collecting taxes at every stage of the supply chain. This creates numerous new transactions, making bookkeeping more complex. The sheer volume of data is really what allows fraud to slip through the cracks.

ViDA mandates the digital reporting of transactions within two days of issuance, and e-invoicing will become the standard format, aligned with the EU-wide EN 16931 standard. These changes are designed to combat fraud and enhance transparency.

2. Single VAT registration (SVR)

VAT rates tend to vary from country to country. For example, Spain has a VAT of 21%, while Canada has a VAT of 5%. That’s a pretty big difference. This can make things difficult for businesses operating across borders. Not only do they have to track sales in multiple countries, but they also have to keep track of VAT. Which can already be difficult on its own. 

Single VAT registration proposes an online portal that allows businesses to fulfill VAT obligations for multiple countries with one VAT ID. Something like the One Stop Shop (OSS) VAT. OSS is primarily designed for foreign ecommerce shops.

3. Updated platform economy rules

A big part of ecommerce is extending your reach. A good way to extend that reach is by joining new sales platforms. Shopify, Amazon, and Etsy are all examples of sales platforms. 

Under EU VIDA, sales platforms will become responsible for collecting and submitting VAT when their users do not. 

Something to note is that this change greatly benefits SMBs, especially foreign ones. It moves the burden of VAT to the sales platform. This can be especially helpful when operating in multiple EU countries with VAT. 

How to be compliant with VAT in the Digital Age?

Regulations are always changing. Even if there’s nothing new, there’s often changes to existing legislation. It’s easy to get caught unaware. Here are some tips to stay compliant with VAT in the Digital Age. 

• Do your due diligence: Ultimately, as a business owner, it’s your responsibility to stay informed about the relevant regulations. Each ViDA component will have staggered implementation dates. Be sure to stay on top of things by subscribing to EU Commission updates. You might even consider working with a VAT consultant.
• Automate with software: Unless you’re one of the rare few who develop everything in-house, chances are you use some third-party software. And that’s great! These systems were designed to automate a wide range of tasks, including real-time tracking, tax calculations, and digital invoicing.
• Leverage integrations: When choosing software, opt for systems that work well together. For example, pairing inFlow Inventory with VAT-compliant accounting tools like Xero and QuickBooks Online can help streamline invoice generation, track taxable transactions, and prepare reports aligned with EU standards.  
• Review platform agreements: If you sell through any online marketplace, ensure you’re aware of any new responsibilities, whether they’re on your end or theirs. And don’t assume what’s true for one platform will be true for another.     

Common ViDA compliance mistakes and how to avoid them

As we mentioned, VAT can be complex. That’s the reason behind VAT in the digital age, to begin with. However, the majority of issues arising from VAT don’t stem from bad intentions, but rather from outdated, manual processes and misunderstandings. 

Failing to register 

One of the most common issues is failing to register for VAT in the correct country. Currently, this process is both expensive and complicated; however, with the introduction of the Single VAT Registration (SVR) system, it has become streamlined. So take advantage of it when it becomes available.

Manual data entry

Another frequent mistake is outdated processes that rely on manual data entry for invoicing and reporting. Automating your VAT processes by leveraging software can significantly reduce these risks.

Misclassifying goods

Similarly, misclassifying goods and applying the wrong VAT rates can lead to overpayments, underpayments, and potential audits. Using inventory and accounting tools that apply the correct tax rates by country and product type can prevent this.

Missed reporting deadlines

The primary objective of VAT in the digital age is increased compliance, making missed reporting deadlines a significant issue. With ViDA, things will be moving toward real-time digital reporting, so sticking to outdated monthly or quarterly filing methods could result in penalties. SMBs should ensure their systems are equipped to handle the increased frequency of reporting requirements.

Misunderstanding responsibilities

Businesses that sell through online marketplaces often assume the new process under ViDA means that platforms are fully responsible for all VAT obligations. While it’s true some platforms do collect and remit VAT for B2C transactions, they may not cover B2B sales or specific product categories. Always double-check with each platform so you understand who is responsible for what.

Final Thoughts

The VAT in the Digital Age initiative represents a major shift in how businesses will handle VAT across the EU. For SMBs, this presents both challenges and opportunities. Embracing automation, aligning systems, and staying informed can ensure your business remains compliant and even gains a competitive edge in the digital-first economy.

FAQ

When does ViDA become mandatory for businesses?

ViDA will be implemented in stages starting from 2028, with each phase introducing new components. The rollout will start with real-time digital reporting and e-invoicing requirements, followed by the Single VAT Registration system and updated platform economy rules.

How does Single VAT Registration (SVR) work under ViDA?

Single VAT Registration allows businesses to fulfill VAT obligations across multiple EU countries using a single VAT ID via an online portal. Similar to the current One Stop Shop (OSS) system, but expanded, SVR eliminates the need for separate VAT registrations.

What are the real-time reporting requirements under ViDA?

ViDA mandates that businesses report VAT transactions digitally within two days of issuance. All invoices must use the standardized EU-wide EN 16931 e-invoicing format. This real-time approach replaces traditional monthly or quarterly VAT filing and requires businesses to ensure their systems can support immediate transaction reporting and digital invoice generation.

Do online marketplaces handle VAT under ViDA?

Under ViDA, sales platforms become responsible for collecting and submitting VAT when their sellers don’t comply. However, this doesn’t cover all scenarios. Platforms may not handle B2B sales or specific product categories. Businesses must verify with each marketplace to understand who’s responsible for VAT collection and remittance in their specific situation.

What software do I need to comply with ViDA?

To comply with ViDA, businesses need integrated systems that handle real-time reporting, automated tax calculations, and EN 16931-compliant e-invoicing. Pairing inventory management software like inFlow with VAT-compliant accounting tools such as Xero or QuickBooks Online can streamline invoice generation, track taxable transactions, and prepare reports aligned with EU standards.

The post How SMBs Can Stay VAT in the Digital Age (ViDA) Compliant appeared first on inFlow Inventory.

In episode 20 of Secret Life of Inventory, we sat down with Sarah Barnes-Humphrey, creator and host of Let’s Talk Supply Chain and founder of Blended Pledge, to explore how modern supply chains can thrive through intentional leadership, inclusivity, and innovative thinking.

The power of inclusive supply chain teams

When it comes to building stronger supply chains, giving everyone a seat at the table isn’t just a nice-to-have; it’s essential for innovation. Sarah explains that looking at problems from multiple perspectives helps organizations come up with more creative solutions to complex challenges.

“I don’t think that we as an industry or as organizations can really be innovative without multiple different perspectives,” Sarah notes. The key is embracing people holistically and creating space for different points of view, even when they challenge conventional thinking.

For SMBs looking to build more inclusive teams, Sarah’s approach is refreshingly practical. With her team, she’s created a culture built on grace, open communication, and clear boundaries. Her simple rules? Everything is “figure-outable”, try to solve problems before escalating them, and don’t be a jerk. It’s a mantra most of us can agree is pretty simple.

Sarah also notes that the impact of inclusive leadership extends beyond internal process improvements. You need to get your team out there in the community. When team members see themselves represented at industry conferences and events, it shows them what they’re capable of. That’s why Sarah founded Blended Pledge, which provides grants to help underrepresented voices cover travel expenses to attend industry events.

Sustainability: starting small for big impact

Sarah was absolutely floored when she learned that 80% of greenhouse gas emissions come from supply chains. With such a staggering number it’s no surprise the pressure to implement sustainable practices has never been higher. But Sarah’s advice for businesses who want to prioritize sustainability will probably surprise you. 

“It’s very important to understand what a sustainable supply chain means to you,” Sarah explains. “Because it means different things to different people.” Rather than trying to tackle everything at once, she recommends identifying one sustainable development goal that aligns with your organization’s core values and focusing your efforts there.

Starting simple and being intentional can make a significant difference. Motion-sensor lighting in warehouses, for example, is a no-brainer that reduces energy consumption without requiring massive infrastructure changes. The key to getting any initiative off the ground is getting C-suite buy-in and identifying champions in the organization that will drive sustainable initiatives forward.

Navigating digital transformation strategically

A major eye-opener in our conversation with Sarah was when we discussed digital transformation. While many organizations focus heavily on technology adoption, she reveals that digital transformation is only 20% technology. The other 80% is implementation.

“You’ve got to get change management right,” Sarah emphasizes. This means having thorough discussions with internal teams, ensuring leadership alignment, and helping employees understand how new technologies will impact their workflows.

The challenge many organizations face is tech stack bloat. Sarah’s advice echoes what she heard from Mary at Fender: “We are completely slowing down to speed up.” Instead of rushing to adopt every new technology, successful organizations map out their processes, prioritize which ones to automate first, and set clear success metrics for each quarter.

The human element in automation

As supply chains become increasingly automated, businesses need to understand the importance of maintaining the human element. Sarah argues that businesses should use automation to free up employees to focus on strategy, rather than routine tasks. In today’s supply chain environment, strategic thinking about tariffs, manufacturing locations, and market shifts requires human insight that technology can’t replace.

The key is transparent communication with your entire team about how automation will change their roles and what that means for them going forward. When done right, automation creates opportunities for creativity and strategic thinking that can give you a competitive edge.

Building the future of supply chain

Sarah’s journey from a family logistics business to a supply chain media pioneer demonstrates the power of authenticity and community-building. Her success stems from being genuine, whether on screen or in person, and creating spaces for meaningful conversations about the industry’s biggest challenges. In a world flooded with AI, most people are thirsty for authentic connections with real people. 

For those looking to break into supply chain, her advice is simple: start somewhere, even if it’s not your dream role. The industry offers incredible growth opportunities, and the community is remarkably supportive of newcomers willing to learn and contribute.

The future of supply chain belongs to organizations that can balance technology with a human touch, sustainability with business growth, and operational efficiency with inclusivity. As Sarah puts it, “We all have a role to play”.

Want to hear more insights from Sarah Barnes-Humphrey? Watch the full episode of Secret Life of Inventory to discover her complete methodology for creating inclusive, sustainable, and digitally-savvy supply chain operations.

The post Secret Life of Inventory – Episode #20 – How to Build a Better Supply Chain: Inclusion, Sustainability, and Digital Transformation appeared first on inFlow Inventory.

• A white label product is a generic item manufactured by a third-party supplier that businesses can rebrand and sell under their own name.
• The benefits of white labeling include lower startup costs, faster product launches, and more time and resources to focus on branding and marketing.
• Common drawbacks include limited customization, lack of quality control, risk of unsold inventory (deadstock), and difficulty standing out from competitors.
• To succeed, businesses should carefully vet suppliers, invest in compelling brand packaging, and use inventory software to track sales and stock levels.
• Getting started involves identifying market demand, researching suppliers, understanding legal requirements, customizing branding, and launching with a strong marketing strategy.

Even if you’ve never heard the term “white label products” before now, you’ve almost certainly used one. White label products present small and medium-sized businesses (SMBs) with a low-risk opportunity to expand their product lines, enter new markets more quickly, and boost profit margins. All without the high cost of developing goods from scratch. 

In this article, we’ll explore what white label products are, their key benefits and potential drawbacks, and how to navigate common challenges. We’ll also break down the differences between OEM and ODM manufacturers and explain how each fits into the white labeling process. 

What is a white label product? 

A white label product is a generic, ready-made item produced by a manufacturer. Businesses can then purchase these products, rebrand them with their packaging and logo, and sell them to consumers. 

For example, many of the popular stainless steel water bottles we see today are white label products. They’re manufactured, then sold to various companies, who then add their branding before selling them to consumers.

White labeling is a common business model that enables brands to expand their product offerings without having to handle the development and production processes themselves.  

What are the benefits of white label products?

Product development is a lengthy and expensive process, which is why many businesses turn to white labeling to help them grow. Here are four benefits white label products offer.

1. Low cost of investment

With white labeling, you won’t have to worry about R&D, production facilities, tooling, or any of the other things that come along with product development. Since you’re leveraging an already existing product, you’ll considerably lower your startup and operating costs. 

For example, in 2024, electronics giant Samsung spent $24 billion USD on research and development (R&D). Yup, you read that right $24 billion with a “B”. Most SMBs don’t have that kind of capital floating around, so white label products just make more sense. 

2. Expanded product range and faster market entry

Running a business means competing with other businesses. That’s just the fundamental nature of the game. One way competitors try to gain an advantage is by offering a wider range of products or services.

Even retail titans like Wal-Mart and Costco regularly rotate products in and out of their catalogues. White labeling allows you to launch products much faster than developing them from scratch.

3. Flexibility and scalability

Adding items to your product line can be risky if you’re doing all the work in-house. However, white label products offer a low-risk opportunity to test new merchandise. This will allow you to experiment with new markets and scale your business without worrying about the potential damage it could cause to your existing operations. 

4. Shift resources and focus on other areas of your business

Since product development and manufacturing are off your plate, you can spend more time and money on other areas of your business. For example, you could spend more time marketing your new product and even use some of the saved money to run ads. You can also focus more energy on customer service to ensure you keep your customers happy.  

What are the drawbacks of white label products?

Like with anything, there are some downsides to white label products. Nothing is perfect. Here are four notable drawbacks to consider if you’re considering white labeling.

1. Limited customization

The biggest drawback of white labeling is almost certainly the lack of control. Having a product created and manufactured by another company removes you entirely from the process. Which means the product you purchase is ultimately the one you sell. In other words, you get what they give you. Customization would come at a premium price or not be possible at all. 

2. Lack of quality control 

When you’re not involved in the production process, you’re completely detached from any sort of quality control. This means you’re at the mercy of your manufacturer. If your supplier produces poor-quality products, it will ultimately harm your brand’s reputation. Finding a reliable manufacturer that puts quality above all else is key. 

3. Risk of deadstock 

Just because you add something to your product line doesn’t mean your customers are going to buy it. While white labeling is a great way to experiment with new products, sometimes those experiments fail. When purchasing white label products, you’ll be required to buy in bulk, which means that when sales stop coming in, you’ll have a lot of deadstock. 

4. Harder to stand out

The nature of white label products means they aren’t one of a kind. Chances are that many other brands are selling the same product as you, just with different packaging. This makes it much harder for you to differentiate yourself from your competitors. Ultimately, it will come down to how you market your brand compared to your competitors. 

How to overcome the challenges of white labeling

If you’re thinking about selling white label products, there are some things you can do to help overcome the challenges.

• Vet your suppliers—a good white label product will ultimately come down to the supplier. Ensure that you use suppliers with good reviews and long-standing client relationships. Request product samples whenever possible, as well as certificates such as ISO or FDA
• Focus on the brand experience—white labeling products means what you’re selling isn’t unique or special. This is where your brand comes in. Invest in custom packaging that tells a compelling story. Focus on your brand voice, visuals, and the customer experience. 
• Utilize inventory management software—the biggest risk associated with white label products is the potential for inventory levels to become unmanageable. Our inventory management software inFlow helps you mitigate these risks. With inFlow, you can monitor inventory turnover and set reorder points to avoid overstocking or stockouts. You can also use our reporting features to see what’s been selling and what’s been collecting dust. 

Step-by-step: How to get started with white label products

First things first, ensure that choosing a white label product makes sense for your business. Some just aren’t suited for white labeling, and that’s alright. If you’re sure of that, here’s how to get started. 

Step 1: Identify market demand 

There is no sense in offering a new product to your customers if there is no demand for it. Start by doing keyword research and surveying your customers to find high-demand trending products in your niche. Whatever you choose, though, it needs to make sense for your brand. 

Step 2: Research white label suppliers 

Next, you’ll need to find a white label manufacturer that suits your needs. Ideally, they already have experience manufacturing the product you have in mind. This is also a good time to vet your potential partners. Ensure you ask the right questions, such as minimum order quantities (MOQs), lead times, and customization options. If you can’t find a manufacturer that suits you, ask around. Chances are, someone will point you in the right direction, and maybe even steer you away from the wrong one.

Step 3: Understand legal requirements

Offloading work to another company may sound like a legally easier option, but the law can be complex. Ensure that whichever manufacturer you’re working with complies with local regulations. Use contracts to define quality expectations, returns, and liability. If there’s anything at all that you’re unsure of, consider consulting a lawyer. Better safe than sorry. 

Step 4: Customize branding and packaging 

Once you’ve found a manufacturer you want to work with, you’ll need to build a customer experience. For this, you’ll need to design a unique and eye-catching label, packaging, and unboxing experience. Make sure whatever you do sets you apart from all the other companies offering the same white label product.

Step 5: Launch and market your new product

Now that you have a new product ready for sale, you’ll need to garner some attention. This is where marketing comes in. Try building a new landing page on your website to promote your latest offering. Leverage email campaigns, social media, influencer outreach, and paid ads whenever possible. But don’t just stop at the sale. Encourage buyers to leave reviews and testimonials. Nothing drives more sales like happy customers singing your praises. 

What is the mark of success?

White labeling is a bit different, so the success metrics are also a bit different. Here are the three that we think you should keep an eye on. 

Profit margin

Profit margin is simple. It’s a ratio that measures how much of a business’s revenue is actually profit. You can think of it as the amount a business earns on every dollar of sales. For example, if a business has a 15% profit margin, it earns 15 cents for every dollar of sales. 

Keep an eye on this when implementing new white label products. If it noticeably dips, that’s a good sign that something isn’t working.

Sales velocity 

Sales velocity refers to the amount of revenue a business generates within a specific timeframe. It’s a calculation of how quickly a business converts customers and generates revenue. 

Inventory turnover

While similar to sales velocity, inventory turnover represents a different business aspect. Rather than how quickly a business converts customers, it represents how long it takes for a shelf item to sell. 

Where do OEMs and ODMs fit in?

When sourcing products, you’ll undoubtedly come across the terms OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer). OEM are manufacturers that produce a product based on a custom design and specifications. They offer complete control over a product’s features and branding, but this comes at the cost of more time and money.

In contrast, ODM suppliers create their own product designs and allow you to rebrand them. Sound familiar? The ODM model is the most common for white label products. They produce products faster and more cost-effectively, making them ideal for businesses that want to enter the market quickly without reinventing the wheel.

Wrapping up

Whether you’re a new SMB just getting off the ground or an established brand ready to extend your reach, white label products offer a powerful way to grow without the traditional overhead of product development and manufacturing. By choosing the right suppliers and focusing on brand storytelling, you can build a scalable product line that feels custom, even when it’s not.

FAQ

What are some common examples of white label products in the market?

Products that are simple to manufacture and widely used tend to work best for white labeling. Common examples include cosmetics, supplements, apparel basics, accessories, household goods, and food products.

Where do businesses find a reliable white label product supplier?

Businesses typically find white label manufacturers through wholesale marketplaces, industry trade shows, sourcing agents, and supplier directories. Popular sourcing platforms include Alibaba, Faire, ThomasNet, and Global Sources.

What is the difference between white label and private label products?

White label products are generic goods manufactured by a third party and sold to multiple brands that add their own packaging and branding. Private label products are typically made exclusively for a single retailer, which allows for more control over product specifications and differentiation.

What is the minimum order quantity (MOQ) for white label products?

Minimum order quantities vary by supplier and product type. Some manufacturers require large bulk orders, while others offer smaller MOQs for new businesses. Always confirm MOQ requirements early, since they directly impact your upfront costs and inventory risk.

Is white labeling better than manufacturing your own product?

It depends on your goals. White labeling is faster and requires less capital, making it ideal for testing new products or entering a market quickly. Developing your own product offers more customization and exclusivity but requires significantly more time, investment, and operational complexity.

The post White Label Products: Benefits, Challenges, and How to Succeed appeared first on inFlow Inventory.

These changes focus on giving you more control over your data, making product management faster, and making it easier to find what you’re looking for.

Features for inFlow Inventory and Manufacturing

1. Reporting Flexibility

A new multi-location picker for reports:
You can now choose to include multiple locations when running the following reports:

• Stockroom Scan
• Inventory Movement Details/Summary
• Inventory Details
• Stock Adjustments
• Historical Inventory Details
• Inventory by location

Filter reports by product type:
You can now filter reports by product type, including serialized, lot-tracked, and active/inactive products. This filter is available in all 30 inFlow reports that include product filters.

Inventory cost adjustment clarity:
You’ll find a new report under our “Audit log” section called “Total inventory cost log”. It shows how your total inventory value changes over time, helping you reconcile with systems like QuickBooks Online and Xero.

2. Quality-of-life updates

Quickly create sales orders:
You can create sales orders directly from the product details page with the new Sell button in the action bar.

Change product type:
Have you ever accidentally chosen the wrong product type? Now you can select Change product type, and inFlow will:

1. Create a copy of that product with a product type of your choosing
2. Deactivate the old product for you
3. And “zero out” (remove) any stock of the old product

Streamlined product deactivation:
When you deactivate a product, you’ll see a new suggestion to zero out its stock before deactivating. This will make your reporting much cleaner.

3. Smarter search for product names

inFlow’s web app has a more thorough product search — especially if you have longer product names that use symbols instead of spaces. So if your product names contain strings like 10.2068.01.0098, even a partial search term like 10.20 will show you results.

A few more details on this:

• There’s improved partial matching with special characters (! , “, #, %).
• Search is accent insensitive, so words with accents are searchable by the letter (é –> e, ñ –> n, ç –> c, ö –>o).
• This improved search is also added to product list filters for product name and description.

4. More costing features

Proportional costing:

We’ve added new options to split extra costs on POs by price, weight, or volume. You can find these under your Costing options.

Estimated profit margin:

You can also view an estimated profit margin on a sales order. Find it in the cost details breakdown, below the order balance.

5 Miscellaneous changes

• You can now mass-transfer all stock from a sublocation.
• We’ve added support for numeric custom fields to track, sort, and filter numeric values (e.g., ABV%, Rated wattage).
• You can import & export all vendor product details (vendor product code, lead time, vendor price) for a given vendor.

New features for Stockroom

We’ve made several updates to the Stockroom app to save you time and improve visibility:

Reorder settings export/import:

Stockroom standalone now supports exporting and importing of reorder settings, reducing the time spent on updating reorder points per product.

Enhanced scan report:

The Stockroom Scan report now shows quantity in two separate “Quantity in” and “Quantity out” columns, making it easier to read and filter.

Improved low stock alerts:

We addressed the 25-product limit in Stockroom’s low stock alert emails. You can now see a full list of low stock products in-app via the new Stock Reordering report.

That about wraps up this update! We hope there are some new features that save your business time each week.

And if you’re not using inFlow yet, you can start a free 14-day trial below:

The post Quality of life updates for all our products appeared first on inFlow Inventory.

• Open API barcode inventory software allows businesses to customize and integrate with existing tools like ecommerce, shipping, ERP, and CRM platforms.
• API stands for application programming interface. An API allows two or more programs to communicate with one another and exchange data.
• Unlike closed APIs, open APIs are publicly available and give developers the flexibility to build custom features, automate workflows, and integrate with existing systems.
• Benefits of open API barcode software include lower costs compared to building from scratch, seamless integration across platforms, increased scalability through stateless architecture (like REST), and the ability to adapt over time.
• Best practices include assessing your needs, choosing reliable and secure software, hiring skilled developers, and starting with pilot projects before scaling.
• Open APIs offer a future-proof path for businesses that want to grow without being limited by rigid, one-size-fits-all software. 

Finding the right barcode software can be frustrating for businesses with unique workflows. Solutions touted as “one-size-fits-all” often fall short when it comes to flexibility, especially when trying to integrate with other software solutions. That’s where open API barcode inventory software comes in.

While closed systems offer limited customization, open API software leaves the door open for developers to create something new that works well for their specific use case.

What is open API software? 

Let’s start by reviewing what an API (application programming interface) is. Whether or not you have any programming experience, you’re probably aware that there are multiple programming languages. In fact, there are quite a few. 

It’s not a one-to-one comparison, but we can apply the same logic to software. You can think of every piece of software being written in a different language. By extension, they can’t just communicate with one another at will. They need something to translate for them. 

That’s where APIs come into play. In technical terms, an API is a shared instruction set that allows software to exchange data. In simple terms, it translates for software and allows different software to work together. 

An open API, or public API, is an application programming interface openly available to software developers. This allows them to develop custom features or integrations.

On the other hand, closed API software is typically locked down. This means it’s only available to the vendor and their internal team, limiting customizations and integrations.  

Benefits of barcoding software for inventory with open API

In the case of barcoding software, using an open API means you can connect all areas of your business. For example, open API barcode software lets you link your inventory system with ecommerce tools, shipping providers, ERPs, CRMs, and more.

Outside of general connectivity, open API barcode inventory software offers quite a few benefits. Most of them have to do with using an already existing application.

More cost-effective 

Custom-building an entire barcode inventory system from scratch is expensive. But if you find one with an open API, you can create a flexible system that works with your existing tech stack at a fraction of the cost.

Seamless integration 

Open API software is your best bet if you use other software solutions and want something that fits nicely with those. It will allow your barcoding software to talk to your other programs seamlessly. That means less double data entry and fewer errors overall.

Flexibility 

Connections through open APIs also allow businesses of all sizes to add functionality whenever necessary. You wouldn’t be wrong to consider this the selling point of open APIs. The ability to add functionality where necessary makes them incredibly versatile. 

Scalability

As your business grows, so will the number of tools you use. This is why many open APIs use REST architecture, which is stateless and therefore easy to scale. Statelessness means each API request is self-contained with no server-side session to share, which gives it a broader range of horizontal integrations. In short, open APIs (especially RESTful ones) enable systems to scale outwards by adding more servers, enabling more throughput without the need to redo the software.

Open API software is growing in popularity

Considering all these benefits, it should be no real surprise that open APIs are popular. After all, it doesn’t matter how useful a single application is if it can’t communicate with the other software you use. 

While still a relatively new market, the open API economy was valued at 3.66 billion USD in 2023. And this is expected to reach 25 billion USD in 2032, indicating a compound annual growth rate (CAGR) of nearly 24%. 

There’s also the matter of future-proofing to consider. It’s no real secret that technology has seen an increase in connectivity lately, such as Internet of Things (IoT) protocols. 

Best practices when implementing

If you’re looking to implement open api barcode inventory software at your business, here are some things to keep in mind. 

Assess individual business needs 

What one business needs from its software will differ from what another needs. When working with an API, you decide what functionalities to add. Ensuring the functionalities suit your needs is fundamental to working with APIs. 

Prioritize reliability 

Building around an open API means you’ll want it to be as stable as possible. If it goes down or something goes wrong, processes that rely on it will grind to a halt. Choosing reliable barcode software with open API, like inFlow, is crucial for avoiding outages and other related downtime. 

Lock down security 

An open API is inherently more vulnerable than a closed system. That’s just the way it is, but that doesn’t mean open APIs are unsafe, either. For example, API gateways act as an entry point for customer requests. This is a relatively simple measure that makes things exponentially more secure. It’s also best to check on both local and federal legislation. 

Use capable developers 

If you’re building from the ground up, you’ll want to make sure your devs are capable. There’s no real easy way to do this, but the good news is that there’s plenty of freelancers out there. So even if you don’t have your own development branch, there’s a pool of readily available talent to pull from. 

Test before scaling

Since working with APIs ties so many different systems together, more things can go wrong. To mitigate the risks to your business, it’s a good idea to start with a pilot project. For example, start with one function at a time and iron out the kinks before rolling it out further. 

Final Thoughts

In the modern era, there is specific software for everything, and the ability to integrate and automate your operations is no longer a luxury—it’s a competitive advantage. Open API barcode inventory software gives businesses the flexibility, control, and scalability they need to grow without being boxed in, so to speak.

The post Open API Barcode Inventory Software: Enhancing Flexibility and Growth appeared first on inFlow Inventory.

In episode 19 of Secret Life of Inventory, we did a complete deep dive into the world of asset tracking, breaking down everything from what qualifies as a business asset to how to track your assets with a barcode system. Watch the full episode for every little detail, or read on for a quick recap of what we talked about. 

What are business assets?

Before diving into how to track your assets, let’s clarify what actually qualifies as a business asset. When you boil it down, a business asset is essentially anything that helps you generate revenue.

Your business assets will fall into two main categories.

• Intangible Assets: Anything in your business that you can’t physically see or touch would fall into this category. Think of things like your brand identity, intellectual property (IP), or business processes. While you may not be able to slap a barcode on these things, they’re still integral to how you run your business.
• Tangible Assets: These are physical items that many people might think of when they hear the term business asset. This would include items such as laptops, tools, expensive machinery, and consumables that keep your everyday operation running smoothly.

You can also break these categories down further into current assets and fixed assets. Current assets are anything you’ll use up in a year. For example, office supplies, PPE, and even prepaid rent. On the other hand, fixed assets refer to things you’ll use for years to come after purchase. This would include big-ticket items like vehicles, real estate, and specialized equipment.

Why asset tracking matters more than you think

Asset tracking isn’t just about knowing where your stuff is, though that’s certainly a big part of it. It’s about tracking the flow of items as they move through your organization, understanding who’s using what and when, and collecting data that helps you make smarter business decisions.

For instance, let’s say you run a field service business and you only invested in a single specialized tool to save some money. If you’re tracking your assets properly, you may notice that equipment is always being used by one technician, leaving some of your other employees waiting around for it to become available. Proper asset tracking will help you spot these patterns so you’ll know when it’s time to invest in additional equipment.

The real power of asset tracking lies in the data collection. You can find actionable insights on usage patterns, maintenance schedules, and consumption rates. This isn’t just about preventing theft or stockouts (though it does that too), it’s about fine-tuning your entire workflow.

Setting up barcode asset tracking: it’s easier than you think

Tracking assets effectively all comes down to the tools you use. Asset barcodes, for example, are a great way to streamline your workflow and turn every scan into actionable insights.

You may think setting up a barcode system is expensive or time-consuming, but that couldn’t be further from the truth. In fact, asset barcodes are actually simpler to deal with than product barcodes. Since you’re tracking internal assets, you don’t need expensive GS1 registered barcodes.

When setting up a barcode system, the barrier to entry is surprisingly low. You can create barcodes using free online generators, barcode fonts, or built-in features in inventory software. For printing, you can start with a regular office printer, though dedicated barcode printers offer better durability. As for scanning, your smartphone can double as a scanner, but again, professional barcode scanners offer better speed and reliability.

If you’re really determined to keep costs down, you can even generate barcodes with Excel and use it to track your assets. It’s clunky and not ideal, but it’s possible. You’d list all your assets in a spreadsheet, assign barcodes to each, then use control/command+F to search when you scan. Not elegant, but it gets the job done for small teams just starting out.

Best practices for maximum success

Once you’ve got your system in place, following a few key practices will help you get the most value from your asset tracking workflow.

• Categorize everything: Group similar items together. For example, put all your consumables in one category, and your expensive machinery in another. This helps with both tracking and physical organization in your stockroom or warehouse.
• Only track key information: Yes, you can track everything, but information overload is real. Focus on what matters: purchase date, cost, service history, who last used it, and current condition. Skip the unnecessary details like color or exact dimensions unless they’re truly relevant to how the asset is used.
• Strategic barcode placement: Put barcodes where they’re easily accessible. Don’t make someone disassemble equipment just to scan a barcode. For consumables, place barcodes on the most visible side of boxes or containers. If your workflow allows, consider putting a single barcode on the shelf for workers to scan instead of individual items. 

Get started with asset tracking today 

Asset tracking isn’t just for big corporations with massive budgets. Any business with physical assets can benefit from it, and modern technology makes it easier than ever. Whether you’re a small startup planning for growth or an established business looking to optimize operations, starting with a simple asset tracking system can provide immediate value and scale with your needs.

The key is to start small and build good habits early. Even if you only have a few items to track now, establishing the workflow when it’s manageable sets you up for success as you grow.

Want to get an even closer look into asset tracking strategies and hear real-world examples? Watch the full Secret Life of Inventory episode for detailed insights, and practical tips you can implement today.

The post Secret Life of Inventory – Episode #19 – Your Ultimate Guide to Asset Tracking appeared first on inFlow Inventory.

• Construction job costing involves categorizing and tracking all expenses tied to a project, including labor, materials, and overhead. It provides construction businesses greater insight into what a project actually costs.
• Job costing is very popular in the construction and field service industries because it is ideal for unique, one-off projects.
• For repetitive, standardized work, like prefabricated housing, process costing is ideal.
• Cost codes make implementing construction job costing much more manageable.
• Regular reviews comparing projected costs to actual expenses help identify issues early and avoid budget overruns.

Anyone working in the construction or field service industry knows all too well how quickly a well-planned project can turn sideways. Most of the time, the culprit is poor budgeting. One slight miscalculation in labor or material costs could cause your profit margins to dry up. That’s why the most seasoned contractors rely on construction job costing to protect their bottom line.  

So, if you want to learn why the most successful contractors use construction job costing, this article is for you. We’ll break down what job costing is, how it compares to process costing, and how to implement your own job costing system from scratch. Whether you’re a small contractor or work within a larger field service company, construction job costing can improve your budgeting, help you provide more accurate quotes, and make more informed business decisions. 

What is construction job costing?

Construction job costing refers to precisely tracking all expenses associated with a particular project. Specifically, it aims to provide a comprehensive breakdown of every cost that a job incurs. This ranges from employee wages to material costs and even certification costs. 

The more accurate the breakdown, the better informed the business is. This can help guide businesses to better decision-making. It also helps them build quotes for future projects based on past budgets. This makes construction job costing an invaluable tool for predicting profitability.

Job costing vs process costing: what’s the difference?

Construction job costing accounts for materials down to the final screw. It’s best for unique, one-time jobs where you need to keep close track of overhead costs. It also works in a comparatively short period.

Process costing, on the other hand, focuses on the larger costs over a longer time span. Companies use this method when the time and materials to produce individual units are known and the process is easily repeatable. 

For example, let’s say you were building modular homes. Most of the work for these construction projects takes place off-site in a controlled environment. Each unit follows the same steps and requires the same amount of materials and labor to construct. This stage of construction more closely resembles a manufacturing assembly line than a traditional construction project, which is why process costing could easily be applied here.  

However, no matter what type of contractor you are, I’m sure you’ll agree that those projects are the outliers, not the norm. For the most part, the amount of materials and labor necessary differs from project to project.

How to implement construction job costing

Now, admittedly, we can’t provide you with everything. The needs of every business are unique, after all. But we can provide you with a skeleton to build off of. 

Setup up construction cost codes

The first thing you need to do is set up a construction cost code system. These codes help categorize costs into labor, materials, subcontractors, overhead, equipment, permits, etc. They make tracking your various expenses a lot easier. 

Develop a comprehensive chart of accounts

A chart of accounts is an organizational tool used to help track financials. Set up your chart of accounts so that every expense you record aligns with your job costing system. This is where your cost codes will come into play. You can populate your chart of accounts by using your cost codes to ensure standardized cost tracking.  

Accurately track labor costs

One of the most significant expenses for any project is labor. This is why accurately tracking labor is so essential for staying within budget. A few missed hours here and there can quickly eat away at your profits. Also, don’t forget that to calculate the true value of labor, you must factor in things like benefits and overtime.

Accurately track material costs

It’s hard to keep an accurate record of materials costs. You’ll need to order things in batches and store everything in various locations. For instance, some materials may be on your truck, others at the job site, and some in storage.

You can use field management software to make this process easier. For instance, you could use purchase orders to tie materials to specific projects, creating an easily traceable paper trail. Remember that construction projects are large and take a lot of time. As a result, swings in material prices can be particularly disruptive to the budget. 

Accurately track overhead costs 

Materials and labor are the most obvious expenses you’ll need to manage, but tracking your overhead costs is just as important. Overhead costs include anything you must pay to “keep the lights on,” figuratively and literally. Insurance, utilities, office rent, and permits would all fall into this category.

A simplified way of doing this would be to calculate your overhead costs for the entire year and divide that number by the amount of time a job would take. For instance, say your yearly overhead is $10,000, and you have a job that will take one week. Your overhead costs for that week would be around $192 ($10,000/52 weeks). 

Conduct regular reviews 

Construction projects often work on a tightly planned budget and schedule. You can’t just set it and forget it. You must review the process periodically as time goes on to ensure everything is running smoothly. Compare your forecasts with actual construction job costing numbers to see how well they match. This practice will help you catch any overspending early so you can make necessary adjustments before it’s too late. 

How inFlow can help with construction job costing

If you’re one of the many businesses still using spreadsheets to track expenses, I’m here to tell you there’s a better way. Our software inFlow is packed with features to make tracking your inventory, assets, and expenses much more manageable. Here are some of the ways inFlow will help you with construction job costing:

• Perpetual inventory tracking—our system updates as you use materials, so you’ll always have a real-time view of your inventory levels. 
• Historical data & reports—quickly review past job costs by looking at your historical data. You can even generate various reports to help you create more accurate quotes. 
• Built-in barcode system—generate, print, and scan barcodes all inside the app. With barcodes, you can scan materials as you use them to help eliminate errors and speed up resource allocation. 
• Custom fields—use our custom fields to input construction cost codes for all your inventory items.
• Software integrations—we know many businesses need more than one software solution for a well-rounded operation. That’s why we offer integrations with QuickBooks Online, Xero, Shopify, and over 95 other software solutions. 
  

Wrapping up

And that’s it! Now you know how construction job costing works. While it might be challenging to grasp at first, the rewards are well worth the investment. Whether you’re doing a small home renovation or overseeing a large-scale development project, construction job costing will help you turn chaos into control. So, if you want to prevent runaway budgets in the future, consider giving construction job costing a try.

The post How Construction Job Costing Will Prevent Runaway Budgets appeared first on inFlow Inventory.

With over 20 years of experience working with manufacturers both big and small, Jake has witnessed firsthand how technology is transforming factory floors across North America. Watch the full episode now for insights from Jake!

The reality of modern manufacturing automation

In the past, implementing robots in your manufacturing operation came with a hefty price tag, making them cost-prohibitive for smaller organizations. But things have changed. Today, Jake shares compelling examples of how collaborative robots (cobots) are now accessible to small and medium-sized businesses. Where a palletizing robot system once cost $250,000, today’s solutions can be deployed for around $100,000.

But here’s what’s really interesting: the most successful manufacturing automation projects aren’t about eliminating human workers. They’re about removing the “dark, dirty, dangerous, and dull” tasks that make it impossible to retain employees, Jake explains.

Take the Michigan recycling facility Jake worked with. They couldn’t keep workers on the floor for more than a few weeks because of the harsh conditions. Who can blame them? With temperatures of 105°F, sticky surfaces, and the smell of week-old spilled beer, the working environment was pretty much as miserable as it gets.

To combat high turnover, the company implemented large industrial robots to handle the most unpleasant tasks. They didn’t just solve their staffing problem; they created opportunities for workers to learn robotics programming and upskill.

Small vs. large manufacturers: different challenges, same goals

When working with smaller manufacturers, Jake recognized a crucial distinction: these companies can’t afford million-dollar mistakes. While large corporations can treat failed automation projects as expensive learning experiences, small businesses need solutions that work from day one, which makes them much more risk-averse. 

It’s important to understand that 98% of manufacturers are classified as small to medium-sized businesses. These companies often run on equipment that’s 30-40 years old, and their teams wear multiple hats. When they invest in new technology, it directly pulls resources from daily operations.

This is why the democratization of automation technology is so critical. Companies like Universal Robots have made collaborative robotics accessible through intuitive, iPad-like interfaces that don’t require weeks of specialized training.

The manufacturing skills gap challenge

One of the most eye-opening stats Jake shared was that there are currently 500,000-600,000 open manufacturing jobs in the United States alone. The welding industry faces a particularly acute shortage, with the average welder being 53 years old and over 40% expected to retire within the next decade.

This is a problem where the solution isn’t just about technology, it’s about changing perceptions and investing in people. The technology you adopt is only as good as the human workers who work alongside it.  

Reskilling for the digital age

The pandemic accelerated digital transformation across various industries, not just manufacturing. Jake’s own journey illustrates this perfectly. As someone who spent his days on the shop floor, he was suddenly forced to work from home.

Jake used this as an opportunity to learn video editing, content creation, and social media marketing, spreading his voice online, which transformed his career and led to the creation of the Manufacturing Millennial brand.

Today’s manufacturers need to embrace this same adaptability. The companies that are thriving are those that invest in their existing workforce, provide training on new technologies, and create pathways for career advancement within the company.

Beyond the factory floor: community engagement

The most important insight from our conversation was Jake’s emphasis on community engagement. Manufacturers struggling with labor shortages need to think about the long game. As the average age of manufacturing workers rapidly rises, businesses should focus on increasing interest in the industry by engaging with local high schools, technical programs, and colleges.

Through programs like Discover Manufacturing and My Career Quest, Jake’s organization connects 20,000 middle and high school students annually with manufacturing career opportunities. Jake’s message is clear: you don’t need a four-year degree and $40,000 in student debt to build a successful manufacturing career.

The future of manufacturing robotics is collaborative

Looking ahead, the most successful manufacturers will be those that view automation as a tool for human empowerment, not replacement. Whether it’s 3D bin-picking systems that eliminate repetitive, heavy lifting or collaborative welding robots that handle dangerous tasks, the goal is the same: to create better working conditions while maintaining competitiveness in a global economy.

Jake’s work with robot dogs shooting fireworks and delivering beer might seem like fun and games, but it serves a serious purpose: getting the next generation excited about robotics and manufacturing careers. When people see technology as approachable, fun, and exciting, they’re more likely to consider careers in these fields.

Key takeaways for modern manufacturers

The manufacturing industry stands at a crossroads. Companies that embrace automation thoughtfully, invest in their people, and engage with their communities will thrive, while those that don’t risk becoming obsolete.

As Jake puts it: “You’ll never be productive without your people.” The future of manufacturing isn’t about choosing between humans and robots—it’s about creating the perfect partnership between both.Want to hear more insights from Jake Hall about the future of manufacturing, specific automation case studies, and his advice for attracting younger talent? Listen to the full episode of Secret Life of Inventory!

The post Secret Life of Inventory – Episode #18 – Future-Proof Your Manufacturing Strategy (ft. The Manufacturing Millennial) appeared first on inFlow Inventory.

In episode 17 of Secret Life of Inventory, we sat down with Kevin to tackle the critical aspects of warehouse management that can make or break your operation. Checkout the full episode below or read on for a quick recap. 

Standardization: the secret to seamless warehouse operations

One of the most practical takeaways from our conversation with Kevin is the importance of standardization. It sounds simple, but the impact is profound. Kevin illustrates his point with a mundane everyday task. Sweeping. Without standardization, a worker who uses a broom will just leave it anywhere. Then, when the next person needs the broom, they’ll have to hunt it down, wasting valuable time.

The solution? Have a designated home for the broom. This highlights the fundamental principle of standardization. Eliminating decision-making from routine tasks.

The goal is to create processes so standardized that workers don’t need to think about basic operational decisions. This will reduce errors, improve efficiency, and create consistency across shifts and teams.

Why warehouse inventory control deserves more love

Inventory control is often the most undervalued department in warehouse operations. Kevin puts it perfectly when he says you need to “give lots of love to your inventory control team.” Why? Whether you like it or not, inventory accuracy is the backbone of your entire business operation.

For example, when your system shows two pieces available but there’s only one on the shelf, you’ve just created a ripple effect that impacts pickers, slows down operations, and potentially costs you a sale. It may not seem like a big deal, but the time spent searching for that missing item, the labor costs involved, and the potential lost revenue all add up quickly.

The key is preventing these mistakes before they happen. This means you need to understand the root cause of these discrepancies. Did they stem from receiving errors? Picking mistakes? System issues? When you know the source of the problem, you can implement processes to eliminate it and improve your warehouse inventory control.

Use risk management to plan for the unexpected

Warehouse operations face a wide range of risks from equipment failures to weather-related staffing shortages. Kevin emphasizes the importance of having contingency plans in place before problems occur. That means not just having a plan A and B, but also a C, D, and even E. This might include everything from backup power systems and multiple internet providers to cross-training employees and maintaining emergency procedures.

As warehouses become more dependent on technology, these contingency plans become even more crucial. What happens when your internet goes down, and you can’t use your cloud-based warehouse management system? How do you maintain operations if your automated systems fail? The key is to think through these scenarios and have actionable backup plans ready to initiate at a moment’s notice.

Technology trends reshaping warehouse operations

The warehouse industry is experiencing a technological revolution, driven primarily by labor challenges and the need for greater efficiency. Kevin shares the shift from the once popular concept of “lights out” warehousing to more of a collaborative robotics approach.

The “lights out” movement stemmed from the idea that warehouses would eventually become fully autonomous, requiring little to no human intervention. However, what we’re actually seeing are solutions that augment human workers rather than replace them entirely. This approach makes sense for most warehouse operations because it’s more flexible and doesn’t require the massive upfront investment required by full automation.

There has also been a rise in niche solutions that tackle specific pain points. For example, AI-powered cartonization software that ensures you’re using the right-sized packaging, or systems that optimize picking paths based on real-time variables. These smaller innovations often provide immediate ROI and are accessible to mid-market businesses, which makes them attractive options for SMBs looking to dip their toes into new warehouse tech.

Warehouse quality assurance and safety

Quality assurance varies significantly by product type and value, but the underlying principle remains constant: implement checks that align with your risk profile. Whether it’s weight-based verification systems, computer vision technology, or manual audits, the goal is catching errors before they leave the warehouse.

Safety, however, is non-negotiable. Warehouses are inherently dangerous environments with heavy equipment, elevated storage, and constant movement. Creating a safety-first culture isn’t just about compliance; it’s about protecting your most valuable asset. Your workers.

Ready to optimize your warehouse operations?

These insights from Kevin Lawton represent just the tip of the iceberg in warehouse optimization. From warehouse inventory control best practices to emerging technology trends, there’s a wealth of knowledge waiting to transform your operations.

For even more insights from industry expert Kevin Lawton, watch the full episode of Secret Life of Inventory to discover specific strategies for layout optimization, equipment investment priorities, and dealing with returns.

The post Secret Life of Inventory – Episode #17 – Inside the Warehouse: Inventory Control & Operations (ft. Kevin Lawton) appeared first on inFlow Inventory.