Developing Distribution Inventory Management Software – Key Features, Cost, and Process

Distribution Inventory Management Software Development

Imagine this: You’re in your office, swamped with inventory problems. You’re dealing with too much stock one day, then running out of essentials the next. Orders are delayed, customers are unhappy, and the spreadsheets you rely on are full of errors. It’s frustrating and stressful, right? Enters distribution inventory management software – the only digital tool you will need to eliminate all these and other modern-day challenges in distribution!

This software isn’t just a nice-to-have; it’s a must-have today! According to a trusted source, the global market for inventory management software is projected to reach $4.09 billion by 2030! And why not?

After all, inventory management software development gives you a real-time view of your inventory, automates routine tasks and improves accuracy. And with AI in distribution inventory management software, you can get a smart assistant for your complete business!

Think about it – an inventory management system that predicts demand optimizes stock levels and ensures timely deliveries. No more guessing games, no more costly mistakes. Intrigued?

In this blog, we’ll guide you through the steps to develop your own system so you can turn those daily frustrations into efficient, smooth operations. We will also discover the cost and benefits of distribution inventory management software development. Let’s make your business run like a well-oiled machine!

  • Traditional inventory management methods are error-prone and lack real-time visibility. Custom distribution inventory management software can solve these problems and streamline operations.
  • Key features of custom distribution inventory management software include real-time tracking, automated reorder points, demand forecasting, and comprehensive reporting. AI-driven features can further enhance these capabilities.
  • The cost of developing custom distribution inventory management software depends on the complexity of features, technology stack, development team expertise, and integration needs.
  • By partnering with a consultancy that specializes in distribution inventory management software development, businesses can gain the expertise and resources necessary to create a solution that meets their specific needs and drives growth. 

Table of Contents

Understanding Distribution Inventory Management Software

Traditional inventory management methods, such as manual tracking and spreadsheets, have significant limitations. They are prone to human error, time-consuming, and lack real-time visibility into inventory levels. These drawbacks can lead to overstocking or stockouts, both of which are costly for businesses.

Modern inventory management software, on the other hand, offers a range of features designed to streamline operations and enhance accuracy. These include real-time tracking, automated reorder points, demand forecasting, and comprehensive reporting.

According to a recent study by Business Insider, 70% of manufacturing distribution companies have started working on a digital transformation of their project in supply chain operations.

How Can Custom Inventory Management Software Helps You Manage Manufacturing and Distribution?

Let’s face it: guessing about your distribution inventory is a recipe for disaster. Lost sales, angry customers, and wasted money – these are the harsh realities of outdated inventory management.

But what if you could:

  • Stop losing money on misplaced inventory and missed orders.
  • Say goodbye to stockouts that leave customers frustrated.
  • Free up your team from endless counting and paperwork?

Distribution inventory management software is your secret weapon. Here’s why it can be a game changer for your manufacturing distribution business:

Stop Losing Money to Errors

Human mistakes happen. But with manual systems, a single misplaced decimal or missed entry can cost you dearly. Inventory management software automates tasks, eliminates human error, and ensures accurate data – saving you money on lost sales, overstocking, and misplaced inventory.

See Everything Clearly, Before It’s Too Late

Are you constantly guessing about stock levels? Blindly ordering without knowing what’s actually on hand? Inventory management software provides real-time visibility. Track stock levels, location, and movement across your entire distribution network. Never again be caught off guard by a stockout or surprised by hidden inventory.

Free Your Team to Focus on What Matters

Imagine your team spending less time on tedious tasks like manual data entry and more time on strategic initiatives like customer service and sales. Inventory management software automates routine tasks, freeing up your team’s valuable time and boosting productivity.

Predict Demand Like a Pro

Don’t get caught short-handed or stuck with a warehouse full of dead stock. By leveraging AI development services for your custom inventory management software, you can utilize advanced demand forecasting tools. The smart distribution inventory system can analyze historical data and predict future trends, ensuring you have the right products in stock at the right time to meet customer needs. Say goodbye to stockouts and wasted storage space.

Deliver Happiness, One Order at a Time

Fast, accurate order fulfillment keeps customers happy and coming back for more. Inventory management software streamlines the fulfillment process, ensuring orders are picked, packed, and shipped accurately and efficiently. Boost customer satisfaction, reduce order errors, and build lasting customer loyalty.

Ready to Revolutionize Your Business with Custom Distribution Inventory Management Software?

    What is


    Why is Investing in Distribution Inventory Management Software Development Critical Today?

    Did you know that 72% of distributors and retailers have improved their supply chain operations via analytics and inventory automation? Well, that’s not all!

    Market Scenario of Automation and Supply Chain

    From the statistics above, one thing is clear that your competitors are actively adopting manufacturing technology consulting services and solutions to boost their distribution and supply chain operations. So, why not you?

    Investing in distribution inventory management software development isn’t just about catching up; it’s about taking a leap forward. It’s about:

    • Boosting Profitability: Reduce costs, optimize stock levels, and improve efficiency for a healthier bottom line.
    • Enhancing Customer Satisfaction: Deliver faster, more accurate orders and keep your customers happy.
    • Gaining a Competitive Edge: Embrace innovation and position yourself for future success in the rapidly evolving distribution landscape.

    Don’t wait until it’s too late. Take action today and invest in your future. Contact us to discuss how custom distribution inventory management software can bridge the inventory management cliff and propel your business toward growth.

    Success Stories: How Matellio Helped a Company Automate its Shipping and Distribution Operations?


    AMZ Prep, the world’s largest FBA prep service provider, faced significant operational challenges before partnering with Matellio. Serving thousands of brands and sellers, they provided comprehensive logistics solutions but relied heavily on manual processes. Key issues included:

    • Manual Processes

    Paper records and spreadsheets led to labeling and packing errors, frustrating sellers and impacting customer experience.

    • Efficiency Issues

    Manual data entry and order management resulted in longer processing times, reducing overall efficiency.

    • Lack of Real-Time Visibility

    Sellers had no real-time insight into the fulfillment process, causing confusion and hindering communication.

    These challenges limited AMZ Prep’s growth potential and its ability to deliver a seamless experience for its clients.


    Matellio developed a custom digital solution to address these challenges, transforming AMZ Prep’s operations. Our approach included:

    • Digital Transformation

    We replaced paper records with a centralized digital system for merchant onboarding, inbound consignments, inventory management, and order fulfillment.

    • Real-Time Updates

    Our solution provided automatic updates on evolving Amazon guidelines, minimizing the risk of penalties.

    • Scalability

    The system was built to scale, allowing AMZ Prep to seamlessly accommodate more FBA merchants as their business grew.

    • Automation and Efficiency

    Automated retrieval and printing of FNSKU codes and shipment labels using Amazon’s partnered carriers.

    • Robust Analytics

    Enhanced analytics empowered AMZ Prep to monitor performance and make data-driven decisions for ongoing optimization.


    Implementing Matellio’s solution revolutionized AMZ Prep’s operations:

    • Error Reduction

    Automation significantly reduced errors and processing times, leading to cost savings and a stronger bottom line.

    • Enhanced Communication

    Sellers benefitted from clear communication channels and real-time updates, fostering stronger relationships.

    • Compliance

    Real-time updates kept them compliant with Amazon guidelines, eliminating the risk of penalties and disruptions.

    • Data-Driven Decisions

    AMZ Prep could use data to make smart decisions and continuously improve, setting them up for ongoing success in the competitive FBA space.

    Partnering with Matellio enabled AMZ Prep to overcome its operational challenges and achieve a new level of efficiency and scalability, positioning them for sustained growth and success.

    By investing in custom distribution inventory management software development, companies like yours can achieve similar transformative results.

    Streamline Business Operations

    How to Get Started with Distribution Inventory Management Software Development – A Step-by-Step Process?

    Conduct a Thorough Market Research and Competitor Analysis

    Before embarking on the journey of creating your custom distribution inventory management software, it’s crucial to conduct comprehensive market research and competitor analysis. This step lays the foundation for understanding your business needs, identifying market trends, and gaining insights into your competitors’ offerings.

    Start by analyzing your target market, including the size, demographics, and industry trends. Understand your pain points and other challenges faced by businesses in the distribution industry.

    For instance:

    • What processes need optimization?
    • What features will help you improve those processes?What technology stack will be required?
    • How are your competitors doing it?
    • How will you evaluate the ROI of your investment?

    Answering questions like these will help you frame a solid roadmap for distribution inventory management software development!

    You also need to analyze the latest market trends and choose the ones that can help you elevate the capabilities of your custom inventory management solution.

    Well, you can streamline this step by leveraging technology consulting services from us. Our experts will evaluate your needs and will suggest the best roadmap and tech trends required to create a successful business-focused solution.

    Choose a Trusted Consultancy for Your Project

    Developing custom distribution inventory management software can be a powerful move, but navigating the process alone can be tricky. That’s where partnering with a consultancy comes in. They’re more than just developers – they’re strategic partners who offer a winning combination of expertise:

    • Strategic Guidance: They go beyond code, helping you define your needs, analyze industry trends, and select the right technology for your goals.
    • Seamless Execution: They’ll guide you from crafting a winning software strategy to flawless execution, ensuring your software perfectly aligns with your business objectives.
    • Industry Savvy: They understand the unique challenges and opportunities within your distribution world. This translates to custom solutions that address your specific needs and unlock the full potential of your network.

    But how do you choose the right consultancy? Here’s what to look for:

    • Proven Track Record & Industry Expertise: Look for a custom manufacturing software development company with a history of success in developing similar solutions for companies in your industry. This ensures they understand your specific challenges.
    • Collaborative Approach: Choose a consultancy that prioritizes collaboration. They should actively listen to your needs, maintain open communication, and keep you at the center of the entire development process.
    • Expert Team: Ensure they have a skilled team of developers, project managers, and industry specialists on board. This comprehensive team brings together technical know-how and industry insights for a well-rounded project.
    • Next-Gen Tech Integration: Choose a consultancy proficient in integrating next-generation technologies like Artificial Intelligence (AI), Robotic Process Automation (RPA), Internet of Things (IoT), and cloud computing. This ensures your software leverages the latest advancements for enhanced automation, data analysis, and real-time optimization.

    By partnering with the right consultancy, you gain the strategic guidance, industry expertise, and development firepower necessary to transform your inventory management and revolutionize your distribution operations.

    Focus on Choosing the Best Features

    The success of your custom distribution inventory management software hinges on selecting the right features that align with your business goals and address your unique challenges. Take a strategic approach to feature selection by prioritizing functionality that will deliver the most value to your organization and your customers.

    Now, we know that all this is a bit tedious, especially if you are new to the software development field. Hence, as a leading consultancy specializing in inventory management software development, we have hand-picked the best features that you can consider for your custom distribution inventory management software.

    We have not only listed the essential features but even included the AI-driven features that will help you stay one step ahead of your competitors.

    Essential Features

    • Centralized Inventory Tracking  

    Your distribution inventory management software should have centralized inventory tracking to provide real-time visibility into inventory levels across multiple locations. This feature will help you maintain optimal stock levels, reduce the risk of stockouts, and improve overall inventory accuracy.

    • Barcode/RFID Scanning

    Incorporating barcode/RFID scanning into your inventory management solution is essential for automating data capture. This feature enhances accuracy in inventory tracking, reduces manual entry errors, and speeds up processes like stock tracking and order fulfillment.

    • Order Management

    Your inventory management software should have a robust order management module to streamline order processing from creation to fulfillment. This feature ensures accurate and efficient handling of orders, reducing processing times and minimizing errors.

    • Price Tiers for Customer Segments

    Implementing price tiers for customer segments in your inventory management solution allows you to offer tailored pricing based on customer categories. This feature helps maximize sales and customer satisfaction by catering to different market segments effectively.

    • Automated Replenishment

    Your distribution inventory management software should include automated replenishment to trigger reorder points based on predefined inventory levels. This feature ensures continuous stock availability, reducing manual intervention and preventing stockouts.

    • Supplier Management

    A supplier management module is crucial for managing supplier information, order history, and performance metrics. This feature enhances supplier relationships, streamlines procurement processes, and ensures timely and accurate replenishment.

    • Multi-Warehouse Support

    Your inventory management solution should support multi-warehouse management to handle inventory across multiple locations. This feature provides centralized control, ensuring efficient stock distribution and optimized inventory levels across all warehouses.

    Also Read- How to Develop Warehouse Inventory Control Software?

    • Customizable Reporting

    Customizable reporting in your inventory management software allows you to generate detailed reports on various aspects of inventory and order management. This feature provides valuable insights for better decision-making and continuous process improvement.

    • Shop Floor Management

    Integrating shop floor management into your inventory solution helps monitor and control production processes. This feature ensures efficient production workflows, reducing downtime and improving overall productivity.

    • Shipping Integrations

    Your inventory management software should include shipping integrations to streamline the shipping process. This feature automates label printing, tracking, and carrier selection, ensuring timely and accurate deliveries.

    • Account Integrations

    Account integrations are essential for seamless data flow between your inventory management system and accounting software. This feature ensures accurate financial records, simplifies bookkeeping, and enhances overall operational efficiency.

    • Real-time Master Planning

    Your inventory management solution should offer real-time master planning to synchronize supply and demand. This feature helps optimize production schedules, inventory levels, and resource allocation, ensuring smooth operations.

    • eCommerce Integration

    eCommerce integration in your inventory management software allows for seamless synchronization between online sales channels and inventory levels. This feature ensures accurate stock information, preventing overselling and improving customer satisfaction.

    • Stock and Sales Report

    Your inventory management software should generate comprehensive stock and sales reports to provide insights into inventory performance and sales trends. This feature helps identify high-performing products, optimize stock levels, and drive sales growth.

    • Godown and Rack-wise Stock

    Incorporating godown and rack-wise stock management in your inventory solution ensures precise tracking of inventory locations within warehouses. This feature enhances inventory organization, reducing search times and improving picking efficiency.

    • Short Expiry Reports

    Your inventory management software should include short expiry reports to monitor products nearing expiration. This feature helps minimize waste, ensuring timely sales or usage of perishable items.

    • Physical Stock Audit

    A physical stock audit feature is essential for verifying inventory accuracy. This feature helps identify discrepancies between recorded and actual stock levels, ensuring accurate inventory records and reducing losses.

    Advanced AI-Driven Features

    • Demand Forecasting

    Your inventory management software should incorporate demand forecasting to predict future inventory needs using historical data and market trends. This feature enhances inventory planning, reduces the risk of stockouts, and optimizes stock levels.

    • Predictive Maintenance

    Integrating predictive maintenance into your inventory solution helps monitor equipment health and predict maintenance needs before failures occur. This feature minimizes downtime, extends equipment lifespan, and ensures smooth operations.

    • Automated Inventory Optimization

    Your inventory management software should offer automated inventory optimization to analyze sales data and inventory levels, recommending optimal stock quantities. This feature maximizes inventory turnover and minimizes holding costs.

    • Smart Routing and Logistics

    Implementing smart routing and logistics in your inventory solution optimizes delivery routes using AI, reducing transportation costs and delivery times. This feature enhances delivery efficiency and improves customer satisfaction.

    • Anomaly Detection

    Your inventory management software should include anomaly detection to identify unusual patterns in inventory data. This feature increases security, detects potential issues like theft or errors, and ensures operational integrity.

    Also Read- A Complete Guide On Anomaly Detection With ML

    • Customer Behavior Analysis

    Incorporating customer behavior analysis into your inventory solution helps analyze purchasing patterns to optimize stock levels and product placement. This feature improves customer satisfaction by ensuring popular items are always available.

    • Chatbots for Customer Support

    Your inventory management software should have AI-driven chatbots to handle customer inquiries and support requests. This feature provides quick and efficient customer service, enhancing client relationships and satisfaction.

    • Image Recognition for Inventory Management

    Implementing image recognition in your inventory solution automates inventory counting and verification using AI-powered image analysis. This feature reduces manual counting errors, speeds up inventory audits, and ensures accurate stock records.

    By incorporating these essential and advanced AI-driven features, your distribution inventory management software will be well-equipped to enhance efficiency, reduce costs, and drive business growth.

    Features of Distribution Inventory Management Software

    Hire Dedicated Developers Based on the Required Tech Stack

    Building custom distribution inventory management software requires you to hire dedicated developers proficient in the required technology stack. Take the time to hire dedicated developers with the right expertise and experience to bring your vision to life.

    Choose a technology stack that aligns with your project requirements and scalability goals. Consider factors such as programming languages, frameworks, databases, and third-party integrations when selecting the tech stack for your software solution.

    For your help, we have listed a general tech stack that you can utilize for creating inventory management for distribution companies:

    Frontend Development  AngularJS, ReactJS, VueJS, HTML5, CSS3 
    Backend Development  Java, NodeJS, Python 
    Database  PostgreSQL, MongoDB 
    Cloud Services  AWS, GCP, Microsoft Azure 
    AI/ML  PyTorch, TensorFlow, Keras, scikit-learn 
    DevOps  Docker, Kubernetes, Git, CI/CD 
    Chatbot Development  NLTK, spaCy, Microsoft Bot Framework, Dialogflow 
    Image Recognition  TensorFlow, PyTorch, OpenCV, ResNet, VGG, Inception 
    Demand Forecasting  Prophet, ARIMA, Matplotlib, Plotly  
    Predictive Maintenance  Apache Kafka, Apache Spark, Random Forests, LSTM Networks 

    Go Agile and Launch an MVP

    dopting an Agile development methodology and launching a Minimum Viable Product (MVP) allows you to iteratively build and refine your custom distribution inventory management software based on user feedback and evolving business needs.

    Embrace Agile principles and practices, such as iterative development, frequent collaboration, and continuous feedback, to deliver value to your customers faster and more efficiently. Break down your project into manageable sprints and prioritize features based on their importance and impact.

    Similarly, launching an MVP enables you to validate your product idea with real users and gather feedback early in the development process. Start with essential features that address core user needs and gradually add new features based on user feedback and market demand.

    Invest in Testing Services and Deploy on Cloud

    Lastly, conduct thorough testing of your software solution to ensure it meets quality standards and performs as expected. Utilize automated testing tools, manual testing techniques, and user acceptance testing to identify and address any issues or bugs before deployment.

    Deploying your distribution inventory management software on the cloud offers numerous benefits, including scalability, flexibility, and cost-effectiveness. Choose cloud integration services to host your software on a cloud platform securely and efficiently.

    What Will Be the Cost of Developing Distribution Inventory Management Software?

    So, we are at the final stage of our blog, but the most critical one is the cost of developing a smart inventory management solution for distributors. The cost of developing distribution inventory management software depends on various factors such as the scope and complexity of features, the technology stack, the expertise of the development team, and the integration needs.

    Scope and Features

    Investing in a smart solution with advanced features like AI-driven demand forecasting and predictive maintenance will cost more than a standard solution with basic functionalities.

    Development Team and Technology

    The location and expertise of your development team, along with the choice of technologies, also significantly affects the overall cost.

    Comprehensive Testing

    Investing in thorough testing services ensures a high-quality, reliable product but adds to the overall cost. This includes automated testing, manual testing, and user acceptance testing.

    Security Measures

    Implementing robust security measures to protect sensitive data and comply with regulations also increases the cost but is crucial for maintaining trust and compliance.

    Besides all this, there are many other factors that can affect your custom software development cost. To get a precise estimate tailored to your needs, share your project requirements with our experts at Matellio. We offer free cost estimates to help you plan your investment effectively.

    Need a Free Cost Estimate for Your Custom AI-driven Distribution Inventory Management Software?

      What is


      Matellio – Your Trusted Consultancy for Distribution Manufacturing Software Development

      At Matellio, we understand the unique challenges faced by distribution and manufacturing businesses. Our expertise in developing tailored distribution inventory management software makes us the perfect partner to help you streamline operations, enhance efficiency, and drive growth.

      Why Choose Matellio?

      Proven Expertise

      With years of experience in the industry, Matellio has successfully delivered robust and scalable inventory management solutions to businesses worldwide. Our track record speaks for itself, showcasing our ability to meet and exceed client expectations.

      Customized Solutions

      We believe that one size doesn’t fit all. Our team works closely with you to understand your specific needs and challenges, developing a custom solution that perfectly aligns with your business processes and goals.

      Innovative Approach

      At Matellio, we stay ahead of the curve by leveraging the latest technologies and trends. From AI-driven features to seamless integrations, we ensure your software is future-proof and equipped to handle the demands of a dynamic market.

      Dedicated Team

      Our team of skilled developers, project managers, and industry experts are committed to delivering excellence at every stage of the project. We prioritize communication, transparency, and collaboration to ensure a smooth development process and successful outcome.

      Comprehensive Support

      Our relationship with you doesn’t end at deployment. We offer ongoing support and maintenance to ensure your system remains up-to-date, secure, and efficient, allowing you to focus on what you do best – growing your business.

      Partner with Matellio to transform your distribution and manufacturing operations with a powerful, custom-built inventory management solution. Contact us today to discuss your project and discover how we can help you achieve your business goals.


      Investing in a custom distribution inventory management software solution is a significant but worthwhile expenditure that can drive efficiency, accuracy, and growth for your business. By understanding the various factors that influence development costs, you can make strategic decisions that align with your budget and business goals.

      At Matellio, we are committed to helping you navigate this process with transparency and expertise.

      Contact us today to discuss your requirements and receive a tailored quote for your custom inventory management solution. Together, we can transform your distribution operations and set your business on a path to success.


      Distribution inventory management software is a specialized tool designed to help distribution companies efficiently manage their inventory across multiple locations. This software enables businesses to track stock levels, manage orders, automate replenishment, and optimize warehouse operations.  

      Yes, we can modernize your existing inventory management software using AI (Artificial Intelligence) and RPA (Robotic Process Automation) development services. By integrating AI, we can enhance your software with features such as demand forecasting, predictive maintenance, and anomaly detection. RPA can automate repetitive tasks like data entry, order processing, and stock updates, reducing manual effort and improving efficiency.  

      The time required to create a custom inventory solution for your distribution company depends on several factors, including the complexity of features, the extent of customization, and integration needs. You can share your requirements with us to get an exact time estimate for your project

      It is easy to connect with us for your project. Simply follow the steps below to get started:  

      • Fill out our consultation form with your basic details and requirements.
      • Connect with our experts over a free 30-minute call and discuss the pain points and roadmap for your project.
      • Get advice about the technology, features, and technology trends for your project along with the time and cost estimate.
      • Sign the NDA and other legal documents.
      • Get started with your project.   

      To stay ahead in the competitive distribution industry, consider adopting the following trends in your custom inventory management software:  

      • IoT Integration: Use Internet of Things (IoT) devices for real-time tracking and monitoring of inventory and warehouse conditions.
      • Mobile Access: Provide mobile applications for inventory management, allowing on-the-go access and updates for warehouse staff and managers.
      • Cloud Computing: Leverage cloud-based solutions for scalability, flexibility, and remote access to inventory data.
      • Big Data Analytics: Utilize big data analytics to gain insights into inventory patterns, customer behavior, and supply chain performance. 

      Enquire now

      Give us a call or fill in the form below and we will contact you. We endeavor to answer all inquiries within 24 hours on business days.