Manufacturing Inventory Software: What Actually Works (And What Doesn't)

Running a manufacturing operation without proper inventory software is like flying blind. You're burning cash on excess stock, scrambling for materials that should be there, and watching production deadlines slip because someone forgot to reorder a $2 part.

Manufacturing inventory software fixes this. The right system tracks raw materials, work-in-progress, and finished goods in real time-automatically triggering purchase orders when stock drops below thresholds, calculating true COGS for every product, and giving you actual visibility into what's happening on your factory floor.

But here's the problem: most reviews sugarcoat the pricing and skip the parts that actually suck. This guide doesn't. We've dug into what these systems actually cost, which features matter, and where each one falls short. If you need better tools to manage your sales pipeline first, check out our guide to the best CRM software or explore sales CRM options that integrate with inventory systems.

What Manufacturing Inventory Software Actually Does

Manufacturing inventory management software automates the tedious parts of tracking what you make and what you need to make it. At minimum, it should handle bill of materials (BOM) management, automatically deduct components when you build assemblies, track lot and serial numbers for recalls, and sync with your accounting system so your books stay accurate.

The better systems add production scheduling, capacity planning, demand forecasting, barcode scanning for warehouse operations, and multi-location inventory tracking. They calculate landed costs, manage vendor relationships, and generate reports that show which products are profitable and which are bleeding money.

Entry-level pricing plans average around $262 per month, while advanced enterprise subscriptions run north of $2,000 monthly. Custom development can range from $40,000 to $400,000 depending on complexity and integrations. The total cost of inventory management software can span from $150 to over $1 million annually when you factor in implementation, training, and maintenance.

How Manufacturing Inventory Software Differs from Retail Systems

Standard retail or wholesale inventory software primarily tracks finished goods and simple fulfillment. Manufacturing systems must handle transformation-tracking inventory as its value and form change from raw steel coil to finished machine part.

Manufacturing inventory software manages layered complexity: multi-level bills of materials, tracking costs at various production milestones, handling assemblies and disassemblies, and monitoring work-in-progress inventory that exists in various states of completion. A cabinet maker needs to know not just how many finished cabinets are in stock, but how many doors, drawer fronts, and hardware kits are available to build more-and whether those components can be allocated to current orders without disrupting other production runs.

This requires specialized features like BOM explosion (breaking finished goods into component requirements), automatic material allocation to production orders, and tracking partial completions across multiple manufacturing stages. Without these capabilities, manufacturers end up maintaining separate spreadsheets alongside their inventory system-exactly the manual work they're trying to eliminate.

Batch and Serial Number Tracking Explained

Lot and serial number tracking is non-negotiable for manufacturers in regulated industries, but understanding the difference between these tracking methods matters even if you're not making pharmaceuticals.

A batch number (or lot number) identifies a group of products manufactured together under identical conditions-same materials, same equipment, same date. If you produce 500 gallons of paint using a specific dye batch, all 500 gallons share the same lot number. This enables you to trace quality issues back to specific raw material sources and isolate problematic inventory without affecting your entire stock.

Serial numbers provide unique identifiers for individual units. Every laptop, piece of machinery, or medical device gets its own serial number, allowing granular tracking from production through warranty claims and returns. Serial number tracking helps confirm that an item coming in for warranty service is the same one that went out, and creates detailed chain-of-custody records for high-value or regulated goods.

The right software handles both methods seamlessly. You might track raw materials by lot number, assign serial numbers to finished goods during production, and maintain records connecting each serial number to the specific lots of materials used in its manufacture. This bidirectional traceability is critical for recalls-if a supplier notifies you about defective components in lot X, you can instantly identify which finished goods contain those components and who bought them.

Fishbowl: The QuickBooks Integration Play

Fishbowl is popular with manufacturers already using QuickBooks for accounting. The integration is seamless-inventory changes sync automatically, and you can track costs from raw material purchase through final sale without duplicate data entry.

Pricing: Fishbowl Manufacturing starts at $329 per month for the subscription model, though pricing varies significantly based on user count and deployment method. The perpetual license option begins at $4,395 for the first user, then $1,195 per additional user. The perpetual license for two users starts at $8,895 minimum. Here's the catch-you're required to purchase an implementation package (not included in the base price), which runs $2,000 to $10,000 depending on complexity. The subscription model is billed monthly or can be purchased annually with discounts.

What's good: Part-level tracking is excellent. You can track individual components by lot number, serial number, revision date, or expiration date, right down to the bin location. This granular visibility helps you nail down accurate COGS and catch quality issues fast. The software handles multi-level BOMs, work-in-progress tracking, and automated reorder points. Users consistently praise the inventory accuracy and QuickBooks sync. The mobile app (Fishbowl Go) allows warehouse staff to perform cycle counts, update inventory records, and manage tasks from tablets or phones. Integration with major shipping carriers (UPS, FedEx, DHL, USPS) and e-commerce platforms (Shopify, Amazon, WooCommerce) streamlines order fulfillment.

What sucks: Customization options are severely limited out of the box, and getting custom reports built requires hiring outside developers at $150 to $2,000 per report. The interface feels dated compared to newer cloud-native competitors. Several users complain that once you make an error, fixing it is nearly impossible-financial data becomes locked after periods close, even for obvious mistakes. Customer support quality is inconsistent. The high upfront cost and mandatory implementation package make it a significant investment for smaller manufacturers. Pricing scales quickly as you add users and modules, so total costs can exceed initial estimates. Setup takes considerable time, especially when syncing with accounting systems or importing historical data.

Cin7 Core: Built for Multi-Channel Complexity

Cin7 Core targets manufacturers who also sell through multiple channels-retail stores, e-commerce, wholesale. It's not a full ERP, but it covers inventory, order management, light manufacturing, and integrates with accounting platforms like Xero and QuickBooks.

Pricing: Cin7 Core starts at $349 per month and goes up to $999 per month depending on features and warehouse count. The Standard plan supports basic inventory management and limited integrations. The Advanced plan includes additional warehouse management features and more robust production capabilities. Additional add-ons include Point of Sale, B2B Portal, Advanced Production Manufacturing, and API access-each with separate fees. The pricing scales with your order volume, number of warehouse locations, and required integrations, so costs climb as you grow.

What's good: Real-time inventory visibility across all sales channels and locations. The system handles assembly/disassembly, standard BOMs, batch and serial number tracking, and automatic stock deductions during production. Job costing lets you track project-specific expenses and generate customer invoices with markup. Integration with over 700 apps means you can connect nearly any sales channel, shipping provider, or payment processor. The manufacturing features work well for simple to moderate production complexity. The platform supports up to 10 price tiers per product, enabling sophisticated pricing strategies for different customer segments, sales channels, and currencies. Automated replenishment based on reorder points and lead times reduces stockouts. The mobile warehouse management app guides workers through pick, pack, and fulfillment workflows.

What sucks: Complex manufacturers-especially process industries like food and beverage-will hit limitations fast. There's no formula or recipe management for process manufacturing, and traceability features aren't as robust as dedicated food industry systems. Implementation takes time, and migrating data can be painful. Users report the system relies heavily on third-party integrations to reach full functionality, which creates dependencies and potential points of failure. Support experiences vary, with some users praising the help they received while others struggled to get timely assistance. It's not cheap, and costs climb quickly as you add locations and order volume. Some reviewers note that while basic functions work, the system lacks flexibility in managing complex delivery schedules and split shipments.

Katana MRP: Modern Interface, Growing Pains

Katana markets itself as the easy-to-use MRP for small to mid-sized manufacturers. The interface is clean, setup is fast, and it integrates smoothly with Shopify and QuickBooks. But recent pricing changes have users feeling burned.

Pricing: Katana has four tiers. The Free plan exists but is extremely limited (30 SKUs, 15-day grace period for testing). Standard starts at $179/month (billed annually) or $199/month (billed monthly) and covers up to 3,000 sales orders per year and 3 inventory locations. Professional runs $799/month annually or $899/month monthly, supporting up to 18,000 sales orders and 10 locations. Professional Plus is $1,799/month and requires custom setup for large-scale operations. All plans include unlimited users and SKUs (except Free). Add-ons like Advanced Manufacturing, Warehouse Management, and Shop Floor tracking cost extra-ranging from $99 to several hundred dollars monthly depending on your plan tier. The Advanced Manufacturing add-on varies in price across plans due to expected usage volumes at each tier.

What's good: The user interface is genuinely intuitive-setup takes hours instead of weeks. Batch tracking works well for manufacturers in cosmetics, food, and pharma who need expiry date management and recall capabilities. Real-time inventory updates, automated purchase order generation, and smooth e-commerce integrations save hours of manual work. Customer support via live chat is responsive. The visual production planning and capacity management features help small teams stay organized without a learning curve. Shopify integration is particularly seamless, with sales orders flowing automatically into production planning. Customers enrolled in onboarding programs get set up 2 to 3 times faster and are twice as likely to achieve sustained success. The system handles serial number tracking, batch tracking, and provides full traceability from raw materials through finished goods.

What sucks: Pricing has increased dramatically-some users report 500%+ price hikes since they started, with essential features moved to costly add-ons. One reviewer noted their monthly cost jumped from under $200 to $899 without warning, with features they were using suddenly locked behind additional paywalls. Serial number tracking has bugs and often requires support intervention to fix. Print templates are hard to customize, making customer-facing documents look unprofessional. There's no built-in project management or advanced analytics-you'll need to export data to other tools. The batch tracking feature doesn't integrate with order fulfillment logic, so it only tells you what's in stock, not whether you can actually fill an order with the right batches. The one-month cancellation notice policy frustrates users on monthly plans. Some users experience slow, laggy operational speeds periodically. Recent reviews show growing dissatisfaction with value for money as the company shifts features to premium tiers. Multiple reviewers mention that bugs are ever-present and the company sometimes removes existing features to place them behind paywalls.

Odoo: Open-Source Flexibility at a Price

Odoo is an open-source ERP system with modules for inventory, manufacturing, CRM, accounting, and more. It's highly customizable and significantly cheaper than traditional ERP systems, making it attractive for manufacturers who want flexibility without enterprise-level costs.

Pricing: Odoo offers a free plan for one app. The Standard plan is $31.10 per user per month, and the Custom plan runs $46.80 per user per month. You pay for the modules you need, which keeps costs manageable for smaller teams. Unlike many competitors, Odoo's per-user pricing means a 10-person team could run a comprehensive ERP for under $500 monthly on the Standard plan.

What's good: Cost-effectiveness stands out-you get comprehensive ERP functionality at a fraction of competitors' prices. The modular design means you only pay for what you use. Open-source architecture allows deep customization if you have development resources. The community is active, and third-party modules extend functionality. Integration options are extensive, and the user interface is clean and modern. Reviewers appreciate the comprehensive ERP features that help organize and manage business processes. The software offers essential ERP functions at a lower price compared to other systems, and users praise the user-friendly interface that simplifies setup and use.

What sucks: Customization requires technical expertise, so you'll need developers on staff or budget for consultants. Users report performance issues when handling large data volumes or running multiple integrated modules simultaneously. The learning curve is steep for teams unfamiliar with ERP systems. Setup and configuration take significant time and effort. While the software is powerful, making it work exactly how you need often requires custom development work, which adds cost and complexity. One reviewer noted they tried Katana's 14-day trial while still paying for Odoo and were able to set up everything in the time it took to solve a single problem with Odoo. Support relies heavily on community forums rather than dedicated customer service teams.

MRPeasy: Small Manufacturer Focus

MRPeasy targets small manufacturers with up to 200 employees. It's cloud-based, handles stock, BOM, and inventory management well, and simplifies production and assembly orders. The trade-off is you'll need a separate accounting system-it doesn't include built-in financials.

Pricing: Not publicly disclosed upfront; you need to request a quote. Users report it's competitively priced for small manufacturers, typically more affordable than enterprise solutions while offering more manufacturing-specific features than entry-level inventory systems. Customer support is strong with an in-system ticketing solution linked to individual accounts.

What's good: Efficient inventory management provides excellent visibility and control. The interface is clean and uncluttered with essential functions accessible without complexity. It integrates natively with Xero and QuickBooks for accounting sync. Barcode scanning, lot tracking, and multi-level BOM support cover most small manufacturer needs. Production cost and lead time calculations happen in a single click. Users consistently praise the customer support quality and responsiveness. The system provides real-time visibility into inventory and production processes from a unified dashboard. MRPeasy supports unattended operations, allowing passive processing for steps like drying, cooling, or quarantine that don't require active supervision, helping reduce labor costs. Recent updates focus on improving production efficiency for small to medium-sized operations.

What sucks: It's primarily manufacturing resource planning software, not a full ERP. You must integrate with separate accounting systems for complete functionality. While it handles production well, companies with complex financials or advanced warehouse management needs will outgrow it. The feature set is solid but not as extensive as higher-priced enterprise options. Customization capabilities are limited compared to open-source alternatives. If you need sophisticated financial reporting, advanced analytics, or complex multi-entity consolidation, you'll need additional software.

What to Actually Look For

Don't buy on features lists. Here's what actually matters:

Real-time tracking: If your inventory numbers lag behind reality, you're making decisions on bad data. The system should update stock levels immediately as materials are received, consumed in production, or shipped to customers. Manual data entry between shifts creates gaps where inventory reality diverges from system records. Barcode scanning and mobile apps enable real-time updates from the warehouse floor.

BOM management: Multi-level bill of materials support is non-negotiable for manufacturers. You need to see component costs roll up accurately and automatically deduct sub-assemblies when building finished goods. The system should handle BOM explosions (showing all components required across all levels), support alternate materials and suppliers, and track revision histories when product designs change. Integration with production orders ensures material allocation matches actual build requirements.

Lot and serial tracking: Critical for recalls, quality control, and industries with compliance requirements. Make sure the system can trace materials from supplier through production to end customer. The software should support both batch numbers (grouping products manufactured together) and serial numbers (tracking individual units). Bidirectional traceability-linking finished goods back to the specific raw material lots used-is essential for regulated industries. Expiration date tracking, FEFO (first-expired, first-out) picking strategies, and automated alerts for approaching expiry dates prevent waste and compliance violations.

Accounting integration: Manual data entry between inventory and accounting is where errors multiply. Native integrations with QuickBooks, Xero, or your existing accounting platform save time and prevent discrepancies. Look for two-way sync that updates both systems automatically, proper handling of inventory valuation methods (FIFO, LIFO, weighted average), and accurate COGS calculations that flow to your financial statements. Multi-currency support matters if you buy or sell internationally.

Scalability: Can the system grow with you? Check whether pricing jumps dramatically as you add users, locations, or order volume. Some systems charge per user, others by transaction volume or warehouse count. Understand the pricing structure before committing. Also consider whether the software can handle increased complexity-more SKUs, additional production stages, new sales channels-without performance degradation or requiring a complete system replacement.

Implementation reality: Ask about setup time, data migration support, and ongoing maintenance. A $5,000 software license with $20,000 in implementation and training costs is actually a $25,000 investment. Request detailed implementation estimates including data cleanup, system configuration, user training, testing, and go-live support. Some vendors require mandatory implementation packages; others offer self-service setup. Factor in the opportunity cost of staff time during implementation-your team will be learning a new system instead of focusing on production.

Common Pitfalls

Implementation difficulties kill projects. Most manufacturers underestimate the time and labor required to clean up existing inventory data before migration. If your current records are a mess, the new system won't magically fix them-garbage in, garbage out. Expect to spend weeks verifying SKU numbers, reconciling stock counts, validating supplier information, and standardizing product descriptions before importing anything.

Hidden costs add up fast. Implementation packages, training, custom reports, additional modules, per-user fees, and integration costs can double your total cost of ownership. Get a complete quote including all setup and first-year costs before committing. Ask specifically about costs for additional users, extra warehouse locations, API access, custom report development, ongoing support, and annual license renewals. Some vendors charge separately for mobile apps, advanced features, or increased transaction volumes.

Over-buying features wastes money. Manufacturing inventory software can include demand forecasting, advanced analytics, IoT device integration, and predictive maintenance. But if you're a 10-person shop making cabinets, you don't need AI-powered capacity planning. Buy for your current needs plus modest growth, not for a future that may never come. Starting with a simpler system and upgrading later often costs less than paying for unused features from day one.

Relying too heavily on third-party integrations creates fragility. While extensive app marketplaces sound appealing, systems that require five separate integrations to accomplish basic workflows introduce multiple failure points. Each integration is a potential source of sync errors, delayed updates, and support headaches. Native features usually work more reliably than bolt-on integrations, even if they're slightly less sophisticated.

Understanding Work-in-Progress Inventory

Manufacturing inventory isn't just raw materials and finished goods. Work-in-progress (WIP) inventory-partially completed products moving through your production process-represents significant capital tied up in materials and labor. The right software tracks WIP accurately, showing exactly where each production order stands and what resources it has consumed.

WIP tracking matters because it reveals production bottlenecks, calculates true production costs, and prevents over-allocation of materials to new orders when existing orders haven't completed yet. If your WIP tracking is manual or non-existent, you're likely underestimating actual inventory costs and making poor decisions about material purchases.

Good manufacturing inventory software automatically updates WIP as production progresses-deducting raw materials when manufacturing orders start, tracking labor and overhead costs at each production stage, and transferring completed units to finished goods inventory. This creates an accurate picture of total inventory value and helps identify where production is getting stuck.

Mobile Access and Barcode Scanning

Your warehouse staff shouldn't be walking back to a desktop computer every time they move inventory. Mobile apps and barcode scanning capabilities separate modern inventory systems from legacy solutions that trap users at workstations.

Mobile access lets workers receive materials, perform cycle counts, pick orders, transfer inventory between locations, and update production status from phones or tablets. This eliminates duplicate data entry, reduces errors from manual record-keeping, and provides real-time visibility into warehouse operations.

Barcode scanning accuracy eliminates the typos and transposition errors that plague manual entry. Scanning batch numbers during receiving automatically links incoming materials to supplier lot codes, enabling full traceability without asking workers to type long alphanumeric strings. During production, scanning components as they're consumed ensures BOM deductions match actual usage rather than planned quantities.

Check whether the software supports common barcode scanners (Wasp, Zebra) and mobile devices (Android, iOS) without requiring expensive proprietary hardware. GS1 barcode support enables automatic product, lot, and serial number detection from supplier labels.

The Bottom Line

For small manufacturers under 50 employees, MRPeasy or Katana (if you can stomach the pricing uncertainty) offer the best balance of features and usability. QuickBooks users should seriously consider Fishbowl despite the dated interface-the integration value is real. Multi-channel sellers with light manufacturing needs fit Cin7 Core well. Companies wanting maximum flexibility with in-house development resources should explore Odoo.

Whatever you choose, demand transparent pricing including all implementation costs, request a trial with your actual data, and talk to current customers about what broke after they went live. The best manufacturing inventory software is the one that solves your specific problems without requiring a team of consultants to keep running.

Start by mapping your current workflow-how materials flow from receiving through production to shipping, where manual steps create bottlenecks, which reports you actually need weekly versus nice-to-have dashboards, and what integrations are mandatory versus optional. Use this information to create a realistic requirements list, then evaluate software against these specific needs rather than generic feature comparisons.

If your manufacturing operation also needs better project oversight, explore our reviews of the best project management software. For businesses tracking sales alongside inventory, our guide to B2B sales tools covers systems that integrate inventory with customer relationship management.