When it comes to data, the inventory management software market has witnessed significant growth with the market size of 3 billion U.S. dollars in 2022. It is because the wholesale inventory management software provides eminent functionalities that streamline operations, optimize stock levels, and ultimately lead to sustainable business growth. It is expected that between 2023 to 2032 the market value of inventory management software will exhibit a CAGR (Compound Annual Growth Rate) of 5%. It is going to depend on several factors like e-commerce spending and internet connectivity. Now the question is which software solution to settle on, to be precise which kind of solution, cloud-based or on-premises inventory management software for wholesale? This blog will help you gain insights into both of the options so you can make an informed decision on which inventory management solution is going to be the best fit for your business.
Cloud-Based Wholesale Inventory Management Software
Advantages
Accessibility and scalability: Cloud-based wholesale inventory management software is accessible from any internet-connected device, allowing authorized users to manage inventory remotely. The flexibility offered by cloud-based solutions is ideal for remote working employees as well as for businesses with multiple locations. Furthermore, cloud solutions provide scalability, as your business grows and your inventory volume increases the software solution will align with these changes without any major hardware upgrade.
Minimizes the IT infrastructure costs: Adoption of cloud-based solutions prevents the need for investment in hardware components, software licenses, and IT infrastructure maintenance. All of the management and maintenance of the servers are performed by the vendors, which leads to a reduction in ongoing IT expenses.
Automatic updates and security: The providers of cloud solutions take care of every essential update and security patch. They ensure that you will always experience seamless functioning of the software solution without any glitches with the latest version of it, it also minimizes the risk of vulnerabilities.
Real-time collaboration: Cloud-based software solutions facilitate real-time collaborations between different teams and departments within the organization. Everyone can access and update inventory data simultaneously, resulting in updates and transparency of the most recent information for further analysis or operations.
Integration with e-commerce platforms: Cloud-based inventory management software is often integrated seamlessly with popular e-commerce platforms. The seamless integration enables the smooth and automated data exchange and streamlines the order fulfillment process with the coordination of both software solutions leaving behind the need for manual data entry.
Disadvantages
Internet dependency: Cloud-based wholesale inventory management software requires a reliable internet connection to function. Any hindrance or interruption in internet connectivity leads to disruption in access to the inventory management system that can potentially impact the functioning of the whole inventory operation.
Data security concerns: Although cloud-solution providers take extra care of data security and invest heavily in the same, still some business owners have concerns about strong sensitive inventory data security. This is where you need to choose a reputable solution provider with robust security protocols essential like Order Circle.
Subscription costs: Cloud-based software operates on a subscription-based pricing model with monthly or annual fees. Businesses with tight budgets could have concerns over these ongoing costs.
On-Premises Wholesale Inventory Management Software
Advantages
Data security and control: Inventory management software for wholesale with on-premises deployment solutions facilitates businesses to store all of their data on their servers within the physical location. It provides them complete control over their data security and the ability to handle and customize access permissions.
Customizations: The significant feature of on-premises software is customization. To meet the specific requirements and workflow of the business they can be customized, which is not available with cloud-based solutions.
Potential cost savings: On-premises software usually comprises a one-time license or purchasing fee rather than ongoing subscription costs like cloud-based solutions.
Disadvantages
High-upfront investment: On-premises software requires an upfront investment in hardware, software license, and additional IT support staff for installations, maintenance, and updates.
Scalability challenges: Unlike cloud-based solutions, scaling wholesale inventory management software on-premise solutions is quite a complex process. As it involves the upgradation of hardware, software, and infrastructure to align with growing inventory complexities.
Limited accessibility: They are only accessible within your local network, thus, it might be inconvenient for employees who work remotely.
Selecting The Right Deployment Model For Your B2B E-commerce Business
We have discussed the pros and cons of both of the software solutions, however, the best e-commerce order management software solution purely depends on your business-specific requirements. It depends on several factors like-
- Budget
- Scalability requirements
- IT expertise
- Data security, etc.
Both cloud-based and on-premises wholesale inventory management software have their distinct advantages and disadvantages. With careful consideration and proper analyses will lead you to the best solution. However, for robust cloud-based inventory management software for wholesale opt for OrderCircle, a leading B2B e-commerce software solutions provider with a proven track record of renowned solutions.