Letting Others Control Your Inventory

Should you outsource inventory management, or should you manage it yourself? If you choose to go in-house, the option entails investing in an inventory management software system.

Buying inventory management software means purchasing a software product that helps manage your inventory in-house. This option gives you more control over the management of your inventory and can be customized to meet your specific needs.

On the other hand, outsourcing inventory management to a third party involves contracting with an outside company to manage your inventory on your behalf. This option may provide a wider range of services, but you will have less control over the management of your inventory. Additionally, outsourcing typically involves ongoing fees or commissions, whereas purchasing software is a one-time cost. Ultimately, the best option will depend on your specific business needs and resources.

Outsourcing Inventory Management

In recent years, businesses have increasingly been turning to third-party logistics providers to handle their inventory needs. There are several reasons why this trend is gaining momentum.

First, outsourcing inventory management allows businesses to focus on their core competencies. Instead of spending time and resources on managing inventory, they can focus on developing new products, expanding their customer base, and improving their marketing strategies.

Second, outsourcing inventory management can be a more cost-effective option for businesses. Instead of investing in warehouse space, equipment, and staff, they can rely on third-party providers who have already made these investments.

Third, outsourcing inventory management can help businesses to be more flexible and responsive to changes in demand. Third-party providers can quickly scale up or down depending on a business’s needs, allowing for greater agility in a rapidly changing marketplace.

In conclusion, outsourcing inventory management is becoming an increasingly popular choice for businesses looking to streamline their operations and improve their bottom line.

Keeping It In-house (Literally and Figuratively)

Outsourcing inventory management has become popular among companies, but there are still compelling reasons to manage inventory in-house. One major benefit is having complete control over the process, which can result in more accurate inventory counts and better customer service. Additionally, managing inventory in-house allows for more flexibility in responding to changes in demand or supply chain disruptions. By keeping inventory management in-house, companies can ensure they are meeting their unique needs and maintaining a competitive edge.

By managing inventory in-house, a company has greater control over the entire process, including purchasing, storage, and distribution. This can lead to increased efficiency, reduced waste, and more accurate inventory tracking.

Another reason to consider managing inventory in-house is cost. While outsourcing may seem like a cost-effective solution, it can actually be more expensive in the long run. Outsourcing companies may charge additional fees for services such as storage and handling, and they may not have the same level of expertise or knowledge of a company’s unique needs. By managing inventory in-house, a company can tailor their processes to their specific requirements and avoid unnecessary expenses.

Finally, managing inventory in-house can provide a competitive advantage. By having control over the inventory management process, a company can respond more quickly to changes in demand, market trends, and customer preferences. This can result in faster delivery times, better customer service, and ultimately, increased profitability.

While outsourcing inventory management may work for some companies, there are still several strong reasons why a company might want to consider managing their own inventory. By doing so, they can gain greater control, reduce costs, and gain a competitive edge in their industry.


Inventory management is a critical component of any business. While outsourcing this function may seem like a logical solution, there are still several reasons why a company might want to consider managing their own inventory. One of the primary reasons is control.

We help people track, manage, and control their inventory. Implementing an inventory management software system like Flowtrac can streamline the process, making it more efficient and accurate.

Even if you outsource inventory management, the bottom line is that you’ll eventually need detailed information about your inventory, and this is not always easy to get and use when a third party is handling it. Flowtrac gives people not only the control over their inventory, but the myriad of data and reporting functions that allow them to not just manage inventory but to grow the business in the process.