Best Retail Inventory Management Software in 2026

Top 5 Inventory Optimization Software for Retailers (2026)

[updated 2026]

In this guide to the best retail inventory management software, we focus on systems that combine inventory optimization with day-to-day execution—like inventory tracking, reordering, and POS integrations across stores and e-commerce.

In an industry where keeping the right amount of stock on hand directly impacts sales and customer satisfaction, retailers cannot afford to leave inventory management to chance. According to retail research, U.S. retailers lose more than $82 billion in sales every year because products are out of stock. Modern supply chains span multiple locations and channels, making it essential to use an inventory optimization system that can balance stock availability against carrying costs and adapt to volatile demand. For many teams, a modern retail inventory management system is no longer optional—it’s the foundation of inventory management software for retail store operations, from barcode scanning to real-time stock visibility.

This article compares five leading solutions and explains why Flowlity should be your first choice for retail inventory optimization.

How we selected these retail inventory management systems

To identify the best retail inventory management software in 2026, we evaluated solutions based on their ability to support real-world retail operations across multiple stores and sales channels. Each system was assessed on real-time inventory tracking, reliability of integrations (POS, ERP, and e-commerce platforms), and its capacity to optimize inventory levels while reducing stockouts and overstocking. We also considered ease of implementation, usability for planning and operations teams, and scalability for growing retailers. Finally, we prioritized platforms that go beyond basic inventory tracking and offer advanced capabilities such as automation, data-driven replenishment, and collaborative planning across the retail supply chain.

1. NetSuite — ERP with Inventory Management for large retailers

NetSuite is a cloud-based enterprise resource planning (ERP) suite that includes a robust inventory module. Its strengths for retailers include real-time visibility across locations, automated demand-based replenishment and seamless integration with order management and financials. NetSuite supports multi-location fulfilment and cycle counting, making it ideal for retailers with several warehouses or stores. However, as part of a complete ERP platform, NetSuite can be complex to implement and may require significant investment and training to realize its full potential. Retailers should also validate how NetSuite supports POS connectivity, barcode-based inventory counts, and store-level workflows—especially if real-time accuracy across sales channels is a priority.

2. Katana — Inventory Management for Small Businesses with production needs

Katana is a cloud-based manufacturing and inventory platform aimed at small and midsized businesses. Retailers appreciate Katana’s ability to track raw materials, finished goods and bill-of-materials (BOMs), enabling them to manage production and stock in one system. The software provides real-time inventory tracking across multiple locations, support for product variants and configurable pricing tiers. Because advanced retail demand forecasting and multi-echelon replenishment are limited, many teams still rely on spreadsheets—or add a specialized optimization layer—to automate reordering and optimize inventory levels.

3. Brightpearl — Omnichannel operations and inventory management for retail brands

Brightpearl focuses on automating order management and inventory for omnichannel retailers. The platform centralizes orders from marketplaces, e-commerce sites and physical stores, while synchronizing inventory levels. This is valuable for maintaining real-time inventory accuracy across marketplaces and POS systems, especially when integrations are reliable. It offers forecasting and analytics to optimize reordering and provides reporting that helps retailers analyse performance across channels. Brightpearl is a strong option for brands selling on multiple marketplaces, but it is primarily a retail operations platform rather than a sophisticated inventory optimisation engine.

4. SAP Integrated Business Planning (IBP) — Advanced Planning Suite for large retail organizations

For larger retailers and brands that require an end-to-end supply chain planning suite, SAP IBP is a comprehensive yet complex solution. It offers cloud-based sales, inventory and demand planning, using predictive analytics and AI to produce forecasts and optimize safety stocks. SAP IBP also supports supply and response planning, scenario simulations and real-time collaboration with partners. While it delivers robust functionality, the depth of SAP’s suite often translates into lengthy implementations and high total cost of ownership that smaller retailers may find prohibitive. For mid-market teams evaluating inventory management software retail options, SAP IBP can feel like an enterprise planning suite first—and a retail execution tool second.

5. Flowlity — Inventory Optimization and Planning Software for retailers

Flowlity brings together AI-driven forecasting, dynamic inventory optimisation and collaborative planning in a single, intuitive platform. Retailers often adopt Flowlity as inventory software retail teams can use alongside ERP/POS to improve availability and reduce excess stock. It complements your existing retail inventory management system by strengthening forecasting, safety stock, and replenishment decisions.

It uses probabilistic forecasting to model demand uncertainty and dynamically calculates optimal stock levels at SKU level. Flowlity’s easy-to-use interface facilitates collaboration between retailers, suppliers and customers, improving visibility across the supply chain. Unlike general ERP systems, Flowlity focuses specifically on inventory and supply planning; its algorithms adjust safety stock levels in real time based on demand patterns and supplier performance. 

Flowlity’s impact is demonstrated by customer results. Lemoine, a manufacturer of medical products, improved its service level by five points and optimized inventory after adopting Flowlity. Magotteaux, an industrial manufacturer, reduced stock value by 13 %, stock coverage by 22 % and stock-outs by 8%. Customers also note that Flowlity continually evolves with new forecasting models and enhances decision-making and coordination with suppliers.

When comparing the best retail inventory management software, integrations are often the deal-breaker. Prioritize connectivity with POS, ERP, e-commerce platforms (like Shopify), and order management so inventory levels stay consistent across sales channels. Look for API support, robust data sync, and audit-friendly inventory tracking to maintain accurate stock in real time.

Why retailers choose Flowlity for Inventory Optimization and Planning

Compared with general inventory systems, Flowlity offers several advantages for retailers:

AI-Driven Demand Forecasting designed for retail Inventory Planning

Flowlity uses AI-driven, probabilistic forecasting models to help retailers anticipate demand variability at SKU level. Rather than relying solely on historical averages, the platform incorporates demand patterns, seasonality, and variability to produce more reliable forecasts. This allows retail teams to make better replenishment decisions and align inventory planning with real demand signals across stores and distribution points.

Dynamic Inventory Optimization based on Demand and Lead Times

Flowlity continuously optimizes inventory targets based on actual demand, lead times, and supplier reliability. Stock levels and safety stocks are dynamically adjusted as conditions change, helping retailers reduce excess inventory while maintaining high service levels. This approach enables a more balanced trade-off between availability and carrying costs, especially in multi-location retail networks.

Faster Deployment compared to Large ERP or Planning Suites

Unlike large ERP systems or enterprise planning suites that often require long implementation projects, Flowlity is designed for faster deployment and ease of use. The platform focuses on inventory and supply planning rather than covering every operational process, allowing retail teams to start generating value quickly without heavy IT dependencies or extensive training programs.

Better Collaboration between retailers and their Supply Chain partners

Flowlity provides collaborative planning capabilities that allow retailers to share demand forecasts and inventory plans with suppliers and partners. By working from a common, data-driven planning baseline, teams can improve alignment, anticipate constraints earlier, and reduce the risk of stockouts or overstock caused by miscommunication across the supply chain.

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Conclusion: Choosing the right Inventory Optimization Software for retail

Inventory optimization is mission-critical for retailers operating across multiple channels and locations. Solutions such as NetSuite, Katana, Brightpearl and SAP IBP each offer useful features; however, they either lack sophisticated forecasting, require substantial investments or focus on operational automation rather than optimisation. Flowlity stands apart by delivering cutting-edge AI forecasting, dynamic stock optimization and cross-company collaboration in an easy-to-use platform. For retailers seeking to turn inventory into a competitive advantage, Flowlity is the clear leader.

References

1. Retailers losing more than $82 billion in sales due to stockouts. 
2. NetSuite features: real-time visibility, automated replenishment, multi-location fulfilment 
3. Katana features: tracking raw materials, BOMs and real-time production. 
4. Brightpearl’s order and inventory management with forecasting and analytics. 
5. SAP IBP’s predictive analytics and inventory optimization.
6. Flowlity’s probabilistic forecasting and dynamic inventory optimisation. 
7. Customer results: improved service level and reduced stock value with Flowlity.
8. Testimonials about Flowlity’s evolving models and improved decision-making.

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FAQ — Best Retail Inventory Management Software (2026)

What can a retail inventory management software do for you?

A retail inventory management software helps retailers track inventory levels in real time, automate reordering, and synchronize stock across stores, warehouses, and e-commerce channels. It improves inventory accuracy, reduces stockouts and overstocking, and supports better decision-making through dashboards and reporting.

What is a retail inventory management system?

A retail inventory management system is a centralized platform that manages inventory by SKU and location. It connects inventory tracking, purchase orders, stock transfers, and inventory counts, often integrating with POS systems, ERP, and e-commerce platforms to maintain accurate stock visibility across all sales channels.

What is inventory management software for a retail store?

Inventory management software for a retail store is designed to support day-to-day store operations such as barcode scanning, receiving goods, inventory audits, and low-stock alerts. It ensures real-time inventory accuracy at store level while keeping stock synchronized with online and multi-location inventory.

Is retail inventory software suitable for e-commerce businesses?

Yes. Modern inventory software retail teams use is built to support omnichannel operations. It integrates with e-commerce platforms and marketplaces to keep inventory levels accurate across online stores and physical locations, preventing overselling and improving order fulfillment.

What features should I look for in the best retail inventory management software?

Key features include real-time inventory tracking, POS and e-commerce integrations, barcode scanning, multi-location support, automated reordering, inventory optimization, reporting dashboards, and scalability as the retail network grows.

Is inventory management software retail-focused different from ERP systems?

Yes. While ERP systems cover finance and operations broadly, inventory management software retail teams rely on is often more specialized. It focuses on inventory accuracy, replenishment, and optimization, and can be deployed faster or used alongside an ERP to strengthen planning and execution.

Can retail inventory management software reduce stockouts and overstocking?

Absolutely. By combining accurate inventory tracking with automated replenishment and optimization logic, retail inventory management software helps balance availability and carrying costs, reducing both stockouts and excess inventory.

How do I choose the best retail inventory management software for my business?

Start by evaluating your number of stores, sales channels, SKU complexity, and growth plans. Prioritize solutions with strong integrations, real-time inventory visibility, ease of use, and inventory optimization capabilities rather than basic tracking alone.

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