What is Automated Inventory Management System? and How to Build it?

App Templates
September 12, 2022
10 minutes read
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Automation has been a crucial aspect of running a business. It is the process of controlling and monitoring business processes to decrease operational costs, improve efficiency, and increase productivity.

However, the concept of automation is often misunderstood by businesses. In this article, we'll share how automation can help to manage inventory levels with real-time reporting using simple and efficient mobile apps.

What is Automatic Inventory Management System?

An automatic inventory management system, also known as automated inventory control system, is a technology-based solution that streamlines inventory management by automating various tasks. This system is designed to accurately track inventory levels, orders, sales, and deliveries in real-time without the need for manual intervention.

The automatic inventory management system integrates with other business systems like point of sale (POS), ecommerce platforms, and Enterprise Resource Planning (ERP) software. It leverages technologies like barcoding, Radio-Frequency Identification (RFID), and Internet of Things (IoT) to track and manage inventory.

Here are some key functions and benefits of an automatic inventory management system:

  1. Real-Time Inventory Tracking: The system updates inventory levels in real-time as products are sold or restocked. This feature helps businesses avoid stockouts and overstocks, thereby reducing carrying costs and lost sales opportunities.
  2. Demand Forecasting: Using historical sales data and advanced analytics, the system can predict future demand for products, helping businesses plan their inventory purchases effectively.
  3. Reorder Alerts: When inventory levels fall below a predefined threshold, the system can automatically trigger alerts for reordering. Some advanced systems can even automate the purchase order process.
  4. Product Identification and Tracking: Using barcodes or RFID tags, the system can swiftly and accurately identify products, making inventory counts quicker and more reliable.
  5. Order Management: The system can manage customer orders from multiple channels, ensuring accurate and efficient order fulfillment.
  6. Reporting and Analytics: Businesses can generate detailed reports about sales trends, inventory turnover, slow-moving items, and more, providing actionable insights for decision-making.

Clappia - No Code Platform

Clappia is a No Code platform to create business-process apps without coding. Anyone with basic excel skills is able to create effective mobile apps, just by using simple drag-and-drop blocks, and effectively automate business processes.

Clappia - Data Input Blocks

With Clappia, your business allows consumers, retailers and manufacturers to seamlessly streamline their business operations. Through mobile apps, Clappia is creating a new standard for business process automation: harnessing both physical and digital resources towards a sustainable smarter way of doing business.

Inventory Management Automation in Clappia

Let us consider a bundle of mobile apps for Inventory Management already built and available to use on the Clappia App Marketplace:

  1. Inventory Master - This app is used to enter the list of all the items and their particulars in your inventory. 
  2. Stock Entry - This app is used to update the list of existing items in the inventory.
  3. Billing/Distribution - This app is used to bill the customer and issue invoices.

Automation Flow of Inventory Management Apps in Clappia

1.   Inventory Master - Enter the list of all the items and their particulars. This process is similar to entering the list of all the items and their particulars in an excel sheet manually.

The below image shows a basic layout of the Inventory Master app.

Item Bar Code - Scan the product's bar-code by clicking on the icon or enter a bar-code number manually.

Item Name - Enter the item name.

Make - Enter the brand/make of the item.

Model No. - Enter the model No. of the item.

Unit - Enter the unit corresponding to the item. (Kgs, grams, Liters, ml, Nos)

Price - Enter the Price per item.

2.   Stock Entry - Select an existing item and enter the new number of items to update the total number of units in stock in the inventory.

The below image shows a basic layout of the Stock Entry app.

Select Item - Select the existing item from your inventory and it will automatically fetch the details of the selected items automatically. (Current Stock, Item Bar code, Item Name, Unit, and Price will be fetched from the Inventory Master app).

This can be achieved by using the GET Data from other apps block. Learn more about fetching data from one Clappia app to another here.

New Stock - Enter the number of the new stock that has to be added to the existing item in the inventory.

Updated Stock - This will automatically calculate the updated stock that will be present in the inventory after submitting.

This can be achieved by using the Calculations & Logics block. Learn more about setting up automated calculations here.

3.   Billing/Distribution -  Generate invoices for your customers by entering the customer details and the details of their orders. Let us consider three sections namely, Customer Details, Item Detail 1, and Total.

The below image shows a basic layout of all the fields in the Customer Details section:

Customer Name - Enter the customer’s name.

Mobile No. - Enter the customer’s mobile number.

Email - Enter the customer’s email address.

Address -  Enter the customer’s address.

Below is an image of a basic layout of all the fields in the Item Detail 1 section:

Select Item - Select the item the customer is buying from you. The other details of the selected item are automatically fetched from the Master Inventory app. (Item name, Unit, Price, and Current stock will be fetched from the Inventory Master app).

This can be achieved by Get Data from other apps block. Learn more about fetching data from one Clappia app to another here.

Qty Required - Enter the number of units the customer wishes to purchase.

Sub Total - It will be automatically calculated. Use the Calculations & Logics block to configure automatic calculations.

This can be achieved by using the Calculations & Logics block. Learn more about setting up automated calculations here.

Click to - Select one option for:

Add another item - To create another section for items purchased by the user.

Delete next section - Click this if you do not want to create another section of items purchased.

Below is an image of a basic layout of all the fields in the Total section:

Total Price - This is the total price of the items to be purchased calculated automatically. This is achieved by using the Calculations & Logics block. 

Overall Discount% - Enter the discount percentage in numbers.

Total Price after Discount - This is the price automatically calculated by considering the discount. This is achieved by using the Calculations & Logics block.

GST - Enter the percentage of tax in numbers.

Final Price - This is the price that needs to be paid by the customer which is also automatically calculated through the Calculations & Logics block.

Clappia Mobile Apps work in Offline mode

In case of poor internet connection, the data filled in the Inventory Master app, Stock-In app, and Billing/Distribution app can still be submitted. All the data gets synced automatically once the smartphone is connected to a stable internet connection.

Automation of Inventory Management

Inventory management is a tedious and repetitive activity; it's easy to make mistakes and end up overpaying for goods, or undercharging. However, most manual processes are still in place as there is no time for filling the data and subsequent processing.

Manual processes require manual effort which slows down the entire process even further. The only way through which the inventory process would be simplified is by introducing mobile apps that help you monitor, manage and control your inventory allowing you to make better decisions when it comes to running your business.

Use these apps and automate the Inventory Management of your business - Clappia App Marketplace

Customize all the mobile apps in the Clappia App Marketplace suitable to your business needs and try them out for free.


1. What is an automated inventory management system?

An automated inventory management system is a computerized tool that enables businesses to efficiently track, manage, and control their inventory levels. It leverages technology and software to automate various inventory-related tasks, such as inventory tracking, stock replenishment, order fulfillment, and data analysis. By utilizing barcode scanning, real-time updates, and integration with other systems, an automated inventory management system provides accurate and up-to-date information on inventory levels, stock movements, and product availability. This allows businesses to optimize their inventory processes, reduce manual effort, minimize errors, and ensure optimal inventory control and management.

2. What are the advantages of an automated inventory system?

Implementing an automated inventory system offers several advantages for businesses:

a) Improved Efficiency: An automated inventory system streamlines inventory management processes, reducing manual effort and saving time. It automates tasks like inventory tracking, stock counting, and order processing, enabling businesses to handle inventory more efficiently and accurately.

b) Real-Time Visibility: With an automated system, businesses gain real-time visibility into their inventory levels, stock movements, and product availability. This allows for better decision-making, efficient order fulfillment, and minimizing the risk of stockouts or overstocking.

c) Enhanced Accuracy: Automated inventory systems reduce the risk of human errors associated with manual inventory management. By utilizing barcode scanning and automated data entry, businesses can achieve greater accuracy in tracking inventory levels, reducing discrepancies and improving overall inventory accuracy.

d) Cost Savings: Effective inventory management is crucial for cost control. By automating inventory processes, businesses can avoid overstocking or understocking, reduce carrying costs, minimize the risk of product obsolescence, and optimize inventory levels. This leads to cost savings and improved profitability.

e) Improved Customer Satisfaction: An automated inventory system enables businesses to fulfill customer orders promptly and accurately. With real-time visibility and efficient order processing, businesses can minimize order delays, backorders, and stockouts, resulting in improved customer satisfaction and loyalty.

f) Data-Driven Insights: Automated inventory systems provide valuable data and analytics on inventory performance, sales trends, and demand patterns. By analyzing this data, businesses can make informed decisions, identify opportunities for improvement, and optimize their inventory strategies for better profitability.

Implementing an automated inventory system brings efficiency, accuracy, real-time visibility, cost savings, improved customer satisfaction, and data-driven insights to businesses, enabling them to effectively manage their inventory and drive operational success.


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