B2B Inventory Management

B2B Inventory Management [Ultimate Guide]

By Team TranZact | Published on Oct 23, 2023

B2B Inventory Management is a challenging task for all industries. With the Internet of Things and other modern developments, B2B inventory management has created a new approach that has resulted in unique challenges and needs.

TranZact - Best Inventory Management Software

In this article, you will learn more about B2B Inventory, its advantages and challenges in detail.

What Is B2B Inventory?

B2B or business-to-business inventory is a physical stock sold by one business to another.

It differs from B2C inventory as business-to-consumer inventory buys products in small quantities. B2B inventory usually has considerable volumes to lower production, fulfilment, and shipment costs.

B2B inventory is standard in manufacturing industries. Manufacturers usually sell the produced goods to another manufacturer who uses these products as raw materials. When a business buys a product from another company in bulk order, the overall cost decreases. That's how the product is available at wholesale prices.

What Is B2B Inventory Management?

B2B inventory management database design is similar to an umbrella. It covers all small and large processes of production, manufacturing, and distribution of products, including storage.

B2B customers want products as raw materials that can be resold. Hence, the product they expect must be accurate, reliable, and on time. The main objective of B2B inventory management is to ensure order accuracy in minimum time and cost to improve performance.

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Challenges of B2B Inventory Management

Vendor managed inventory b2b requires dynamic solutions to fulfill its complex needs, which include real-time inventory control, omnichannel order management, virtual warehousing techniques, and EDI (electronic data interchange) integration.

Here are a few challenges that are common in business-to-business inventory management:

1. Higher Volume Orders

It is one of the most prominent fulfilment challenges that B2B orders are bulk orders. Picking, packing, and logistics of such orders can become difficult.

2. Higher-Value Products

B2B orders are usually of higher quality, focusing on better quality and performance. Businesses must align the platform to maintain such high-quality demands and regulate production more smoothly for bulk orders to keep inventory.

3. Cash Flow

B2B payments are important for smooth business operations. Usually, the sales payment cycle is about 30-90 days in terms of accounts receivables. A small gap in these payment schedules can cause massive trouble in reorder points and payroll issues.

4. Credit lines

B2B credit management checks accounts receivable activities and ensures business stays within their credit limit. Credit lines allow access as a form of credibility and increase brand image while settling payments.

5. Managing Inventory Risk

Some significant inventory risks can affect demand forecasting. If your business cannot sell inventory on time, the value of inventory products decreases slowly.

6. Preventing Returns

Returns in any business can be an expensive process. Businesses can minimize returns by using online platforms and automation. Automation makes returns fast, free, and painless.

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Benefits of B2B Inventory Management Software

B2B inventory management software can help businesses create new orders, update existing orders, and make payments more seamless and quick.

Here are a few benefits:

1. Lesser Manual Tasks

B2B software can automate all manual activities to make extensive order management more accurate and quick. It provides flexibility in managing various workflows and order processing as per customer needs.

2. Merge Sales Data

This software can blend sales data from multiple channels and help you track inventory from a single platform. It can allocate B2B orders better over the distribution channel.

3. Real-Time Inventory Visibility

Real-time visibility, ideal reorder levels, and stock alert functions are possible with B2B inventory management software, which tells the best time to buy new inventory without losing sales or overstocking.

4. Scalability to Grow Your Business

Scalability and flexibility in B2B inventory management are possible with software. It effectively handles inventory unavailability, delivery time, and seasonal fluctuations.

Key Features to Look for in B2B Inventory Management Software

Inventory management B2B database design's important features include flexibility, versatility, and better collaboration with other technology. These features make inventory managementsmooth and more adaptable.

Some key features of the same are mentioned below:

1. Easy-To-Use Interface

It should have an easy-to-use interface that reduces time spent on learning the software to get results. This will also decrease search time and allow you to meet your needs quickly with minimal training, support, or documentation in no time.

2. Real-Time Visibility

B2B inventory management databases must offer a reliable, secure system with real-time data and inventory visibility across all channels.

3. Purchase and Supplier Management

B2B inventory software should let you view the transaction history of your suppliers and buyers. The purchase and supplier functionality will help you to instantly generate volume discounts your suppliers offer for simplified purchasing.

4. Inventory Control

Inventory control is a fundamental part of a B2B inventory management database. Software that helps you to arrange products by type, location, and SKU (stock-keeping unit) is important for efficient inventory management.

5. Inventory Tracking

Tracking lets you observe the status of products within your supply chain, automatically developing tracking numbers by generating an invoice or receipt. It will help the customer to track their order status from when it was placed.

6. Cloud Infrastructure

Cloud technology has automated backups, secure access, real-time collaboration, and mobile apps that can easily communicate across multiple locations to regulate workflow.

7. Security

Inventory management software adds a layer of security to ensure the safe dispatch of orders after completion. Each order is tracked, and an effective inventory management system will guarantee the safety of orders placed.

Why Inventory Management Matters for B2B Companies

Inventory management is important for a company's health because:

  • it makes sure there is rarely too much or too little stock on hand, limiting the risk of stockouts and inaccurate records.
  • It can help you in keeping track of all your supplies and specify the exact prices.
  • It can also help you handle sudden changes in demand without sacrificing customer experience or product quality.

B2B Inventory Management With TranZact

With TranZact, Indian SMEs can do inventory management better and make the production process more efficient, timely, and accurate. With effective inventory management, businesses can boost production speed and track raw materials and order distribution better. Inventory tracking also allows businesses to manage operations accurately.

Are you still wondering about the importance of inventory management? Comment down below some of your preferred vital features about inventory management.


Q1. What are the benefits of using B2B inventory management software?

B2B inventory management software benefits include:

  • better productivity,
  • data security,
  • accurate inventory, and
  • minimum costs.

Q2. How does B2B inventory management help with order fulfilment?

B2B inventory management centralizes inventory data and blends the sales history of multiple channels in a single platform. It helps in the seamless and smooth production and distribution of products.

Q3. Can a B2B inventory solution track supplier performance?

A B2B inventory solution can track supplier performance and inventory tracking. It ensures customer satisfaction by accurate demand forecasting and therefore timely delivery.

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TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.