9+ Benefits To Using Cloud Inventory vs. More Traditional Inventory Systems

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Traditional inventory systems, like manual inventory tracking or on-premise software, require businesses to invest in hardware, software, and personnel to manage their inventory.

These systems often involve extensive paperwork and manual data entry, and can be time-consuming and error-prone.

By leveraging cloud computing, businesses can access powerful cloud inventory management, get real-time insights and seamlessly integrate with other systems.

This article explores the key benefits of cloud inventory management systems and how they compare to traditional inventory systems. We’ll cover cost savings, scalability, real-time tracking, flexibility, accessibility, integration, security, ease of use, and improved customer satisfaction.

Let’s dive in and look a little deeper at the benefits of managing your inventory in the cloud.

The benefits of cloud-based inventory management

Cost savings

Implementing cloud-based management software leads to significant cost savings for businesses.

With cloud computing, businesses can avoid the high upfront costs associated with purchasing and maintaining hardware and the ongoing expenses of software licenses and updates.

Businesses only pay for what they need with a pay-as-you-go model, which ensures better cost control.

Moreover, cloud management systems decrease the likelihood of human errors and expensive management blunders.

Reduced hardware and infrastructure costs

Notably, cloud management software saves businesses money by eliminating the need for expensive hardware and infrastructure.

Traditional management systems often require servers, storage devices, and other equipment, which can be pricey to purchase, maintain, and upgrade.

In contrast, cloud-based management relies on remote servers and storage, enabling businesses to cut back on hardware and infrastructure expenses.

Lower software licensing and maintenance fees

Inventory management solutions in the cloud typically use a subscription-based pricing model, which can be more cost-effective than traditional licensing fees.

Subscription pricing lets businesses pay for only the resources they need, with the flexibility to scale up or down as their requirements change.

Furthermore, cloud software generally includes updates and maintenance within the subscription cost, reducing ongoing expenses tied to software maintenance.

In contrast, traditional systems usually come with high upfront costs, ongoing maintenance expenses, and require dedicated IT personnel.

Cloud management provides a more cost-effective approach, offering lower initial investment and predictable monthly expenses.

Streamlined inventory management processes

Cloud management systems also help businesses cut costs by streamlining inventory and order management processes.

Automation features, such as barcode scanning, diminish manual tasks and enhance the efficiency of inventory control.

This increased efficiency can cut labor costs and minimize the risk of expensive errors.

Cloud management solutions also offer advanced analytics and real-time data, enabling businesses to more accurately forecast demand and manage inventory and stock levels.

This way, companies can avoid both overstocking and stockouts.

By implementing a cloud-based inventory system, businesses can experience broader improvements in order management, supply chain management, and overall business operations.


Unlike on-premise software, cloud-based software is highly scalable, allowing businesses to easily grow or shrink their operations without major infrastructure changes.

This is because another entity (namely, the software provider) is responsible for running your servers and expanding or shrinking your server usage based on your business needs.

As a business expands or experiences fluctuations in demand, the cloud inventory system can accommodate these changes.

Cloud management systems are designed to adapt easily to changes in a company’s size or inventory needs without significant costs or disruptions.

This scalability also allows businesses to allocate resources more efficiently. Businesses can ensure they are not overpaying for unnecessary features or capacity while having access to the necessary tools and resources to manage their inventory effectively.

Traditional inventory systems may struggle to keep up with the needs of a growing business and may require additional hardware and software investments.

In short, cloud management provides a more adaptable solution that can be scaled up or down easily.

Real-time tracking

Cloud management software offers real-time inventory tracking, allowing businesses to monitor stock levels, sales orders, and purchase orders continuously.

This real-time data enables businesses to make informed decisions, prevent stockouts or overstocking, and optimize supply chain processes.

Improved decision-making and inventory control

With up-to-date information, businesses can quickly identify trends, anticipate future needs, and make strategic decisions to optimize management.

Reducing stockouts and overstock situations

By having access to accurate data, businesses can react promptly to changes in demand and ensure they always have the right amount of inventory on hand.

Continuous, real-time inventory data improves customer retention and reduces inventory costs.

Traditional inventory systems, on the other hand, typically rely on periodic updates, which can lead to outdated or inaccurate information.


Cloud management software offers flexibility in terms of features and customization. Businesses can choose from a range of management solutions with varying levels of functionality, industry-specific features, and integration options.

With this flexibility, businesses can select the best management system to meet their unique needs and requirements.

And as companies grow or their requirements change, cloud management systems can be easily updated or customized to accommodate these changes.

Support for multiple warehouses and complex supply chains

Cloud management systems can also support businesses with many existing warehouses or plans for expansion.

It’s designed to help you manage inventory across various locations and track inventory throughout the supply chain – no matter the complexity of a business.

Traditional inventory systems often lack cloud management software’s flexibility.

For instance, they may be limited in terms of customization and integration options, making it challenging for small businesses to adapt the system when expanding.


One key benefit of using a cloud inventory solution is that all it requires is an internet connection to access your cloud data from anywhere.

This means you can manage your inventory, track stock levels, and monitor sales from any device with internet access. Adding new locations, warehouses, and suppliers is simple.

Expanding a business doesn’t require additional instructure.

Cloud management systems can be accessed from a variety of mobile devices and platforms, including desktop computers, laptops, tablets, and smartphones.

This feature is particularly useful for businesses with remote employees, staff members who frequently travel, or operations dispersed across multiple locations.

Streamlined training and onboarding for new employees

The accessibility of cloud management systems also simplifies the training and onboarding process for new employees.

Because the system can be accessed from anywhere, new team members can familiarize themselves with the software and begin managing inventory with minimal downtime.

This can increase efficiency and reduce training costs for businesses.

On the reverse, traditional inventory management systems typically require on-site access, limiting the ability of employees to manage inventory remotely.

Improved collaboration and communication

Cloud asset management systems centralize data, making it easily accessible to all relevant team members.

This boosts collaboration within the team, as employees can quickly share information and make data-driven decisions together.

Many cloud-based inventory management software solutions offer instant updates and notifications, so team members can stay informed about inventory changes in real time.

This enhances communication within the team and ensures everyone is on the same page when it comes to managing inventory.

Traditional inventory systems often involve disjointed communication and collaboration, with data spread across multiple locations or systems.

Cloud management centralizes this information and facilitates better teamwork.


Another advantage of cloud inventory systems is their seamless integration with other essential business tools.

From a barcode scanner to SaaS systems and an ERP system, a cloud inventory solution supports easy data exchange between various tools. This ensures your cloud inventory information remains up-to-date and accurate, which helps prevent stockouts, reduce errors, and fuel business growth.

Seamless integration with eCommerce tools

Cloud management software often includes seamless integration with popular eCommerce platforms and marketplaces, like Amazon, eBay, and Shopify.

This integration enables businesses to efficiently manage their inventory across multiple sales channels – ensuring accurate stock levels, timely order fulfillment, and improved customer satisfaction.

Integration with accounting software and other business tools

In addition to eCommerce integrations, cloud management systems can also integrate with accounting software and other essential business tools.

This integration helps businesses streamline their operations and gain valuable insights by connecting their data with financial information and other relevant metrics.

By automating data sharing between different systems, businesses can save time, reduce manual errors, and improve overall operational efficiency.

Integration with other software can be more complicated and time-consuming in traditional inventory systems as you work to customize an unwieldy solution.

Cloud asset management systems offer a more straightforward and efficient approach to integrating with other essential business software.


Cloud management software providers prioritize data security, using advanced encryption and security protocols to protect sensitive data.

Data is also regularly backed up, minimizing the impact of data loss or system failure.

This ensures that businesses can quickly recover their entire inventory of data in case of an unexpected event, such as a server failure or cyber attack.

Notably, security measures may include data encryption, both during transmission and while stored in the cloud, to prevent unauthorized access.

This level of security is essential for maintaining customer trust and meeting regulatory requirements.

Traditional inventory systems, however, may lack the same robust security measures. As a result, businesses using these systems may face a higher risk of data breaches or data loss.

Ease of use

Cloud-based inventory management systems like SkuVault are often designed with user-friendliness in mind. They provide an intuitive interface that makes it easy for employees to navigate and manage data.

Automated workflows further enhance the user experience, and reduce the time and effort required to complete common tasks.

Importantly, reporting and analytics features are also easy-to-use.

Many systems provide customizable reports and dashboards, so you can quickly access and analyze essential inventory data.

To contrast, traditional inventory management systems can be more complex and harder to navigate, with a steeper learning curve for employees.

Environmental benefits

Cloud management systems can have a positive impact on the environment by reducing paper waste, energy consumption, and – ultimately – your carbon footprint.

For instance, as businesses shift towards digital record-keeping and data storage, they reduce the need for physical paperwork.

These cloud-based solutions also can contribute to environmental sustainability by consuming less energy than on-premise hardware.

Reduced paper usage

Switching to a cloud management system can significantly cut paper usage within a business.

By digitizing inventory processes, businesses can minimize their reliance on paper records and reduce their environmental footprint.

Lower energy consumption

Cloud management inventory software typically requires less energy to run than traditional inventory systems, as data centers use more efficient cooling and energy management.

This reduced energy consumption contributes to a greener, more sustainable business.

Customization and industry-specific features

Many cloud management systems offer customization so you can tailor the inventory software to your specific processes and requirements.

Some cloud management software providers also offer industry-specific features and integrations. This ensures the entire system itself is optimized for the unique needs of a particular industry.

Plus, since cloud-based systems are updated often, they can easily adjust to new industry standards, regulations, or best practices. This adaptability ensures that businesses can maintain compliance and stay ahead of the competition in their respective industries.

Addressing common concerns for cloud inventory software

Data ownership and control

One concern businesses may have when adopting cloud inventory management software is data ownership and control.

It’s important to choose a provider that clearly outlines data ownership policies and guarantees that businesses maintain full control over their systems and data.

By selecting a reputable software solution, companies can mitigate this concern and ensure that their data remains secure and under their control.

Downtime and reliability concerns

Another concern businesses may have when using cloud inventory management systems is the reliability of the system and the potential for downtime.

Reputable cloud-based inventory management system providers typically offer Service Level Agreements (SLAs) that guarantee high levels of uptime, ensuring that businesses can consistently access their data and manage their stock levels without disruption.

Careful consideration of providers’ SLAs can help alleviate concerns about reliability and system availability.

Finding the best cloud-based inventory management solution

In short, a cloud inventory solution offers numerous benefits over traditional inventory systems, including cost savings, scalability, real-time tracking, flexibility, accessibility, integration, security, and ease of use.

By adopting a cloud management system, businesses can streamline their inventory processes, improve efficiency, and ultimately drive business growth.

Before committing to a cloud inventory management system, however, it is essential to research and test different options to find the one that best suits your business needs.

Many providers offer a demo of their inventory management software, so you can see the features and functionality firsthand.

This can help you make an informed decision and select the right cloud inventory solution and management system for your company.

Look for a comprehensive set of features, including real-time data, barcode scanning, and integration with other essential business software.

We also recommend checking out SkuVault’s cloud inventory management solution.

With a focus on customer satisfaction, SkuVault can help businesses of all sizes manage their inventory more effectively, meet customer expectations, and stay ahead in a competitive market.

By taking advantage of the latest in cloud computing and inventory management technology, businesses of all sizes can benefit from a more effective approach to their inventory.

Matt Kenyon

Matt Kenyon


Matt has been helping businesses succeed with exceptional content, lead gen, and B2B copywriting for the last decade. When he’s not typing words for humans (that Google loves), Matt can be found producing music, peeking at a horror flick between his fingers, or spending quality time with his wife and kids.