Cloud Based Inventory Software: What Manufacturers Actually Need

Aleksander Nowak · 2026-02-21 · Inventory Management

Cloud inventory for manufacturers, not retail. Why manufacturing needs differ, what features matter, and how to choose the right system.

Cloud Based Inventory Software: What Manufacturers Actually Need

Search for "cloud based inventory software" and you'll find dozens of options — almost all designed for retail and ecommerce. Track products on shelves. Sync with Shopify. Count items in warehouses.

That's fine if you're selling finished goods. But manufacturers have different problems. You're not just tracking products — you're tracking raw materials that transform into other things. You need to know not just "how many do we have" but "do we have enough to make what's on order?"

This guide explains what cloud inventory software actually offers, why manufacturing needs differ from retail, and what features matter when you're making products rather than just selling them.

What Is Cloud Based Inventory Software?

Cloud based inventory software runs on remote servers accessed through a web browser or app. Instead of installing software on a specific computer, you log in from anywhere with internet access.

The "cloud" part means:

No local installation. The software lives on the provider's servers, not your hardware.

Access from anywhere. Check inventory from the office, production floor, home, or phone.

Automatic updates. New features appear without manual upgrades.

Subscription pricing. Monthly or annual fees instead of large upfront purchases.

Provider handles security. Backups, encryption, and server maintenance are someone else's job.

This differs from traditional desktop software installed on specific machines, accessible only from those computers, requiring manual updates and local backups.

Cloud vs Desktop Inventory Systems

For most small manufacturers, cloud advantages outweigh the limitations. You get professional-grade software without professional-grade IT infrastructure.

Why Manufacturers Search for Cloud Inventory

When manufacturers search for cloud inventory software, they typically want:

Real-time visibility. Know what's in stock right now, not what the spreadsheet said this morning.

Multi-user access. Production, purchasing, and management all seeing the same data.

No IT burden. Focus on making products, not managing servers.

Work from anywhere. Check stock levels from supplier meetings or trade shows.

Lower startup cost. Monthly subscription instead of major capital expense.

These are legitimate needs that cloud software addresses well. The challenge is that most "cloud inventory" solutions assume retail workflows — track products in, track products out — while manufacturing involves transformation.

Manufacturing vs Retail: Different Inventory Challenges

Retail inventory is straightforward: products arrive, sit on shelves, and leave when sold. The item that arrives is the item that ships.

Manufacturing inventory involves transformation. Raw materials become finished products through processes that consume inputs and create outputs. This creates fundamentally different tracking requirements.

A retail inventory system tracks 50 jars of face cream on the shelf. A manufacturing inventory system tracks the shea butter, coconut oil, containers, and labels needed to make those jars — plus which batches of ingredients went into which production runs.

Core Features: What Every Cloud System Should Offer

Regardless of whether you're retail or manufacturing, baseline cloud inventory features include:

Real-Time Stock Visibility

See current quantities across all locations instantly. No waiting for overnight syncs or manual updates. When someone uses material in production, the number changes immediately.

Multi-Location Support

Track inventory across multiple warehouses, production areas, or storage zones. Know not just total quantity but where items physically are.

Low Stock Alerts

Get notified when materials or products drop below minimum levels. Prevent stockouts before they disrupt production or sales.

Barcode and QR Scanning

Speed up receiving, picking, and counting with mobile scanning. Reduce errors from manual entry. Most cloud systems support smartphone cameras or dedicated scanners.

Mobile Access

Check inventory, receive materials, or adjust quantities from phones and tablets. Essential for production floors where desktop computers aren't practical.

Basic Reporting

Export data, view stock history, analyze turnover. At minimum, you need to answer "what do we have" and "what moved recently."

User Roles and Permissions

Control who can view, edit, or delete inventory data. Give warehouse staff different access than managers or accountants.

Integrations

Connect with accounting software, ecommerce platforms, or other business systems. At minimum, look for accounting integration to avoid double-entry.

Manufacturing-Specific Features

Beyond baseline functionality, manufacturers need features that retail systems typically lack:

Bill of Materials (BOM) / Recipe Management

Define what materials and quantities go into each product. This is foundational — without BOMs, you can't calculate material requirements or production costs. A face cream recipe might specify 200g shea butter, 150g coconut oil, 50g beeswax per batch of 100 jars.

Material Consumption Tracking

When you produce something, the system should automatically deduct the materials used based on your BOM. Produce 100 jars of cream, and 200g of shea butter disappears from raw material inventory while 100 jars appear in finished goods.

Lot and Batch Tracking

Record which batches of materials went into which production runs. Essential for quality control and regulatory compliance. If a supplier reports a problem with a specific lot, you need to identify which of your products used that material.

Expiration Date Management

Track shelf life for materials and products. Get alerts before materials expire. For food, cosmetics, and other time-sensitive products, this prevents using degraded ingredients.

Work-in-Progress Visibility

See what's currently being produced, not just what's in storage. If 500 units are mid-production, that affects both material availability and product availability.

Production Cost Calculation

Calculate actual costs based on materials consumed, not just list prices. Track cost per batch, per unit, and over time as material prices change.

Unit Conversion

Handle materials purchased in one unit (kilograms) but used in another (grams). Automatic conversion prevents calculation errors and simplifies recipes.

Types of Cloud Inventory Solutions

Cloud inventory software falls into roughly three categories:

Simple Asset Trackers

Tools like Sortly focus on tracking physical items — tools, equipment, supplies. They handle "where is it" and "how many" but lack manufacturing workflows. Fine for tracking office supplies or equipment, not for production.

Typical pricing: $0-50/month Best for: Asset tracking, simple supply management, small retail

Ecommerce-Focused Systems

Platforms like SkuVault, TradeGecko (now QuickBooks Commerce), and Cin7 optimize for online retail. They excel at multi-channel selling, marketplace integration, and fulfillment workflows. Most handle basic inventory but assume products arrive ready-to-sell.

Typical pricing: $100-500/month Best for: Online sellers, multichannel retail, dropshipping

Manufacturing-Ready Platforms

Systems designed for production environments include BOM management, production orders, material consumption, and often MRP capabilities. They understand that inventory transforms, not just moves.

Typical pricing: $50-200/month for small manufacturer tools Best for: Batch production, food/cosmetics/chemical manufacturing, anyone making products from components

The mismatch happens when manufacturers try to force retail tools into production workflows. You can technically track raw materials in a simple inventory app, but you'll be manually calculating requirements, separately tracking production, and missing the connections that make inventory management actually useful.

Evaluating Cloud Systems: Questions to Ask

When comparing cloud inventory options, consider:

Does it understand BOMs? Can you define recipes and automatically calculate material needs?

How does it handle production? Is there a concept of production orders, batches, or work orders — or just inventory movements?

Can it track lots? Will you know which supplier batches went into which finished products?

What about expiration? Does it track shelf life and alert before materials expire?

Unit conversion? Can you purchase in bulk units and consume in recipe units automatically?

What integrations exist? Does it connect with your accounting software, ecommerce platform, or other tools?

What's the real cost? Monthly fee, per-user charges, transaction limits, and feature tiers all affect total cost.

How long to implement? Days? Weeks? Months? Complex systems may offer more features but require significant setup.

Benefits of Cloud for Manufacturing

For manufacturers specifically, cloud delivery offers advantages:

Collaboration across teams. Purchasing sees what production used. Production sees what's incoming from suppliers. Everyone works from the same real-time data.

Access during travel. Check stock from trade shows, supplier visits, or while working remotely. Make purchasing decisions with current data.

Lower barrier to entry. Sophisticated inventory management without enterprise IT investment. Start with monthly subscription, cancel if it doesn't work.

Automatic improvements. New features appear without migration projects. The software evolves while you focus on production.

Disaster recovery built in. Your inventory data survives even if your facility doesn't. Cloud providers handle redundancy and backups.

When Cloud Might Not Fit

Cloud isn't perfect for every situation:

Unreliable internet. If your production facility has spotty connectivity, cloud systems become frustrating. Some offer offline modes, but functionality is typically limited.

Extreme customization needs. Cloud platforms offer configuration within limits. Highly unusual workflows might require on-premise software with custom development.

Regulatory requirements. Some industries require data stored in specific locations or on controlled infrastructure. Verify cloud provider compliance before committing.

Very high transaction volume. Some cloud platforms have transaction limits or slow down under heavy load. Test with realistic data volumes.

For most small manufacturers, these concerns don't apply. Standard production workflows, reasonable internet, and normal data volumes work fine with modern cloud systems.

How Krafte Handles Cloud Inventory

Krafte is cloud-based inventory software built specifically for small batch manufacturers — not adapted from retail tools.

Manufacturing-native design. BOMs, production orders, batch tracking, and material consumption are core features, not add-ons. The system assumes you're making products, not just storing them.

Real-time visibility. See raw materials, work-in-progress, and finished goods across all locations. Know immediately when stock changes.

Lot traceability. Track supplier batches through production to finished products. Generate recall-ready reports when needed.

Expiration management. Monitor shelf life for materials and products. Get alerts before ingredients expire.

Multi-user access. Team members access from any device. Role-based permissions control who sees and edits what.

Quick setup. Import existing data, define recipes, and start tracking within days — not the months that enterprise systems require.

Accessible pricing. Monthly subscription starting at €7 with no long-term commitment. Cancel if it doesn't fit.

The goal is cloud convenience with manufacturing functionality — real inventory management for producers, not retail tracking with manufacturing awkwardly bolted on.

Frequently Asked Questions

What is cloud based inventory management?

Cloud based inventory management uses software hosted on remote servers, accessed through web browsers or apps. Instead of installing software on local computers, you log in from anywhere with internet access. The provider handles servers, updates, backups, and security while you pay a subscription fee.

Is cloud inventory software secure?

Reputable cloud providers typically offer strong security: encrypted connections, secure data centers, regular backups, and access controls. For most small businesses, professional cloud security exceeds what they could implement on-premise. Verify that providers use HTTPS, encrypt stored data, and maintain clear security practices.

What's the difference between cloud inventory and traditional software?

Traditional software installs on specific computers, accessible only from those machines, with manual updates and local data storage. Cloud software runs on provider servers, accessible from anywhere, with automatic updates and remote data storage. Cloud typically costs less upfront but requires ongoing subscription.

Can cloud inventory software work offline?

Most cloud systems require internet connectivity for full functionality. Some offer limited offline modes — viewing cached data or queuing transactions for later sync. If your facility has unreliable internet, verify offline capabilities before committing or ensure connectivity is addressed first.

How much does cloud inventory software cost?

Pricing varies widely: simple trackers from free to $50/month, ecommerce-focused tools from $100-500/month, manufacturing systems from $50-300/month for small operations. Enterprise platforms can cost thousands monthly. Evaluate based on features needed, users included, and any transaction or item limits.

How long does cloud inventory take to implement?

Simple systems can be operational within hours or days. More complex platforms with extensive integrations might take weeks. Enterprise systems often require months. For small manufacturers, look for solutions offering quick starts — if basic tracking takes longer than a week to set up, the system may be more complex than necessary.

Tags: Inventory Management