Inventory software for a small manufacturer has to do something a shop's inventory never does: turn one set of things into another. It needs to hold raw materials and finished products in their own units, know the recipe or bill of materials for each product, take the materials off stock when you make a batch and put the products on, cost each batch from what you actually paid, and, if you make food, cosmetics or anything with a date, keep every lot traceable. Then it has to do the shop's job too: count, reorder, receive and sell. Most software does one half well. Below is what a small manufacturer needs, in order, how the common kinds of software compare, a test week to run on any trial, and what it costs.
The short version
- Materials and products in their own units: buy by the case, use by the gram, sell by the jar.
- Recipes, with sub-recipes, so making a batch takes the right materials off stock.
- Batches that record what was used and what came out, and cost the result.
- Lots and dates, if anything you make or buy expires or could be recalled.
- Reordering by how fast stock goes, against how long suppliers really take.
- Counting that works where your stock is, including places with no signal.
- Run one real week through any trial before you decide. TaroStack is built for exactly this. More below.
What a small manufacturer needs, in order
| Need | Why it matters | Test it by |
|---|---|---|
| Materials and products, in their own units | Wax by the 50 lb case, used by the ounce; jars by the each | Buying a case, using ounces, and checking what's left |
| Recipes, with sub-recipes | A batch should take every material off stock in one step | Making a batch and checking every material moved |
| Batches with yield | What came out good is what you sell and what you cost | Recording a batch that made fewer than planned |
| True cost per unit | Prices move; a cost worked out once goes stale | Buying the same material at two prices, then costing a batch |
| Lots and dates | Recalls, expiry, buyers' traceability questions | Tracing a material lot to the customers who got it |
| Reordering | Running out stops production | Seeing what to order today, and why |
| Counting | The numbers drift without it | Counting a shelf on a phone, and seeing the difference's value |
| Selling | Orders, picking, the store connection | An order taking finished stock, oldest lot first |
The first four are what make manufacturing software different from store inventory. A system without recipes and batches can count your products, but every batch you make has to be entered by hand as materials down and products up, and the cost of a product is whatever you last typed.
The kinds of software, compared
| Kind | What it's built for | Where a small manufacturer hits the edge |
|---|---|---|
| A spreadsheet | Anything, by hand | Every batch, sale and delivery is typed; nothing updates anything else |
| Your store's built-in inventory | Counting what you sell | Turning materials into products isn't what it's for |
| Accounting software's inventory | The value of stock in your books | Recipes, batches and lots are limited or missing at small-business tiers |
| Manufacturing software for makers | Materials, recipes, batches, cost | Check lots, expiry, recalls and offline counting one by one |
Your store's inventory and your accounting software are worth keeping; the question is what sits between them. How Shopify handles raw materials is in Shopify raw materials inventory, what QuickBooks covers is in does QuickBooks have inventory management, and when a spreadsheet stops being enough is in inventory software vs spreadsheet.
A test week for any trial
Free trials are long enough to run one real week through. Do this, with your own items:
- Import your items and recipes from your spreadsheet, and check the units came across right.
- Receive a real delivery, including a material bought at a new price, with its lot and date.
- Make two batches, one that came out short, and look at what each one cost.
- Sell from the batch, through your store or by hand, and check the oldest lot went first.
- Count one shelf on a phone, in the place you would count it, and post the difference.
- Look at what to reorder, and whether it agrees with what you'd have ordered.
- Trace one material lot forward to the batches and customers it reached.
If any step needs a workaround on day one, it'll need one every day after.
What it costs
Inventory software for a small manufacturer usually charges by the month, and the price tends to grow with sites, people, sales channels or orders. Watch for three things: whether recipes, batches and lots are in the plan you'd buy or only a higher one, whether there's a limit on items or orders, and whether a setup fee or a sales call stands between you and the trial. A fuller comparison is in how much does inventory software cost.
Where this stops working
A spreadsheet and a store's inventory get a small manufacturer surprisingly far: the first year, a few products, one person who remembers everything. They stop working together on the day that person is sick, or the day a supplier recalls a lot of an ingredient used in six products, or the day the costs are worked out properly and three products turn out to be losing money. None of that is a software problem until it is.
How TaroStack does it
TaroStack is inventory and production software built for small makers, food, drink, cosmetics, candles and crafts, so the manufacturing half comes first.
Materials, recipes and batches. "Buy by the case, stock by the each, cook by the gram. TaroStack does the math." Recipes have versions and sub-recipes, like doughs, fillings and sauces, and a scrap %. Recording a batch takes each material off stock from the lots used, first-expired-first-out by default, notes them on the batch record automatically, and puts the products into a lot of their own. "What could I make right now" answers from the stock on your shelves.
True cost, every batch. Batches are costed from FIFO cost layers, freight and other landed costs included, divided by what came out good, with actual against standard cost. Margins are reported by product and by customer, and a price-creep report per supplier shows who's raising prices.
And the shop's half too. Counting works on a phone, tablet or printed sheet, with no signal, and shows what a difference is worth before you post it. The reorder list shows days of cover against suppliers' real lead times; purchase orders carry approval above a threshold you set. Lots, expiry and recalls run through everything, with one report from any lot to every customer. Connect your Shopify store or Square, and we set it up with you.
| The test-week step | In TaroStack |
|---|---|
| Import items and recipes | From CSV, with a preview of every row before anything is saved |
| Receive at a new price | FIFO cost layers; scan a GS1-128 case label for its lot and date |
| Make a batch that came out short | Costed on what came out good; recipe truth notices the yield |
| Sell, oldest first | First-expired-first-out by default |
| Count a shelf with no signal | Works offline, sends itself later |
| What to reorder | Days of cover, against real lead times |
| Trace a lot | One report, lot to every batch and customer |
No plan limits items. Starter is $49 a month for one site, up to three people and Shopify or Square, with recipes, batches, true cost, lots, expiry and recalls; Standard is $99 for up to three sites and ten people, with planning; Pro is $199 for up to seven sites, 25 people, an API and your own assistant. Pay yearly and two months are free. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.