Key takeaways
- Core Stock Control Requirements
- Warehouse and Branch Requirements
- Batch, Expiry, and Serial Tracking
- Approvals, Audit, and Compliance
Choosing inventory software is difficult because most demos show the same surface features: products, stock in, stock out, and reports. A serious Kenyan SME needs to go deeper. The system must protect cash tied up in stock, support multiple branches or warehouses, keep audit evidence, and connect inventory activity to sales, purchasing, and accounting.
Use this checklist when comparing inventory systems, writing a procurement brief, or evaluating whether a spreadsheet-based process is ready to move into software.
This checklist is built for SMEs that sell physical goods, manage stock across branches, receive supplier deliveries, issue invoices or delivery notes, and need a reliable audit trail.
Core Stock Control Requirements
| Requirement | Why it matters | Questions to ask |
|---|---|---|
| Real-time stock balance | Prevents selling stock that has already been issued, reserved, or transferred. | Does every sale, return, transfer, stock take, and adjustment update stock immediately? |
| Stock movement ledger | Creates evidence for every physical stock change. | Can we see who changed stock, when, why, and which document triggered it? |
| Opening stock controls | Stops migration errors from polluting future reports. | Can opening stock be reviewed, locked, and traced separately from new movements? |
| Negative stock prevention | Protects gross margin, COGS, and customer promises. | Can the system block or route negative stock through approval? |
| Committed stock | Separates available stock from stock already promised to customers. | Does available stock equal physical stock minus committed demand? |
Warehouse and Branch Requirements
- Multi-warehouse stock balances with branch-specific availability.
- Transfers with dispatch, in-transit, and receipt stages.
- Bin or location tracking for stores that need shelf, aisle, room, or cage control.
- Warehouse-specific reorder points and safety stock.
- User access controls so staff can only operate allowed warehouses.
- Transfer notes or printable movement evidence for drivers and storekeepers.
Batch, Expiry, and Serial Tracking
If you sell electronics, pharmaceuticals, cosmetics, food, spare parts, or imported goods with warranty requirements, batch and serial tracking may be non-negotiable. The system should track batch numbers, expiry dates, serial numbers, recall status, and the document that introduced or removed each unit.
| Tracking need | Business example | Software requirement |
|---|---|---|
| Batch tracking | Food, medicine, cosmetics, chemicals | Receive by batch, report by expiry, freeze recalled batches, and trace sales by batch. |
| Serial tracking | Phones, laptops, equipment, appliances | Capture serials at receipt, transfer, sale, return, damage, and warranty events. |
| Expiry control | Perishable goods and regulated stock | Show expiring stock, support FIFO picking, and prevent accidental sale of expired items. |
| Recall workflow | Supplier quality issue | Put stock on hold, record reason, and release or dispose with audit evidence. |
Approvals, Audit, and Compliance
Inventory is cash. A good system should treat stock adjustments, stock-take variances, transfer cancellations, and reconciliation repairs as controlled events. For larger teams, approvals and separation of duties are essential because the same person should not always be able to request and approve a high-risk stock change.
- 1Define approval thresholds by quantity, value, warehouse, and reason code.
- 2Record requester, approver, decision note, and application evidence.
- 3Keep an immutable stock movement ledger for audit review.
- 4Export audit logs and stock evidence for accountants or external reviewers.
- 5Lock closed periods so historical stock and COGS cannot silently change.
Reporting Requirements
| Report | What it should answer |
|---|---|
| Stock on hand | What quantity and value do we hold by item, warehouse, and category? |
| Stock valuation | What is the cost-layer value, item value, and GL tie-out position? |
| Reorder report | What needs buying now based on reorder points and safety stock? |
| Aging and slow-moving stock | Which items are tying up cash or likely to expire? |
| Stock movement audit | Who changed what, when, and against which document? |
| Reconciliation report | Where do item totals, warehouse totals, batches, serials, and ledger balances disagree? |
Vendor Evaluation Scorecard
Score each vendor from 1 to 5 on the requirements below. A system that scores well on product creation but poorly on approvals, audit, or reconciliation may be fine for a small shop, but it will struggle as soon as the business adds branches, stock controllers, or formal month-end reporting.
| Area | Weight | Score notes |
|---|---|---|
| Core stock ledger | 20% | Every physical movement is traceable and idempotent. |
| Warehouse operations | 15% | Bins, transfers, putaway, cycle counts, and reorder rules are supported. |
| Batch and serial tracking | 15% | Lifecycle, expiry, recall, and return evidence are complete. |
| Accounting and valuation | 20% | FIFO or weighted average, COGS, landed cost, and close snapshots are supported. |
| Governance | 15% | Approvals, period locks, exceptions, and audit exports are available. |
| Usability and support | 15% | Staff can operate it daily without complex workarounds. |
Useful Vendly Resources
- Use the free invoice generator when you need a quick sales document without opening a full account.
- Use the free purchase order generator to standardize supplier orders before goods are received.
- Use the inventory module in Vendly when you need stock movements, approvals, valuation, warehouse controls, and audit evidence in one system.
