Xero is obtaining new inventory management with LOCATE
Xero has recently announced it’s new acquisition with LOCATE Inventory - a powerful (albeit young) U.S. cloud-based inventory management provider. With the continuing growth of small businesses and the demand for more efficient ways to manage inventory, this move comes as no surprise!
If you own a small to medium goods-based business, this may be music to your ears. Managing inventory in conjunction with your cash flow can be complex, and with the additional changes of ecommerce channels set to increase alongside new customer expectations, it’s fast becoming critical to adapt your inventory management alongside your business into an efficient process (aka no more spreadsheets!).
Although Xero currently offers a wide selection of integrable apps to manage inventory (think Unleashed, Vend and Cin7 to name a few), the new acquisition means that Xero will be embedding within their own system LOCATE’s inventory and ecommerce capabilities to further enhance Xero’s own internal inventory management offering.
By providing their own more powerful local inventory solutions, Xero no doubt is planning to meet more of their small business users' needs, without the necessary need to connect additional applications. In turn, the updates will help meet SMB growing demands for better inventory and cash flow management tools.
CEO of Xero, Steve Vamos stated that the decision to work with LOCATE is because of its position as one of the most competitive workflow solutions in the US market.
In his own words, Vamos recently commented: “We selected LOCATE as it has some of the most comprehensive inventory-accounting workflows in the US market. LOCATE’s talented team has a deep understanding of inventory management and product capability to help us scale our cloud inventory management solution for small business, accountants and bookkeepers.“
Vamos also stated that the acquisition will aid in supporting Xero's strategic priority to grow the small business platform, strengthen its e-commerce offering and support future growth opportunities in North America and globally. We’ve broken down the top pointers you need to know with the new acquisition, and how it may help you.
The Acquisition details
Xero has noted that the rollout of their new LOCATE offering is expected to be launched for US customers first, before being made available in other global markets.
A forthcoming agenda and ETA for Australian markets is yet to be confirmed, but no doubt Xero will be putting this update as a high priority for local Aussie customers - considering Australia is the eleventh largest ecommerce market in the world, with ecommerce alone predicted revenue to grow to roughly USD32.3 billion by 2024 (YOY about a 15.5% increase).
As with most of Xero’s updates, customers will be notified when changes are to be made. You can expect to see an update with tutorials to take you through their new inventory management in conjunction with LOCATE as and when it rolls out.
What this means for Businesses
Depending on your business type and the current systems you have in place, this LOCATE update could be a major game changer for your business.
If you’re currently managing goods via spreadsheet, you’ll already know how time consuming managing stock can be - not to mention the errors that come with manually logging information. Xero is introducing this update for small, goods-based businesses that may not be large enough (in stock or financial capabilities) for an external inventory system. By offering this update, costs remain the same but management of goods and cash flow could truly help to scale your business and save you much needed time.
Better Inventory Management
Managing your inventory properly really is critical if you want a successful goods-based business. The acquisition of LOCATE for Xero will allow them to build a new inventory management solution based around your needs. In turn, this will help you!
What this could mean for you:
No more manual data entry and more time on more important tasks
Better management of cash flow and supply needs meaning less chance of over-purchasing!
Better, clearer decision making for pricing and in turn, profitability
A better chance at reaching more customers with ease of selling on new channels
Summary (and our recommendations)
As we’ve mentioned, with the LOCATE acquisition having just been confirmed and the
completion date still TBC there will be no doubt more updates and changes to come. If you’re a small business owner starting to get inundated with inventory issues (and subsequently, blurry cash flow) we recommend against waiting on this update and instead, looking into at least a temporary application solution until a set date is confirmed by Xero for their new inventory offering. For now though, you may start seeing some small changes very soon. As mentioned in their recent blog:
“In the meantime, our product teams will be getting our platform ready by updating our existing inventory solution in Xero. In the months ahead, you’ll notice some pages will have a fresh new look. These will include the product details page (including history and notes), as well as the workflows to edit an item, make an adjustment to stock, import an item and import an opening balance.”
With goods based businesses set to continue growing globally, Xero is definitely recognising its small business users changing needs, and the growing demands for their customers.
In addition to this new acquisition, Xero has also recently partnered with Ecommerce giant, Shopify. Read about it here.
Not sure where to start with better managing your inventory? There’s always an app for that! Gecko Cloud Solutions have a team of experienced application advisors for every business problem. Why not give us a call!