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How we’re enhancing inventory management in Xero

Posted 4 weeks ago in Product by Anna Curzon
Posted by Anna Curzon

If you run a small, goods-based business, you’ll know that managing inventory well is critical to your success. But as the number and complexity of ecommerce channels continue to increase, and customer preferences continue to evolve, it can be overwhelming to manage inventory across multiple online and bricks and mortar stores. 

You may manage your inventory using Excel, but this can be manual, time consuming and prone to errors. And while there are a number of inventory solutions on the market, many aren’t suitable for small, goods-based businesses. This can make it hard to understand the true cost and demand of your products, potentially impacting your revenue and cash flow.

That’s why we’re acquiring LOCATE Inventory (LOCATE), a cloud-based inventory management provider based in the US. The LOCATE team will be joining Xero to help us enhance our existing inventory solution in Xero, so you can better manage your inventory and improve your financial performance. 

It’s still early days, but our vision is to provide an inventory management solution that will help you:

  • save time on manual and repetitive data entry, so you have more time to focus on tasks that help your business thrive
  • manage the balance of supply and demand in your business, so you don’t over-purchase stock and can better manage your cash flow
  • make smart decisions about how you price your products, so you can improve the profitability of your business
  • grow your business sales, by making it easier to sell on new sales channels and reach a wider audience

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.

This is all part of our work to upgrade the technology that underpins our platform, so we’re prepared to benefit from LOCATE’s inventory capability and expertise. As always, we’ll continue to listen to your feedback about what you’d like to see in Xero, so we can develop an inventory solution that gives you a complete picture of your profit margins by product and channel – all in the one place.


November 12, 2021 at 6.09 am

Please could you consider the following enhancement request when updating this area:

Allow negative quantities for tracked inventory items.

Justification: We allow customers to back-order items that aren’t in stock, but these orders then fail to load into Xero as it would make the quantity of an item negative. This is incredibly frustrating as we then have to remember to resend the order to Xero once we have ordered the items from our supplier.

Xero in reply to Charles Xero
November 15, 2021 at 3.21 pm

Hi Charles – thank you so much for sharing your suggestion with us, which has been passed on to the team.

December 3, 2021 at 9.48 pm

Yes I second that!

Xero in reply to Els Xero
December 6, 2021 at 2.50 pm

Thanks Els – we appreciate you sharing your feedback with us.

Tess Riley
November 17, 2021 at 6.25 am

Please sort out the user profile so that a warehouse manager can access inventory without having to have access to bank information. He cannot even access the stock levels and carry out checks without getting somebody to run the report for him! He cant find out which supplier a specific product comes from or check on the price. doesnt really make any sense!

Xero in reply to Tess Riley Xero
November 18, 2021 at 5.04 pm

Hi Tess, thanks so much for your comment. We will make sure it is shared with the team.

Donna Marcal
November 24, 2021 at 2.14 pm

omg yes!!! Would also love if warehouse staff can enter stock amounts without having to enter COGS. We don’t always need staff knowing our COGS. So if we somehow have a current COGS for an item and a warehouse staff and increase an inventory item at any time, without having to enter a COGS that would be fabulous!!

Xero in reply to Donna Marcal Xero
December 6, 2021 at 2.51 pm

Hi Donna – thank you so much for your feedback, which has been shared with our product team.

Saab Briar
November 20, 2021 at 10.19 pm

Please add facility to allow to make up inventory item from parts already in the inventory list

Xero in reply to Saab Briar Xero
November 22, 2021 at 4.45 pm

Hi Saab – thanks so much for your suggestion, which has been passed on to our product team.

November 23, 2021 at 3.43 pm

Please add the ability to do variations of a product and manufacturing or building a product from parts brought in as inventory as for ecommerce businesses this is a crucial part.

Xero in reply to Amy Xero
November 24, 2021 at 2.02 pm

Hi Amy – thanks for sharing your suggestion with us, which has been passed on to our product team.

November 30, 2021 at 9.01 pm

Please add warehouse and transfer between warehouses because this is the most important one when it comes to inventory management.

Xero in reply to Syaif Xero
December 1, 2021 at 3.15 pm

Thanks for your suggestion, which has been shared with our product team.

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