What your Inventory Management system should be telling you

A little while ago, I ran a survey in the Australian Distillers Association Facebook group, asking how people were managing their stock. The results confirmed what I suspected, and that is most are using spreadsheets to keep their production and inventory records. I get it. They’re familiar, easy to use, better than nothing. But that doesn’t mean they’re the right tool.

It’s often said that the best time to introduce and start using software is at the start of the business, the second best time is now. The same goes for Inventory Management software for distilleries, wineries and breweries. You know that spreadsheets are a pain to keep up to date and frankly don’t give you the information that you need, when you need it. So let’s move on and, instead, look at what your Inventory Management system should be telling you.

Why your Inventory Management system matters

Inventory is one of your biggest investments and one of your biggest risks. Raw materials, packaging, and finished goods all tie up cash. If you’re not managing them properly, it’s easy to end up with shortages, write-offs, or bottlenecks in production.

It’s not just about how much stock you have, but whether you have the right stock, at the right time. Running out of capsules the week you’re meant to bottle. Reordering labels you already had in the storeroom but forgot about. Realising you’re short on botanicals halfway through a gin run. These things happen more than you’d think, especially when you’re relying on spreadsheets or memory.

A proper Inventory Management system gives you visibility and control. It helps you stay ahead of what’s needed, reduce waste, avoid delays, and make better decisions around production and purchasing.

What your Inventory Management system should be telling you

If your current system isn’t giving you these ten things, it’s time to stop using workarounds and put something better in place. You can’t make smart decisions with partial information. A proper Inventory Management system isn’t a luxury. It’s something your business needs if you want to stay on top of production, protect your margins, and plan with confidence.

1. Your current stock position in real time

You should know exactly how much you have on hand, whether it’s in barrels, bottles, the warehouse, or on consignment. A good system tracks this live, across all locations.

2. Stock movement and reconciliation

You need to see every movement in and out: what’s been used, sold, transferred, or written off. The system should also support stocktakes and make it easy to identify discrepancies.

3. Batch and lot tracking

This is critical for traceability. Whether it’s a barrel of whisky or a small gin run, you need to track each batch from start to finish, including any packaging used, and be able to trace that back if needed.

4. Production planning and forecasting

Your system should help you decide what to make and when. Based on current stock levels and sales trends, it should flag when you need to schedule your next bottling run or hold off until you clear slow-moving stock.

5. Cost tracking per unit

You need to know what each product actually costs you, including ingredients, packaging, labour, freight, and overhead. This helps protect your margins and set pricing confidently.

6. Automated tax calculations (GST, VAT, excise, WET)

Your Inventory Management system should handle the tax side properly. For Australian producers, that means calculating GST and either excise or WET, depending on the product. For the UK, it’s VAT and excise. These taxes affect your pricing and reporting, so you want those numbers right.

7. Expiry or maturation tracking

Whether it’s a ready-to-drink cocktail with a use-by date or a whisky that needs two more years in barrel, your system should tell you when products are ready or at risk of ageing out.

8. Sales and margin visibility by product

You should be able to see what’s selling, how fast it’s moving, and how profitable it is. That visibility helps you decide which products to focus on and whether it’s time to drop or rework something.

9. Integrated order management

Your system should link directly with your sales channels so inventory updates automatically when a sale is made. No more double handling or accidental overselling.

10. Alerts and reordering thresholds

When raw materials or packaging are running low, your system should flag it. Ideally, this includes built-in reorder points so you can plan ahead.

Final thoughts

Your Inventory Management system should do more than just count bottles and ingredients. It should give you the information you need to plan, produce, and price with confidence.

If you’re still relying on spreadsheets, or you’re using software that doesn’t give you this kind of visibility, it’s worth taking a step back and reassessing. The right system can save you time, reduce waste, help you avoid delays, and ultimately protect your margins.

Next steps

If your current setup isn’t giving you this level of insight, it’s time to take a closer look at how an Inventory Management system could support your next stage of growth.

I’ve put together a detailed guide on some of the options available for Australian distilleries, including pros and cons of different systems. You can read it here.

And if you’d like to talk through what you need from a system and what would suit your business best, book a call and we’ll go from there.