Inventory management software is a computer-based system for tracking inventory levels, orders, sales and deliveries.^[1] It can also be used in the manufacturingindustry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets. It is often associated with and is similar todistribution software, as distributors that can compete with less cash tied up in inventories have a distinct advantage over their competitors.^{[citation needed]}