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One of the most important competitive advantages large companies have over smaller ones is efficiency in managing inventory. Through electronic inventory tracking systems using inventory software, larger companies have real-time counts of all items in stock and the ordering of replenishment stock is done automatically based on the count in the computer.

These days, the availability of electronic inventory tracking solutions puts the competitive advantage back in the small businesses' favor. Now, not only can the local business compete on price, but they are still able to maintain the same level of customer service that draws their customers in the first place.