How ERP Prevents Stock Shortage and Overstocking

The Twin Inventory Killers: Shortage and Overstocking

Every Indian retailer and wholesaler battles two opposite but equally damaging problems. Stock shortage means customers leave empty-handed — you lose the sale and potentially the customer permanently. Overstocking means your capital is locked in slow-moving or expired goods — directly eating your profits.

Why Traditional Stock Management Fails

• Stock registers updated weekly or monthly — not real-time
• Physical counts take days and are often inaccurate
• No visibility into which products are moving fast vs slow
• Reorder decisions based on gut feel, not data
• Seasonal demand spikes catch businesses unprepared

How ERP Prevents Stock Shortage

1. Real-Time Stock Deduction

Every sale invoice reduces stock automatically. You always know the exact quantity available — not what was counted last week.

2. Reorder Level Alerts

Set minimum stock levels for every product. When stock falls below the reorder level, ERP sends an automatic alert — so you order before running out, not after.

3. Pending Orders Visibility

See all pending customer orders vs available stock. If incoming stock is needed to fulfill an order, you know before the delivery date — not on the day of delivery.

4. Supplier Delivery Tracking

Track purchase orders sent to suppliers and expected delivery dates. Never be caught off-guard by a delayed shipment.

How ERP Prevents Overstocking

1. Sales Velocity Reports

Know which products sell fast and which are slow movers. Use sales velocity data to make precise purchase quantities — not haphazard bulk orders.

2. Stock Aging Analysis

Identify products that have been sitting in your warehouse for 30, 60, or 90+ days. Plan promotions or returns before they become dead stock.

3. Purchase Order vs Sales History Matching

ERP compares your purchase quantities against actual sales history and suggests optimal order quantities — eliminating over-ordering.

4. Category-Wise Stock Reports

See total inventory value by category. If one category is inflated, reduce purchasing — with data to back up the decision.

MILAAN ERP Inventory Control Features