The ₹1 Lakh Inventory Problem Most Indian Shop Owners Ignore
Santosh runs a wholesale FMCG distribution business in Hyderabad with over 2,000 SKUs. Every month, he loses nearly ₹80,000 due to:
- Products going out of stock while demand is high
- Overstocking slow-moving items that block capital
- Expired goods discovered only during physical counting
- Theft and pilferage that goes undetected for months
Sound familiar? Poor inventory management is one of the biggest profit killers for Indian businesses — and it is 100% preventable with the right ERP software.
📦 Industry Fact: Studies show that businesses with poor inventory control lose 20–30% of their potential profits annually to stockouts, overstocking, and shrinkage.
What Is Inventory Management in ERP?
Inventory management in ERP means tracking every product from the moment it enters your business (purchase) to when it leaves (sale or disposal). ERP gives you a real-time view of your stock — what you have, how much, where it is, and what it is worth — all in one dashboard.
But modern ERP goes further. It also analyses your inventory data to tell you what to order, when to order, and in what quantity — so you always have the right products at the right time.
Key Features of ERP Inventory Management
1. Real-Time Stock Tracking
Every sale, purchase, and return instantly updates your stock count. You always know exactly how many units of each product you have in hand — without physically counting. This prevents selling products you do not have, saving you from customer disappointment.
2. Low-Stock Alerts
Set minimum stock levels for each product. MILAAN ERP automatically alerts you when stock falls below the threshold — so you can reorder before you run out. Never lose a sale due to stockout again.
Example: A supermarket in Bengaluru sets a minimum stock of 50 units for biscuits. When stock drops to 48 units, the ERP sends an automatic alert. The purchase manager places an order the same day — avoiding a stockout during peak hours.
3. Batch & Expiry Tracking
Critical for pharmacies and FMCG distributors. ERP tracks every batch number and expiry date. It alerts you before products expire, helping you sell older stock first (FIFO) and avoid losses from expired inventory.
4. Multi-Location Inventory
If you run multiple shops or warehouses, ERP gives you a consolidated view of stock across all locations. You can also transfer stock between locations and track movement in real time.
5. Purchase Order Management
Raise purchase orders directly from ERP based on current stock levels and sales velocity. When goods arrive, the system updates inventory automatically by matching PO vs received quantity.
6. Inventory Valuation Reports
Know the exact value of your current stock at any point in time — using FIFO, LIFO, or weighted average methods. Essential for accurate financial reporting and bank loan documentation.
Before vs After ERP — A Real Comparison
| Situation | Without ERP | With MILAAN ERP |
|---|---|---|
| Stock check | Physical count weekly | Real-time, any time |
| Low-stock detection | After stockout occurs | Automated alert in advance |
| Expiry tracking | Manual register | Auto-alert before expiry |
| Purchase orders | On gut feeling | Data-driven reorder |
| Stock value report | Month-end only | On demand, instant |
Benefits of ERP Inventory Management for Indian Businesses
100% Visibility
See all stock across all locations on one screen at any time.
Reduce Dead Stock
Identify slow-moving items early and liquidate before they become a loss.
Prevent Theft
Every item in and out is recorded. Discrepancies are flagged automatically.
Better Purchasing
Buy only what you need, when you need it — based on real sales data.
Save Time
No more monthly physical stock counts. Real-time accuracy always.
Happy Customers
Always have stock when customers need it. Build loyalty and repeat business.
Common Inventory Management Mistakes
No Minimum Stock Levels
Without reorder points, businesses discover stockouts only after angry customers complain. ERP lets you set minimum levels for every product.
Ignoring Slow-Moving Stock
Capital tied up in unsold inventory is a silent profit killer. Regular inventory analysis in ERP highlights slow movers before they become losses.
Not Reconciling Physical vs System Stock
This should be done monthly. ERP makes reconciliation easy by highlighting any discrepancies automatically.
Over-Ordering Due to Supplier Pressure
Ordering more than needed to get discounts blocks working capital. ERP shows you exact consumption rates so you can negotiate and order smartly.
Why MILAAN ERP for Inventory Management?
MILAAN ERP's inventory module is built for Indian businesses with these standout features:
- Live Stock Dashboard: See current stock levels, values, and movement on one screen
- Free SMS/Email Alerts: Get low-stock and expiry alerts on your phone automatically
- Barcode Support: Scan products for ultra-fast billing and stock updates
- Batch & Serial Tracking: Full batch number and expiry date management
- Multi-Warehouse: Manage stock across multiple shops or warehouses in one system
- Purchase vs Sales Analysis: See which products to buy more and which to cut down
- Mobile Access: Check stock levels from your phone while at a trade fair or supplier meeting
Learn more about our inventory features or compare our affordable plans.
Conclusion
Smart inventory management is the difference between a business that grows and one that stagnates. With real-time tracking, automated alerts, and powerful analytics, ERP inventory management helps Indian businesses reduce losses, free up working capital, and serve customers better.
MILAAN ERP brings all of this to your fingertips — without expensive IT infrastructure or complex setup. Start your 14-day free trial and take control of your inventory today.
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