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ERP Builders

Solution · Operations

Inventory management you can actually trust

Inventory problems rarely look like inventory problems at first. They show up as late orders, emergency purchases, a stocktake adjustment that wipes out a month's profit, or customer service promising stock that is not there.
Operational dashboard: open orders, stock value and fulfilment trendOPERATIONS / WEEK 32OPEN ORDERS1,284ON-TIME SHIP96.2%STOCK VALUE$4.1MSHIPMENTS BY DAYDEMAND VS. SUPPLYDEMANDSUPPLY

Overview

Why this area matters

Inside an ERP, inventory is connected to purchasing, sales, manufacturing and accounting, so every movement has a cause and a financial effect. Getting the design right — locations, units, tracking and valuation — is what makes it reliable.

01Typical problems

Signs the current setup has run out of road

01

System stock ≠ shelf stock

Counts regularly disagree with the system, so nobody trusts availability.

02

Excess and shortages together

Cash tied up in slow movers while fast movers run out.

03

Valuation surprises

Inventory value on the balance sheet does not match operational reports.

04

No traceability

Cannot tell which lot went to which customer.

02Capabilities

What a well-built setup includes

01

Multi-location stock

Warehouses, zones and bins with real-time quantities and reservations.

02

Lots and serials

Traceability with expiry dates, removal strategies and genealogy.

03

Units of measure

Buy in cases, store in packs, sell in units with exact conversions.

04

Replenishment rules

Min/max, make-to-order and multi-warehouse resupply.

05

Cycle counting

Scheduled counts by ABC class or location with controlled adjustments.

06

Perpetual valuation

FIFO, average or standard cost with automatic accounting entries.

03Workflow

How the process runs end to end

  1. 01

    Receive

    Goods received against purchase orders with lots and quality checks.

  2. 02

    Store

    Putaway to locations by rule.

  3. 03

    Reserve

    Stock reserved for sales, production or transfers.

  4. 04

    Pick and ship

    Picking by strategy, packing and dispatch.

  5. 05

    Count and adjust

    Cycle counts with reasons and approvals.

04 — Technical notes

Design decisions worth getting right

Inventory is modelled as moves between locations, including virtual locations for suppliers, customers, production and scrap. This makes every quantity change traceable and lets the accounting impact be calculated consistently.

Costing method is chosen per product category and should be agreed with finance before go-live. Changing it later requires revaluation and creates reconciliation work, so we treat it as a design decision rather than a setting.

Where it applies

Industries, integrations and services

Insights

Related reading

Inventory2 min read

Barcode Scanning in the Warehouse: A Setup Guide

Setting up barcode scanning for receiving, putaway, picking, packing and counting: label standards, choosing scanners, GS1 barcodes and getting the ERP side right.

Inventory2 min read

Warehouse Management System (WMS): A Buyer's Guide

What a warehouse management system does, the features that matter for receiving, putaway, picking and shipping, and how to judge whether you need a WMS or your ERP is enough.

FAQ

Frequently asked questions

Which costing method should we use?

It depends on your products, accounting policy and tax rules. Average cost is common for distributors; FIFO for perishable or lot-based goods; standard cost for manufacturers. Decide with your accountant.

Can we track expiry dates?

Yes, with lot tracking and expiry dates, plus FEFO picking.

How do we improve stock accuracy?

Barcode scanning, labelled locations, controlled adjustments and regular cycle counts.

Next step

Inventory numbers you can't trust?

We will review your stock processes and system design.