The Problem: Lost Sales and Dead Stock Piling Up
A regional electrical components distributor was grappling with two painful realities. Their warehouse held over $500k in slow-moving items, yet sales reps regularly turned away orders because popular products were out of stock. The root cause: inventory data lived in three separate spreadsheets, updated weekly at best. Purchasing managers ordered based on gut feel, and no one had a real-time view of what was actually selling.
How ERPNext Solved It
The company deployed ERPNext’s inventory module to centralise all stock records. Key changes included:
- Automated reorder levels – ERPNext calculated min/max quantities based on historical sales velocity and lead times.
- Real-time stock tracking – every purchase receipt, sales delivery, and internal transfer updated inventory instantly.
- ABC analysis – the system flagged A-items (high value, fast movers) for daily monitoring and C-items for periodic review.
- Batch and expiry tracking – for products with shelf life, ERPNext sent automatic alerts before expiry.
The Improved Result
Within three months, stockouts dropped by 60%. Excess inventory of slow movers was gradually returned to suppliers or sold off through promotions. The purchasing team now spends 70% less time on manual order creation, and the warehouse team can confidently commit to delivery dates. “We used to react to crises,” says the operations manager. “Now we plan ahead with ERPNext telling us exactly what to buy and when.”