SMEs in Ahmedabad, Gujarat, face a variety of inventory management issues, including demand variations, stock-outs, managing SKUs, keeping track of goods and multichannel consumers. One potential solution to these challenges is to partner with an ERP software company Ahmedabad that can provide tailored inventory management solutions.

Inventory management involves all necessary efforts to ensure customers have the required product or service. It coordinates purchasing, production, and distribution operations to meet the marketing and organizational requirements of delivering the product to customers.

Inventory managers need to stock up using available storage space wisely to avoid over/under-stocking. They ensure the availability of materials whenever and wherever they are needed by maintaining a suitable amount and kind of stock. Also, SMEs in Ahmedabad can maximize their rate of return and minimize their business risk by optimally managing inventory.

Getting your goods to your customers on time is the lifeblood of your SME!

What Are the Most Common Inventory Management Challenges?

Inventory management is an uphill battle. Improving inventory management is crucial for enhancing cash flow and reducing expenses. Advanced inventory tracking software has largely replaced spreadsheets, hand-counted stock levels and manual order placement.

An inventory management system monitors inventory availability at every stage of your supply chain, from purchasing to production and finally to consumer sales.

Talking about the most common problems faced by the SMEs in Ahmedabad during inventory management, here are a few of the many explained –

Issues with Visibility

For SMEs with large warehouses, locating inventories can be a challenge – causing a lack of visibility. The ability to quickly locate the correct item in the right location is crucial for inventory management.


An Enterprise Resource Planning (ERP) software automatically tracks the movement of every inventory item by synchronizing production, sales, financial management, and warehouse management.

Inconsistent Tracking

Many SMEs still manage their inventories manually. Manual paper-based operations might be inconvenient as your business expands. It’s possible that your suppliers may occasionally deliver items late or with missing products.


Using centralized ERP software for SMBs can help avoid the legacy inventory tracking techniques across different applications and spreadsheets being time-consuming, redundant, and prone to mistakes.

Manual Documentation and Data Inaccuracy

Manual documentation is not a dependable practice in inventory management for an expanding company because it can quickly become destroyed, misplaced, or contain unreliable information, resulting in data inaccuracy.


While the ERP facilitates digital inventory records, the data that populates those records must be manually entered in some way. Regardless of your budget, barcode automation can benefit virtually any inventory operation by eliminating the need for tedious counts and data entry. It would possibly be best to opt for a barcoding solution that can easily integrate with your ERP.

Inability to Anticipate/Forecast

Predicting the trend and projections of inventory stock are critical. Inaccurate trend forecasting might also lead to the business failing to anticipate seasonal increases/decreases in demand. It also has an influence on production planning and cost overruns if not done properly.


ERP inventory management software connects with accounting and sales data to help you estimate demand and arrange orders based on evolving client preferences, material availability, or seasonal trends.

How Can SAP Business One ERP Software Help With Inventory Management Issues?

Inventory management involves analyzing sales trends, forecasting demand, placing orders for necessary materials, and organizing product storage in warehouses. The process starts either when a customer order is received or when demand is forecasted for on-demand production.

Top enterprise resource planning (ERP) systems like SAP Business One use a number of data sources to help businesses better understand the performance history of various SKUs (stock-keeping units).

SAP Business One improves efficiency across the supply chain!

Inventory Management with SAP Business One

SAP Business One allows you to manage inventory on a daily basis, which helps you streamline processes. SAP Business One features the Inventory module, which includes the following to improve inventory management:
  • Managing item master data records
  • Working with serial and batch numbers
  • Managing inventory transactions such as goods receipts, goods issues, inventory transfers and inventory counts
  • Managing price lists, including period and volume discounts and special prices
  • Working with the pick and pack process
  • Creating inventory-related reports

SAP Business One – Inventory Module

The core of logistics revolves around inventory management. SAP Business One lets you manage all items that you purchase, manufacture, sell, or keep in inventory. Services can also be defined as items.

The ‘Item Master Data’ under the Inventory module allows for the creation of new items and enables classification as either an inventory item, purchase item, or sales item.

SAP Business One - Inventory Module

  • Inventory items are linked to inventory transactions and are recorded in stock records. Non-inventory transactions involve services, labour, and utility usage that are not part of the inventory.
  • By designating an item as a sales or purchasing item, it can be used within the sales (accounts receivable) or purchasing (accounts payable) modules, respectively.
As shown in the image above, SAP Business One’s ‘Item Master Data’ allows you to enter basic item information such as the item number, description, and unit of measure (UOM). With the help of the following features of SAP Business One, it will automatically enumerate the specific SAP Business one benefits your SME in Ahmedabad can receive in managing inventory.
  • SAP Business One Item Master Data allows you to assign barcodes to items. Prior to SAP Business One 9.0, you could only enter one bar code per item, but later versions allow for an unlimited number of bar codes per item as well as an unlimited number of UOM.
  • You can manage items in SAP Business One using serial numbers or batches by using the ‘Item Management’ functionality.
  • SAP Business One Item Master Data serves as a centralized information hub for each item, allowing you to assign an item to a “preferred vendor(s)” and package quantities when purchasing that item.
  • You can set up an item’s valuation methods – choose to value your inventory using the available costing methods (Moving Average, Standard, FIFO).
  • SAP Business One allows you to create different price lists for items, such as base price, regular price, and discount purchase price, giving you the flexibility to offer your customers customized prices. Price lists can be linked together and associated with specific vendors or manufacturers.
  • Integrate Inventory Management and Warehouse Management– SAP Business One allows you to track goods receipts in a warehouse from purchase documents and goods issues from a warehouse for sales documents.

Warehouse Management with SAP Business One

Consider this analogy to help you understand the features and benefits of SAP Business One in managing your inventory.

Assume you have a shop with various rooms where you keep your products. Each room functions as a separate storage area, with a limited amount of space in each. You want to ensure that you always have enough products to sell, but not so many that you run out of room.

SAP Business One is now acting as a personal assistant for you. It assists you in determining how many products to keep in each room (or warehouse). You can specify how many of each type of product you should always have (minimum), how many you should never exceed (maximum), and how many you ideally want (required).

This way, you can be very selective about how many products you keep in each room and ensure that you always have enough to sell.

SAP Business One-Bin Locations

Continuing with our analogy, your large storage rooms are similar to a warehouse where you keep your products. Each little space where you store things in this warehouse is like a slot in a drawer. Each of these slots is referred to as a “bin location.”

SAP Business One-Bin Locations

Now, if you have a lot of things to store, it can be difficult to remember where you put each item. That’s where a specialized computer system like SAP Business One comes in. It assists you in organizing these bin locations and keeping track of everything you have.

You can enable a feature in SAP Business One that assists you in managing these bin locations. It’s like having labels on each slot so you know exactly where each item is. You can enable this feature for different areas of your warehouse.

Once you’ve enabled this feature, whenever you receive new items or remove items from the warehouse, you must record which bin location they are in. This helps you remember where you put items later and ensures nothing gets misplaced.

SAP Business One also assists you with other warehouse tasks such as packing and shipping. Assume you have some customer orders. The system has the ability to generate a list of items.

SAP Business One-Pick and Pack

SAP Business One is capable of helping you with other warehouse tasks such as packing and shipping. Consider you have some orders from customers.

The system, SAP Business One, can generate a list of items you need to locate, similar to a shopping list. The person in charge of picking these items takes the list and goes to the appropriate bin locations to find them. Once they have all of the items, they pack them and prepare them to be shipped to the customers.

It’s similar to preparing a large number of packages for delivery. You gather all of the items that must be included in each package, place them in boxes, and ensure that you have all of the necessary paperwork for the delivery.

SAP Business One-Pick and Pack

SAP Business One’s Pick and Pack feature contributes to the smooth operation of this process. It keeps track of what you have, where it is and facilitates you in getting things ready to send out to customers.

Looking for a reliable ERP software company to implement SAP Business One for your inventory and warehouse management needs?

VC ERP Consulting – Your Trusted Ally in Streamlining Your Business Operations

Choosing the right ERP software company to implement SAP Business One is critical to success. VC ERP Consulting manages a smooth process of planning, implementation, customization, and support, ensuring that each step is carried out with precision and finesse.

SAP certification is the mark of a trustworthy partner, and VC ERP Consulting proudly wears this distinction. VC ERP Consulting stands out due to our proven track record and specialized focus on inventory and warehouse management, making them the ideal choice for your business needs.

With a history of excellence spanning more than two decades, VC ERP Consulting is the pinnacle of expertise and innovation in the field of implementing ERP software, especially as an SAP Business One Implementation Partner Ahmedabad.

The impressive track record of serving over 200 customers from various industries reflects VC ERP Consulting’s dedication to excellence.

Our solutions are transformative as well as specifically tailored. These solutions are made with the intention of being both successful and affordable, providing their clients with real advantages.

Our unwavering dedication to customer support sets VC ERP Consulting apart from the competition.

In conclusion, the collaboration between SAP Business One and VC ERP Consulting gives you access to the best inventory and warehouse management. Choose VC ERP Consulting to access the full potential of SAP Business One and receive unmatched service and results.

Are you ready to get the future you want for your growing business? Get in touch with our experts at VC ERP Consulting, the best SAP Gold Partner in India, today.  Call +91 7948998911  or drop an E-mail at