Are rising inventory costs eating into your profits? Mistakes in calculations, missing data, and errors in manual processes often lead to poor inventory management. This can cause overstocking, wastage, understocking, and last-minute buying at high prices. All of this increases your inventory expenses and affects your business growth.
The solution? A powerful Inventory Management Software like Marg ERP. It comes with the latest features and connects with other apps in the Marg ecosystem to give you full control over your inventory.
In this article, we’ll look at 6 effective ways to reduce inventory costs using smart inventory and accounting tools in India. Let’s get started.
How to Manage Inventory Cost with Inventory Management Software India?
Managing inventory cost is a big challenge for many businesses in India. Delays in the supply chain, rising input costs, and changing customer needs make it even harder to stay profitable.
Studies show that inventory costs can take up 25–30% of your total business expenses. These include holding charges, losses from expired items, and high-cost emergency purchases.
By using the right Inventory Management Software, you can cut down these costs, reduce waste, and boost profits. Here are six proven ways to do just that:
- Automated Stock Tracking Reduces Human Error
Manual stock entry is not only slow but also full of errors. With automated systems, there’s no need for manual data input. You get a clear view of what’s in stock, what’s selling, and what’s lying unused.
Automation lowers the risk of mistakes and improves tracking. Marg Inventory Management Software comes with barcode scanning, real-time updates, and goods received notes—all to help you save money.
Result: Less wastage, fewer errors, accurate billing, and better stock decisions.
- Real-Time Inventory Visibility Across Locations
If you have multiple stores, warehouses, or godowns, it’s hard to track stock manually. Inventory software solves this with real-time visibility across all your locations.
You can check stock levels at each outlet, move items internally, and plan purchases smartly. This avoids overstocking in one location and understocking in another.
Benefit: Lower holding costs and better customer service.
- Demand Forecasting to Avoid Overstocking
Many businesses overstock “just in case,” but this leads to dead stock and wasted money. Modern tools now offer AI-based demand forecasting.
These tools review past sales, market trends, and seasonal patterns to help you plan future orders. That means you stock just the right amount—nothing more, nothing less.
Result: Lower storage costs and less loss from expired items.
- Automated Reordering to Maintain Ideal Stock Levels
Running out of popular items can hurt your sales, but buying too often adds to delivery costs. With smart software, you can set reorder points and get alerts when stock runs low.
Once a limit is reached, the system can notify you or auto-send purchase orders to suppliers. This avoids emergency buying and keeps your stock at the right level.
- Batch and Expiry Management Reduces Waste
In industries like pharma, food, and cosmetics, managing expiry dates is critical. If stock expires, it’s a total loss.
Inventory software helps track batch numbers, expiry dates, and product shelf life. You can set alerts to clear near-expiry stock through offers or returns.
It also supports FIFO (First In First Out) and FEFO (First Expiry First Out) to ensure compliance and avoid loss.
- Better Supplier Management and Cost Control
Bad coordination with suppliers can lead to delays, high costs, or wrong deliveries. Good software records supplier data like pricing history and delivery times.
This helps you choose reliable vendors, bargain better, and reduce order errors. Some tools even allow ERP-to-ERP ordering—your system sends the purchase order directly to the supplier’s system.
Result: Faster, error-free procurement without calls or WhatsApp follow-ups.
How Marg Inventory Management Software Helps to Optimise Inventory Costs?
Marg ERP helps control costs through automation, tracking, and smart reordering. It gives you a real-time view of inventory across locations and connects with banking and accounting for smooth operations.
Here’s how Marg ERP supports inventory optimisation:
Real-Time Inventory Tracking
- Marg ERP lets you monitor stock levels at warehouses, godowns, and retail stores through a single dashboard.
- It gives alerts on low, excess, or near-expiry stock—so you can take action fast. This helps cut holding costs and avoid waste.
Automated Reordering
With Marg ERP, you can set reorder levels to get alerts when stock is low. This avoids costly last-minute buying and keeps your shelves stocked with popular items.
Streamlined Order Management
- Marg Inventory Management Software speeds up order handling. You can generate QR codes for special deals, which customers can scan to place orders instantly.
- It also manages sales orders, purchase orders, and vendor records in one place—cutting manual work.
Enhanced Efficiency and Reduced Errors
Marg ERP reduces manual effort by automating stock updates, orders, and supplier records. This lowers the chance of stockouts, overstocking, and entry mistakes.
Integration with Marg Pay, Connected Banking and More
- Marg ERP connects with banking, tax, and accounting tools for seamless data sharing.
- With integrations across Axis Bank, ICICI Bank, SBI, and J&K Bank, you save time, avoid duplicate entries, and run operations faster.
Reporting and Analysis
- Marg ERP provides detailed reports on stock flow, sales patterns, and demand trends.
- With these insights, you can plan better, avoid overbuying, and improve inventory decisions.
Conclusion
Inventory Management Software is essential for Indian businesses in 2025 and beyond. Whether you’re in retail, pharma, FMCG, or wholesale—smart tools help you cut costs, raise profits, and stay ahead.
If you want a trusted solution built for Indian needs, Marg ERP is the answer. It offers automation, accuracy, and ease of use—at a price that suits small and mid-sized businesses.
Start using Marg ERP today and turn your inventory into a profit-making asset.
