ERPNext for Distribution & Logistics

Distribution businesses live or die on inventory accuracy and order-to-cash speed. A distributor running ERPNext gets one stock number across every warehouse, batch and expiry tracking where it actually matters, and an order-to-delivery process that doesn’t depend on a phone call to the warehouse to confirm what’s in stock.

The distribution-specific problem set

Multi-warehouse stock that doesn’t reconcile. When each warehouse or branch keeps its own informal count, head office never gets a real-time, trustworthy inventory picture. That usually means stockouts in one location and dead stock piling up in another, at the same time.

That usually means stockouts in one location and dead stock piling up in another, at the same time.

Batch and expiry management. Distributors of pharma, FMCG, or perishable goods need first-expiry-first-out (FEFO) discipline and expiry alerts. Skip that discipline and expired stock either gets sold, a compliance risk, or written off, a margin loss, more often than it should.

Order-to-cash friction. Manual order entry, disconnected invoicing, and delayed dispatch confirmation stretch the cash cycle and create reconciliation work every month-end.

No visibility into delivery or logistics performance. Most distributors can’t easily answer which routes or customers are actually profitable once delivery cost is factored in, not without exporting data manually and rebuilding it in Excel.

Price lists and customer-specific terms that live outside the system. Distributor pricing is rarely one price per item. Volume discounts, customer-tier pricing, and scheme-based pricing often get tracked informally, which creates billing errors and margin leakage.

How we approach a distribution implementation

1. Map the actual order-to-cash flow as it runs today, including the informal steps (a call to the warehouse to check stock, a WhatsApp confirmation of dispatch) that reveal where the real gaps are.
2. Design the warehouse structure in ERPNext to match how stock is genuinely held and moved: multiple warehouses, in-transit stock, consignment stock where relevant, rather than forcing a single-warehouse model onto a multi-location business.
3. Configure batch and expiry tracking with FEFO wherever the product category requires it, tied to the compliance obligations that actually apply.
4. Build the pricing and discount structure into ERPNext’s pricing rules so customer-specific terms are enforced by the system, not remembered by a salesperson.
5. Add delivery and route reporting once the core order-to-cash flow is stable. This is a Data, BI & Dashboards extension, not a day-one requirement.

Mapped services & ERPNext modules

The table below maps each distribution pain point to the ERPNext for distribution module that solves it. For a deeper look at core platform capabilities, see the official ERPNext product page.

Distribution ERP readiness checklist

Before scoping ERPNext for distribution, run through this readiness checklist.

• You can state, right now, your total stock value across all locations with confidence, not an estimate.
• Batch/expiry tracking is a stated requirement for at least some of your product lines.
• Your current pricing structure (discounts, customer tiers, schemes) is documented somewhere other than a salesperson’s memory.
• You know your order-to-delivery cycle time today, even roughly.
• More than one person needs real-time visibility into stock across locations, not just the warehouse in-charge.

Frequently asked questions

Can ERPNext manage stock across multiple warehouses in real time?

It can. ERPNext maintains a live stock ledger per warehouse and supports stock transfer, in-transit tracking, and consolidated reporting across all locations from one system.

Does ERPNext support FEFO (first-expiry-first-out) for batch-tracked goods?

Yes, through Batch and Expiry Date tracking combined with stock ageing reports, which together support FEFO-based dispatch decisions.

Can we set different prices for different customers or customer groups?

Yes. ERPNext’s Pricing Rule engine supports customer-specific, customer-group, and volume or scheme-based pricing, applied automatically at order entry instead of calculated by hand.

How does ERPNext compare to a dedicated logistics/TMS tool?

ERPNext isn’t a transport management system. For complex route optimization or fleet management at scale, a dedicated TMS integrated with ERPNext is often the better combination. ERPNext’s own strength is unifying inventory, sales, and finance, with logistics-specific tooling sitting alongside it through integration. Most TMS tools handle dispatch only, while ERPNext for distribution covers stock, pricing, and order-to-cash in one system.

Is ERPNext suitable for a distributor with 5-10 branches?

Generally, yes. Multi-branch, multi-warehouse distribution is one of ERPNext’s stronger fits, provided the warehouse and stock structure gets designed correctly at implementation. That’s the step most rushed implementations skip. This branch-count range is exactly where ERPNext for distribution tends to outperform spreadsheet-based tracking.

Next step

A short conversation about how stock actually moves through your branches today tells us more than any feature list. That’s usually where the real scope lives. If cost is a factor in scoping ERPNext for distribution, our ERPNext implementation cost guide breaks down real numbers for Indian businesses Getting ERPNext for distribution right from day one means fewer stock reconciliation surprises down the line..