Avoiding Overstock and Stockouts: ERP’s Role in Smarter Inventory Planning

This isn’t rare- it’s how most overstock and stockout in printing ERP issues begin.

An estimator runs the job through a static cost template, sends it off with a margin buffer, and the team gets it scheduled. But no one cross-checks if the materials are actually available. Or if that buffer even reflects today’s pricing. Or if the stock was already allocated to another job.

By the time the press crew flags a missing substrate or discovers the adhesive batch has expired, it’s already a crisis.

Where Estimation Breaks Down: When Stock Doesn’t Match the Plan

Sales estimators often work with tools that help them move fast: cost templates, pricing tables, historical jobs. But those tools typically don’t pull live data from the warehouse. They assume materials are in stock, lead times are stable, and usage follows the plan.

In reality:

• Stock might be low  or tied up on another job.
  
• The last bulk order came in at a different price.
  
• The substrate yield last run wasn’t as high as expected.
  

One folding carton plant we worked with relied on a template that didn’t check current stock. They routinely overordered specialty paper “just to be safe.” Within months, they were writing off expired inventory that never even made it to the floor.
– Odoo Implementation Case, Packaging Plant (India)

The Result: Hoarding and Gaps

Disconnected estimates lead to one of two behaviors:

• Overstocking: Buy more than needed to cover for uncertainty, blocking cash flow and shelf space.
  
• Stockouts: Rely on assumptions, then discover too late that a key material isn’t there when it’s needed.
  

Neither outcome is sustainable. And both usually trace back to a single point of failure: a quote that didn’t talk to the warehouse.

The Cost of Poor Inventory Forecasting in Print & Packaging

When a plant consistently overorders “just to be safe” or runs out of materials mid-job, it’s easy to point fingers at planning or purchasing. But most of the time, the issue starts further upstream-with estimation.

Bad data at the quote stage leads to flawed assumptions at the warehouse. And over time, those misalignments pile up into real losses.

1. Overstocking: The Hidden Cost of Playing It Safe

Overstocking doesn’t just tie up shelf space- it locks up working capital and increases the risk of material waste. This is especially dangerous with expiry-sensitive materials like adhesives, films, and specialty coatings.

A folding carton facility regularly overestimated substrate needs due to outdated cost templates. Their planners, unable to verify availability through the quote system, overordered to cover unknowns. Within a quarter, they wrote off thousands in expired paper stock.
– Odoo ERP Implementation, Folding Carton Plant

And they’re not alone. Plants using ERP reduce overstocking by 20–30% compared to those running disconnected quoting and inventory systems.

2. Stockouts: A Missed Job Is a Missed Opportunity

On the flip side, underestimating stock requirements-because your quoting tool doesn’t talk to your inventory system-can delay entire runs, break deadlines, or force you into emergency procurement.

One flexo packaging plant in the UK quoted a high-volume job using outdated yield assumptions. The substrate was already reserved for another project, but their system didn’t flag the conflict. Production stalled mid-run, and they had to split the job and source material at a premium to meet delivery.

That single mistake caused:

• Emergency vendor markup
  
• Rush shipping fees
  
• Partial run labor duplication
  
• And a late delivery that risked future business
  

These aren’t isolated events-they’re the result of structural gaps.

3. Small Errors → Big Margins Lost

Even a 3–5% error in yield assumptions or material cost can turn a job from profitable to break-even-especially in high-volume or tight-margin work.

One label printer shared on PrintWeek’s forum how a static template assumed higher yield than the press delivered. They didn’t realize the loss until the job was closed, and by then, the margin had evaporated.

In ERP-connected plants, these issues show up before production. In MIS- or spreadsheet-driven shops, they show up after it’s too late.

The bottom line? Estimation errors don’t just hurt pricing-they disrupt the entire supply chain.

ERP’s Real Role: Turning Estimates Into Forecasts

In most print and packaging environments, quoting and inventory operate in parallel, but not together.

ERP changes that by weaving inventory, procurement, BOMs, and scheduling directly into the quoting process. It doesn’t just support faster estimates-it delivers smarter ones, built on real inputs from your actual operation.

Here’s how it works.

1. The BOM Drives the Quote-Not a Guess

In ERP systems like Odoo, quotes aren’t built from guesswork or outdated templates. They’re pulled directly from your Bill of Materials (BOM), which means the quote includes:

• Exact material requirements
  
• Waste factors
  
• Setup and run time assumptions
  
• Labor and machine assignments
  

And because the BOM links directly to your products and routings, every quote reflects what’s really needed on the floor-not just what was used on a similar job six months ago.

“We went from quoting based on memory to quoting based on the exact run profile. That cut estimation errors by half.”
– Label plant estimator, via Odoo Docs – Manufacturing

2. Stock Availability Is Built Into the Quote

Here’s where ERP outpaces traditional MIS: when you prepare a quote in Odoo, the system checks whether the required materials are in stock-or already reserved.

If they’re not, it can suggest:

• Internal transfer from another warehouse
  
• New purchase order with lead-time visibility
  
• Use of alternate stock based on expiry or reorder urgency
  

The system doesn’t let you overpromise with unavailable materials-or underquote with outdated costs.

“We stopped getting blindsided on day one of production. If the stock isn’t there, the quote flags it.”
– Production planner, corrugated packaging line

3. Real-Time Cost and Margin Visibility

ERP quoting modules aren’t just pricing tools-they’re early-warning systems.

Odoo’s margin logic calculates profitability live, using:

• Vendor cost updates
  
• Labor rates from your HR module
  
• Overhead and machine costs from routing rules
  
• Historical waste rates for each production step
  

If something pushes the job below your margin threshold, the system lets you know before you send the quote-not after you’ve committed to a job that can’t deliver profit.

4. Quote → Requisition → Reservation

Once a quote gets approved, ERP doesn’t just generate a PDF-it kicks off a controlled chain of action:

1. Requisitioning: If items aren’t in stock, the system drafts POs or internal transfers.
   
2. Reservation: Available stock gets reserved by batch, shelf, or warehouse.
   
3. Tracking: The job’s material status is now visible to sales, planning, and inventory-all from the same record.
   

That means no missed steps, no over-purchasing, and no surprise shortages.

ERP doesn’t make estimation faster-it makes it reliable.

And in an environment where quoting errors cost more than time, that reliability pays off on every job.

Cost Templates Built for Reality-Not Just Speed

In most print plants, estimators rely on cost templates to move quickly. The problem? Those templates usually live in Excel or a quoting system that doesn’t pull real-time data. They’re fast-but they’re blind.

ERP changes that.

With ERP, your quote templates don’t just “remember the last job.” They pull from live inventory, supplier costs, BOMs, and production rules- so every quote reflects what’s happening now, not what used to happen.

1. Templates That Actually Adapt

ERP-based templates aren’t fixed. They flex with:

• Updated material pricing
  
• Latest vendor lead times
  
• Substrate and ink expiry risk
  
• Machine availability and job queue
  

So when you quote 5,000 folding cartons today, the template knows the current stock levels, raw material costs, and whether your preferred machine is already booked next week.

2. Margin Targets Built In- Not Just Reviewed Later

Most systems require you to run a quote, then manually calculate margin. ERP turns that around.

In Odoo, for example, your sales estimator can:

• Set target margins per product, customer, or segment
  
• See margin calculations live as the quote builds
  
• Adjust quantities, vendors, or materials to hit thresholds
  

This isn’t just about speed. It’s about quoting with confidence-because you’re not just sending a number. You’re sending a plan that actually works.

Scenario: Quoting 2,000 Boxes with a 5% Wiggle Room

A sales estimator needs to quote 2,000 units of a custom box.

• In a static system: They plug in old costs, guess the setup time, and assume substrate availability.
  
• In ERP:
  
  • The template auto-pulls the current substrate cost
    
  • It applies known waste rates from past runs
    
  • It flags a 2-week lead time from the vendor
    
  • It shows a projected margin of 11%-with a 6% buffer if costs shift
    

The difference? One quote might cost the plant later. The other gives the team room to adjust without losing money.

ERP doesn’t just make quoting more accurate. It gives estimators the confidence to price competitively, without compromising margins or triggering operational issues later on.

Smarter Buffering: Planning Without Hoarding

When sales teams and planners don’t trust what the system tells them, they do what anyone would do-they play it safe.

Buy extra. Hold more than you need. Pad the numbers. And while that reduces the chance of a stockout, it creates a different set of problems: expired goods, frozen cash, and wasted space.

ERP doesn’t eliminate safety buffers- it refines them.

1. Dynamic Reordering Based on What’s Actually Happening

Instead of static reorder points, ERP uses dynamic logic that factors in:

• Recent consumption rates
  
• Lead times from suppliers
  
• Minimum order quantities
  
• Job schedules from production planning
  

This means your system doesn’t reorder just because stock dipped below a fixed threshold-it checks if new jobs are pending, if delivery timelines allow it, and whether alternative stock is available.

2. Real-Time Inventory Signals Replace Blanket Safety Stock

Odoo ERP, for example, issues proactive alerts when:

• A material is nearing expiry
  
• A job will exceed current stock levels
  
• A high-use item is trending toward shortage
  
• Inventory reserves exceed what’s needed
  

This lets planners make decisions early-whether that’s triggering a PO, substituting stock, or reshuffling the production plan.

No guesswork. Just actual signals from your own floor and vendor history.

3. Planning What’s Needed-Not What “Feels” Safe

The goal isn’t to eliminate buffer stock. It’s to right-size it.

With ERP, the team doesn’t need to build their own safety margins into every quote or plan. The system already considers risk, variability, and usage-so your buffers are smart, not inflated.

ERP gives your team what spreadsheets can’t: a forecast that listens, learns, and adjusts

Real Quotes, Inventory & Profit Control.

It’s one thing to generate a quote. It’s another to ensure that what you quoted is actually possible-and profitable.

With ERP, the quote isn’t just paperwork. It becomes the starting point of an integrated workflow that keeps everyone-sales, planning, warehouse, and production-working from the same reality.

1. From Quote to Job to Reserved Stock

The moment a quote gets approved, the ERP system begins:

• Reserving materials from available inventory
  
• Flagging shortages or conflicts with other jobs
  
• Launching requisitions if materials need to be sourced
  
• Updating production timelines based on stock and machine availability
  

There’s no lag between planning and execution. No “did someone order that yet?” follow-ups. Everyone knows what’s been reserved, what’s missing, and what’s locked in.

“Quotes used to be promises we hoped to deliver. Now they’re connected plans we know we can execute.”
– Job Coordinator, Label Plant
Source: PrintWeek Forum

2. Margin Integrity from Start to Finish

With ERP, margin isn’t calculated once and forgotten.

• Real-time costs update as materials are purchased or used
  
• Setup time, run rates, and downtime feed back into job costing
  
• Exceptions-like rush jobs or excess waste-are logged against the job, not buried in admin
  

This means you can trace where and why a job lost margin-and more importantly, prevent it on the next one.

3. Less Manual Input, More Control

Instead of bouncing between systems to confirm pricing, check stock, and chase approvals, ERP users manage the entire quote-to-job lifecycle in one place.

That’s not just efficiency-it’s control.

“We stopped making pricing decisions in one system and fulfillment decisions in another. ERP let us bring the two together-and finally track what was leaking.”
– Director of Sales, Folding Carton Plant

ERP closes the gap between the quote you send and the result you deliver.

And when those two things match, so does your margin.

Let’s Fix the Quote-to-Stock Disconnect

Most inventory mistakes don’t happen because someone did something wrong. They happen because the systems don’t talk.

The quote gets approved, but no one checks stock. The substrate gets reordered-again-because the estimator didn’t know it was already on the shelf. Or worse, the job goes live, and halfway through, the team realizes the adhesive batch is expired.

It’s not about working harder. You already are.

It’s about building a system that keeps quotes, materials, timelines, and margins in sync-without needing five tools and six follow-ups.

Want to See How ERP Can Plug the Gaps?

Let’s walk through it together.

We’ll show you how Odoo ERP links quoting to inventory, stock to scheduling, and actual usage to margin visibility-before small estimation errors turn into big delivery problems.

Book a no-pressure walkthrough of Odoo ERP’s inventory + quoting workflow.

FAQ