The aim of our work is to have an insight on how inventory management and supply chain management is done through an ERP package. The work is aimed at learning how an ERP package works, by taking up the example of two main modules namely inventory management and supply chain management.Through this study we uncovered the ways in which inventory can be managed with the help of the inventory management module. We focused on issues like internal pick/put-away, item substitution, item tracking, physical inventory counts etc.two case studies, one each on MS DYNAMICS AX and BRIX 2009 which revealed the usefulness of these two enterprise software's for their respective organizations. This case study highlights the advantages which these organizations received after their implementation. These benefits may be in terms of cost, time and efficiency.