How to integrate Zoho inventory MCP with Vercel AI SDK v6

This guide walks you through connecting Zoho inventory to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Zoho inventory agent that can check current stock for a specific item, list all pending sales orders today, create a new purchase order for supplier through natural language commands. This guide will help you understand how to give your Vercel AI SDK agent real control over a Zoho inventory account through Composio's Zoho inventory MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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Zoho inventory

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Zoho Inventory is a cloud-based inventory and order management solution for businesses. It streamlines stock tracking, order fulfillment, and multi-channel inventory control.

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Introduction

This guide will help you understand how to give your Vercel AI SDK agent real control over a Zoho inventory account through Composio's Zoho inventory MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Zoho inventory with

ChatGPT OpenAI Agents SDK Claude Agent SDK Claude Code Claude Cowork Codex OpenCode Cursor VS Code OpenClaw Hermes CLI Google ADK LangChain Mastra AI LlamaIndex CrewAI

TL;DR

Here's what you'll learn:

How to set up and configure a Vercel AI SDK agent with Zoho inventory integration
Using Composio's Tool Router to dynamically load and access Zoho inventory tools
Creating an MCP client connection using HTTP transport
Building an interactive CLI chat interface with conversation history management
Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

streamText: Core function for streaming responses with real-time tool support
MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
OpenAI Provider: Native integration with OpenAI models

What is the Zoho inventory MCP server, and what's possible with it?

The Zoho inventory MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Zoho Inventory account. It provides structured and secure access to your inventory management system, so your agent can perform actions like tracking stock levels, managing sales and purchase orders, updating product details, and syncing inventory across sales channels on your behalf.

Real-time stock tracking and updates: Let your agent monitor inventory levels, adjust quantities, and receive alerts when items are running low or out of stock.
Order management automation: Have the agent create, update, or track sales and purchase orders, making it easy to keep tabs on every transaction.
Product catalog management: Direct your agent to add new products, update existing details, or manage pricing and SKU information to keep your catalog current and accurate.
Multi-channel inventory syncing: Enable your agent to synchronize inventory data across multiple online stores and marketplaces, ensuring consistency and reducing errors.
Shipment and fulfillment handling: Empower your agent to generate shipment orders, track deliveries, and manage warehouse operations for streamlined fulfillment.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS

Prerequisites

Before you begin, make sure you have:

Node.js and npm installed
A Composio account with API key
An OpenAI API key

Getting API Keys for OpenAI and Composio

OpenAI API Key

Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
Keep the API key safe.

Composio API Key

Log in to the Composio dashboard.
Navigate to your API settings and generate a new API key.
Store this key securely as you'll need it for authentication.

Install required dependencies

bash

npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

@ai-sdk/openai: Vercel AI SDK's OpenAI provider
@ai-sdk/mcp: MCP client for Vercel AI SDK
@composio/core: Composio SDK for tool integration
ai: Core Vercel AI SDK
dotenv: Environment variable management

Set up environment variables

bash

OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

OPENAI_API_KEY: Your OpenAI API key for GPT model access
COMPOSIO_API_KEY: Your Composio API key for tool access
COMPOSIO_USER_ID: A unique identifier for the user session

Import required modules and validate environment

typescript

import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

What's happening:

We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
The dotenv/config import automatically loads environment variables
The MCP client import enables connection to Composio's tool server

Create Tool Router session and initialize MCP client

typescript

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["zoho_inventory"],
  });

  const mcpUrl = session.mcp.url;

What's happening:

We're creating a Tool Router session that gives your agent access to Zoho inventory tools
The create method takes the user ID and specifies which toolkits should be available
The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
This session provides access to all Zoho inventory-related tools through the MCP protocol

Connect to MCP server and retrieve tools

typescript

const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();

What's happening:

We're creating an MCP client that connects to our Composio Tool Router session via HTTP
The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
The type: "http" is important - Composio requires HTTP transport
tools() retrieves all available Zoho inventory tools that the agent can use

Initialize conversation and CLI interface

typescript

let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to zoho_inventory, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();

What's happening:

We initialize an empty messages array to maintain conversation history
A readline interface is created to accept user input from the command line
Instructions are displayed to guide the user on how to interact with the agent

Handle user input and stream responses with real-time tool feedback

typescript

rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

What's happening:

We use streamText instead of generateText to stream responses in real-time
toolChoice: "auto" allows the model to decide when to use Zoho inventory tools
stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
onStepFinish callback displays which tools are being used in real-time
We iterate through the text stream to create a typewriter effect as the agent responds
The complete response is added to conversation history to maintain context
Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Zoho inventory and Vercel AI SDK:

typescript

import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["zoho_inventory"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to zoho_inventory, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Zoho inventory agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

Real-time streaming responses for a better user experience with typewriter effect
Live tool execution feedback showing which tools are being used as the agent works
Dynamic tool loading through Composio's Tool Router with secure authentication
Multi-step tool execution with configurable step limits (up to 10 steps)
Comprehensive error handling for robust agent execution
Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.

TOOLS

Supported Tools

Every Zoho inventory action and event your agent gets out of the box.

Add Credit Note Comment

Tool to add a comment to a credit note in Zoho Inventory.

Add Invoice Attachment

Tool to upload an attachment to a specific invoice.

Add Invoice Comment

Tool to add a comment to a specific invoice in Zoho Inventory.

Apply Credits To Invoices

Tool to apply credits from a credit note to one or more invoices.

Bulk Delete Sales Orders

Tool to bulk delete sales orders.

Bulk Email Invoices

Sends multiple invoices by email to a contact in a single API call.

Bulk Export Invoices

Tool to bulk export invoices as a single PDF.

Bulk Print Invoices

Generate a consolidated PDF containing multiple invoices for printing or archiving.

Bulk Print Packages

Tool to bulk print package slips as a consolidated PDF.

Cancel Invoice Write Off

Tool to cancel write off for an invoice.

Create Bill

Tool to create a bill in Zoho Inventory.

Create Contact

Tool to create a new contact (customer or vendor) in Zoho Inventory.

Create Contact Person

Tool to create a contact person.

Create Credit Note

Tool to create a new credit note in Zoho Inventory.

Create Customer Payment

Tool to create a customer payment in Zoho Inventory.

Create Invoice

Tool to create a new invoice in Zoho Inventory.

Create Item

Tool to create a new item in Zoho Inventory.

Create Item Group

Tool to create an item group in Zoho Inventory.

Create Package

Tool to create a package for a sales order in Zoho Inventory.

Create Purchase Order

Tool to create a purchase order in Zoho Inventory.

Create Sales Order

Tool to create a sales order in Zoho Inventory.

Deactivate Contact

Tool to mark a contact as inactive in Zoho Inventory.

Deactivate Item

Tool to mark an item as inactive in Zoho Inventory.

Deactivate Item Group

Tool to mark an item group as inactive in Zoho Inventory.

Delete Composite Item

Permanently deletes a composite item from Zoho Inventory.

Delete Contact

Tool to delete a contact.

Delete Contact Person

Tool to delete a contact person.

Delete Invoice

Tool to delete an invoice.

Delete Invoice Attachment

Tool to delete an invoice attachment.

Delete Invoice Comment

Delete a specific comment from an invoice in Zoho Inventory.

Delete Item

Tool to delete an item.

Delete Item Group

Tool to delete an item group.

Delete Item Image

Tool to delete an image associated with an item.

Delete Package

Tool to delete a package.

Delete Sales Order

Tool to delete a sales order.

Disable Payment Reminder

Tool to disable payment reminders for an invoice.

Email Contact

Tool to email a contact in Zoho Inventory.

Email Contact Statement

Tool to email a statement of transactions to a contact.

Email Credit Note

Tool to email a credit note to customers.

Email Invoice

Tool to email a specific invoice to customers.

Enable Invoice Payment Reminder

Tool to enable payment reminders for an invoice.

Get Contact

Tool to retrieve a specific contact by ID from Zoho Inventory.

Get Contact Address

Tool to get contact address.

Get Credit Note

Tool to retrieve a credit note by ID.

Get Credit Note Email Content

Tool to get credit note email content including subject, body, recipients, and available templates.

Get Current User

Tool to get details of the currently authenticated user in Zoho Inventory.

Get Sales Order

Tool to retrieve the details of an existing sales order.

List Bills

Tool to list bills.

List Contacts

Tool to list all contacts (customers and vendors) in Zoho Inventory.

List Credit Notes

Tool to list all credit notes.

List Currencies

Tool to list all currencies configured in Zoho Inventory.

List Invoice Payments

Tool to list all payments received for a specific invoice.

List Invoices

Tool to list all invoices in Zoho Inventory.

List Item Groups

Tool to list all item groups in Zoho Inventory.

List Items

Tool to list all items in Zoho Inventory.

List Organizations

Tool to list all organizations the user has access to in Zoho Inventory.

List Purchase Orders

Tool to list purchase orders.

List Sales Orders

Tool to list sales orders.

FRAMEWORKS

How to build Zoho inventory MCP Agent with another framework

ChatGPT

Use Zoho inventory MCP with ChatGPT

OpenAI Agents SDK

Use Zoho inventory MCP with OpenAI Agents SDK

Claude Agent SDK

Use Zoho inventory MCP with Claude Agent SDK

Claude Code

Use Zoho inventory MCP with Claude Code

Claude Cowork

Use Zoho inventory MCP with Claude Cowork

Codex

Use Zoho inventory MCP with Codex

Cursor

Use Zoho inventory MCP with Cursor

OpenClaw

Use Zoho inventory MCP with OpenClaw

Hermes

Use Zoho inventory MCP with Hermes

CLI

Use Zoho inventory MCP with CLI

Google ADK

Use Zoho inventory MCP with Google ADK

LangChain

Use Zoho inventory MCP with LangChain

Mastra AI

Use Zoho inventory MCP with Mastra AI

LlamaIndex

Use Zoho inventory MCP with LlamaIndex

CrewAI

Use Zoho inventory MCP with CrewAI

OpenCode

Use Zoho inventory MCP with OpenCode

VS Code

Use Zoho inventory MCP with VS Code

MORE TOOLKITS

Explore Other Toolkits

Toolkit marketplace

Stripe

Api KeyOauth2

Stripe is a global online payments platform offering APIs for managing payments, customers, and subscriptions. Trusted by businesses for secure, efficient, and scalable payment processing worldwide.

Alpha vantage

Api Key

Alpha Vantage is a financial data platform offering real-time and historical stock market APIs. Get instant, reliable access to equities, forex, and technical analysis data for smarter trading decisions.

Altoviz

Api Key

Altoviz is a cloud-based billing and invoicing platform for businesses. It streamlines online payments, expense tracking, and customizable invoice management.

Benzinga

Api Key

Benzinga provides real-time financial news and data APIs for market coverage. It helps you track breaking news and actionable market insights instantly.

FAQ

Frequently asked questions

With a standalone Zoho inventory MCP server, the agents and LLMs can only access a fixed set of Zoho inventory tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Zoho inventory and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Vercel AI SDK v6 fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Zoho inventory tools.

Yes, absolutely. You can configure which Zoho inventory scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Zoho inventory data and credentials are handled as safely as possible.

Start with Zoho inventory.It takes 30 seconds.

Managed auth, hosted MCP servers, and every Zoho inventory tool your agent needs.Free to start.

Start building

Customer stories

Teams ship real agents on Composio

GET STARTED FOR FREE BOOK A DEMO

Karan skipped his own birthday party to fix our critical issue. It was 10pm and he diverted his Waymo to help us instead. This really sets the bar — it shows the commitment you need when users rely on your software.

Harsha Gaddipati

Co-founder, Slashy

A lot of students tell us that the moment their connected tools start talking to each other inside Opennote feels almost magical. The agent just knows them, and it's immensely helped keep new users on the platform.

Abhi Arya

Co-founder, Opennote

We chose Composio over Pipedream because it delivered depth where it mattered — niche tools and tricky edge cases other platforms simply ignored. That gave us confidence to scale without compromising.

Nirman Dave

CEO, Zams

As a solo builder, shipping fast is life or death. The only way I can outcompete incumbents is by outmanoeuvring them. Getting bogged down managing agent auth would have been a death sentence.

Ryan Yu

Founder, Extra Thursday

Before Composio, adding tool integrations was slow and resource-intensive. Each one could take weeks of engineering time, and maintaining them meant constantly keeping up with API changes.

Tomisin Jenrola

Founder & CEO, SwarmZero

With hands-on help from their founder, we integrated Gmail and Google Drive in just 30 minutes. This level of personal support and commitment is exactly what startups should strive for.

Jerome Leclanche

Co-Founder, Ingram Technologies

How to integrate Zoho inventory MCP with Vercel AI SDK v6

Connect Zoho inventory without auth hassles

Introduction

Also integrate Zoho inventory with

TL;DR

What is Vercel AI SDK?

What is the Zoho inventory MCP server, and what's possible with it?

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

How the Composio SDK works

Step-by-step Guide

Prerequisites

Getting API Keys for OpenAI and Composio

Install required dependencies

Set up environment variables

Import required modules and validate environment

Create Tool Router session and initialize MCP client

Connect to MCP server and retrieve tools

Initialize conversation and CLI interface

Handle user input and stream responses with real-time tool feedback

Complete Code

Conclusion

Supported Tools

How to build Zoho inventory MCP Agent with another framework

ChatGPT

OpenAI Agents SDK

Claude Agent SDK

Claude Code

Claude Cowork

Codex

Cursor

OpenClaw

Hermes

CLI

Google ADK

LangChain

Mastra AI

LlamaIndex

CrewAI

OpenCode

VS Code

Explore Other Toolkits

Stripe

Alpha vantage

Altoviz

Benzinga

Frequently asked questions

What are the differences in Tool Router MCP and Zoho inventory MCP?+

Can I use Tool Router MCP with Vercel AI SDK v6?+

Can I manage the permissions and scopes for Zoho inventory while using Tool Router?+

How safe is my data with Composio Tool Router?+

Start with Zoho inventory.It takes 30 seconds.

Teams ship real agents on Composio