How to integrate Zoho inventory MCP with Claude Agent SDK

This guide walks you through connecting Zoho inventory to the Claude Agent SDK 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 Claude Agent 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 is a cloud-based inventory and order management solution for businesses. It streamlines stock tracking, order fulfillment, and multi-channel inventory control.

58 Tools

Introduction

This guide walks you through connecting Zoho inventory to the Claude Agent SDK 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 Claude Agent 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

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TL;DR

Here's what you'll learn:
  • Get and set up your Claude/Anthropic and Composio API keys
  • Install the necessary dependencies
  • Initialize Composio and create a Tool Router session for Zoho inventory
  • Configure an AI agent that can use Zoho inventory as a tool
  • Run a live chat session where you can ask the agent to perform Zoho inventory operations

What is Claude Agent SDK?

The Claude Agent SDK is Anthropic's official framework for building AI agents powered by Claude. It provides a streamlined interface for creating agents with MCP tool support and conversation management.

Key features include:

  • Native MCP Support: Built-in support for Model Context Protocol servers
  • Permission Modes: Control tool execution permissions
  • Streaming Responses: Real-time response streaming for interactive applications
  • Context Manager: Clean async context management for sessions

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:

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

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Composio API Key and Claude/Anthropic API Key
  • Primary know-how of Claude Agents SDK
  • A Zoho inventory account
  • Some knowledge of Python
2

Getting API Keys for Claude/Anthropic and Composio

Claude/Anthropic API Key
  • Go to the Anthropic Console and create an API key. You'll need credits to use the models.
  • 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.
3

Install dependencies

npm install @anthropic-ai/claude-agent-sdk @composio/core dotenv

Install the Composio SDK and the Claude Agents SDK.

What's happening:

  • @composio/core provides Composio integration for Anthropic
  • @anthropic-ai/claude-agent-sdk is the core agent framework
  • dotenv/config loads environment variables
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
ANTHROPIC_API_KEY=your_anthropic_api_key_here

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates with Composio
  • USER_ID identifies the user for session management
  • ANTHROPIC_API_KEY authenticates with Anthropic/Claude
5

Import dependencies

import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

dotenv.config();
What's happening:
  • We're importing all necessary libraries including the Claude Agent SDK and Composio
  • The dotenv.config() function loads environment variables from your .env file
  • This setup prepares the foundation for connecting Claude with Zoho inventory functionality
6

Create a Composio instance and Tool Router session

async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

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

  // Create Tool Router session for Zoho inventory
  const session = await composio.create(USER_ID, {
    toolkits: ['zoho_inventory'],
  });
  const mcpUrl = session?.mcp.url;
What's happening:
  • The function checks for the required COMPOSIO_API_KEY environment variable
  • We're creating a Composio instance using our API key
  • The create method creates a Tool Router session for Zoho inventory
  • The returned url is the MCP server URL that your agent will use
7

Configure Claude Agent with MCP

const options: Options = {
  permissionMode: 'bypassPermissions',
  mcpServers: {
    composio: {
      type: 'http',
      url: mcpUrl,
      headers: { 'x-api-key': COMPOSIO_API_KEY }
    }
  },
  systemPrompt: 'You are a helpful assistant with access to Zoho inventory tools via Composio.',
  maxTurns: 10,
};
What's happening:
  • We're configuring the Claude Agent options with the MCP server URL
  • permissionMode: 'bypassPermissions' allows the agent to execute operations without asking for permission each time
  • The system prompt instructs the agent that it has access to Zoho inventory
  • maxTurns: 10 limits the conversation length to prevent excessive API usage
8

Create client and start chat loop

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

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}
What's happening:
  • The readline interface is created to handle user input and output
  • The query function is used to send the user's input to the agent
  • The chat loop continues until the user types 'exit' or 'quit'
9

Run the application

try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}
What's happening:
  • The chat function is the entry point for the application
  • The try-catch block is used to handle any errors that occur

Complete Code

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

import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

  const composio = new Composio({ apiKey: COMPOSIO_API_KEY });
  const session = await composio.create(USER_ID, {
    toolkits: ['zoho_inventory']
  });
  const mcp_url = session?.mcp.url;

  const options: Options = {
    permissionMode: 'bypassPermissions',
    mcpServers: {
      composio: {
        type: 'http',
        url: mcp_url,
        headers: { 'x-api-key': COMPOSIO_API_KEY }
      }
    },
    systemPrompt: 'You are a helpful assistant with access to Zoho inventory tools via Composio.',
    maxTurns: 10,
  };

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

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}

try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}

Conclusion

You've successfully built a Claude Agent SDK agent that can interact with Zoho inventory through Composio's Tool Router.

Key features:

  • Native MCP support through Claude's agent framework
  • Streaming responses for real-time interaction
  • Permission bypass for smooth automated workflows
You can extend this by adding more toolkits, implementing custom business logic, or building a web interface around the agent.
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 logo

ChatGPT

Use Zoho inventory MCP with ChatGPT

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OpenAI Agents SDK

Use Zoho inventory MCP with OpenAI Agents SDK

Claude Code logo

Claude Code

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Claude Cowork logo

Claude Cowork

Use Zoho inventory MCP with Claude Cowork

Codex logo

Codex

Use Zoho inventory MCP with Codex

Cursor logo

Cursor

Use Zoho inventory MCP with Cursor

OpenClaw logo

OpenClaw

Use Zoho inventory MCP with OpenClaw

Hermes logo

Hermes

Use Zoho inventory MCP with Hermes

CLI logo

CLI

Use Zoho inventory MCP with CLI

Google ADK logo

Google ADK

Use Zoho inventory MCP with Google ADK

LangChain logo

LangChain

Use Zoho inventory MCP with LangChain

Vercel AI SDK logo

Vercel AI SDK

Use Zoho inventory MCP with Vercel AI SDK

Mastra AI logo

Mastra AI

Use Zoho inventory MCP with Mastra AI

LlamaIndex logo

LlamaIndex

Use Zoho inventory MCP with LlamaIndex

CrewAI logo

CrewAI

Use Zoho inventory MCP with CrewAI

OpenCode logo

OpenCode

Use Zoho inventory MCP with OpenCode

VS Code logo

VS Code

Use Zoho inventory MCP with VS Code

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. Claude Agent SDK 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.

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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
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
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.

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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
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.

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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.

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Co-Founder, Ingram Technologies