ERP (Enterprise Resource Planning)

1. Inventory Management

• Real-time stock levels for raw materials, WIP, finished goods across multiple locations
• Automatic alerts when stock falls below reorder level
• Track batch/lot numbers for traceability (crucial for quality issues)
• ABC analysis to identify fast-moving vs slow-moving inventory

2. Production Planning & Control

• Generate production schedules based on customer orders and material availability
• Bill of Materials (BOM) management—what raw materials needed for each product
• Work order creation and tracking through production stages
• Job card generation for shop floor workers
• Capacity planning to avoid overloading machines or workers

3. Purchase Management

• Convert material requirements into purchase requisitions automatically
• Vendor database with pricing, lead times, payment terms
• Purchase order generation, tracking, and receiving (GRN)
• Rate comparison and vendor performance analysis

4. Sales & CRM

• Lead management—inquiries from customers
• Quotations with automatic cost calculations based on BOM
• Sales order processing with delivery date commitments
• Customer payment tracking and credit limit management

5. Accounting & Finance

• Automatic journal entries from transactions (sales, purchases, production)
• GST-compliant invoicing and returns
• Payment recording and bank reconciliation
• Financial reports—P&L, Balance Sheet, Cash Flow
• Cost accounting—actual production costs vs budgeted

6. HR & Payroll

• Attendance tracking (biometric integration)
• Leave and overtime management
• Salary processing with PF, ESI, PT, TDS calculations
• Statutory compliance reports

7. Quality Management

• Inspection plans for incoming materials and finished goods
• Quality check recording at various production stages
• Non-conformance reports (NCR) and corrective action tracking
• First Article Inspection (FAI) documentation

Before ERP (Pune Auto Parts Manufacturer, 45 employees):

• Inventory: Maintained in multiple Excel files by different people. Production supervisor has one version, purchase manager has another, accounts has third version—none match
• Problems:
  • Production stops mid-shift because material thought to be in stock was actually consumed yesterday
  • Same raw material ordered twice because two people didn't communicate
  • Takes 2-3 days to get accurate stock report (requires physically counting everything)
  • No idea which products are profitable—pricing based on "gut feel"
• Customer Orders: Written on paper register. Production manager checks register daily to plan work. Sometimes orders missed or forgotten
• Invoicing: Accountant manually types invoices in Tally after getting delivery note from dispatch. Invoices often have errors requiring correction notes
• Payments: Follow-up done manually by calling customers. No system to alert when payment overdue

After ERP Implementation (6 months later):

• Inventory: Single source of truth. Every material receipt, material issue, production consumption automatically updates stock in real-time
• Benefits:
  • Zero production stoppages due to material unavailability (system alerts 3 days before stock-out)
  • Inventory value reduced by 25% (was ₹45 lakhs, now ₹34 lakhs)—cash freed up for other uses
  • Takes 5 minutes to generate accurate stock report
  • Product-wise profitability reports show which products earn most money
• Customer Orders: Sales team enters orders directly in system. Production department sees orders instantly. Automatic alerts when delivery date approaching
• Invoicing: Invoice auto-generated when delivery note created. Data pulled from sales order—zero typing errors. E-invoice and E-way bill generated with one click
• Payments: Dashboard shows overdue payments in red. Automated WhatsApp reminders sent to customers 3 days before due date
• Overall Impact: Same 45 employees now handle 40% more orders with less chaos. Customer complaints reduced by 60%. On-time delivery improved from 75% to 92%

Key Considerations:

• Industry Fit: Generic ERP vs Manufacturing-specific ERP. Choose one built for manufacturing workflows (BOM, work orders, job cards, etc.)
• Indian Compliance: Must handle GST, TDS, PF, ESI, E-invoicing, E-way bills automatically
• Ease of Use: Shop floor workers will use it—interface must be simple, not complex like SAP/Oracle
• Mobile Access: Supervisors, sales team need mobile app to update data from anywhere
• Cost: Small manufacturers can't afford ₹50 lakhs implementations. Cloud-based SaaS ERPs offer low upfront cost (₹10-30,000/month subscriptions)
• Implementation Time: Prefer systems that go live in 4-8 weeks, not 6-12 months projects
• Support: Vendor must provide ongoing support—problems will arise, need quick resolution

Typical benefits realized within 1 year:

• Inventory reduction: 20-30% (frees up working capital)
• On-time delivery improvement: 15-25% (increases customer satisfaction)
• Admin time savings: 30-40% (same staff handles more volume)
• Reduction in errors: 50-70% (fewer wrong invoices, material shortages, missed orders)
• Better decision-making: Product profitability visibility helps focus on high-margin products

For a small manufacturer spending ₹30,000/month on ERP subscription (₹3.6 lakhs/year), reducing inventory by ₹10 lakhs alone justifies the investment—that cash can be used for business growth instead of sitting as excess stock.

Karygar is specifically designed for Indian manufacturing companies ranging from 1 to 2,000 employees. Unlike complex ERPs requiring expensive consultants, Karygar implements in 2-4 weeks with simple workflows that shop floor workers intuitively understand. Built-in Indian compliance (GST, E-invoicing, E-way bills, PF/ESI), mobile apps for data entry, and real-time production tracking dashboards help manufacturers modernize operations without disrupting daily production.