How Delhi NCR Manufacturer Cut 60% Ops Time with Odoo ERP

Today i will walk you through a real success story of our manufacturing client where we took into our hands the challenge to transform their on ground operations that include purchase, inventory and vendor billings using Odoo ERP.

So, this one is close to home. The success story is about a Delhi NCR based SMB manufacturer. They are right now mid sized and produce plastic components with tight margins for now. Along side they also have a nice product line up with loyal clients and a growing number of orders.

Having said that i will tell you something that you must also take care of and that is their operations were cracking under pressure. So, let me proceed and show you what we did, how we did it and most importantly why it worked for them.

I assume that you are already reading out this success story so there are chances that you might also be dealing with the same issues as them but in a different factory and with a different team.

On Ground Manufacturing Operations

Well, i need you to picture this. We were called in for an audit process and the head of operations greeted us with a smile but i know that they were already tired. The very first thing that he said that we are not in need of any fancy dashboards, we just need you to fix and stop our daily chaos.

So, understand this, they were growing quickly but the systems that they had at hand were not allowing them to keep up with the pace. let me break down the mess they were facing –

• Their purchases were all over the place. Some were jotted down on their excel sheets and some were coming through the WhatsApp and alas all were there without any traceable approvals.
• Inventory decisions were made on reactive basis so what was happening is that when the production was getting stalled it is then they came to know that they were out of stock.
• Whenever an invoice was received no one would know if the goods were received or not and the finance team used to chase down the purchase or store members for a confirmation on the same.

Look i have already seen this happening across mostly 70% of all SMB manufacturers and i would say that they are not actually efficient and are still left behind because they are still making use of the tools that were not made for their complexity.

A Lack of Visibility and Accountability

So, i always say this to our clients “if you can not see what is happening in real time then you will never be able to control it, and if you can not control it you can not scale it. Why i said that, it is for a reason and that was because this firm was having smart people but they were having a lot of disconnected processes. Each and every person was working hard but working blind.

Odoo ERP as Solution with process first Approach

Now, understand the approach with which we implement Odoo ERP. We do not just install modules but we went always as per the process first approach.

Step one was sitting with each team from -purchase, inventory to accounts and then mapping their daily flow. Not how it is “supposed” to work but how it actually works on the ground, let’s see that.

We started by checking and looking at a single transaction:

• A raw material request.
• Raw material request becomes a purchase order.
• Vendor starts to ships it.
• It comes to the company gate.
• The store receives it.
• Vendor then sends an invoice.
• Accounts processes it thereafter.
• Finally, finance team pays it.

So, at each and every single step we made sure to map the pain points and delays.

How we Implemented Odoo ERP – Phase by Phase

We implemented Odoo ERP system in such a way that will allow them to sale and grow as per their agility.

We streamlined their Purchase

• We set up auto-generation of RFQs based on the minimum stock threshold.
• Approval matrix was configured that now allows the purchase orders above ₹50,000 to go directly to operations head.
• Everything is traceable now without any verbal approvals.

Integrated Inventory

• Goods Receipts notes were made as mandatory and were linked to the purchase orders.
• Barcode scanning was enabled which is now used for stock in and stock out movements along with a real-time visibility.
• We have setup reordering rules which are based on their material consumption data.

Vendor Billing Made Foolproof

• Bills could not be entered unless the GRN was completed.
• Odoo was setup to do a 3-way match ->PO → GRN → Bill.
• Finance can now generate payment batches in minutes and hourly mayhem.

After the implementation every thing was streamlined. Now, purchase, inventory, and accounting are finally talking the same language and the foremost thing is that in real time and through a single system in place.

They got a 60% Time Savings Impact

Within the first 90 days after we implemented Odoo ERP –

• They were able to reduce down weekly operational time by 60%.
• Vendor payment got shortened from 15+ days to under 5.
• They have now stopped overstocking by 30% on low-movement SKUs.
• And monthly inventory audits? They didn’t need them anymore. Stock data was live.

What i saw the actual win was that their team were able to breathe easily. Now there was no more chasing after paper based workflow, no arguments between various departments. Now they have a single dashboard, one source of truth with one click accountability.

Why Our Strategy worked Along with Odoo ERP

Well, Odoo was not a silver bullet, it was the right tool. But what really worked was how we applied the manufacturing logic to digital workflows within Odoo ERP. Also, one more thing is that we did not start with tech first thinking but we started with the shop floor logic and that is what made the difference.

lastly, if you are still managing purchase orders in excel sheets, storing stock data in some employees head, and paying out vendor bills manually you are not alone. But you might be also leaving money on the table.

You do not require or need a 12-month mega project, you just need a phased approach with measurable ROI in every step. Our client did not throw money at a problem. Well they just trusted our strategic process where we implemented Odoo ERP with intent and just fixed that was broken.

To know more on how we can help you achieve excellence as our client did with their operations just drop us a line at sales@apagen.com or call us on +91 9971800665.