Manufacturing and Trade SMBs

SMBs operating in manufacturing and trade must execute large operations with limited resources. While a founder-centric management model works up to a point, as the company grows, issues such as information silos, cash flow uncertainty, and cost control emerge. This example illustrates the digital transformation process of a small-scale manufacturing workshop.

Client Profile

Metal parts machining workshop. 25 employees, founder-centric management, order-based production.

Challenges Faced

• Information Silos: Pricing, customer history, and supplier information resided solely in the founder’s memory or notebooks. Operations halted when the founder was on vacation.
• Cash Flow Uncertainty: How payments for the upcoming month would be met was unclear until month-end. Cash flow projections could not be made.
• Lack of True Cost Visibility: It was unknown which products were profitable and which were loss-making. Quotes were based on experience.

Solution Approach: Cloud-Based SMB ERP Package

• Corporate Memory: All customer interactions, quotes, and orders are in a digital environment. Dependence on the founder was eliminated.
• Cash Flow Statement: Automated cash flow projection based on receivables and payables due dates. The cash position for the next 3 months can be viewed instantly.
• Product-Based Cost Tracking: Automatic calculation of material, labor, and overhead costs for each order.

Achieved Results

• Founder’s operational burden decreased by 60%
• Cash flow visibility extended to 3 months
• Quote accuracy increased by 45%
• New customer acquisition time shortened by 30%