Manufacturing Company Increases Efficiency by 45% with Custom ERP System
How we implemented a custom ERP system that streamlined operations and reduced manual work for a mid-sized manufacturing company
Executive Summary
A mid-sized manufacturing company producing automotive components was struggling with disconnected systems, manual data entry, and lack of real-time visibility into their operations. Their legacy systems couldn't keep up with growing demand, resulting in delayed orders, inventory discrepancies, and operational inefficiencies.
Gemini Digital implemented a comprehensive custom ERP solution that integrated all core business processes—from inventory management and production planning to financials and quality control. The result? A 45% increase in operational efficiency, 60% reduction in manual work, and full ROI achieved within just 3 months.
The Client
Our client is a well-established manufacturing company specializing in precision automotive components. With over 25 years in the industry, they operate a 50,000 sq ft facility with 180 employees across production, quality control, logistics, and administration.
Despite their success, the company had outgrown their existing technology infrastructure. They were using a combination of outdated software, Excel spreadsheets, and paper-based processes that created bottlenecks and limited their ability to scale.
The Challenge
Before implementing our ERP solution, the company faced multiple critical challenges:
🔴 Key Pain Points
- Disconnected Systems: Inventory, production, and financial data were stored in separate systems that didn't communicate with each other
- Manual Data Entry: Employees spent hours each day manually transferring data between systems, leading to errors and delays
- No Real-time Visibility: Management lacked access to real-time data, making it difficult to make informed decisions quickly
- Inventory Inaccuracies: Stock discrepancies of 15-20% were common, resulting in production delays and excess inventory
- Slow Order Processing: Order-to-delivery cycle averaged 8-12 days due to manual processes and communication gaps
- Quality Control Issues: Paper-based quality tracking made it difficult to identify trends and root causes of defects
- Compliance Challenges: Meeting automotive industry standards (IATF 16949) was difficult without proper documentation systems
The Breaking Point
The tipping point came when the company won a major contract with a Tier 1 automotive supplier. To fulfill this order, they needed to increase production capacity by 30% while maintaining quality standards. Their existing systems simply couldn't support this growth, and they risked losing the contract if they couldn't deliver on time.
Our Solution
After conducting a thorough analysis of their operations, we proposed a comprehensive custom ERP solution tailored specifically to their manufacturing processes. Rather than forcing them to adapt to an off-the-shelf solution, we built a system around their unique workflows and requirements.
Real-time tracking of raw materials, work-in-progress, and finished goods with automated reorder points
Intelligent scheduling system that optimizes machine utilization and reduces downtime
Digital quality checklists, defect tracking, and automated compliance reporting
Automated invoicing, cost tracking, and real-time financial reporting
Customizable dashboards providing real-time insights into all aspects of operations
Seamless integration with existing machinery, suppliers, and customer systems
Technical Approach
We developed the ERP system using a modern, scalable technology stack:
- Backend: .NET Core for robust, high-performance server-side operations
- Frontend: React for a responsive, user-friendly interface
- Database: SQL Server with optimized queries for fast data retrieval
- Cloud Infrastructure: Microsoft Azure for scalability and reliability
- APIs: RESTful APIs for integration with existing systems and future extensibility
- Mobile App: Native iOS and Android apps for shop floor data entry
Implementation Process
We followed a phased approach to minimize disruption to ongoing operations:
Conducted detailed process mapping, interviewed key stakeholders, and created comprehensive requirements documentation. Identified critical workflows and prioritized features for MVP.
Built the foundational modules including inventory management, production planning, and financial integration. Conducted weekly demos and incorporated client feedback continuously.
Comprehensive testing in a staging environment mirroring their production setup. Conducted hands-on training sessions for all user groups, from shop floor workers to executives.
Migrated historical data from legacy systems, conducted parallel runs to ensure accuracy, and executed a smooth cutover during a planned maintenance window.
Provided intensive support for the first month, continued optimization based on real-world usage, and implemented additional features based on user feedback.
Results & Impact
The results exceeded expectations. Within three months of going live, the company experienced transformative improvements across all key metrics:
| Metric | Before ERP | After ERP | Improvement |
|---|---|---|---|
| Order Processing Time | 8-12 days | 3-4 days | 67% faster |
| Inventory Accuracy | 80-85% | 99.8% | +14.8% points |
| Manual Data Entry Hours | 120 hrs/week | 48 hrs/week | 60% reduction |
| Production Downtime | 18% | 7% | 61% reduction |
| Quality Defects | 3.2% | 0.8% | 75% reduction |
| Customer Satisfaction | 78% | 94% | +16% points |
Financial Impact
The financial benefits were equally impressive:
- Cost Savings: $280,000 annually from reduced labor costs, lower inventory carrying costs, and decreased waste
- Revenue Growth: Ability to take on 30% more orders without increasing headcount
- ROI: Full return on investment achieved in just 3 months
- Contract Retention: Successfully fulfilled the major contract that sparked the initiative, leading to additional orders worth $1.2M annually
Operational Improvements
✅ Key Operational Wins
- Real-time Visibility: Management now has instant access to KPIs through customizable dashboards accessible from any device
- Automated Reordering: The system automatically generates purchase orders when inventory reaches reorder points, preventing stockouts
- Predictive Maintenance: Machine utilization tracking enables proactive maintenance scheduling, reducing unexpected downtime
- Compliance Made Easy: Automated documentation and reporting simplified IATF 16949 audits
- Better Customer Communication: Customers receive automated updates on order status and can access real-time tracking portals
Lessons Learned
This project reinforced several important principles for successful ERP implementations:
- User Buy-in is Critical: Early and continuous involvement of end-users ensured the system met real-world needs and drove adoption
- Phased Approach Reduces Risk: Rather than a "big bang" implementation, our phased rollout allowed for learning and adjustment
- Change Management Matters: We invested heavily in training and support, which paid dividends in user adoption rates
- Custom Beats Generic: While off-the-shelf solutions might seem cheaper initially, a custom solution tailored to specific workflows delivers far better ROI
- Continuous Improvement: The system continues to evolve based on user feedback and changing business needs
Looking Forward
Following the success of Phase 1, we're now working with the client on Phase 2 enhancements:
- AI-powered demand forecasting to optimize inventory levels
- Advanced analytics and machine learning for predictive quality control
- Integration with IoT sensors for real-time machine monitoring
- Supplier portal for improved supply chain collaboration
- Mobile-first interface for remote management
Ready to Transform Your Manufacturing Operations?
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Schedule Your Free ConsultationAbout Gemini Digital
Gemini Digital specializes in custom ERP solutions, intelligent automation, and IT outsourcing for manufacturing and industrial companies. With over 10 years of experience and 200+ successful projects, we help businesses streamline operations and achieve measurable results.
Technologies Used in This Project: .NET Core, React, SQL Server, Microsoft Azure, RESTful APIs, Power BI