Summary: In 30 days, an open-source ERPNext rollout at a top Indian auto dealership group (5+ companies, 50+ locations) delivered ₹2,16,000 Day-1 savings, 10–12% expense reduction, 0 manual entry, and near-zero training—with audit-ready governance and no vendor lock-in.
Client Context
- Industry: Automotive retail (new/used), finance & insurance
- Scale: 5+ companies, 50+ locations, 500 users, 1,500 employees
- Challenge: Slow, error-prone commission & purchasing processes; missed OEM scheme benefits; inconsistent procurement pricing; fragmented ways of working across entities
Opening insight (over tea): “How do you calculate sales commissions?”
Answer: “It takes ~15 days—and still isn’t accurate.” That became the entry point for change.
Objectives
- Cost out quickly without breaking operations
- Enterprise standardization across 5+ companies
- Governance by design: approvals, audit trails, SoD
- Faster time-to-value and lower TCO without lock-in
Approach: Design First, Then Configure
We led with process • data • controls, then configured ERPNext to the operating model (not the other way around).
- Process: mapped purchasing, commission, approvals, and period-close flows
- Data: unified masters; supplier price history; OEM scheme rules
- Controls: approval matrices, audit trails, Segregation of Duties (SoD)
- Proof: parallel runs to validate accuracy and measure rework
- Configure: ERPNext aligned to the agreed design; small, rapid increments
30-Day Outcomes (Highlights)
- ₹2,16,000 saved on Day-1: OEM scheme auto-applied on the first Purchase Order (PO)
- 10–12% expense reduction: policy-based PO approvals, supplier price-history checks, and automated commissions
- Enterprise standardization across 5+ companies: one common format → 0 manual entry, near-zero training
- Governance built in: approvals, audit trails, SoD
- No vendor lock-in: open-source ERPNext, partner-agnostic
What Changed (By Function)
Pre-Sales & Sales
- Disciplined inquiry follow-ups; guarded discounting
- Automated deal math; margin intelligence (fixed/variable, F&I)
- Commission in a click with accurate payout logic
Procurement & Capex
- Smart PO automation (stock, backorders, in-transit, bookings)
- Supplier price-history checks; centralized buying
- Capex tracking with depreciation and approval controls
Finance & Compliance
- No manual entries for sales/purchase
- Customizable financial reports; GST & TDS automation
- Optional Tally integration for statutory continuity
HR
- Centralized attendance; standardized payroll structures
- On-time payroll; KRA/KPI tracking & appraisals
Quantified Impact
| KPI | Before | After |
|---|---|---|
| OEM scheme application | Manual / missed often | Automated (₹2,16,000 saved on Day-1) |
| Finance team effort | 80 Full-Time Equivalents (FTEs) | 40 FTEs (redeployed); ~50% indirect cost down |
| PO price accuracy | Ad-hoc | ~15% POs corrected via price-history checks |
| Expense base | Baseline | 10–12% lower (first months) |
| Training time | Entity-specific | Near-zero (one format across 5+ companies) |
| Manual entry | High | 0 manual entry |
ROI note: With high transaction volume, the program paid for itself in ~30 days.
Why This Scales for Multi-Entity Enterprises
- Standardize to scale: one format across companies reduces training, friction, and errors
- Controls without drag: approvals, SoD, and audit trails embedded in daily work
- Lower TCO: spend shifts from licenses → capabilities (integration, analytics, UX)
- Freedom to operate: open-source stack = no monopoly, partner choice, in-house options
Implementation Snapshot
- Platform: ERPNext (open source)
- Method: design-first; short, iterative releases; parallel validation
- Team: lean, senior execution; formal governance and change control
- Handover: SOPs, admin enablement, dashboards for Finance & Ops
FAQs
Q1: How did you hit Day-1 savings?
By encoding OEM scheme logic so eligible POs automatically received applicable discounts.
Q2: How do you keep training near-zero across many entities?
We standardized the process and UI into one common automated format, so teams don’t relearn per company.
Q3: Will open source be supported long term?
Yes. You can retain a partner, build an internal team, or run a hybrid model. No vendor lock-in.
Q4: Can we adopt this without full MRP at the start?
Yes. Many autos groups begin with purchasing/commission/governance, then expand.