In today’s competitive garment industry, efficient processes are key to sustained growth. Implementing an ERP system tailored to garment manufacturing not only streamlines operations but also enhances scalability. In this case, we explore how ERPNext, a robust open-source manufacturing ERP platform, transformed a leading Indian fashion brand’s operations. This implementation involved integrating Shopify, customizing tax calculations, and optimizing their payment gateways for seamless performance
Key Highlights of ERPNext Implementation for Garment Manufacturers:
- Location: India
- Users: 25
- Industry: Garment design and manufacturing
- Modules used: Sales, purchase, accounting, stock, manufacturing, HR
- Integrations: Shopify, Payment gateways (PayU and RazorPay)
- Customizations: Tax calculations, Payment reconciliation, Custom reports via Custom Frappe Apps
Handcrafted designs, made with purest fabrics
The client is a leading fashion brand and a garment manufacturer with a team of in-house designers. Most of their sales are driven through their Shopify store.
Prior to integrating ERPNext, they were doing most of their operations via Shopify only. As the brand grew in terms of customer engagement and orders, they needed a better way to organize all of their operations.
We introduced ERPNext to them and implemented the following:
- Upgrade to ERPNext v14 from v13
- Migration to Frappe Cloud from self-hosted server
- Shopify integration
- Sales module
- Purchase module
- Stock module
- Accounting module
- Custom reports
- Custom print formats
- Multiple payment gateway integration
While all the modules required some customizations here and there, in this case study, we are going to talk about Shopify Integration specifically.
The power of open source
Thanks to the Frappe team, the Shopify integration is present in the ecommerce integration app. It offered a lot things to start with-
- Item synchronization
- Sales order synchronization
- Delivery Note synchronization
- Sales invoice synchronization
Design, Stitch, Deliver. All in One Go.
The client is in the business of designing and manufacturing garments. While designing is possible offline, manufacturing becomes more challenging when done offline and manually.
Here were some of the challenges faced by the client on a daily basis-
- Maintaining over 16000 items on Shopify with multiple tax rules
- Handling B2B sales orders (Shopify is only for B2C customers)
- Freight calculation with taxes
- Workflows for sales order approval
- Identifying which sales invoices have been paid and settled from the payment gateway
Stitching a better solution
The Shopify integration was crucial for this garment manufacturing ERP implementation.
While the ecommerce integration created by the Frappe/ERPNext team is an excellent solution to bridge ERPNext and Shopify for smaller and generic stores, the client’s operations required more customizations to it.
Taxation
The client’s team is managing 16000+ items in their Shopify store (which are now synced to ERPNext), but they were finding it difficult to update their GST rates based on their categories. So, we modified the ecommerce integration app and based on the HSN code of the item, we applied the relevant Item Tax Template on it in the Sales Order. This made sure that while the item sold on Shopify has only MRP (incl. of taxes) on them, the tax was applied and calculated separately in ERPNext sales orders. This made their GST accounting much easier.
Freight (+GST)
Shopify orders had freight included in the final order amount. This caused problems in the GST accounting because freight was supposed to have a GST component as well. Our solution involved modifying the integration so that freight with GST was handled correctly within ERPNext.
Payment Gateway Integration
The Shopify store uses two payment gateways: PayU and Razorpay.
Both payment gateways provided different payouts data formats when exported and the team was having a hard time in reconciling their sales invoices and the payouts. So, we integrated both the payment gateways in ERPNext and reconciled their sales invoices with bank UTR number and the payment ID using scheduled jobs. This proved to be an excellent time saver for their accounts team!
Better integrations, more efficiency, greater visibility
Overall, our ERPNext implementation services helped the client achieve greater operational efficiency and gain more visibility across the board. The ERPNext Payment Gateway integration helped them a lot by automating the payment reconciliation process. With their ever growing product offerings, the automated tax calculation means that they don’t have to worry about updating their taxation on Shopify.
Looking for ERP implementation for your manufacturing company? You have come to the right place. We are Frappe Certified ERPNext implementation company who has implemented multiple ERP systems in manufacturing industry. Reach out to us on hello@citrusleaf.in and we will get back to you.