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ManufacturingIndia

How Apex Manufacturing Reduced Production Costs by 30% with ERP Integration

A Coimbatore-based textile manufacturer with 3 production units connected their shop floor to their accounting system — eliminating manual data entry and unlocking real-time costing that transformed their pricing strategy.

30% Less
Production Cost Reduced
50% Faster
Order Processing
3 Connected
Production Units
+12%
Profit Margin Increase

About Apex Manufacturing

Apex Manufacturing is a second-generation textile manufacturer headquartered in Coimbatore, Tamil Nadu. The company operates 3 production units manufacturing cotton yarn, woven fabrics, and finished garments for both domestic and export markets.

With 320 employees, 850+ raw material SKUs, and a complex Bill of Materials (BOM) spanning multiple production stages, Apex needed to connect their manufacturing operations directly to their financial system to gain accurate product costing.

The Challenge

1

Production data lived in Excel sheets maintained by floor supervisors. Finance received weekly summaries — always 5–7 days late.

2

Product costing was based on estimates, not actuals. The team discovered they were underpricing 40% of their garment line.

3

Purchase orders for raw materials were raised manually. Duplicate orders and missed deliveries cost ₹8 lakh/month.

4

GST on raw materials, job work, and exports required 3 different compliance approaches — managed by one overwhelmed accountant.

5

No connection between sales orders and production scheduling. Orders were missed or overcommitted routinely.

The Laabam.One Solution

Apex deployed Laabam.One's manufacturing and accounting modules in a 6-week phased rollout. The integration connected all 3 production units to a single financial system.

Manufacturing Module

Bill of Materials (BOM) management, work order tracking, and production scheduling across 3 units with real-time status updates.

Procurement & Purchase

Automated purchase orders based on BOM requirements. Vendor comparison, GRN tracking, and 3-way matching (PO-GRN-Invoice).

Real-Time Product Costing

Actual cost calculation including raw materials, labour, overheads, and wastage. Automatic margin analysis per product line.

GST for Manufacturers

Automated ITC claims, job work challan tracking, export under bond/LUT, and GST reconciliation across all units.

Sales-Production Integration

Sales orders automatically trigger production work orders. Delivery scheduling based on production capacity and current WIP.

Results After 6 Months

Production costs reduced by 30% through accurate BOM tracking, waste reduction, and optimized raw material procurement.

Order processing time cut by 50% — from order receipt to production scheduling now takes hours, not days.

Profit margins improved by 12% after repricing products based on actual cost data instead of estimates.

Raw material procurement costs dropped ₹8 lakh/month by eliminating duplicate orders and negotiating bulk rates.

GST compliance across manufacturing, job work, and exports now handled by the system automatically — zero penalties in 6 months.

“We were pricing blind for years. When Laabam.One showed us our actual production costs, we discovered 40% of our garment line was being sold below true cost. That insight alone paid for the entire system in the first quarter.”

Suresh Venkataraman
Managing Director, Apex Manufacturing

Ready to Transform Your Manufacturing?

Connect your shop floor to your financials and unlock real-time cost visibility.