Industry: Manufacturing & Distribution | Service Area: Financial Consulting & Digital Transformation
Client Overview
Our client is a mid-sized manufacturing enterprise based in Gujarat with annual revenues of ₹15 crore, specializing in industrial components. With 75 employees and a growing distribution network across Western India, they faced critical bottlenecks in financial reporting and inventory management that were limiting their expansion potential.
Challenge / Problem Statement
The company struggled with manual accounting processes that created 10-15 day delays in financial reporting. Their inventory tracking relied on Excel spreadsheets, causing frequent stock discrepancies and delayed vendor payments. Leadership lacked real-time visibility into cash flow, making strategic decision-making reactive rather than proactive. During audit season, the finance team spent 60% of their time reconciling data instead of analysis.
Objectives
- Reduce financial reporting cycle from 15 days to 3 days
- Achieve 95% inventory accuracy through automated tracking
- Implement real-time dashboard for cash flow monitoring
- Cut month-end closing time by 50%
- Enable data-driven forecasting for quarterly planning
Approach / Methodology
- Discovery Phase: Panthak conducted a 10-day operational audit, mapping existing workflows and identifying 23 process inefficiencies across accounts payable, receivable, and inventory management.
- Analysis & Strategy Design: We developed a phased digital transformation roadmap prioritizing quick wins while building toward comprehensive ERP integration.
Challenge vs. Solution Framework
- Challenge Summary
Manual data entry across disconnected systems created error rates above 12%. The accounting team worked overtime during month-end with no standardized approval workflows. Inventory counts required physical verification twice monthly.
- Solution Outline
Deployed cloud-based financial management software integrated with inventory modules. Established automated approval hierarchies and digital documentation trails. Implemented IoT-enabled inventory sensors for real-time stock monitoring.
Solution Delivered
Panthak implemented a customized financial management system with these core components:
- Financial Module: Automated invoice processing, vendor payment scheduling, and multi-level approval workflows reduced manual touchpoints by 70%.
- Inventory Integration: Real-time stock tracking with automated reorder triggers and supplier portal integration eliminated 90% of manual data entry.
- Reporting Dashboard: Executive dashboard provided live visibility into key metrics including DSO, working capital, and profitability by product line.
- Training Program: Conducted 40 hours of hands-on training across three departments, ensuring smooth adoption with 95% user engagement within 30 days.
Financial Process Transformation
Before vs. After Panthak Intervention
Measurable Impact & Results
| Process Area | Before | After | Technology |
|---|---|---|---|
| Invoice Processing | Manual entry, 3-5 days | Auto-capture, same day | OCR + Cloud ERP |
| Inventory Tracking | Physical count 2x/month | Real-time monitoring | IoT Sensors |
| Approvals | Email chains, 5-7 days | Digital workflow, 4 hours | Automated Routing |
| Reconciliation | Manual matching, 60hrs | Auto-match, 8hrs review | AI Algorithms |
| Reporting | Manual compilation, 3 days | Auto-generation, 2 hours | BI Dashboard |
Results & Impact
Quantitative Outcomes:
- Financial reporting cycle reduced from 15 days to 2.5 days (83% improvement)
- Month-end closing time decreased from 8 days to 3 days
- Inventory accuracy improved to 97%, up from 78%
- Vendor payment delays eliminated, improving supplier relationships
- Finance team productivity increased by 40%, reallocating time to strategic analysis
- Cash flow forecasting accuracy improved to 92%
Qualitative Benefits: Leadership gained confidence in making expansion decisions based on reliable data. The finance team shifted from administrative firefighting to value-added analysis. Audit preparation time dropped significantly, with the last audit completed 12 days faster than previous year.
Client Testimonial
“Panthak didn’t just implement software, they redesigned how we think about financial operations. The visibility we now have into our business is transformative. Our CFO can answer questions in real-time that used to take days of manual compilation. This has directly supported our ability to secure better financing terms and pursue strategic growth opportunities we couldn’t previously evaluate.“
— Managing Director, Client Company
Key Learnings / Future Roadmap
This engagement demonstrated that MSME digital transformation succeeds when technology serves process improvement rather than replacing human judgment. The client’s willingness to embrace change management principles was critical to adoption rates exceeding industry benchmarks.
Next Phase: Building on this foundation, we’re now implementing predictive analytics for demand forecasting and expanding integration to their CRM system. This will create a unified business intelligence platform supporting their five-year growth plan to double revenue while maintaining operational excellence.