We recently met with the operations head of a 65-person plastic moulding company in Pune.

"We're still on Excel," he admitted. "We know we should upgrade, but SAP quoted us ₹40 lakhs for Year 1. Where are we supposed to find that?"

This conversation happens twice a week. Small manufacturers know Excel is killing their efficiency. They've priced out enterprise ERP. The sticker shock is real. So they stick with Excel the devil they know.

But here's what most don't realise: there's ERPNext, a full-featured ERP that costs 90% less than enterprise alternatives.

While ERPNext works across industries (retail, healthcare, services, e-commerce), its manufacturing capabilities are robust. That's why we specialise in implementing it for production-based businesses.

Let's break down what it costs and why it might be perfect for your operation.

‍

What Excel Is Actually Costing You

You already know Excel has problems. You're living them every day.

The inventory sheet says 200 units. The warehouse has 147. Nobody knows where the other 53 went.

Production stops Tuesday morning because you're out of raw material. Purchasing says it's on order. Stores say nobody told them. The requisition is lost in someone's email.

When leadership asks, "What's our production status?" it takes 45 minutes to compile an answer. By then, it's outdated.

Most manufacturers don't realise the real cost because it's hidden in operations:

‍

‍

The ERP Trap

ERP would solve these problems. Real-time data. Automated workflows. Single source of truth.

The problem? Cost.

Enterprise ERP pricing typically looks like this:

• SAP Business One: ₹15+ lakhs for Year 1, then ₹4+ lakhs annually
• Oracle NetSuite: ₹50-85 lakhs for Year 1, then ₹30+ lakhs annually
• Microsoft Dynamics: ₹60-90 lakhs for Year 1, then ₹30+ lakhs annually

So manufacturers are stuck. Excel is bleeding money, but "proper" ERP costs more upfront.

This is where ERPNext changes everything.

‍

ERPNext: The 90% Cost-Effective Alternative

ERPNext is a complete business management system where the software costs ₹0. Forever.

It's 100% open-source, used by 10,000+ companies globally across all industries—from India's largest stock broker (Zerodha) to B2B e-commerce platforms to solar engineering firms to manufacturing companies.

Important to know: ERPNext isn't manufacturing-specific software. It's a full ERP that handles accounting, CRM, HR, inventory, sales, and more for any industry. But its manufacturing module is exceptionally robust—which is why we focus on implementing it for production businesses.

For manufacturing, it includes:

• Bill of Materials management
• Work Order tracking with shop floor integration
• Production Planning (MRP)
• Quality inspection and batch tracking
• Real-time inventory across multiple locations
• Material requirement planning

Plus, the complete ERP suite for everything else your business needs.

The quality is enterprise-grade. Maintained by Frappe Technologies with backing from serious investors and a massive open-source community. The license cost is zero.

But let's be clear: the software is free, implementation isn't.

‍

What ERPNext Actually Costs (The Honest Breakdown)

Here's what you actually pay for a 50-person manufacturing company:

Hosting: ₹40,000-₹100000 per year
Someone has to run the server. Options include Frappe's official cloud hosting,self-hosted on your own servers, or third-party providers.

Implementation: ₹4-6 lakhs one-time
Consultants understand your processes, configure the system, migrate your data,and train your team. This is skilled labour, similar to hiring someone to set upyour entire IT infrastructure.

Training: ₹1-1.5 lakhs one-time
Getting your team comfortable with the new system. Proper training is criticalfor successful adoption.

Customisation: ₹0.5-2 lakhs optional
Most manufacturers need some custom reports or industry-specific workflows.

Year 1 Total: ₹8-15 lakhs
Years 2 onwards: ₹1-2 lakhs/year (just hosting and support)

No license renewal fees. No per-user charges. No mandatoryupgrade costs.

‍

‍

The Comparison That Matters

5-Year Total Cost of Ownership:

• ERPNext: ₹15-25 lakhs
• Enterprise ERP (SAP/Oracle/Microsoft): ₹60 lakhs-1.5 crores

Savings: ₹40-100 lakhs over 5 years.

Why such a massive gap? Enterprise ERP charges ₹40-60 lakhs annually just for software licenses. Year after year.

ERPNext charges ₹0 for software. You pay only for hosting and one-time implementation services.

Same core functionality for manufacturing. Same training requirements. Same operational benefits. No license fees.

‍

"But Is It Good Enough for Our Needs?"

Based on our experience implementing ERPNext for 50+ manufacturing companies:

For most small to medium manufacturers (20-500 employees), ERPNext provides everything needed and competes directly with SAP, Oracle, and Microsoft on features.

Where enterprise ERP might be necessary:

• Organisations with 1000+ employees
• Operations spanning 20+ countries with complex regulatory requirements
• Highly specialised industries requiring pre-validated systems (pharma FDA compliance, aerospace AS9100)
• Need for dedicated 24/7 support teams with strict SLAs

For the typical small-to-medium manufacturer, you're often paying for features you'll never use.

Real Results: 40% Fewer Production Delays in 90 Days

A recent client—a 60-person plastic moulding company—came to us with these challenges:

Their situation: 15-20 production delays monthly, losing ₹3+ lakhs per month to inefficiency

Our implementation: ERPNext manufacturing module, 13-week timeline, ₹11.5 lakhs total investment

Results after 90 days:

• Production delays reduced by 40%
• Material stock-outs down 80%
• Customer complaints down 70%
• Monthly savings: ₹2.3 lakhs

ROI: System paid for itself in 5 months.

The difference wasn't complex technology—it was visibility. Real-time stock levels. Automated alerts before materials ran low. Instant shop floor updates via tablets instead of paper forms.

Is ERPNext Right for Your Company?

ERPNext is a strong fit if you:

• Have 20-500 employees.
• Manufacture or produce physical products.
• Currently use Excel or outdated legacy software.
• Lose money regularly due to production delays or inventory errors.
• Can invest ₹12-18 lakhs in Year 1
• Have management commitment to process improvement

Consider other options if you:

• Have under 15 employees (might be more system than needed)
• Have 500+ employees with highly complex global operations
• The current system works well and meets all needs.
• Cannot secure management buy-in for change

What to Expect During Implementation and Customisation

Typical Timeline: 3-6 months, depending on complexity

Operational Disruption: Minimal when done correctly

• Run parallel with existing Excel systems during transition.
• Phase in modules gradually
• Full productivity typically returns within 4-6 weeks after go-live.

Critical Success Factors:

• Start with core modules, expand later.
• Clean and organise data before migration.
• Allow a realistic timeline without arbitrary deadlines.
• Invest adequately in team training.
• Maintain executive sponsorship throughout

In our experience, manufacturers losing more than ₹15 lakhs annually to Excel-related inefficiencies see positive ROI within the first year.

The question isn't "Can we afford ERP implementation?"

It's "Can we afford to continue losing money to operational inefficiency?"

Moving Forward

The operations head we mentioned earlier did the math. His Excel-based chaos was costing ₹35-40 lakhs annually. ERPNext implementation: ₹14 lakhs Year 1.

"Why didn't anyone tell us about this option before?" he asked.

Most consultants focus on enterprise ERP—higher implementation fees and better commissions. Open-source solutions don't carry the same financial incentives for consultants.

That company implemented ERPNext six months ago. Production delays are down 45%. They're tracking to save ₹30+ lakhs this year.

Next Steps

If you're considering moving beyond Excel, we've created a free assessment tool to help evaluate your readiness for ERP implementation.

The 10-minute assessment covers:

• Current operational challenges
• Estimated cost of inefficiencies
• System readiness evaluation
• Whether ERPNext is appropriate for your situation
• Personalized recommendations

Prefer to discuss your specific situation? Schedule a 30-minute consultation with our team. We'll provide an honest assessment of whether ERPNext makes sense for your manufacturing operation.

No obligation. No pressure. Just straightforward advice based on your situation.

‍