ERPNext Implementation Proposal

Wassertek Warehouse Automation & ERPNext Implementation

Comprehensive proposal for end-to-end business process automation and inventory control

1. Executive Summary

Wassertek currently manages a large and diverse inventory (small spare parts, fittings, tools, pumps, and large machines) across racks, bins, pallets, and demo areas using manual methods and Tally for accounting. This creates challenges in stock visibility, control, traceability, and scalability.

This proposal outlines a complete ERPNext-based Warehouse Automation & Business Management System that will:

2. Strategic Selection: Why ERPNext?

To maximize Wassertek's ROI, we analyzed the Total Cost of Ownership (TCO) against market leaders (SAP, Odoo, Dynamics 365). The selection of ERPNext is driven by minimizing Initial CapEx and eliminating recurring OpEx on user licenses.

Feature ERPNext (Recommended) SAP / Odoo / Dynamics 365
License Cost Zero License Fees Open Source. You own the code. High Recurring Cost Per-user monthly subscriptions.
User Scalability Unlimited Users Add warehouse staff at $0 extra cost. Restricted Adding users significantly increases monthly bill.
Customization Full Freedom Modify source code to fit Wassertek logic. Limited/Locked Customizations often break updates.
5-Year Est. Cost ~$15k (Server & Maint.) ~$80k+ (Licenses & Support)

*Estimates based on 10-20 users including warehouse operators.

Transform Your Warehouse Operations

Our BetaEdge ERPNext solution bridges the gap between your physical warehouse and digital management systems, creating a seamless, efficient operation.

100% Scan-based

Eliminate manual typing errors

Bin-Level Tracking

Know exact location of every item

Interact with the simulation on the right to see the workflow.

Watch Full Video Demo
Status: Ready

3. Current Situation vs. Target System

Current (As-Is)

Warehouse & Inventory:

  • Physical racks exist but are not system-controlled
  • Same items stored in multiple places without system visibility
  • No real-time stock availability per location
  • High dependency on staff knowledge

Operations:

  • Sales team manually calls warehouse for stock
  • Tally used only for accounting, no integration

Target (To-Be) – ERPNext

ERPNext will become the single integrated system for:

  • Warehouse & inventory management
  • Sales & CRM
  • Purchasing & suppliers
  • Accounting & VAT compliance

Key Improvements:

  • Real-time stock visibility at bin level
  • Barcode scanning for all transactions
  • Automated reordering based on stock levels
  • Integrated FIFO accounting

4. Warehouse Design (Best Practice)

4.1 Warehouse Structure

Warehouse Purpose Sales Allowed
MAIN-WH Sellable stock Yes
SHOWROOM-DEMO Demo & display machines No
QC-QUARANTINE Receiving & inspection No
DAMAGED-RETURNS Rejected/returned items No

Rule: Sales are allowed only from MAIN-WH.

4.2 Location Coding (Rack & Bin Control)

Standard Location Format:

MAIN-WH-A01-R43-B05 │ │ │ │ │ │ │ └── Bin / shelf level (B05) │ │ └── Rack (from existing physical rack numbers R43) │ └── Aisle (A01) └── Warehouse (MAIN-WH)

Each bin/location is created as a warehouse node in ERPNext and labeled with a barcode.

5. Item Master & Barcode Strategy

5.1 Item Coding Standard

Format: WST-<CATEGORY>-<TYPE/MODEL>-<SIZE>-<VARIANT>

Example Description
WST-SPR-FUSE-15A Spare part - Fuse - 15A rating
WST-FIT-ELB-110-HDPE Fitting - Elbow - 110mm - HDPE material

5.2 Interactive Label Preview

Try typing a code below to see how the barcode labels will look:

WST-PMP-IND-50

6. End-to-End Automated Processes

6.1 Purchasing & Receiving Flow

1

Material Request

Manual or auto reorder

2

Purchase Order

Place order

3

Purchase Receipt

→ QC-QUARANTINE

4

Inspection

Quality check

5

Stock Entry

→ MAIN-WH (Scan)

6.2 Sales Process Flow

1

Quotation

Real-time stock check

2

Sales Order

Reserve stock

3

Delivery Note

Bin-based Picking

4

Sales Invoice

Billing & Auto-Accounting

7. Implementation Phases

Phase 0 – Critical Readiness (Before Go-Live)

This phase ensures the warehouse is physically and logically ready.

Physical Labeling

Label all racks with Aisle & Rack numbers

Warehouse Layout

Freeze final bin count per rack

Stock Count

Perform wall-to-wall physical stock count

Data Cleansing

Clean item names and map to new WST codes

8. Business Benefits

Area Before After ERPNext Improvement
Stock Accuracy Low 98%+ Eliminate manual counting errors
Picking Speed Slow Fast 60% faster with optimized routes
Scalability Limited High Supports UAE, Canada, India expansion