The ₹2.4 Cr ERP Wasn’t the Problem. The Roles Were.
How a ₹320 Cr packaging manufacturer reduced month-end closing time by 57% and approval reversals by 94%
1. OBJECTIVE
Fix operational bottlenecks after an ERP implementation by addressing the underlying role and approval design rather than simply modifying the technology.
The business had completed a 14-month ERP implementation, but six months after go-live, the COO described the situation as “worse than before, just faster.”
2. PROBLEM
The Indore-based FMCG flexible packaging manufacturer had:
- ₹ 320 Cr revenue
- A ₹ 2.4 Cr ERP investment
Yet:
- Purchase requests above ₹ 2 lakh went to 3 parallel approvers
- Production workflows were assigned to job titles rather than individuals
- Month-end closing had increased from 9 to 14 days
- Approval reversals occurred 18 times/month
- Management confidence in the ERP investment was falling.
The technology wasn’t necessarily broken.
It had simply automated unclear roles.
3. STRATEGY
Instead of fixing the ERP first, the team reversed the sequence.
First: Fix the roles.
Then: Fix the workflow.
The RACI was rebuilt for the top 30 transactional decisions, including:
- Purchase approvals
- Production schedule release
- Dispatch authorisation
- Customer-credit approval
- Month-end accruals
Each decision was assigned a single Accountable owner.
4. SOLUTION
The ERP workflows were then redesigned around the new RACI:
- Parallel approvals → Sequential approvals
- Multiple Accountables → Single Accountable
- Job titles → Named users
- Role changes → Formal change-control process
The technology was made to reflect the business’s intended decision structure, rather than reinforcing the old ambiguity.
5. EXECUTION & RESULTS
After 120 days:
| Metric | Before | After | Improvement |
|---|---|---|---|
|
Month-end close |
14 days |
6 days |
57% reduction |
|
PR-to-PO conversion |
5.8 days |
1.4 days |
76% reduction |
|
Approval reversals |
18/month |
1/month |
94% reduction |
|
ERP user satisfaction (NPS) |
-12 |
+34 |
+46 points |
THE BUSINESS IMPACT
The ERP hadn’t created the confusion.
It had automated it.
By fixing accountability first and technology second, the business turned an underperforming system into a more efficient operating workflow.
The lesson: Don’t automate ambiguity. Fix it first.