Empowering Jewelry Brands with an ERP Solution
Amin Jewelers Ltd, a renowned and prestigious gold jewelry brand in town, has been operating in Bangladesh for 57 years. They have been relying solely on paper-based processes throughout their business operations. However, this heavy reliance on paper has caused issues with managing their gold stock efficiently, leading to financial losses due to the volatility of gold prices. Moreover, their manual order and record system have made it extremely challenging to manage their gold inventory effectively. As a result, they have decided to explore ERP solutions as a way to overcome these challenges.
We implemented Odoo to automate the total paper-based operation, by which managing all kind of Sales Order, Jewelry & Gold Stock Management become simple and automated. We integrated Sales, Inventory & Accounting module. Managing different processes such as Repair, Purification & Goldsmith became simple with this ERP system too.
- The company faced financial issues because they relied on manual paper-based systems, which caused fluctuations in their gold stock due to the sensitive nature of gold prices.
- Using paper-based order and record systems created difficulties in managing their gold inventory.
- With Odoo implementation, Amin Jewelers simplified their sales process for direct sales, reducing it to just three clicks.
- The solution solved the problem of managing gold stock separately while keeping it integrated, and also improved inventory control.
Since 57 years, Amin Jewelers was operating their whole business chain on paper only. No Automation has been introduced to their business. But due to the dependency on paper only, there has been massive variance found in the gold stock from time to time. Since Gold is one of the sensitive products in the world (1g= 7,003.3 BDT) smallest difference make huge impact on their finance.
Again, due to paper-based order and record system, gold inventory management was one of the biggest challenges of theirs.
Every day their employees must record every order on paper, and after the day ends, they must manually calculate the sold gold, how much customers have booked, which orders need to be customized and also adjust their cashflow accordingly. And due to total dependency on human interaction mismatches and mistakes have been often found.
Often when customers from long ago come to exchange their jewelry it’s a big hassle for employees to find that exact receipt after 20 years and then provide service to customers instantly.
While fighting with these obstacles for a long time, Amin Jewelers opted for the ERP Solution.
While implementing the ERP system (Odoo) for Amin Jewelers one of the toughest things was to automate the total paper-based operation. Our team had to break down their operation into smallest units and then find out the implementation scope and customization area.
Improved Product Insight:
We have introduced a new feature in the product template of Odoo where users can log information metal (Gold) and stone (Diamond/Stone) according to carat and weight.
And in sales order, when users choose a product, users can directly see the total jewelry details of a single product.
Introducing All kind of Jewelry Sales into Sales Module:
Amin Jewelers operate sales in various ways and different showrooms operate these sales strategies in their own way. At first, we had narrowed down their sale types into 4 kinds. For Direct sales, like where customers just came and bought the jewelry and made the payment right away, we had simplified their Sales Process in three clicks only.
- Now employees just make a Sales order, Add the jewelries, Insert customer name, phone number, address, Order date etc.
- Confirm the sales and with that system adjusts the inventory and creates invoices.
- Users just need to create the payment.
- And the whole Sales Order is done, from inventory sold product and as well as gold qty is reduced.
Exchanging Product Streamlined:
Previously, at Amin, employees had to manually calculate the exchanged amount of gold, deduct the necessary amount, and determine whether the customer needed to pay more or if Amin needed to reimburse the customer.
With the exchange add-ons, various additional calculations need to be performed. For example, different deduction rates apply depending on whether the jewelry is from Amin or another jewelry house. If the customer is making Amin pay, there is yet another type of deduction.
We have integrated the purchase process within sales. After creating a sales order, the user can make the purchase and select the type of jewelry (Amin or others). From there, the system handles all calculations, such as remaining amount after deduction, exchanged amount, and taxes.
By confirming the sales order, products are automatically added or removed from inventory, and the system adjusts gold, stones, or other metals accordingly. Invoices are automatically generated, and here’s the cool part! Odoo can determine when an invoice is needed and when a credit note is required.
Improving Sales Flexibility:
One type of sale at Amin is when customers choose jewelry, book it, and make payments in installments until the final payment is made to receive the jewelry.
To accommodate this type of sale, we introduced the Odoo default down payment feature. This allows multiple customized payments to be made for a single sales order, making payment options more flexible.
Simplifying Payments for Customized Orders:
For customized products, Amin just takes notes, but no product is booked and takes advances against those order. Later these orders are manufactured with a goldsmith and then they are received and delivered to customers.
The challenge for these types of products was to take the payment without any product/Service. So, we have designed a simple process where users can take the down payment/s against order sales and later when product need to be delivered, those products can be added, and inventory and Invoice is taken care of by the system.
Improving Inventory Management and Security:
Managing separate inventories for gold and products was a significant challenge for Amin Jewelers. To solve this, we implemented a solution were adding jewelry to the inventory automatically updated the corresponding metal and stone inventory. This eliminated the need for manual calculations and adjustments by employees.
To deal with issues such as decay or theft, we implemented an automated logger. This logger keeps a record of any inconsistencies discovered during transactions. This allows sales to proceed smoothly while identifying and marking the discrepancies for further examination and adjustment of inventory by the relevant authority.
Furthermore, with Odoo, we developed a simple solution that allows users to configure their own gold ratios. With every transaction involving a goldsmith, the system generates an automatic ledger that shows the total payable amount of gold, providing transparency and ease of tracking.
Firstly, Odoo provides a comprehensive and integrated solution for sales, purchase, and inventory management. This means that Amin Jewelers can have a streamlined system where all these essential functions are interconnected, reducing the chances of odds and improving overall efficiency.
Additionally, one of the reasons for selecting Odoo was the reasonable cost of user licenses. This ensured that implementing the ERP solution would be cost-effective for Amin Jewelers, allowing them to maximize their return on investment.
Furthermore, Odoo offers built-in logging capabilities for almost every action. This feature provides transparency and accountability, allowing the company to track and monitor operations effectively.
- Streamlined Sales in Three Clicks: By simplifying the sales process to just three clicks, employees at Amin Jewelers can complete direct sales transactions quickly, allowing them to serve more customers in less time. This contributes to smoother operations, improved time efficiency, and a more seamless customer buying experience.
- Exchanging Product has never been this easy: The integration of purchase within sales streamlines the exchange process, making it much easier for both customers and employees. Users can choose the jewelry they want, and the system will automatically calculate the remaining amount to be paid after deductions, the exchanged amount, and the applicable tax. This eliminates the need for manual calculations and reduces the likelihood of errors.
- No More Record Forging: The introduction of Odoo default down payment improves transparency and reduces the chances of disputes or misunderstandings.
- Enhanced Stock Management and Accuracy through Strong Audit Logger: The strong audit logger allows for better stock management by promptly identifying any mismatches in jewelries during transactions.
Services We Provide
Brain Station 23 is focused on delivering tailored services to meet the unique needs and expectations of their clients. Here we provided ERP Solutions to our client.