ERP Boosts Rug Counting Efficiency

Managing inventory across all their locations used to be a headache for Neytt, but Kladana makes it much easier.

The carpet industry is evolving fast. Customers want unique, custom designs for their homes and businesses, and thanks to digital printing, manufacturers can now create intricate patterns in no time. At the same time, eco-friendly materials like wool, jute, and bamboo are in high demand as people become more aware of sustainability.

Construction and home renovations are also fueling market growth. The carpet and rug industry was worth $78.12 billion in 2023 and is expected to reach $120 billion by 2032, growing at 5.5 per cent annually, according to Market Research Future.

For businesses like Neytt Homes, adapting to digital trends wasn’t easy. As a 100-year-old family business sourcing carpets from Extraweave and other suppliers across India, they struggled with inventory management across multiple locations. To fix this, they turned to Kladana ERP, a cloud-based system that automated their inventory tracking and business operations.

Challenges faced

In 2021, Neytt began selling high-fashion carpets directly to B2C customers. With 10 locations to manage, including warehouses and retail stores, the company struggled with scattered information stored across spreadsheets and email exchanges with suppliers.

They didn’t have barcodes for their products, so tracking inventory was a challenge. Neytt also lacked the tools to analyze profits, identify their best-selling items, or track their top-performing sales orders.

Top 5 Issues

• Inventory management: They had no clear idea of stock levels, reorder points, or where products were located, making it hard to track costs and make informed decisions.
• Operational inefficiencies: Manual data entry in Excel led to mistakes and made it impossible to track inventory in real time.
• Sales and financial data: They couldn’t easily view daily or monthly sales data, which made it tough to understand conversion rates and sales performance.
• Sales quotes: Errors were common in manually created sales quotes, and there were issues with access and pricing consistency.
• Order tracking: Without a clear delivery schedule or system to track orders, it was difficult to keep projects organized and on time.

Transition to ERP Solutions

Neytt tried several ERP systems before choosing Kladana. They liked how easy it was to customize and the excellent customer support. The whole setup process took about three to four months, including transferring all their data. This transition led to major improvements in how they ran their business.

Inventory management: Managing inventory across all their locations used to be a headache, but Kladana makes it much easier. The ERP tracks inventory accurately with barcode management across all 10 locations. Using auto-generated barcodes in Kladana, Neytt counted 270 carpets in just 60 minutes, and set up the inventory for a new retail store in New Delhi in 30 minutes. Now they always know exactly what’s in stock, where it’s located, and when it’s time to restock.

Sales tracking: With Kladana, Neytt can see their daily sales and analyze revenue from e-commerce, employees, and product categories. The ERP also tracks sales leads, showing their likelihood to convert. It uses a color-coded system: green for 100% chance, amber for high probability (90 per cent), and red for lower chances. Additionally, Neytt can easily track profit margins for each order, including details like logistics costs, gross profit (GP) ratio, and net profit ratio.

Custom reports and sales quotes: With Kladana, generating sales quotes became much easier than in spreadsheets. The ERP automatically creates accurate quotes with product images, descriptions, prices, discounts, and shipping costs. This takes away the guesswork and removes the chances of making mistakes. Also, Neytt receives custom reports within 17 days. The team now spends less time fixing errors and more time focusing on building strong relationships with customers.

Purchase order management: Creating purchase orders is also simpler now. Previously, orders were confirmed via email and tracked via Excel. Now, Neytt creates and tracks purchase order statuses in the ERP, which gives Neytt better visibility into what’s going on with their vendors. It helps to track financial obligations for the next three months, and to maintain solid relationships with suppliers.

Rajni Mittal, Head of Supply Chain and Production, shared how Kladana’s ERP transformed Neytt’s daily operations, “Before, just finding a product in the warehouse was a challenge. We manually updated stock in Excel for every sales order, often making typos and errors. We had no clear data on daily and monthly sales, the number of quotes sent, lead conversions, or individual sales performance. Now, with Kladana, everything is accurate and reliable. All our key production, purchasing, and sales metrics come directly from the system.”

Aleksandra Malhotra, Director of Kladana India, highlighted the impact of the partnership by saying, “Working with Neytt has been incredibly rewarding. We helped them replace labor-intensive tasks with an efficient, automated system. Now, they track inventory, sales, and overall business performance with ease. Moving forward, we’re focusing on advanced analytics and integrations with platforms like WooCommerce, making it even easier for small businesses like Neytt to grow and compete online.”

Conclusion

Neytt’s journey shows how the right technology can solve operational challenges and drive business growth. With Kladana ERP, they streamlined inventory management, improved efficiency, and set the stage for future expansion in the fast-changing B2C market. As the carpet and rug industry evolves, businesses that embrace smart solutions like Kladana ERP will stay ahead — boosting both productivity and customer satisfaction.

About the author:

Aleksandra Malhotra serves as the Director of Kladana and Head of International Business Development in India. With over a decade of experience in executive roles within the SaaS, MarTech, and e-commerce sectors, Malhotra brings a wealth of knowledge and expertise to her position. Currently, she spearheads business development processes for Kladana outside its home market, primarily focusing on India and prioritising a growth hacking approach and developing the market for the SaaS. Under her leadership, she envisions Kladana as a global company helping MSMEs with a remarkable product and plans to integrate its internal parts, efforts, innovations with a strong focus on India growth.