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How Kapila Cattle Feed Unified Five Plants on One Cloud ERP

Published On: 14 October 2025.By ronak.

How Kapila Cattle Feed Unified Five Plants on One Cloud ERP

ERP & Manufacturing: Case Study

How Kapila Cattle Feed Unified Five Plants on One Cloud ERP

Manufacturing Plants

Integrated Modules

ERPNext

Core Platform

Cloud

Central Deployment

GST

e-Waybill Compliance

BPA

Bill Pass Advice Module

01: About the Client

Kapila Cattle Feed

Agribusiness & Livestock Nutrition Manufacturing, India

Kapila Cattle Feed is a market leader in the agribusiness sector, providing high-quality, balanced livestock nutrition products trusted by dairy farmers across India. The company operates five manufacturing plants nationwide and is a cornerstone of the Indian dairy supply chain, known for improving milk yield and animal well-being at scale.

02: The Challenge

Five Plants, Five Disconnected Systems

Each of Kapila's five plants ran its own standalone desktop ERP. There was no central view of stock, no connected procurement workflow, and no way to see quality deductions or supplier liabilities without manually chasing each location.

Five standalone desktop stock systems at Kapila Cattle Feed plants, each with its own unsynced closing stock figures and no shared view — Before: five plants, five standalone desktop systems, no shared view of stock or supplier liabilities.

Fragmented Plant Operations

Stock, procurement, and sales figures lived in five separate systems. Reconciling them required manual exports and phone calls between locations - with no single source of truth.

Manual Quality Deductions

Lab-based deductions on raw material purchases were calculated manually and disconnected from the purchase order - creating disputes, payment delays, and audit gaps.

Untracked Gate Entries

Inbound deliveries were logged in physical registers with no link to purchase orders or warehouse receipts. What arrived at the gate and what hit the books were two separate records.

Paper-Based Supplier Approvals

Supplier invoice approval (Bill Pass) ran on paper. Tracking pending, approved, or on-hold invoices - and whether deductions had been applied - required manual follow-up with each plant.

No Real-Time Dealer Credit Check

Sales teams had no live view of dealer outstanding balances during order booking. Orders were dispatched without credit checks, leading to overexposure and collection problems.

03: The Solution

One Platform Across All Five Plants

Four integrated modules were built on ERPNext to cover the full operational cycle - from vendor gate entry to customer dispatch, and from lab deduction to payment release.

The implementation connected workflows that had never been linked before: gate entry to warehouse receipt, lab result to supplier payment, Sales Order to GST-compliant invoice. Each module was built to match how Kapila's operations actually work, not a generic ERP template.

Four ERPNext modules built for Kapila Cattle Feed: procurement and quality control, gate pass management, sales and distribution, and bill pass advice — One ERPNext core on a cloud VPS - four custom modules covering gate entry to payment release.

Procurement & Quality Control

Purchase Orders are raised centrally and linked to vendor quality parameters. On delivery, lab results are entered directly in the system - price deductions are calculated automatically and applied to the PO before payment approval. GRN quantities are validated against the gate entry record before stock is posted.

Gate Pass Management

Every inbound vehicle is registered at the gate and linked to a Purchase Order. The system enforces a sequential workflow: gate entry → material receipt → quality check → warehouse posting. No stock can be received without a matching gate pass - eliminating phantom entries and physical register dependency.

Sales & Distribution

Sales Orders are booked with real-time dealer credit checks. On confirmation, the system generates GST-compliant invoices and e-Waybills as part of the dispatch workflow. All five plants share the same customer and pricing master - eliminating duplicate records and ensuring consistent terms across locations.

Bill Pass Advice - Supplier Payments

A structured supplier invoice approval workflow routes each bill through quality deduction verification, GRN quantity check, and management approval before payment is cleared. The Bill Pass Advice module gives finance a complete view of pending, approved, and on-hold supplier liabilities across all plants in one dashboard.

Proof points: Gate-to-Warehouse Vehicle Entry·Lab Deduction Rule·Real-Time Dealer Credit Check·GST e-Waybill Generation·Bill Pass Advice

04: Technology Stack

Built on ERPNext and Frappe Framework

Layer	Technology	Role
Platform	ERPNext	Core ERP platform - procurement, sales, finance, inventory
Framework	Frappe Framework	Custom module development and workflow engine
Backend	Python	Business logic - deduction rules, BPA workflow, gate pass sequencing
Database	MariaDB	Transactional data store across all plants
Infrastructure	Cloud VPS	Central deployment accessible from all five plant locations
Compliance	GST / e-Waybill API	Government API integration for invoice and e-Waybill generation

05: Business Impact

One System Across Five Plants

Bill Pass Advice queue and consolidated finance and compliance view across all five Kapila Cattle Feed plants in ERPNext — After: all five plants on one system, with central visibility across stock, procurement and finance.

Connected Plant Operations

All five manufacturing plants now work from one shared ERP. Stock, procurement, and sales data is visible centrally - no manual reconciliation or inter-plant phone calls needed.

Automated Quality Deductions

Lab-based price deductions are calculated and applied automatically at the purchase order level - eliminating disputes, reducing errors, and making supplier payments audit-ready.

Gate-to-Warehouse Traceability

Every inbound delivery is tracked from gate entry through to warehouse posting. No stock can be received without a matching gate pass - closing the gap between what arrives and what hits the books.

Structured Supplier Approvals

The Bill Pass Advice module gave finance a clear view of pending and approved supplier invoices for the first time. Payment releases now follow a documented, trackable workflow.

GST-Compliant Dispatch

Invoices and e-Waybills are generated inside the ERP as part of the dispatch workflow - replacing a manual process where documents were often prepared after trucks had already left the gate.

Real-Time Dealer Credit Check

Sales teams can check dealer outstanding balances and credit limits before confirming an order - reducing overexposure in the distribution network and improving collection discipline.

Why This Case Matters

Industry Context

Multi-Plant ERP Without the Big-Vendor Price Tag

Most multi-plant ERP rollouts in Indian manufacturing are either SAP implementations with multi-crore licensing costs or stitched-together point solutions that never fully integrate. Kapila shows a third path: a fully custom ERPNext platform built to match actual operations - lab deductions, gate passes, Bill Pass Advice - deployed centrally on the cloud and accessible from every plant from day one. The total cost of ownership is a fraction of a comparable SAP or Oracle project, and the system is designed to scale as more plants are added.

Client Perspective

In Their Words

Our team is pleased with the new era solution that is coming up as the performance is very good. Different tools such as quality and insights - they were using different tools earlier. The team is active as our own team rather than a client vendor - they have been pushing us to go live.

Saurabh Shivhare

Co-Founder, Badho  ·  CEO, Kapila Agro

06: Frequently Asked Questions

Common Questions About This Project

What ERP system did Auriga IT implement for Kapila Cattle Feed?

Auriga IT implemented ERPNext on the Frappe Framework - a cloud-native, open-source ERP platform. The system was deployed centrally on a cloud server and made accessible to all five manufacturing plants, replacing the separate desktop applications each location had previously used.

How did the quality deduction system work before and after the ERP?

Before the ERP, quality deductions on raw material purchases were calculated manually using lab results on paper, then applied to supplier payments through a separate, disconnected process. After implementation, the ERP automatically calculates price deductions based on lab-defined quality parameters and applies them directly to the Purchase Order - making the deduction transparent and audit-ready.

Did the ERP help with GST compliance and e-Waybill generation?

Yes. The Sales and Distribution module includes automated GST-compliant invoice generation and e-Waybill creation as part of the standard dispatch workflow. This replaced a manual process where invoices and waybills were prepared separately, often after the truck had already left the gate.

How was gate pass and vehicle entry managed in the ERP?

A dedicated Gate Pass Management module was built to digitize inbound and outbound vehicle movement. Every incoming material delivery is registered at the gate, linked to a Purchase Order, and tracked through to warehouse receipt - creating an unbroken chain from vendor dispatch to stock entry.

What is the Bill Pass Advice module and why was it needed?

The Bill Pass Advice (BPA) module was built to digitize and govern the supplier invoice approval workflow. Before the ERP, supplier invoices were approved through a paper-based process that was difficult to track, audit, or escalate. The BPA module routes each invoice through a structured approval chain - ensuring quality deductions are applied, GRN quantities are verified, and payments are released only after all checks are complete.

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