How a Packet Tea Manufacturer in West Bengal Scaled Distribution with PACE360 ERP

Overview

Client Background

The client is a packet tea manufacturer based in West Bengal with a distribution network spanning multiple districts across Eastern India. Their product range includes 250g, 500g, and 1kg retail packs across multiple blended tea varieties.

The business had grown steadily over several years through a distributor-led model, but operational processes had not kept pace — most coordination between sales, production, and procurement happened informally, with no integrated system tying demand to supply.

The Challenges

1. Demand Forecasting Was Disconnected from Production

Distributor orders arrived without adequate lead time, forcing last-minute procurement of both bulk tea and packaging materials. There was no structured way to aggregate distributor demand signals, translate them into a production plan, and then trigger procurement in time to avoid stockouts or expensive emergency purchases.

2. Packaging Material Tracking Was Manual

Pouches, cartons, laminates, and labels for each SKU were tracked informally. There was no bill-of-materials (BOM) control that automatically deducted packaging inventory when a production order was completed — meaning packaging stockouts were often discovered only when the packing line stopped.

3. Production Wastage Was Unmonitored

Tea loss during packing, packaging material wastage, and SKU-level production variance were not systematically recorded. Without data, it was impossible to identify whether wastage was within acceptable limits or whether there was a recurring process issue on a particular packing line.

4. Distributor Management Was Entirely Offline

Sales order booking, dispatch planning, invoice management, and distributor performance tracking happened through phone calls, WhatsApp messages, and manually maintained Excel sheets. There was no single view of pending orders, dispatched goods, or outstanding distributor bills.

5. Market Returns Had No Formal Process

When distributors returned unsold or damaged stock, the process for recording the return, assessing the condition of the goods, and updating inventory was inconsistent. Some returns were logged; many were not. This created both a revenue leakage problem and an inaccurate finished goods inventory.

PACE360: ERP Solution for Packet Tea Sellers

Production Planning Tied to Demand

SKU-Level BOM and Packaging Material Control

Production Variance and Wastage Monitoring

Distributor and Sales Management

Structured Returns Management

Executive Dashboard for Management Visibility

Results at a Glance

Why PACE360

The packet tea selling business has a distinctive operational profile: multiple SKUs with different BOM structures, a distributor network that needs formal order and returns management, and a production function where packaging material control is as important as bulk tea inventory.

PACE360 is designed specifically around these requirements. Unlike generic ERP platforms that require extensive customisation to handle SKU-level BOM deduction or structured returns workflows for FMCG-style distribution, PACE360 delivers these capabilities as standard modules built for the tea industry.