How Bagmati Textiles connected production, inventory, and sales — and finally knew their true cost per unit
A Bhaktapur textile manufacturer replaced three disconnected systems with VedaMS — and got costing they could defend at audit time.
Background
Bagmati Textiles weaves traditional dhaka fabric and produces finished apparel sold through three retail outlets in Kathmandu Valley and via wholesale orders. Production ran on spreadsheets, retail ran on a basic POS, and accounting ran on Tally. None of them talked to each other, and the auditor's annual question — 'what is your cost per unit?' — never had a clean answer.
The challenges
- 1Bills of material lived in the production manager's notebook.
- 2Raw material consumption was reconciled monthly against a physical count, with 5–10% variance every time.
- 3Finished goods had to be re-entered into the retail POS by hand — error-prone and slow.
- 4True cost-per-unit was estimated at year-end with a heroic spreadsheet exercise.
What we did
Bills of material with versioning
Each finished product now has a structured BOM with raw material, labor, and overhead components. When the recipe changes (a new fabric blend, a new dye), the BOM is versioned so old batches keep their original costing.
Production batches that actually consume stock
Starting a production batch consumes the BOM-defined raw materials from inventory automatically. Finished goods land in stock at the end of the batch with full cost attribution — material, labor, and allocated overhead.
Factory → retail flow with no re-entry
Finished goods flow directly into the retail outlets' stock. The retail POS sells from the same catalog with the same costing. Margin per item is real, not estimated.
"Production was a spreadsheet. Sales was a software. Costing was a guess. VedaMS gave us all three in one number."
Results
- Three systems collapsed into one VedaMS account spanning factory and retail.
- Every production batch now has a defendable per-unit cost, signed off by the auditor.
- Month-end close moved from ~10 days to ~5 days as reconciliation steps disappeared.
- Owner re-priced underperforming product lines after seeing real margin for the first time.
Composite case study modeled on small-manufacturer deployments. Names changed; numbers reflect typical outcomes for manufacturers of this size.
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