Moscow-based Kladana is a cloud-based ERP system designed for MSMEs. It offers features like inventory management, production scheduling, CRM, and analytics. Kladana has expanded its presence in India by establishing an office in Mumbai to bolster its operations. Currently, Kladana operates in 10 countries worldwide, with corporate infrastructure in Russia, Kazakhstan, Uzbekistan, and now India. It registered in India in 2022 and began operations soon after. Currently, it serves hundreds of MSMEs in India. Aleksandra Brovchuk, Director of Kladana in India speaks to CMR India on the company expansion plans. Kladana has recently expanded to India with an investment of $1.5 million and currently serves hundreds of MSMEs in the country. It has ambitious plans to onboard 1000 MSMEs in India in the next 2 years.

How is Kladana uniquely positioned to address the needs of Indian MSMEs?

Kladana specializes in providing comprehensive business management solutions. Our core strengths lie in automating sales, manufacturing and optimizing inventory, and delivering actionable financial insights. By offering real-time stock updates, efficient sales tools, improved production processes, and in-depth financial analysis, Kladana empowers businesses to reduce costs, enhance customer satisfaction, and make data-driven decisions.

Why has Kladana chosen India for expansion after making a mark in Russia, Uzbekistan, Kazakhstan, and Belarus?

Kladana chose to expand its business in India because of the country’s thriving MSME sector, enormous and developing economy, and increasing demand for digital solutions among entrepreneurs. The immense potential of the Indian market, along with the demand for efficient operations and growth among MSMEs, offers a lucrative opportunity for Kladana to provide their solutions and gain a considerable market share.

We have entered the Indian market with a long-term vision, recognizing its potential as a rapidly evolving and strategic region for Kladana’s growth. The expanding Indian economy, along with the rise of e-paper workflows and digital services, makes it a promising market. We are confident that Kladana can significantly support Indian SMEs, particularly D2C brands and manufacturers, in their production and direct sales efforts. As a company, our focus is on rapid expansion. In 2022, we opened a new office in Kazakhstan, followed by another in Uzbekistan in 2023, and are now beginning to scale in India.

India’s MSMEs are vital to the country’s economic growth, and Kladana is committed to empowering them with tools that streamline processes, enhance efficiency, and support sustainable development. The pro-business environment in India, with various initiatives and schemes for MSMEs, makes it an attractive market for us. Our cloud-based platform is designed to meet the specific needs of Indian businesses, offering comprehensive features. Kladana’s user-friendly interface, easy for non-technical specialists to use, along with its competitive pricing, aims to equip Indian entrepreneurs to automate their operations effectively.

How can MSMEs leverage technology like cloud-based ERP systems to gain a competitive edge?

First, using ERP enables businesses to operate more swiftly and gain a better understanding of their ongoing processes. Optimizing inventory, production, warehousing, and order management using technology such as cloud-based ERP solutions allow them to manage accurate inventory levels, track stock movements in real-time, and reduce overstocking or stockouts. This precision leads to increased customer satisfaction and lower operating expenses. The system’s real-time data access enables better decision-making and forecasting, ensuring that businesses can react instantly to market demands and trends.

Second, using cloud ERP increases its effectiveness. In terms of production management, cloud-based ERP systems automate the entire process, from planning to execution. Businesses that integrate every aspect of manufacturing onto a single platform can improve departmental collaboration, reduce production cycle times, and ensure consistent product quality. The method promotes ideal resource allocation, allowing organizations to optimize labour and material utilization, decreasing waste and enhancing total production. Furthermore, the ability to monitor production in real-time enables organizations to immediately detect and resolve any bottlenecks or issues that may occur. 

Third, using a cloud-based ERP increases transparency for owners and managers, making decision-making easier. Managing the business becomes simpler, freeing up more time to focus on growth instead of dealing with chaos and trying to organize things. Cloud-based ERP solutions provide a centralized platform for managing all warehouse processes, such as receiving, storing, and delivering products. This integration guarantees that all warehouse operations are aligned with inventory levels and order statuses, resulting in more effective order fulfilment processes. The system’s automated features contribute to fewer manual errors, faster order processing, and higher order accuracy. Businesses that provide real-time visibility into warehouse operations can better manage their supply chain, exceed customer expectations, and gain a competitive advantage in the market.

And fourth, why should MSMEs implement cloud software? It is because of the ease of implementation, the option for monthly payments, and the ability to gradually adopt complex features after mastering the basics, it’s easier for companies to start using cloud solutions tailored for small businesses. Transitioning to software is already stressful for a company and uncomfortable for many employees. Cloud ERP helps to make this step smoother.

Why are MSMEs lagging behind in adopting new technology and relying on old inventory management systems? How can MSMEs navigate the ever-changing tech landscape and adopt the right solutions?

A lot of entrepreneurs make decisions for their MSMEs, and navigating the ever-changing technology landscape to implement the most effective approaches can be challenging. Many MSMEs rely on inefficient inventory entry systems, which can impede productivity and growth. According to a recent NASSCOM report, India’s opportunity cost of slow cloud adoption can lead to a $118 billion loss in GDP if businesses and the government do not accelerate cloud adoption. To remain competitive, these organizations must leverage modern technology, such as cloud-based ERP solutions that come with various benefits compared to Spreadsheets.

Some of the benefits are as follows

1. Records are made once and then automatically shown in all linked transactions and records.
2. Data from these records can be used in multiple reports, eliminating the need to record the same information in different formats or lists for various reports.
3. The software includes internal checks, notifications, and workflows. For example, when a record is made, an ERP system can verify permissions, check stock levels, and ensure customer eligibility for shipment before payment. Other departments receive notifications, and some documents are created automatically.

Switching to cloud software from an old on-premise system is not just about features; it’s about lower total costs of ownership, easier step-by-step implementation, pay-as-you-go options, and regular feature updates.

When comparing the feature component of cloud software to old systems, cloud software provides simultaneous data access to all users, whether they are in the field, in another country, or working from a smartphone.

Scalability 

In addition to the numerous benefits mentioned above, one of the main advantages of cloud software is its scalability, allowing users to start with basic features and gradually adopt more complex ones while paying as they go. Additionally, cloud solutions are typically managed by professional teams, ensuring data security and system stability, so you don’t have to worry about these aspects. Furthermore, cloud-based software is constantly evolving, with new features being delivered to users without extra costs for upgrades or new versions offering several advantages, including real-time data availability for faster operations.

So, to start using cloud ERP one of the methods that MSMEs can adopt is to begin with scalable solutions that meet their current needs but can expand with their company. Kladana’s cloud-based ERP systems are user-friendly and cost-effective, making them accessible to entrepreneurs of all sizes. These technologies can assist MSMEs in better managing inventory, production, warehousing, and orders, eliminating manual errors and saving time.

Training

Additionally, investing in training and assistance is essential. MSMEs should look for technology vendors who provide extensive onboarding and continuing assistance to guarantee their teams can properly use new solutions. Kladana, for example, offers extensive support and onboarding included in subscription plans, along with tools to assist organizations in seamlessly integrating their cloud-based platform.

By adopting modern technology and leveraging the expertise of supportive tech partners, MSMEs can overcome the challenges of transitioning from old Excel systems to digital solutions. This not only enhances their operational efficiency but also positions them for sustainable growth and competitiveness in the market.

What are some best practices for inventory management and warehouse optimization for MSMEs?

Best practices for inventory management vary depending on the size and type of business. They will differ for a startup D2C company with 20 SKUs compared to an electronic components reseller with 10,000 SKUs and 30 warehouses across India.

In my view, some universal principles include:

Record all item movements and financial transactions in real time. For instance, if there is a sale, record it immediately; if there is a write-off, record it right away. This helps keep stock and financial information accurate and makes it easier to address any questions or issues based on these records.

Consolidate all inventory information in one place so that everyone in the company uses the same data. This should include descriptions, photos, instructional files, MRP, barcodes, and more.

Regularly analyze inventory data to assess turnover rates, inventory losses, and the impact of expired or improperly stored items. Monitor how often the stock levels of critical products fall below the minimum threshold. Timely identification of problems is crucial for effective resolution.

Warehouse optimization includes strategic layout planning to maximize space usage and improve workflow efficiency. MSMEs should follow a systematic approach to warehouse management, ensuring that supplies are placed rationally and easily accessible. Implementing technologies such as barcode scanning and automated picking systems can speed up order fulfilment while reducing errors. From my personal experience, warehouse operations should be prioritized and meticulously documented. This includes detailing how tasks should be performed, defining responsibilities, outlining document flows, and specifying what needs to be recorded and when.

Additionally, I recommend not overlooking regular inventory counts. Inventory counting helps verify that actual stock matches recorded stock and allows you to identify unexpected losses or damages as soon as they occur. 

What are some strategies for MSMEs to streamline their sales and purchasing processes?

MSMEs can improve their sales and purchasing operations by using technology and attending trade shows to create leads. Implementing a cloud-based ERP system, such as Kladana, may automate and combine multiple sales and purchasing activities, allowing for real-time visibility and control over orders, inventory, and supplier management. This enables faster order processing, fewer manual errors, and higher customer satisfaction. Furthermore, automating procurement through methods such as e-purchasing can assist MSMEs in maintaining ideal stock levels and negotiating more favourable rates with suppliers.

E-commerce platforms broaden market reach, while smart inventory management reduces stockouts and overstocking. Strong supplier relationships guarantee prompt delivery and affordable cost. These tactics work together to improve operations, minimize costs associated with manual processes and stock inefficiencies, and increase customer satisfaction through improved order fulfilment and timely deliveries. An ERP system helps improve sales and purchasing by automating operations such as invoicing and order processing.

How can ERP systems help MSMEs automate tasks and free up valuable time for strategic planning?

ERP systems decrease the need for manual data entry by automating corporate processes such as finance, human resources, inventories, and sales on a single platform. For example, inventory management can be automated to track stock levels, reorder points, and manage warehouses more efficiently, reducing errors and increasing productivity. This automation enables staff to concentrate on higher-value activities rather than tedious administrative tasks.

In addition, ERP systems offer real-time data and analytics, which are essential for making educated decisions. MSME entrepreneurs can spot trends, estimate demand, and plan strategically for growth when they have complete insights into all aspects of their businesses. This data-driven approach ensures that organizations can respond quickly to market developments and optimize their operations. As a result, ERP systems not only improve operational efficiency, but also enable MSMEs to better allocate resources, promote innovation, and maintain long-term competitiveness.

How can MSMEs develop a sustainable growth strategy for the long term?

To establish a long-term growth strategy, MSMEs (Micro, Small, and Medium Enterprises) must prioritize profitability and effective financial management. Using a cloud ERP system, such as Kladana’s, may significantly enhance financial visibility and control. MSMEs can streamline their financial processes by integrating financial data, budgeting, and forecasting capabilities, resulting in increased profitability from better cost management and strategic investment decisions. Cloud ERP systems offer real-time data access, enabling organizations to continuously monitor their financial health and make educated decisions that support long-term success.

Moreover, cloud ERP systems enable MSMEs to maximize resource allocation and operational efficiency. By automating common financial operations and delivering comprehensive financial data, firms may cut administrative expenses and focus on development strategies. The capacity to access and analyze financial data from any location enhances scalability and responsiveness, which is critical for adapting to market changes and capitalizing on new opportunities. Finally, adopting cloud ERP technology may help MSMEs increase profitability, assist strategic planning, and remain competitive and resilient in a changing business environment.

What resources or support do ERP systems offer to help MSMEs achieve financial success?

ERP systems also make it easier to budget, control expenses, and analyze revenue, allowing MSMEs to make informed financial decisions and achieve long-term stability and growth. ERP systems provide essential tools and help for MSMEs seeking financial success by offering real-time financial data and detailed insights into their operations. Platforms like Kladana’s cloud ERP solution provide real-time access to current financial data, allowing businesses to easily monitor cash flow, track expenses, and manage revenues. This real-time data enables MSMEs to keep accurate financial records, which is critical for making sound decisions and ensuring financial stability.

MSMEs may anticipate their expenses and revenues more accurately now that extensive financial data is available through an ERP system. Advanced analytics and reporting tools enable firms to forecast future financial outcomes based on previous data and present trends. This foresight enables MSMEs to effectively plan their budgets, manage their resources, and recognize possible financial concerns before they become crucial.

Additionally, ERP systems may assist MSMEs manage loan interests and improve their financial structure. By providing insights into cash flow and debt management, these systems help businesses estimate their borrowing requirements and evaluate the impact of loan interest rates on their financial health. This feature is especially useful for MSMEs that rely on external financing to fuel growth, since it enables them to make smart decisions about loan conditions and payback schedules, resulting in long-term financial success.