Al Rajhi Metal

Middle East

Al Rajhi Metal

Al Rajhi Metal Industries: Digital transformation in heavy metal manufacturing and production operations

About

Al Rajhi Metal

Established in 1973, Al Rajhi Metal Industries is a leading Saudi pioneer with over 50 years of excellence in heavy metal manufacturing. Headquartered in the Eastern Province, the company specialises in high-quality transport equipment, specialised trailers, customised tankers, and heavy steel structures.

Apps implemented

ERPNext

Industry

Manufacturing

modules implemented

Help people to use our tools

We believe our tools like ERPNext can help organizations reduce waste and complexity. Frappe + ERPNext has the potential to be a “full stack” replacement for not only ERP (SAP/Oracle) but also the entire enterprise stack (Java/.NET). With this scope, we should help organizations by providing products and services to help them manage their technology platforms.

Why ERPNext over SAP B1 / Oracle

100% FOSS

Customizable

Future-ready

Challenges

Production Tracking Difficulties: Inability to accurately monitor multi-stage production processes or precisely determine raw material quantities consumed per project.
Fragmented Operations: Managing scattered orders and contracts without a unified system to track progress from initial quotation through to final delivery.
Lack of Departmental Integration: Disconnect between financial management, inventory, and production, which heavily compromised the accuracy of financial reports and operational costing.
Inventory & Vendor Complexity: Lack of visibility into real-time stock movements and material consumption, worsened by managing a massive diversity of suppliers and metal product variants.
Delayed Decision-Making: Critical business decisions were slowed down due to a lack of immediate, real-time analytical reports on sales, manufacturing performance, and overall financials..

Benefits

ERPNext enabled seamless tracking of production stages, material routing, and work-in-progress (WIP) directly on the factory floor.
The system automated and linked workshop floor operations with core financial accounting, ensuring high accuracy in calculating manufacturing costs.
All manual and paper-based workflows were replaced by a fully integrated system connecting procurement, inventory, sales, and accounts.
Real-time visibility into stock movements allowed the management to monitor material consumption closely and prevent inventory leakage.
Live dashboards and instant analytical reporting were provided across all departments, allowing swift, data-driven management actions.

Impact

Successful on-time ERPNext go-live

Increased sales order to cash

Increased inventory turnover

Achieved 100% automated KSA E-Invoicing compliance integrated smoothly with sales and accounting cycles.
Drastic reduction in material waste and scrap by matching actual raw metal consumption strictly against the Bill of Materials (BOM).
Shorter production lead times achieved through automated work order routing and real-time job card tracking.
Significant reduction in financial reporting time, giving the management immediate visibility over project-based profitability.
Streamlined HR operations and payroll processing for the entire industrial and administrative workforce.

"Implementing ERPNext through Operion for Smart Solutions has completely unified our industrial and financial operations. We now have absolute control over our manufacturing floor, real-time inventory tracking, and seamless, automated compliance across all departments.

Mohamed Aboelqasem

IT Manager

Implemented by

Operion for Smart Solutions

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Share your story with the world

Inspire people by sharing how Frappe has positively impacted your business.

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Share your story with the world

Inspire people by sharing how Frappe has positively impacted your business.

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