Erp Case Study
Erp Case Study
Roll no: 486 Noel Saldanha 434 Gaurav Kadam 490 -Pratik Yadav
Purchasing from multiple DCs generated multiple statements, requiring payment to be sent to multiple places, thereby creating multiple corporate identities. Business information was managed on four different IT systems, creating complexity. Job duties were duplicated across all 11 distribution centers, creating inefficiencies. No support for multi-warehousing functionality, making it impossible to fill customers orders from alternate distribution centers. Limited ability to smooth slower moving inventory between distribution centers, forcing the company to invest moreresources in inventory that has fewer turns. No automated means of receiving inventory and tracking inventory movement within the distribution center; the process had to be performed manually, which created inaccuracies in quantity on hand and reduced management confidence. As a result, management lacked clear visibility as to how the business was performing until the end of the month, month-end
Technique Used for implementation: mySAP SRM 40 Implementation at Tata Motors has been christened as Project VECTOR:Value Enhancement by Collaboration through Technology and Operational Restructuring The ultimate goal of project VECTOR is stated in below points: Automate procurement process Enhance Supplier capability through catalogue content management Streamline procurement process across locations Quick sourcing through live auctions Clear visibility of supplies and payments status to suppliers through portal. Bring global Spend visibility to maximize negotiation power Parts rationalization through spend analysis Competitive price through live auctions Harness state of the art technology Netweaver, Web enabled collaboration
Triggered by need to consolidate operations at Daewoo, Korea and the Pune operations. 3000 users, and the company implemented over twenty modules of SAP. Production bottleneck is reduced as scheduling is very good and Vendor end system has been integrated with VCM ( the legacy system) which is yet to be incorporated within SAP The range of SAP functionality used is perhaps one of the largest and successful in the automobile industry worldwide Disaster Recovery infrastructure to blend with ERP System Seamless integration with Enterprise Applications like PLM and CRM Customizations: Enhanced automatic Invoice Verification: 12000 invoices a day Automated payment and recoveries for transporters: 4,50,000 vehicles annually Participants: Suppliers, Dealers, Sales & Service Centers and even Bankers
Cost of Maintenance:
This includes the annual charge paid to the vendor and the license cost of future upgrades. Maintenance is paid in advance. The cost of maintenance is directly related to the cost of software license.
Module
Controlling: The subsystems of controlling are: a) Overhead Cost Controlling b) Cost Centre Accounting c) Overhead Orders d) Activity- Based Costing e) Product Cost Controlling f) Cost Object Controlling g) Profitability Analysis
ADVANTAGES: Overall Integration of the departments Finance, Sales, Production etc. On Demand Decision making data Backward Demand Integration Reduction in inventory cost as real time info is available Reduction in production bottleneck with better scheduling Seamless integration across the Supply Chain Standardization of processes across plants at various locations
Reduction in manual efforts of Invoice Capture Reduction in Transaction Cost & Compress Cycle time
Difference after implementation:-The resulting business model achieved all defined objectives and was met with a high level of customer satisfaction. The centralization of many processes including financials, pricing, purchasing, supplier payment, invoicing, monthly statements, applying cash, etc.helped to: Streamline future acquisitions Increase inventory turns and improve cash flow Ensure the consistent and timely application of price changes Present a single company image to its customer base Defer the need for warehouse expansions Eliminate eight full-time equivalent FTEs, which lowered payroll expenses by 400K Improvements - such as a more efficient way to access information or a more precisely defined workflow - could not be felt at the transaction level. Because of the required process volume, Tata Motors had to make a number of changes to the systems to meet performance requirements.
After SAP R/3 4.6C was implemented in 2003 and enterprise resource planning was founded on a single server for the enterprise, the company profited from significant advantages, particularly for financials,logistics, and sales.
Lastly, its incorporation of a new, three-way matching process (PO, invoice, receipt) reduced the number of new hires required to support new businesses, and its incorporation of a Best Practices and standards model reduced employee training costs