Summary n n n n n n Implementation Highlights n n Name: Modern Industries Location : Ghaziabad, India Industry : Manufacturing Products & Services : Freight Wagons Revenue : Rs 80 Crores Employees : 600 www. modernindustries. co. in e-Tomato Consulting n n Quick implementation Strong support and commitment of the internal IT team Good understanding of the implementation partner Expertise of the implementation partner Well-known brand Ability to integrate all the processes onto a single systems.
Scalable solution Automation of core processes Standardized processes Centralized database Availability of real-time information Enhanced efficiency in inventory and order tracking Reduced cost of operation Clarity, integrity and accuracy of information Better decision making FoxPro based inventory system Disparate systems for finance and inventory Lack of a centralized database Website n Why SAP n n Implementation partner n Challenges & Opportunities n n n n n Integration of business processes.
Better inventory control Better order tracking Better control on raw material pricing Availability of real-time information Streamlining of operations Single source of critical business information Centralized financial system Online tracking of inventory Minimizing manual efforts SAP Business One Benefits n n n n n Objectives n n n n n n n n Existing Environment n n SAP® Solutions & Service n n SAP ERP Success Story MODERN INDUSTRIES MODERN INDUSTRIES SAP OPTIMIZES INVENTORY AND ORDER TRACKING PROCESSES FOR MODERN INDUSTRIES.
Transporting a huge variety of goods, from agricultural produce to coal, cement and petroleum products, the freight handling services of the Indian Railways play a crucial supportive role in fostering economic development in the country. In keeping with the changing times and hugely increased volume of transportation of commodities, Indian Railways are coming out with high capacity wagons designed to carry maximum load.
Serving the Indian Railways effectively since 1960; Modern Industries is one of the leading and few manufacturers of freight wagons in India. To keep up with the demands of today’s market, the organisation took an important decision to replace its legacy systems with SAP Business One. Established in 1941 as a Lantern factory, Modern Industries presently supplies freight wagons which include all types of Container Carrying (BLC, BLLA) 40’, 45’ covered wagons, open wagons, tank wagons, flat wagons and hopper wagons to the Indian Railways used for transportation of carbines, coal, cement, and iron ore.
The current annual capacity of the manufacturing unit is 3600 wagons. Early investment in IT In 1996, the organisation went through major expansions of its manufacturing unit to increase its production capacity. In the same year, the organisation computerized its major business process through in-house developed FoxPro software applications. The system worked well up to a point, but over time, the organisation faced challenges in tracking inventory and orders because of the disparate systems.
Dynamic purchase rates, need for order tracking Wagon manufacturing involves a number of parts, some small, and some big and keeping track of all these items was proving to be difficult with the existing system. Also, for some of the parts used, the rates are dynamic and fluctuate based on market conditions and urgency of need. Further, a number of entries were being made manually leading to delay in information which resulted in lack of control on cost. Also, given the nature of their business, Modern Industries at times receives inventory supply on ad hoc basis from the government to complete the orders.
With the previous systems, storing and tracking of the inventory received and purchased was inadequate. “We needed a system that could record all the inventory information and track the rates, giving us a complete picture. This was important to control costs and our previous system was not smart enough to tackle the whole of inventory”, says Mr. Shakil Khan, Manager (IT). In addition, the organisation’s financial accounting software was not integrated with the inventory tracking system. Thus, a complete and holistic picture of business performance was not available.
Modern Industries, therefore, in 2007 began searching for a new software suite that could tackle all its business needs. SAP – A straightforward choice After searching the market for suitable software, Modern Industries decided to implement SAP Business One solution. “The level of integration and functionality the solution provides made it a pretty straightforward choice” says Shakil Khan. Other factors that helped in the selection were the price, ease of use and scalability the solution provides.
The organization plans to double its size in the coming months and a solution that could support growth was necessary. Operating in a niche segment with very little competition, the organization needed a product that would set standards in the industry. SAP, with its global adoption and in particular, Business One application’s capability to adapt to the unique needs of small and growing businesses appealed to Modern Industries. The organisation partnered with e-Tomato Consulting for the implementation after a thorough partner evaluation.
E-Tomato’s expertise, experience and excellent presales presentation were the major factors that contributed to their selection. The implementation – Smooth and quick In close association with key executives at Modern Industries, e-Tomato began with a kick-off meeting where it gained an understanding of the business processes that needed to be mapped onto the Business One system. The outcome of the meeting was a systems blueprint which detailed the processes that would be mapped.
Then a system study was done and the partners came up with a functional requirement document (FRD) which covered – Finance, Inventory Management, Purchases, Sales, CRM, Service Management and Production business processes. The partners then configured the system in accordance with the FRD. The inventory management module was customized to allow Modern Industries to manage and track the free inventory received from customers. The system went live on January 2008; the entire implementation completed in a time frame of three to five months.
“We were well-prepared for the implementation. The migration of data onto the new system had started much earlier – in April 2007. Also, our in-house IT team’s dedication and support ensured a quick and smooth implementation” recalls Shakil Khan. “There has been a marked increase in efficiency in purchase and inventory management. What’s more, users are happy with less manual entries to make” Mr. Shakil Khan, Manager (IT), Modern Industries e-Tomato provided the necessary onsite and offsite support after the implementation. The organisation has a 25 user license.
Integration, optimization, real-time visibility The primary benefit for Modern Industries through the implementation has been integration of the various functional departments onto a single platform. This has ensured consistent and accurate data across all functional departments. Second, the availability of timely information has enabled reliable and better business decision making process. All the departments have access to timely information as and when required. Third, the SAP Business One system provides consistent and complete view of business and customers.
The new efficiencies has also improved productivity and reduced cost of operations. “There has been a marked increase in efficiency in purchase and inventory management. What’s more, users are happy with less manual entries to make” adds Shakil Khan. The organization plans to double its operations in the coming months. With SAP bringing in new efficiencies, the organization plans to implement SAP in the new manufacturing unit as well. With the trucking industry giving a spirited competition to the railways as an alternative for freight transport, SAP implementation has come not a day too early for Modern Industries.