12-11-2012, 12:14 PM
ERP CASES Nitco tiles Madura Garment
ERP CASES Nitco.pptx (Size: 129.44 KB / Downloads: 28)
About the Organization
Established in Bombay in 1953
One of the largest manufacturers of floor tiles in India.
NITCO Tiles is a well-known brand in the glazed tiles industry and is a major manufacturer and importer of a wide variety of tiles.
Turnover of Rs 311 crores[in March 2010].
Problem
NITCO Tiles was using a legacy application built in Power Builder with Sybase as the backend database, which was customised by a third party.
Moreover the company wanted to go in for an IPO and get listed on the BSE and the NSE in the aftermath of said IPO.
The legacy system catered solely to business areas such as accounting, purchase and billing and there was no integration of these business areas with the company’s manufacturing plants.
With disparate legacy systems, integrating all functions, departments and processes getting complete visibility and control of operations was proving to be a difficult task for the company.
The company was also considering rationalising organisation-wide role definition and fixing of accountability.
It also wanted to re-engineer key processes and decentralise decision making while introducing the right checks and validations to ensure seamless operations.
Solution
NITCO Tiles conducted a thorough evaluation and SAP, Oracle, JD Edwards and PeopleSoft were evaluated.
The company finally zeroed in on SAP due to its comprehensive nature, scalability and expertise in SMB implementations.
SAP had a strong focus on R&D and it also had a strong reference customer in the tiles industry.
The package also had a good proven track record, including localisation aspects.
The package had strong capabilities in financial integration and logistics and production control.
The evaluation exercise, which began in Jan 2005, was completed in four months.
SAP ECC 5.0 ERP went live in January 2006 with seven modules—Sales and Distribution, Materials Management, Production Planning, Quality Management, Plant Maintenance, Finance and Inventory.
Coconut Software was the implementation partner for this project
Challenges
Tile is manufactured in different stages and it is important to know the tile inventory by the quality grades and then the MRP is planned following which the discounting schemes are finalised. This required heavy customisation as the ERP package did not have a standard process to manage this.
the cost of transporting tiles is high as the product is bulky. Freight costing had to be done in real-time as it meant that the company could get its profitability online after the transportation cost was taken into account.
Data migration from the legacy to the new system was another challenge as it was tedious and time consuming.
Training people on the new system was also challenging.
About the Organization
As old as 200 years.
one of the fastest-growing branded apparel companies in India, with a CAGR of 30 percent.
Handling as it does some of India’s leading brands including Peter England, Allen Solly, Van Heusen and Louis Philippe, the company has eight factories and a warehouse.
It also has a network of 120 exclusive franchisee showrooms, 15 agents, 22 distributors and 3,500 retail outlets
Benefits
In the process, the company has reduced its response time to both internal and external customers.
Order execution has increased from 75 percent to 92 percent, and lead-time from WO to FG has reduced from 22 days to 14. Similarly, dormancy (six-month-old-stock) has been cut from 4.23 percent to 3.65 percent, which means wastage has reduced.
Profitability assessment for each showroom, brand and customer can be done in the system.
efficient co-ordination between demand, supply and production in the company.
order fulfillment rates have increased, while stocks have been reduced to a minimum.