Mr. Mukesh Tiwari, Director- Operations was part of the Mammonth ERP Project. “In fact, in those days we had six factories and each had its own local server!”The problem was that this fragmented system didn’t allow Rohit Ferrotech to drive central process standardization, or enable seamless transactions.
Increase in procurement savings
Decrease in inventory levels
productivity gain with Invoicing and Logistics automation
In the meanwhile, S.K. Patni Group was entering a growth phase. The company had just bagged a number of prestigious multi-crore projects from major importing markets across Europe and South East Asia. But its siloed data seriously hampered Production managers, who were having a hard time coordinating between the different islands of the supply chain, from warehouses to delivery teams.
The after-sales (dispatch and logistics) division, in particular, was affected. It struggled to manage customer deliveries, track consignments, and monitor service levels. As a result, the financial Sales to Collection cycle time it had was lower than industry standards.
The business couldn’t afford this. Mukesh Tiwari knew he had to move to a new ERP. “It was the right time to re-orient and re-map our IT systems. We also wanted to re-look at some core processes and do some business process reengineering.”
Solution & Delivery
Production achieved within a budgeted cost
Supply chain managed across multiple plants
Tiwari joined with executives in charge of finance, supply chain, distribution and purchasing to form a key stakeholders team and study what was right and wrong with the company.
"I don’t think they knew how challenging it was," says Tiwari, referring to the company’s condition. "We had nine different general ledgers and 28 points of customer entry. We had multiple purchasing systems. We had no clue how much volume we were doing with a particular vendor because every factory set up their own vendor masters and purchased on their own."
Soon the stakeholders team presented TIwari with a blueprint for major changes they thought could be made. While the cornerstone of the recommendation was an Lighthouse ERP for Steel & Ferro Alloys, Tiwari says, "We were very clear that even with Lighthouse's extensive experience in Steel Industry (50+ Steel Industry clients) and we still couldn’t do it without changing the way you did business. There was going to be pain involved, it was going to be a slow process, and this was not just a software project."
For , S.K. Patni Group, the most quantifiable advantage from the project came in the form of increased revenue from the after-sales service department. “Before, we had no way of approaching customers post-warranty to renew contracts or analyze complaints. With the new system, our after-sales folks can go after customers and bring in a major source of revenue,” says Tiwari.
Other advantages of having an integrated ERP from Lighthouse for bulk material movement across various units were seamless process integration of material handling, freight, quality with the commercial and finance departments.
The ERP project also helped S.K. Patni Group build an identical business face across the company. Data collation, which used to be a significant problem, has now become instantaneous leading to greater transparency and a faster turnaround time.
About S.K. Patni Group
Rohit Ferrotech Ltd., a flagship Company of S.K. Patni Group had started operations in 2003 with initial capacity of. 24000 MTpA. Today the group capacity has increased to 1.75 Lac MTpA. The group has several manufacturing and export locations and in east India acorss Bishnupur, jajpur and Haldia.
Manufacturing of Minerals and Metal products
Alloy Steel, Ferro Alloys, Power.