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JK Tyre & Industries
By implementing mySAP core modules, JK Tyre brought raw material inventory levels under control and achieved annual savings of Rs 12 crore NWC News Network, 6/1/2009 12:00:00 AM
    

JK Tyre reduces inventory, boosts productivity

Snapshot
Company: JK Tyre & Industries
Project: Implementation of mySAP core modules
IT Head / CIO / CTO / Project Lead: S S Sharma, Chief GM (IT)

JK Tyre, a leading manufacturer of truck and bus tyres in India, has three manufacturing plants located in Rajasthan, Madhya Pradesh and Karnataka. Its network of tyre plants, head offices and regional offices span the length and breadth of the country.

The entire planning process for its operations was earlier done manually, so information required for planning and decision making was usually outdated and inaccurate.


Its team had to put in enormous efforts to achieve, compile and analyze data. Also, a lot of time was spent in processes. For instance, communicating the defective tyre claim award to the customer had a lead time of 4-5 days, from inspection to delivery of the claim award. Much time was spent in fire fighting and crisis management. There was a strong need to centralize data and processes.

The operational field force needed up-to-date information on products, processes and customers for faster decision making. A system was needed for people, process and technology integration and for supply chain optimization.


The firm addressed this issue byimplementing mySAP core modules. These are SD, MM, FI/CO, PP, QM and BW modules besides new dimension modules like Supply Chain Optimization, Product Lifecycle Management, Customer Relationship Management and Strategic Enterprise Management.


Post implementation, the entire planning process has been automated with flexibility for manual intervention wherever required. The entire process has efficiently integrated the Sales and Marketing teams with no need for cross functional follow-up.

Highlights
  • Savings of Rs 12 crore annually by bringing raw material inventory levels under control using the MM module
  • Around 20 percent productivity improvement from commercial staff
  • Average Bills Receivable reduced from 45 to 32 days



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