success story

Manufacturer raises shipments and drops processing times by 65%

The client is a leading US-based air compressor manufacturer with a complete range of compressed air solutions, from oil- lubricated and oil-free rotary screw compressors, to dryers, filters and downstream accessories. The company's portfolio of over 400 products has found global application across industries.

They were one of the early adopters of Enterprise Resource Planning (ERP) systems. Due to the complex company structure and limitations in the version of the ERP implemented, they had overcustomized the product over the years. In addition, India was introducing a new Goods and Services Tax (GST) policy. It was imperative that they upgrade to the latest version of  the ERP for localization of processes.

In the evolving business environment, the client needed robust business intelligence capabilities and compliance to the new tax requirements. They also saw this as an opportunity to leverage the advanced capabilities of Infor LN, and sought Virtusa for ERP transformation.

 

 

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The Challenge

The client was using a dated version of Infor LN (i.e. Baan IV) that limited their ability to scale and respond to customer demands. Compounding their challenges was Infor's decision to not release an update localized to India addressing GST requirements. They struggled with the existing ERP application as it did not support the functionalities needed by the users, and migration planning became a stressor for the client. Inefficient tracking of inventory resulted in higher operating costs. Disparate process mapping and heavy customizations impacted process efficacies. Also, the client wanted to achieve the ERP upgrade across multiple sites.Activities and reporting were handled manually in Excel or Word at its India site

  • Inefficient tracking of inventory resulted in higher operating costs
  • Disparate process mapping and heavy customizations impacted process efficacies
  • India site manually handled activities and reporting in Excel or Word
The Solution

Virtusa's focus was to get the client to the latest LN platform compliant with GST. The project was executed in two phases - getting the businesses up and running on LN. We then focused on implementing the remaining functionalities and additional features desired by client's businesses. By leveraging our experience, tools, and templates, we ensured a smooth and timely implementation. To get a head start, we:

  • Studied and understood the business process
    • Conducted workshops with users to understand the processes
    • Identified pain areas and gaps in the current ERP
    • Understood the organizational structure
  • Created a single data source for data integrity
    • Aligned master data across the multi-company structure by identifying the owner of the data and implementing data sharing
    • Implemented the standard solution without data manipulation through customized sessions
  • Streamlined and standardized processes
    • Mapped entire business processes for all products into the standard LN system
    • Streamlined processes across divisions
    • Supported users in data review and rationalization
  • Automated data migration
    • Used templates and tools for migration of static and dynamic data
The Solution
The Benefit

Processes were now GST compliant. The new ERP helped the client with real-time reporting and visibility into the manufacturing processes for better and faster decision making- enabling a dramatic reduction in shipment processing time. We ensured better tracking of inventory in quarantine and reduced inventory and carrying costs. Accurate inventory valuation led to improved margins and reduced lead times for the client. With the consolidation of the plant-level and sales-level financial reporting, we allowed the client to gain business insight for their top-level management.

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