Our client is a leading air compressor manufacturer, whose broad range of innovative and technologically superior compressed air systems have gained worldwide recognition. Their operations spread over 15 countries globally and across 43 companies.
The organic and inorganic growth strategy followed over the years helped business scale up dramatically. However, it made the business processes complex and inefficient. The key challenges the client faced were:
- Aging ERP system with no product vendor support on enhancement
- Heavily customized legacy ERP (Baan IV)
- Restricted operational visibility and multi-step transaction process affecting productivity and operating efficiency
Virtusa proposed that the client could reap incremental business benefits by undertaking a package-led transformation.
The Baan ERP product would undergo a technology refresh, replaced by the latest version called Infor LN. This would enable deployment of standardized and redesigned business processes that can significantly improve operational efficiency. The OE would result in cost saves on inventory carrying costs, and reduction of loss of sales due to planning inefficiencies, among others.
Virtusa successfully replaced its existing legacy ERP with the latest version Infor LN. Benefits includes:
- Up to 5% reduction in inventory carrying costs, which alone would repay all the investments made
- Over 3% increase in annual sales through enhanced planning and distribution efficiencies
- The intangible benefits would include better controllership as well as governance of the whole business eco system