Oracle implementation for a global electronics conglomerate
The North American subsidiary of a global electronics conglomerate, the client enterprise has a revenue base of over US$1 billion dollars. It employs close to 1,000 people spread across multiple office locations with a very large number of warehouses. The parent company makes and markets semiconductors, display and storage devices for markets like computing, wireless, networking, automotive, and digital consumers. It is the third largest semiconductor company worldwide in terms of global sales for the year 2002.
Creating value for customers by continuously improving business processes to deliver on time, every time, is critical to driving growth. This is a big challenge for the client considering the nature of the industry, which works on extremely short lifecycles; therefore, impeccable on-time delivery record is a crucial success factor.
The legacy system, however, lacked the flexibility to enable its operations to absorb market fluctuations. And therefore, the need to implement a robust business process to keep ahead of competition, reduce overhead costs, and improve cash flow. From a technology point of view, the diverse existing systems, built on heterogeneous technology platforms, had to be integrated.
The key to success, however, depended in integrating disparate systems and achieving process efficiencies. The challenges were:
- Keeping pace with the competitor's reduced distribution times was tough and customer service enhancement was not easy either
- Legacy systems of the client hampered the synchronization of its operations with market fluctuations
- As the customer is in an extremely short life-cycle industry, the on-time delivery record had to be improved while keeping inventory levels and costs low
- The client was operating on disparate systems. A large number of satellite systems were being used that were not integrated with the host system
- Operating on disparate systems added to the complexity, as there were a large number of satellite systems running independent of the host
- The Infosys team had to integrate the new system with the satellite systems and put all new processes in place in a very short time frame
Equipped with its proprietary IntERPrize methodology, strong
Oracle Applications consulting and a unique global delivery model, Infosys set about to integrate best-in-class Oracle ERP with custom applications to help the client improve their business processes. As part of this mandate, Infosys undertook the following:
- Evaluation and implementation of Warehouse Management System (WMS) / Transport Management System (TMS) solution
- Standardization of performance metrics across the organization to streamline the client's internal processes. Infosys was involved in business process definition, program management, project management, package evaluation, package implementation, key user training, and post-production support
Leveraging the IntERPrize, a team of 45 experts from Infosys decided on the methodology and approach to implement the Oracle Application R11.0.3 to achieve process efficiencies. Infosys, using Oracle solutions, streamlined the manufacturing, distribution, procurement and financial accounting processes of the client. These were integrated with i2 Technologies' demand planner, a forecasting and planning tool. Also, a new enterprise WMS / TMS product from HK Systems was evaluated and implemented for improving order-execution efficiency, outbound visibility, and reverse logistics. (The applications of i2 Technologies and HK Systems run on Sun Solaris 5.6 and Windows NT platforms.) An enterprise-wide data model was prepared for standardizing performance metrics across the organization and streamlining the client's internal processes.
Infosys completed the implementation in a record 18 months, which was 50 percent faster than the timeline given by competitors and reflected a significant increase in ROI for the client. Other tangible benefits included the following:
- The implementation imparted high visibility to the supply chain and improved demand planning and execution
- There was a significant improvement in cash flow due to real-time processes. A large number of processes have been automated, which has increased the efficiency and reduced overhead costs
- The client witnessed significant improvement in its on-time delivery record due to the processes and applications implemented by Infosys
- There was closer understanding of business processes, leading to continuous, incremental changes, post the implementation
- A WMS/TMS package was evolved along with an online analytical processing (OLAP) tool, which resulted in an improved integrated system