Introduction

With a digital transformation fast becoming the norm rather than the exception, no enterprise can survive without transformation technologies laying the base for their everyday operations and strategies. Integration of all company operations and Data on a single platform that uses these new technologies like IoT and Big Data is an imperative to not only grow but also survive. SAP S/4 HANA platform helped Vectus industries not only grow but also become far more efficient, agile and of course- future ready.

  • Client

    Vectus Industries

  • Services

    SAP ERP

  • Technologies

    Digital Transformation

  • Dates

    13/07/2017

Description

Business transformation is required not only for pushing revenues or keeping up with emerging technology environments, but also for leveraging a growth path that is pushing through the charts. That was the experience of Vectus Industries- a NOIDA based plastics moulding manufacturing company with revenue of over USD 75 million, employing 1300 employees and managing 13 branches across the country.

 

The brand is a well known name in homes and agricultural facilities across India, for their eco-friendly and durable water storage solutions and piping systems. The company has been a pioneer in manufacturing and supplying a range of plastic piping systems and water storage tanks for plumbing and sanitation. Says Atul Ladha, MD, Vectus industries,” Primarily we are into plastic processing industry. We manufacture all kind of plastic processing, blow moulding, rotational moulding and extrusion. We also produce water tanks through rotational moulding and blow moulding processes, and manufacture three thousand different types of products- fittings and pipes.”

With manufacturing facilities, offices, and depots spread across 13 locations in India, Vectus needed a consolidated digital core that would streamline operations and increase transparency for the business, distributors, and customers. “Till the last financial year the software we were using for our business process, was not capable of handling the increasing needs of the fast growing business.  Our requirement for data insights was not being met, the system was not able to give analytical details of the data and was getting very difficult to get clarity of the business, so we decided to move to SAP,” Ladha adds.

The objectives of the exercise were very clear.

 

With an expanding business both regarding volume and regarding geographic reach, the company needed to make insightful, accurate decisions that benefit the business, distributors, and customers.

 

With this thought, what Vectus needed was an integrated platform that could manage processes such as financial closing, invoicing, and supply chain. It would have the ability to implement an enterprise resource planning solution and prepare the company strategists for future requirements.

 

Comments Chandrashekhar, CFO of Vectus, “our need for core competence was about handling 24 locations pan India. We have 12 plants, and a set of 12 depots. We have 4000 SKUs and 3000 customers. Handling all of these was a big issue. “

Till then, they had been deploying custom-developed solutions that were not meeting the specific demands of the business. So, in a bid to simplify its expanding business and accelerate performance, Vectus decided to deploy SAP® S/4HANA Enterprise Management solution.  SAP was a good choice because it had some strength that would be invaluable in meeting these objectives.  For one, it would provide improved integration between postings and reports with the SAP® S/4HANA Enterprise Management solution. When used in departments such as finance and controlling, sales and distribution, materials management, production planning, and HR, it delivered maximum uptime at a low capital expenditure.

 

The chosen partner for implementation was vCentric, an SAP partner with impeccable credentials

At the core of the decision was the top rated service support that SAP had a market reputation for- so an engaged implementation support from vCentric and SAP Enterprise

Support services, including a tailored support plan, was an added advantage.

 

About SAP® S/4 HANA Enterprise Management solution.

SAP S/4HANA is an advanced in-memory platform that represents the foundational core solution covering all mission-critical business processes of an enterprise, natively built on the SAP HANA platform, designed with SAP Fiori UX. It delivers digitized end-to-end processes to help enterprises across industries run simply in the digital economy. It is a Comprehensive ready-to-implement solution that can encompass customised end-to-end processes. It provides key accelerators (configuration guides, ARIS-based process flows, and test scripts) to jump-start implementation along with a pre-configured solution for CPG and Hi-Tech OEMs with industry specific scenarios.

 The SAP HANA S4 solution is aimed at greater simplicity. Technology trends such as the Internet of Things or Big Data are key drivers of this development. So the innovations it offers are:

  • a simplified data model with new table structures (ACDOCA, MATDOC that helps to  simplify the transactional data structure in the database,
  • A guided configuration that allows for creating tailor-made pre-configured processes.
  • SAP S/4HANA delivers massive simplifications  in customer adoption, data model, user experience, decision making, business processes, and models
  • Its innovative technology base help businesses survive and flourish in a digital economy.  It seamlessly integrates with and utilizes IoT, Big Data, Mobile, Business Networks, third party systems, and more.  

The biggest benefit this solution provides is to allow the user organisations to rework and restructure their business models while allowing for significant simplification of processes and transparency of data.

In just over four months, the company deployed the SAP S4 platform, with implementation support from vCentric, and started experiencing total ease in managing business operations.

They could set up a centralized real-time data management that extended company-wide and increased transparency across the business, from planning to inventory.

 

One more advantage was that this transparency afforded was the detection and verification of authenticity of claim requests made for manufacturing defects.

 The integrated system helped to optimize sales performance and helped the dealership assignments in remote areas also to establish customer connections through digitization.

 

Says Ashish Baheti, Managing Director, Vectus,”We always thought SAP was for companies of a much bigger size- once you grow beyond a particular limit, you need to have systems and operations, manufacturing processes that need to be controlled. There were so many things that we were not able to do; we thought SAP would take us to the next level. Moreover, yes, it is less than a year; we can already see the difference it has brought to our organisation.  Over a period we will achieve much more ease of doing business.”

Benefits

As business process go, this deployment has decreased its day’s sales outstanding and can deliver accurate, instantaneous customer invoices. Vectus’ customers now experience excellent service and on-time delivery, which will remain unchanged during rapid expansion.

With the implementation of SAP S/4, Vectus has immediately seen 15% reduction in operation costs, real-time, which is showing in year-end financial close (down from a few

months).  It has also granted 50% faster access to and visibility of real-time data.

 The new deployment has given a 60% increase in operational efficiency. Adds Manish Sinha, Head of IT, Vectus Industries Limited, "SAP S/4HANA Enterprise Management has made our operations more efficient by standardizing controls and reducing risk. Our decisions are better, faster, and the information is driven, giving us a definite competitive edge. We look forward to expanding our SAP portfolio."

 

Future plans

 

Vectus, after this successful deployment, aims to introduce additional functionalities of the SAP S/4HANA suite – deploying SAP BusinessObjects™ Analytics portfolio, SAP SuccessFactors®, SAP Ariba® solutions, and the SAP CRM Interaction Center

rapid-deployment solution.

 
 

 

Spokes Person : Mr Ashish Baheti, Managing Director, Vectus

Chandrashekhar, CFO of Vectus

Atul Ladha, MD, Vectus industries and Manish sinha

 

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