What software does the supply chain department in Maruti use?

Maruti implemented Oracle E-Business Suite (EBS) across its various departments. Oracle EBS comprises of ERP (Enterprise Resource Planning), SCM (Supply Chain Management), and CRM (Customer Relationship Management) applications. EBS provides the most complete, integrated business intelligence portfolio and is the most adaptable business platform. As per the illustration shown in the Appendix, it has different modules and applications. It has applications like Oracle Financials, Procurement, HRMS, Enterprise Asset Management, Project Portfolio Management, Order Management, Transportation Management, and Channel Revenue Management.

Financial Insight

The company observed that with using the old multiple systems, there was lack of control over the data and information quality and processes. It was difficult to manage finances and the divisions lagged behind each other. But with the implementation of the E – Business Suite, Maruti Suzuki was able to standardize on a single financial management platform. Standardization helped the company to keep and maintain tight control over the Accounts payable, accounts receivable and comprehensive general ledger. Also the efficiency improved and there was less confusion with the introduction of the standardized data formats and processes. Rajesh Uppal (Chief Manager – IT) said that the completed the year end close on time without any hitch.

Hyperion

The company has been using Hyperion software for the last two years. It has been used to analyze the budgets across Maruti’s nine subsidiaries. It also helped the company to conduct financial reporting in compliance with the GAAP (Generally Accepted Accounting Principles) in India. The system is integrated with the Oracle Financial and is now being used by 10 (approximately) budgeting staff in the company’s finance department. It has helped the company to improve their forecasts and also enabled Maruti to quickly respond to the changes in the market conditions thus enhancing their competitiveness. Hyperion can be easily integrated with the Oracle Financials Module.

Procurement

Oracle Purchasing was implemented by Maruti to handle the procurement of the services, goods and indirect consumables. Before implementing this Purchasing system, the company’s subsidiaries either depended on spreadsheets or used the elementary or fundamental system to handle the process thus leading to rise in costs and excess of inventory. The major changes this system brought in the company was the cost reduction and better inventory management. It also helped to reduce the number of vendors thus reducing the costs. An automated workflow sends purchase orders along the chain and keeps the staff aware of the procurement activity. It has provided working staff the capability to track the process from order to payment.

HR Workforce Management

Maruti was quick enough to discover that the systems they were using were not able to manage the employees. Thus it felt the need of a single integrated system that could easily help them to manage the human resources. After the implementation of the Oracle Human Resouces module, Maruti observed that it had a better control over the functions such as leave and compensation management, payroll, recruitment and training and staff development. As the information is stored in a single database, the system enabled the staff to access the entire history and the details of the employees. Oracle self – Service HR was also implemented which freed the HR staff from elementary duties (like changing details and addresses of employees). Thus, it helped Maruti to hire good quality people.

Future Plans

After the success of the HR, Procurement and Financials modules, the company can implement the Oracle Advanced Supply Chain Module and Oracle Enterprise Asset Management. The company can integrate more of its processes with ERP systems. This would help the company to access the real time information across all the different departments and divisions of the company.

Conclusion and Findings

The implementation of any ERP software or E – Business Suite software makes the data and information available at a single place and in a consolidated form. It also integrates various different departments in the organization. Thus, it should be implemented in almost every other organization operating in any sector.

Maruti also faced issues with its old multiple systems but with the implementation of the E-Business Suite application, the company has become much more competitive because with its implementation the company enjoyed a lot of benefits. Implementation of different Oracle modules helped the different departments in the company integrate all the information at a single point and in a single database thus making the information available to all the departments and divisions of the company. Thus this system helped them in decision making and finally increasing the profits of the company. Therefore, organizations should use this kind of ERP system and make themselves much more competitive.

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