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Bajaj Electricals bagged the CSI 2010 IT Excellence Award for its ERP Implementation program by Computer Society of India.

ERP Case Study: Bajaj Electricals, a known name in consumer electronics for almost 65 years in India, was confined to legacy systems for most of their business processes.

 

 

This was causing hindrance to core business operations, as growth was fast but the legacy systems weren't able to support it. At places, these systems were more than 12 years old and it was becoming costly and difficult to maintain them. Even the supporting technology platforms had become outdated. Hence it was decided by the management to initiate a project that will focus towards improving business processes with IT systems. They decided to implement ERP, SCM, CRM & BI applications together with complete integration taking a big-bang approach. The Oracle Business suite of applications was selected for implementation, and the project was named 'Project SMILE.' This is an acronym for the objectives to be achieved:

  • S Simplify the business processes

  • M Migration to newer technologies

  • I Innovative and Integrated Business applications

  • L Create learning orientation across the organization

  • E to make entire organization Effective & Efficient.

Before implementation of this project, inefficient processes resulted in revenue loss as there were no forecasting or planning tools available. Plus, legacy systems were not built to support current business processes. These challenges were overcome by implementation of the following products: Oracle E-business Applications (ERP), Oracle Siebel CRM Applications, Oracle Demantra Demand Management Tool for demand forecasting, and on top of these apps, business intelligence solutions like Oracle Daily Business Intelligence and Oracle Business Intelligence Enterprise Edition for Sales Analytics, Dashboards & Reporting (OBI) were also implemented.

 

Mr. Siddhartha Kanodia, Executive VP & Head Corporate Service said "Project SMILE was not just a plain vanilla ERP implementation. Besides financials, it involved implementing and planning of CRM tools such as Demantra, Advanced Supply Chain Planning and Siebel CRM. This called for a huge change initiative and I am proud to say that the entire operations team at Bajaj Electricals embraced the changed processes and leveraged the planning tools extremely well. The support from the IT team also was more than commensurate to make this a possibility".

 

Post deployment, the company has been able to get the investment payback achieved within the first year, and just from the savings coming out from one module called Siebel Dynamic Pricing Module. The company can now make right items available at the right time with Advanced Supply Chain Planning solution, which has reduced the overall inventory in the pipeline and also improve the company's ability to service customer orders. The overall inventory losses have been brought down by 2% due to this.

 

 


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