CASE STUDY. A Stationery Manufacturer inks its growth saga leveraging Ramco ERP on Cloud

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1 CASE STUDY A Stationery Manufacturer inks its growth saga leveraging Ramco ERP on Cloud Headquarters: Tamil Nadu, India Industry: Manufacturing Products and Services: Markers, Stamp Pads and Marker Ink

2 CUSTOMER BACKGROUND When two corporate giants of international stature come together to start a production unit in India, you know that you can expect the result to be absolutely top of the league! And top of the league is exactly what this client has always strived to be. A Joint Venture of two international groups, the company is situated in Ulandai, Tamil Nadu, India. Currently, it manufactures three product lines markers, stamp pads and marker ink. They have also set up an in-house R&D center to develop ink for their products, which are currently being imported from Japan. A SPOKE IN THE WHEEL Being funded by well-established parent companies, the company boasts high-end equipments. With so much going for it, everybody expected the company to zip down the success lane. However, their path to success was impeded by an unexpected challenge. The manufacturing facility located at Perambakkam, Tamil Nadu, had since its inception, used multiple non-integrated systems for Management Reporting. Inventory management was done through manual registers, while finance was being tracked with a customized accounting package. This method had served the company well enough to begin with. However, as the company began to grow and volumes became large, they found that this manual system came with the reality of errors that cost them dearly. Often, there were discrepancies between the actual physical stock and the stock in records. The physical counts were being done on a per month basis and during peak production periods. However, all too often, the company found that by the time the activity had been carried out, further changes were made to the stock and there was no information on the latest stock availability. Clearly, a periodic inventory system was a very poor substitute for a perpetual inventory system. CAN REAL-TIME INFORMATION REALLY MAKE A DIFFERENCE? The company soon began to realize that lack of real-time information was having a very negative ripple effect. For instance, with basic stock maintenance being a major challenge, recording of semi-finished goods was virtually non-existent. This was critical for improved planning and meeting demand during peak season when production volumes are large. Knowing Work-in-Progress (WIP) details would help the company plan ahead and alert them of production contingencies. Real-time information would also help the company track the movement of materials within the premises, besides those that went out and came in from subcontracting. Tracking the cost of production stage-wise would help them price themselves aggressively in the market. They would also be able to integrate purchase orders with receipt of goods and invoicing, thus enabling them to confirm receipt of goods for ordersthat had been placed, and invoicing only those goods that had been received. With their pressing needs, implementation of an ERP system could no longer be avoided. RAMCO ERP ON CLOUD PAVES THE WAY FOR CHANGE After evaluating several players, the company decided to implement Ramco ERP on Cloud. A spokesperson from the senior management notes, Ramco ERP on Cloud s biggest attraction for us was that it did not require heavy investments in IT infrastructure and personnel. Also, it would enable us to pick and choose just the functionalities that we required, so we wouldn t have to pay for features that we d never be using The company chose the following modules: General Ledger Inventory Purchase Subcontracting Sales & Shipping Payable Management Receivable Management Discrete Production Fixed Assets Management Information System PENNING A SUCCESS STORY WITH RAMCO ERP ON CLOUD Since the solution was integrated, we had a perpetual inventory system which enabled dynamic reporting. The system also allowed us to track various items through several stages of supply chain management and production. This, in turn, eased the stock inventory maintenance process, enabling us to define semi-finished goods at various stages and bringing down the Work-in-Progress to very low levels, avers COO of the company.

3 The discrete production module helped the company recode their production on a minute to minute basis and thus determine the exact cost of executing work orders. They could also predict the quantity of materials to be issued and received, and return unused goods back to the stores, thereby saving costs. The subcontracting module has also been a big blessing since it has enabled us to track material issued against each subcontract order and material received against the same. Moreover, with the available sales and inventory reports, our production and planning mangers have been able to track fulfilled orders, partially fulfilled orders and materials in various stages of production, says COO. By adopting Ramco ERP on Cloud, the company has integrated Enterprise Solution for planning its resources. Besides abolishing multiple existing systems for reporting, it helps them track consumables and sundry items that were not being maintained in inventory. This has resulted in more accurate costing and profit analysis. With the help of Management accounting and costing, the company is able to track spending department wise, product line wise as well as process wise. This has helped them optimize costs while producing higher quality products, says Mr. Mahaboob Ahmed N, Senior Manager - Projects, Ramco Systems. CAN RAMCO DO IT FOR YOU? Of course it can! To find out more on how Ramco can answer your need, to contactramco@ramco.com.

4 CHALLENGES & OPPORTUNITIES QUICK FACTS Lack of integration between accounts and inventory and stock in records well as material going out and coming in from sub-contractors orders with receipt of goods and invoicing BENEFITS Dynamic reporting through an integrated perpetual inventory system various stages of supply chain management and production operational controls tracking of materials and inventory financial reports EXISTING ENVIRONMENT Non-integrated, manual systems IMPLEMENTATION HIGHLIGHTS Graduated accounting system from periodic to perpetual inventory system Abolished multiple existing systems for reporting. Now, all MIS reports can be drawn from one single place items, resulting in more accurate costing and profit analysis wise, product line wise as well as process wise OBJECTIVES WHY RAMCO S SOLUTION? Comprehensive Asset Management solution for addressing various aspects of the power business anytime-anywhere access enabling decision-makers to take comprehensive, informed decisions value-added functionalities outcome with better TCO Necessity to understand WIP at each stage of production goods required for large volume production production stage wise

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