The client is part of a EURO 4.3 billion German compressor manufacturing company. The Client has their manufacturing unit in Bangalore, Karnataka and the Trading & Accounting process happening from Vadodara, Gujarat.
Problem
Globally they use one of the most popular ERP systems. The customer was trying to implement the same ERP system for their India subsidiary too. In spite of their best efforts, they could not roll out effectively even after 2 years. Hence ended up with disconnected Inventory system and Accounting software. Added to this, they were also using about 15 XL sheets in the Production, Planning and QC functions for their day-to-day transactions.
Challenge:
Due to these disconnected systems and operation for different locations, the client had many interdepartmental transaction integration gaps. As a result, their monthly closing and global reporting process used to take 6 to 7 days of time every month. During this period their inventory, production and Sales were put on hold.
They also had a challenge to get qualified people to work on the large global ERP systems. They were struggling with a large ERP system.
Add to this, they were on the verge of being taken over by another group company and the condition was to have a fully functional ERP system in place, certified by their auditor Deloitte consulting.
Selection of ERP:
The client’s team kept their requirement document with all use cases and budget ready. They have evaluated close to 10 ERP systems. They wanted a fully integrated ERP system that covers:
- Sales, Job work & distribution – Domestic and Exports, Hi Seas Sale
- Purchase, Inventory & Sub contract – Domestic and Imports
- Planning & Production
- Quality Control
- Financial Accounting with GST, TDS, TCS and Other compliance.
- COGM / COGS based accounting
- US GAAP reporting (for global reporting compliance)
- Global reporting
Syscon Cronus – ERP system was meeting all the requirements except for the US GAAP accounting and global reporting. To validate this, syscon has set up a 14 days to trial for the client team. All the users have entered their required transactions and verified the reports. They found the standard product meeting almost 95% of their transactional requirements.
Based on the solution readiness, ease of configuration and implementation and cost advantage, Syscon Cronus was awarded the contract. They also agreed to adopt the solution with no modification. This has helped them to go-live quickly.
Cloud model deployed at E2E networks:
Syscon offers the deployment both on cloud and on-premise models. The client has chosen for the cloud model and have chosen a cost effective Tire II Data center, E2E Networks. Syscon team is taking care of the server management, along with the Fortigate Firewall.
Datanyx BI
To take care of the MIS dashboard, work level, control and Global Reporting, we have implemented the Datanyx BI tool.
Deloitte consulting monitoring the Implementation.
To meet the requirements of US GAAP accounting, Syscon has developed an auto JV for all inventory transactions to post the real-time value into the financial accounting module. Syscon also did the integration with the Datanyx BI system to take care of the additional control reports of the client as well as the global reporting.
Online Implementation and support
This order was received during April 2020, during which time the COVID-19 was at its peak across India. So the client has insisted on a 100% on-line implementation. Since we at Syscon have been doing this from 2015, it has become easy for us to manage the implementation efficiently across various locations.
Syscon has successfully completed this project and the client is under maintenance support now.
The tangible benefits:
- One single ERP system replacing 3 software and 15 odd Excel sheets of transactions.
So, the monthly closing has been reduced from 6 days to 1 day.
- The client has evaluated large ERP systems and the cost with customisation was 10 times more than that of Syscon.
- Landed cost calculation of the imported material has made the users life a lot easier. Earlier the Supply chain users used to create XL sheets for every GRN and pass on the same to the Finance team. Now it is 100% system driven.
- All inventory entries are passed into the financial accounting through Auto JVs, helping the management team to view the P&L and Balance sheet at any time.
- Since all the users are working on one unified system there is no issue on the geo location from which the users are operating.
- Real-time product costing.
- COGM (Cost of goods manufactured) COGS (Cost of Goods Sold) JV along with every Invoice helps the management to see the profitability of each Invoice.
- Also the Finance and Management team can see an accurate operational P&L and Balance sheet at any day, without the need and support of any finance person.
- Global reporting with a BI tool along with US GAAP accounting reports.
- The takeover agreement was done only after Syscon ERP was implemented and certified by their statutory auditors.
- Month closing time reduced to 1 day from 7 days.
The success continues…
In this case study Syscon Cronus – ERP system has seen the transition of 3 global and Indian managements and 2 takeovers smoothly.
- Post successful ERP Implementation of GEA with audit confirmation by Deloitte, this division of GEA was taken over by BOCK compressors in early 2021.
- Now Bock has been taken over by Danfoss in March 2023.
- The new Partner Danfoss is continuing to use our system and given a new order for their global reporting.
