Category Archives: Manufacturing

Moflex Suspensions Private Limited Recommends TCS iON

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TCS iON Facilitates Inventory Management and Tracking for Moflex Suspensions Private Limited

Moflex Suspensions Private Limited is a leading manufacturer and supplier with experience of over 30 years in manufacturing springs, suspensions, and other ancillary parts used in the automotive industry.

Moflex faced the following challenges, which it sought to eradicate using iON solutions:

  • Being a manufacturing organization, Moflex had a large variety of items in its inventory. As a result, the movement of inventory within units could not be monitored effectively. Moreover, the cost incurred due to the movement was not updated in accounting records.
  • Inaccurate and inconsistent reports which adversely affected decision making.
  • In addition, it was imperative to maintain the security of confidential data within and outside the organization.

Tata Consultancy Services (TCS) understood the business process of Moflex, their pain areas, and deployed iON Digital Manufacturing solution.

Business Value Derived:

  • The organization was able to track inventory at every stage of manufacturing through process instruments, such as GINs, QGINs, and GRN.
  • The inventory cost was aligned with iON Finance and Accounting (F&A) solution to achieve cost intelligence.
  • Centralized on-demand and drill-down reports resulted in better analytics and decision making.
  • Data confidentiality was enhanced using IP whitelisting and blacklisting methodology to prevent unauthorized access to systems.
  • Reduced expenses; readily available support and solution upgrades were provided at no additional cost.
  • Records and certificates tracked easily using Document Management System (DMS).
  • Cloud-based structure enhances solution performance; no more worries about service failure issues.

Key Engagements:Capture

Customer Testimonials:
“iON-ERP has helped us in decision making through improved reporting for Cash Flow through this functionality. With a single click we are able to get the desired report. This has reduced a lot of unnecessary time of employees and other stakeholders preparing the report.”  –  Mr. Anuj Patel, Dy. Account Manager
” I believe that all small & medium size enterprises can position their organizations to take benefit from iON that is designed to meet their needs in order to achieve organizational growth. iON meets most of our requirements and improves our overall performance. “
– Mr. Prithvi Singh Budhiraja, Partner

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Emil Pharmaceutical Industries Pvt. Ltd. Recommends TCS iON

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Emil improves its managerial processes and works more efficiently with TCS iON.

Emil Pharmaceutical Industries Private Limited (Emil) was founded by technocrats in 1989 with a vision to manufacture quality medicines. With its two manufacturing facilities (Emil & Medibios) situated at Tarapur, Emil is India’s financial and pharmaceutical hub with unmatched quality standards of manufacturing for multinational giants like Abbot Laboratories, Wockhardt, Glenmark Pharmaceuticals, US Vitamins and many more. The facilities are equipped with duly qualified and validated manufacturing, packing and testing of formulations.

The company has an in-house R&D department having a technical know-how of over 30 formulations across 30 therapeutic categories which have been approved by Abbott Chicago & Pfizer, New York for its international markets.

Being a manufacturing company Emil faced many functional and managerial challenges. Some of the challenges are mentioned below:

• Control over inventory tracking at each stage of production.
• Optimum production plan and material requirement plan.
• Coordination between the head office, factory and warehouse.
• Financial statements for each period.
• Quality testing of their products at different stages of production

Tata Consultancy Services (TCS) deployed iON Digital Manufacturing, Finance and DMS to streamline Emil’s processes and achieve transparency.

Benefits Realization and Business Value:

• Planning of Raw Material and tracking inventory at all stages of production.
• Integrated solution with consolidated reports.
• Improved coordination between head office, factory and warehouse.
• Getting unified real-time view reports.
• Improved decision making production plan and material requirement.
• Easy tracking of the daily transaction, records and certifications.

Key Engagements:Capture

Customer Testimonial:
“MRP is being done site wise. Site wise working is proving useful as we can do client-wise
workings and reporting. Secondly, BOM and Job Orders/ Issues are also being done site-wise. This helps in several ways – especially in selecting materials of correct specifications and in the selection of vendors as stipulated by the client. Hence gives better control on the issue of input materials. Also tracking of materials lent to other parties/sites has got simplified. Excise Duty liability and payments tracking have got simplified greatly due to site wise operations. Overall MRP has improved.”
Mr. Tushar A Korday
Director
Emil Pharmaceuticals Pvt. Ltd.

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Improving order-to-cash business process

Manufacturing

Several organizations believe that order to cash cycle could be improved or made more efficient by getting the receivables quickly from the customer as that is probably the only dependent variable. However, apart from this, there are several other factors impacting the efficiency of the order to cash cycle like

  • Ability to manage huge volume orders – Whether the manufacturing facility has the proper resources to manage huge orders
  • Order turn-around time – How quickly, after receiving the order, the goods could be made ready for dispatch
  • Uncertainty in credit levels of the customers – Whether the customer has a good credit history to be able to pay on time or there might be a possible risk of default

Therefore, a thorough analysis on the aforementioned factors is necessary prior to engaging into an order to cash cycle to take control of the whole cycle and increase its efficiency. This could be achieved using the following

  • Proper procurement and production planning

Once the orders are received, it becomes imperative to plan the procurement and production of the final product provided it is not already available in the inventory. This would help an organization estimate a possible delivery date, taking into consideration the procurement and production lead time, to ensure quick turn-around time and on time delivery.

  • Accurate billing and documentation

Accurate invoicing and documentation would eliminate any scope of misunderstanding between an organization and its customers thereby reducing rework and possible delays.

  • Customer’s Financial Analysis

Analyzing customer’s financial situation, prior to entering into a sales contract, would give organizations an idea whether the customer would be able to manage the payments thereby helping them decide whether or not to go ahead with the transaction.

  • Devise collection strategy based on customer situation

If customer’s financial situation is not good and an organization still decides to go ahead with the transaction, knowledge of customer’s financial situation would allow it to modify its collection strategies accordingly to give customers a flexible payment option and also opt for insurance coverage to manage any risk of default.

  • Benefits and offers for on or before time payment

Offering benefits and perks to customers in return for quick payments would ensure receivables on or before time resulting in increased efficiency and quicker completion of order-to cash cycle. Furthermore, the benefits would ensure customer’s loyalty and lead to a long term relationship thus ensuring a constant flow of revenue.

An improved order to cash cycle would not only help organizations efficiently manage their orders and collections from customers resulting in a constant cash flow but also give them the bandwidth to focus on new market strategies and ensure further expansion.

TCS iON solution has a fully Integrated Order to Cash cycle starting from enquiry to sales order to receipt voucher against sales which facilitates end to end monitoring of the entire cycle. The solution also enables organizations to enter into sales contracts, track sales orders and pending shipments, monitor sales returns, design sales forecasts and monitor sales targets assigned to the sales force. In addition, TCS iON offers the facility of direct shipment which would bypass sales order creation and directly ship the goods without a sales order reference thereby shortening the overall order to cash cycle.

About the Author:

Swayandeep Das has been associated with TCS for more than 6 years now. He worked as a business analyst having proven expertise belonging to multiple industries which include trading, process manufacturing, plastic molding, import, and export. Currently he is the Pre-sales lead for TCS iON International team.

How Inbound Logistics Can Improve the Delivery Cycle?  

In most businesses today, low cost has emerged as the prime differentiator, making effective inbound logistics an essential prerequisite. A keen focus on supply chain management can help reduce the total cost of material acquisition thereby reducing the overall operational overheads.

This is even more important for made-to-order mass customization businesses like Dell (they rely on a closely integrated supply chain), as there is always the possibility of large variations in the supply of raw material, material behavior dependencies from the buyer network (one supplier but many buyers, each with individual preferences), lead time issues, or for that matter, orchestration of several minor components of the fulfillment process that make up majority of the cost of fulfillment. Inbound logistics should therefore be considered an integral part of the overall supply chain strategy and organizations should strive to make this aspect robust and efficient.

The latest trend among companies is to manage logistics at the point of pick-up. What that means is we need to move away from the traditional mindset of controlling carrier rates, per mile charges, or the total cost of ownership (TCO) for a supplier, to a more holistic mindset of designing optimal routes, understanding and minimizing the total landed cost per item, streamlining material acquisition, and managing wastage better. Here, wastage refers to resources (personnel or money) consumed while executing an incorrect pick-up.

Logistics companies should be evaluated on the total cost of fulfillment, while suppliers should be assessed on lead time commitments. It should ensure that the critical path to delivery is the shortest possible route with the minimum number of inventory hold points. Route planning and cube utilization are therefore crucial to achieve this. Too many material handover points will ultimately increase the cost of transportation. The buyer’s responsibility lies in minimizing order variability, although in a consumer-driven market that is seldom controllable.

Given the importance of inbound logistics, the entire responsibility of reducing the landed cost of an item cannot be attached to the carrier company. Responsibilities should be divided among stakeholders, as shown in the following responsibility matrix.

Seller and/or manufacturer Logistics company Buyer
Supply chain management Route planning and management Visibility and clarity in order. For instance, if the buyer does not communicate the required number of cartons or packages correctly, it will create chaos for the logistics company.
Production planning Statutory compliances in transportation and logistics Ensuring less order variability. Let’s take the case of Flipkart. For an item that is made to order, say a bike helmet tattoo, if the buyer keeps changing the scope, it will create pick-up uncertainty at the logistics company, disrupting the overall delivery schedule.
Inventory management Contingency management On-time pick-up notification
Carrier management including carrier performance and contract terms Cube utilization Receipt schedule
Communication plan Ability to eliminate waste in transportation Store-wise packing list
Packaging and labeling–based on buyer specifications Fill rate (ability to run full truck load) Smooth settlement process including timely payments

Author
Kaushik Mukherjee, Head – Marketing Support, iON Manufacturing

Kaushik is a Domain Consultant with the iON Small and Medium Business unit at Tata Consultancy Services (TCS). He has over 15 years of experience across areas such as research, corporate finance, investment banking, and business consulting and has led several large transformation programs for TCS’ clients before joining the iON unit. Kaushik’s contribution to the development of the CFO-PRTM Capital Spending Scorecard for valuing shareholder returns was mentioned in the CFO Magazine’s 2004 issue. Kaushik graduated from St. Xavier’s College, Kolkata, and has a Master’s degree in Business Administration (Finance and Strategy) from the University of Hartford, Connecticut, USA.