ERP Helps JK Tyres Make Business Agile

A lack of co-ordination between heterogeneous systems across head offices, its 4 plants and sales offices was causing information delays and discrepancies in sales and operation planning, demand visibility, forecast, collaboration and inventory management.

"We needed to make the business agile by making the right information available to the right person at the right time," says S. S. Sharma, chief GM-IT, J.K. Tyres & Industries. To optimize its supply chain function and bring in operational efficiency, the company deployed 16 conventional and new dimension ERP modules. These modules translated into a statistical demand forecasting system that gave rise to an accurate production plan.

Today, finished goods, created on the basis of the production plan, from all the plants are sent to the SKUs.

Based on the demand, stock is transferred from SKUs to the respective depots. The system creates transportation orders from plants to the SKUs and from the SKUs to the depots.

But Sharma had to combat a few hurdles. The project encompassed complex planning processes that included change management and standardization of processes across plants. "The principle focus was to align supply chain objectives with business objectives," says Sharma.

J.K. Tyres has raked in savings of Rs 6.86 crore over a period of one year, post implementation. According to Sharma, "Beside monetary gains, the social life of people has improved. They are now able to finish their jobs much faster and their work-life balance has improved significantly."

The business now interacts with its suppliers through the ERP Portal. Various modules for purchase order, schedule lines and suppliers have been created together with the roll out of raw materials for efficient functioning of the supply chain.

The Person Behind It

S.S. Sharma

Chief GM-IT, J.K. Tyres & Industries

"A complete project that cut costs and improved the work-life balance of my co-workers."