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CEAT's investment in in-memory ERP brings it on the fast lane

Sneha Jha | June 23, 2014
As a sluggish ERP began to swallow CEAT's revenue, its CIO took the wheel and steered the company toward in-memory ERP, changing the company's fortunes.

Bhalivade constituted a 33-strong project team and organized a three-day internal training program. His objective was to shrink the time taken in report execution from seven minutes to 10 seconds. He gave clear instruction to his team not to transport any program that took even 11 seconds in the pre-production system without his approval. It had to be brought down to 10 seconds before it got transported on the new platform. Clearly, Bhalivade did not want to fall short of target.

His team revamped around 480 programs and optimized them on in-memory technology. Before the project went live in January this year, Bhalivade arranged for two major mock drills in December. Planned with military precision, the mock run covered 150 users in India for 90 minutes. The drill threw up a lot of glitches which were resolved within a week.

The migration was executed in 52 hours. Bhalivade wanted it to be a seamless transition for business so he undertook the migration on Friday evening after the system shut down. He expected to accomplish the task by 11.30 am on Monday. However, he completed it by 7 am. The project had a tight timeline of 100 days but it was completed a day before the deadline.

The new technology platform is well equipped to process large data volumes. Its enhanced capacity helped CEAT address its ERP performance issues by resolving the problem of slow computing and data presentation. It provides a strong IT support and scale for the company's rapid growth and business development.

The benefits of the project outweigh the cost. Earlier the company had six-seven racks of servers. With the new technology the entire ERP has come down to just one server.

The company has realized considerable savings in power and datacenter costs. "One of the direct benefits of the project is that we have saved 60 percent power and datacenter cost. We pre-empted that the ROI of the project would be achieved in 18 months but within six months the project justified the investment," he claims.

Efficiency has been increased to the tune of 50 percent because of the faster ERP. Invoicing time reduced from seven minutes to 10 seconds with all possible and required controls, locks, and validations. There are no deviations in performance even in peak seasons or quarter end transactional rush.

"After going live, we introduced our first round of discounts. Earlier it took us 72 hours to execute the process. But we were able to complete the discounts along with credit notes within 10 minutes," shares Bhalivade. The CFAs and territory leaders no longer have to put in extra hours. So their work-life balance has also improved.

And as CEAT drives on the fast lane, Bhalivade is a happy man.

 

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