The story of Saurashtra Cements Limited reveals how IT can be leveraged to improve organisational efficiency The flagship company of the Mehta Group, Saurashtra Cements Limited (SCL) is among the top players in the Indian cement industry. The company manufactures a range of products such as ordinary Portland cement (OPC), Pozzolana Portland cement (PPC), sulphate-resistant cement (SRC) and Portland slag cement (PSC). Since its inception in 1956, SCL has adopted various tools to improve its organisational efficiency. With state-of-the-art machinery and completely automated core functions, SCL currently operates like an extended IT company.  The Challenge
Until the late 1990s, the company used legacy-based applications for its management and transactional operations. As each application in the legacy systems operated in isolation, data exchange among these applications and from one source to another became a problem.
Thus, management began exploring the possibility of using an integrated solution that could link the disjointed silos of data and bring all its processes onto a single platform. In 1999, when the complexity and volume of operations increased, SCL decided to opt for a centrally-integrated ERP solution. Thus, began the search for a solution that could accommodate the customised requirements of the cement manufacturing firm. Searching for such a solution required a thorough evaluation and extensive research to select the appropriate solution. For this, the SCL management consulted ERP experts and read materials published by consultancy fims like PricewaterhouseCoopers to compare the different vendors and their offerings. This helped the company learn better about the best practices associated with implementation of an ERP system. The Solution Intent on improving its ability to produce the most cost-effective cement, SCL embarked on a modern, technology-driven practice. The company finally opted for Ramco’s on-premise ERP solution. The key reason for this decision was Ramco’s implementation experience in the cement industry. In fact, while SCL was evaluating the pros and cons of the ERP systems of various vendors, Ramco Systems was engaged in implementing its ERP solution at Madras Cements, a Chennai-based cement manufacturing company. Suresh Shakkarwar, Regional Manager-Implementation & Support (Western Region), Ramco Systems, opines, “Although the requirements of every manufacturing industry are unique, cement manufacturing companies in particular have very special needs. Cement manufacturing is a complex mix of processes. Even the process of recording the production output and raw material consumption is different. The finished goods move through many destinations before reaching the customer, and therefore tracking the goods and the costs incurred during transit are unique to the cement industry. The loss in transit due to the physical form of cement are also unique to this industry.”
Ramco’s prior experience helped SCL immensely as it had the model ready after its Madras Cements deployment. Most of the modules provided by Ramco matched the requirements of SCL. In fact, the company could take advantage of the best practices and experience gained by Ramco from its ERP implementation at Madras Cements. However, despite the company’s thorough experience, Ramco did a detailed analysis of SCL’s specific requirements, which helped to clearly define the user-level requirements. According to Mr Shakkarwar, “A series of discussions between the key users from Saurashtra and the Ramco functional consultants provided insight into the business. The product training imparted to the key users gave them a clear idea about the application. The process changes suggested by Ramco were accepted by Saurashtra after evaluating them from all angles. The implementation took just a year’s time, primarily as Ramco is based in India.” The biggest advantage of Ramco’s solution was evident when the government raised the excise duty on cement a few years ago. All other ERP vendors, being based overseas, took almost one or two months to update the ERP implementations at their respective clients’ sites. As a consequence, most cement companies of India ended up paying excise duty at higher rates for those two months. But because Ramco conducted the upgrade on the same day, SCL managed to save a significant amount of money. Benefits accrued from an ERP System The implementation of customised ERP solution by Ramco has provided SCL with a range of benefits. A few of these are discussed below.
Automated workflow: The entire workflow and processes have been automated—HR, purchase, finance, marketing, order processing, etc. Over the years, the in-house IT team has built many other enhancements into the ERP solution to get the most out of it. Added intelligence: A business intelligence tool has been added to empower decision-makers to access real-time information through dashboards. This helps key management members make informed decisions. End-to-end 24-hour access to ERP: The ERP system has been integrated with an SMS gateway, which enables the mobile workforce to access and feed in information to the ERP system. New processes: Many new workflows have been added to match the evolving needs of the company. These include appraisal approvals and purchase approvals, among others. Integration with the attendance system: Feeds from the biometric attendance tool are sent to the HR module of the ERP system. Web-enabling the ERP: Plans to integrate the ERP system with the SCL website, to enable online purchase, are in the offing. The website will allow vendors to register and offer their raw material quotes online. In turn, SCL also plans to post its requirements online and solicit proposals. The Future SCL has not restricted itself to the mere implementation of ERP. In fact, the company’s in-house IT team is continually evolving with newer enhancements to the ERP solution. While a business intelligence tool has been added to empower decision-makers, the ERP system is integrated with an SMS gateway to enable anytime, anywhere access. SCL is planning to integrate its ERP system with its corporate website. With a clear IT vision, the company plans to establish its place as one of the top cement companies in the country.
Courtesy: Saurashtra Cements Limited |
