usha international: improving profit margins with sap erp powered

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SAP Business Transformation Study | Consumer Products | Usha International Picture Credit | Usha International Limited, Gurgaon, Haryana, India. Used with permission. Usha International: Improving Profit Margins with SAP® ERP powered by SAP HANA® Starting with a simple black sewing machine in 1937, the Usha brand was the most trusted name in its industry. Today, India counts on Usha International to deliver the highest-quality products, including ceiling fans, kitchen appliances, automobile parts, and more. Dedicated to meeting consumer demands in an ultracompetitive market, the company needed to respond to ever-changing trends quickly. With SAP® ERP powered by SAP HANA®, reporting performance is five times faster, allowing the company to analyze sales and pricing more quickly and resulting in significant savings in time and labor costs. Financial close processes have also been accelerated. Since deployment, Usha has realized a net profit margin improvement of US$7.7 million for bottom-line results, which means the business can more easily get the right products into the hands of their consumers. © 2014 SAP SE or an SAP affiliate company. All rights reserved.

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Page 1: Usha International: Improving Profit Margins with SAP ERP powered

SAP Business Transformation Study | Consumer Products | Usha International

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Usha International: Improving Profit Margins with SAP® ERP powered by SAP HANA®

Starting with a simple black sewing machine in 1937, the Usha brand was the most trusted name in its industry. Today, India counts on Usha International to deliver the highest-quality products, including ceiling fans, kitchen appliances, automobile parts, and more. Dedicated to meeting consumer demands in an ultracompetitive market, the company needed to respond to ever-changing trends quickly. With SAP® ERP powered by SAP HANA®, reporting performance is five times faster, allowing the company to analyze sales and pricing more quickly and resulting in significant savings in time and labor costs. Financial close processes have also been accelerated. Since deployment, Usha has realized a net profit margin improvement of US$7.7 million for bottom-line results, which means the business can more easily get the right products into the hands of their consumers.

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Page 2: Usha International: Improving Profit Margins with SAP ERP powered

SAP Business Transformation Study | Consumer Products | Usha International

Executive overview

Top objectives • Maintain profitability by growing revenue 23% annually • Rapidly respond to market changes with full supply chain visibility • Transform real-time information into a competitive edge Resolution • Deployed SAP ERP powered by SAP HANA® in just 10 weeks, 2 weeks

ahead of schedule • Performed a technical upgrade to the latest release of the SAP ERP

application along with Unicode conversion, custom-code testing, and deployment of third-party add-ons

• Created high-availability and disaster-recovery environments with minimal effort

Key benefits • Faster analysis of open sales orders, resulting in better cash management • Faster purchase price simulations, for improved gross margins • Five times smaller database size • Greater system responsiveness for business tasks, resulting in significant

savings in time and labor costs

Company Usha International Limited Headquarters Gurgaon, Haryana, India Industry Consumer products Products and Services Household appliances, electric motors, pumps, and automotive products Employees 2,200 Revenue US$400 million (2014) Web Site www.ushainternational.com Partner SAP® Consulting organization

“With SAP ERP powered by SAP HANA, our “maintain sales order” report has seen the highest performance increase, improving by a factor of 1,480. This is going to save up to 100 individual working days each year and will give users more time to focus on other business activities.”

Subodh Dubey, Group CIO, Usha International Limited

BUSINESS TRANSFORMATION TOP BENEFITS ACHIEVED

$7.7 million Net profit margin improvement for bottom-line results 34,400 hours Saved per year $177,637 Saved in labor costs 5%–10% Reduction in days needed to close annual books 320x Faster analysis of open sales orders 130x Faster purchase price simulations

Studio SAP | 31294 (14/12 ) © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 3: Usha International: Improving Profit Margins with SAP ERP powered

© 2014 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http: / /www.sap.com /corporate-en /legal /copyright /index.epx#trademark for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.