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Chemical Company Achieved Operational Excellence with Robust ERP Solution
 

Chemical Company Achieved Operational Excellence with Robust ERP Solution

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YASH Technologies was selected as the strategic partner to implement SAP ERP, for their deep chemical industry expertise and for their recognition as a contributing and testing partner for the Indian ...

YASH Technologies was selected as the strategic partner to implement SAP ERP, for their deep chemical industry expertise and for their recognition as a contributing and testing partner for the Indian localization of SAP Best Practices for the Chemical Industry.

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    Chemical Company Achieved Operational Excellence with Robust ERP Solution Chemical Company Achieved Operational Excellence with Robust ERP Solution Document Transcript

    • TM SAP® ERP Success Story @ YASH Chemical Company Achieved Operational Excellence with Robust ERP SolutionIndustry The ClientChemical Aarti Industries is a global developer and manufacturer of basic bulk chemicals, dyes and pigment intermediates, pharmaceuticals, agrochemicals, and other specialty chemicals. Aarti is the leading producer of Benzene-based basic and intermediateGeography chemicals in India. Subsidiaries include Aarti Healthcare, Alchemie Europe, and Anushakti Chemicals and Drugs.India
    • Legacy System Hindered Quality of Customer Service andOperational VisibilityAarti experienced rapid growth via global expansion with annual revenues doubling toreach $400 million in 2008. Aarti was utilizing Tally, a legacy application used by Small toMedium Enterprises (SMEs) in India, for their financial reporting needs. However, thefinancial management capabilities of Tally could not keep pace with the high volume ofbusiness and became increasingly difficult to use.Without a cohesive system in place to provide visibility of operations across theenterprise, Aartis customers began to feel the effects and voiced complaints aboutdelivery delays, order errors, billing issues, and lack of quality assurance. In order tosustain their growth rate and scale their operations, Aarti felt compelled to implement anEnterprise Resource Planning (ERP) system.YASH Technologies was selected as the strategic partner to implement SAP ERP, for theirdeep chemical industry expertise and for their recognition as a contributing and testingpartner for the Indian localization of SAP Best Practices for the Chemical Industry.YASH Created a Customer-Specific Solution to AddressUnique ChallengesAarti was very cautious about the new SAP ERP ECC 6.0 implementation. YASH addressedthese concerns by utilizing their proprietary implementation methodology, S-Imple(Streamlined Implementations). S-Imple, a processed-based methodology, transformshow enterprises deploy SAP by dramatically reducing time from project start torealization of tangible benefits. By leveraging pre-configured business scenarios, cycletimes for blueprinting, development and testing phases were dramatically reduced. Inaddition, the S-Imple methodology provided early adoption for Aarti users through “playback” sessions that allowed customers to see what business scenario was going to beimplemented, make slight changes as needed, and visually experience the changes as itwas developed. The playback sessions meant that Aarti would not have to wait until theend for their first exposure to the solution, but was able to be involved in every stage ofthis rapid deployment process, getting the right solution the first time.Core ERP modules of FI, CO, SD, and MM were implemented at Aartis headquarters inMumbai, and at six manufacturing plants of its subsidiary company, Anushakti Chemicalsand Drugs. Dealing with very complex production operations, YASH integrated over 16,000material, 4000 vendor, 2400 customer, and 500 asset class data to achieve an enterprise-wide ERP solution.As a chemical manufacturer in India, Aarti faced several unique challenges towards theeffectiveness of this solution. First, they operate in a very dynamic and rapidly changingindustry. Aarti must supply high-quality, lower cost products to the marketplace, whileexpanding manufacturing and distribution capabilities. Aarti needed minimal risk anddisruption to their business, along with a rapidly deployable solution to contend withextremely tight deadlines.
    • Secondly, India has one of the most complex tax structures in the world. Different taxrates are applied to purchasing and selling for each state and region within the country, aswell as tax variations based on material components and end use of the product. Finally,Aarti postponed the implementation of the Production Planning module of SAP ERP duringthis phase, which posed a significant challenge to track the production confirmations andinventory levels within SAP.To overcome these challenges and ensure success, YASH incorporated their proprietaryChemOne solution, based on SAP Best Practices for the chemical industry. ChemOne,recognized by SAP India as a highly capable solution for chemical companies in India,provided out-of-the-box functionality using preconfigured business scenarios thatsignificantly reduced the ERP implementation risk, time, and costs. One of the mostimportant features of ChemOne is the prebuilt tax functionality, which eased Aartiscompliance issues with the Indian excise and statutory requirements. In addition, YASHutilized ChemOnes production order functionality to track ongoing production operationswithout the need for the PP module of ECC 6.0.YASH Delivered Complete Integration Across Business ProcessesAarti realized many benefits from the comprehensive and successful ERP implementation.They now have better visibility into global business operations and have the processsupport required to grow profitably in a demanding market. Additional benefits realizedwere: • Improved business processes eliminated time-consuming manual processes • Integrated processes tightened the billing cycle, resulting in a 50% decrease in month-end closing cycle time • Fully operational system provided functionality to accurately track and maintain inventory • Customer service issues were significantly decreased • Rapid return on investment with streamlined regulatory compliance“We couldnt spare the resources or invest in a long term project. YASH delivered acreative and effective solution with the deployment of ChemOne and the newlyintegrated ERP platform. This provided significant savings for us and positivelyreinforced our decision to invest in SAP. YASH has given us the foundation to supportour continued growth and profitability for the future.” —CIO Aarti Industries
    • About YASH Technologies YASH Technologies focuses on customer success. As a leading enterprise business and technology partner for medium and large global customers, we leverage technology and our flexible delivery models to drive performance and business value throughout a customers enterprise. YASHs comprehensive service approach incorporates a holistic view of our customers that extends beyond delivery. This approach integrates enterprise solutions and services, proprietary best practice offerings, strategic application and maintenance outsourcing, as well as consulting and integration services. YASH is a SEI CMMI (Level 3) and an ISO 9001:2000 certified company with US and India headquarters and regional sales and development offices spread across 3 continents. For more information, please visit www.yash.com or email info@yash.com. SAP-ERP-Chem224-1009 TMYASH Technologies www.yash.com/contactusGlobal Presence - USA | EU | MEA | APAC • California | Illinois | Massachusetts | Missouri | New YorkTexas | London | Bahrain | Hongkong | Singapore • Hyderabad | Pune | Mumbai | Bangalore | IndoreWorld HQ: 605-17th Avenue East Moline IL 61244 USA | Toll Free: 877-369-YASH | Tel: 309-755-0433 | Fax: 309-796-1242EU: The Mille-II Floor 1000-Great West Road Brentford London TW89HH UK | Tel: 44-20-8261-4408 | Fax: 44-20-8261-4418India: 201-205 Bansi Trade Center 581/5 MG Road Indore MP 452001 India | Tel: 91-731-426-1100 | Fax: 91-731-420-6593