ERP Implementation Case Study in SME
Case Study of Alfa Pneumatics
Alfa Pneumatics is a manufacturing co. for pneumatic tools for pumps and Marine
industry, operating on tight margins and turn over of less than 1 Million. Management of
the company had realistic plans of growth in future but wanted to cut down the operating
cost and time. But against the future plans, company had serious issues with material
supply process from supplier, tracking the same at sub-contractor’s site and managing
sales data due to which, delivery against sales order used to get delayed, costing to the
company dearly. To overcome these, Alfa Pneumatics implemented Ebizframe ERP
software, a solution from Eastern Software Systems Limited.
Before going for ERP, manual data entry in each department caused major worries for the
management as no data, either in sales, purchase or inventory tallied with the actual at
hand. This made decision making for the management of the company impossible or a
huge risk. It got out of hand when technical specifications followed by production team,
suppliers, sub-contractors and customers were all haywire. This in turn caused variations
in required and supplied from suppliers and materials going and coming in from sub-
contractors. The same caused rejections from customer’s side causing cost again.
It was then that company decided to go for an ERP to solve all these glitches.
Implementation of ERP started by Nov 2003 and went live by March 2004. ERP was
adopted with minor customization and major re-engineering of their business processes to
improve on performance. Challenges of understanding the concepts and quick
adoptability by staff during implementation of ERP were tackled well by team from both
sides. All specifications for raw material, semi finished and finished goods are now
incorporated into the system. Turn around time of delivery against order is reduced by 12
to 15 days. Also, company has now got the required controls over suppliers and sub-
contractors. Company is has got crystal clear MIS reports of receivables and payables. As
of now, Sales (including exports), Purchase, Inventory, Production and finance are live.
Correct, uniform and smoother flow of information across suppliers, sub-contractors and
customers caused delight in each due to timely receipts and payments against deliveries
with precision. Even dead stock has come down by 18 to 20% of whole. Stock tracking at
inventory & sub-contractor’s site was accurate due to live inventory related reports.
Production processes are streamlined based on the production advice from Sales as per
order bookings made. For future, company has plans for customization of reporting in
ERP considering growth plans.
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