PAE Ltd. implemented a mobile app to automate its order to cash process and consolidate warehouse operations across India in order to reduce costs. The mobile app integrated sales, inventory, order processing, and collections. This allowed PAE to reduce the number of warehouses from 35 to 15, lower rental, labor and transportation expenses by over 30%, and reduce inventory levels by 20%. The project was developed internally over 8 months and resulted in significant cost savings and improved customer service.

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WINNERS Best SME Project
P
AE is in the business of sales
and service of Lead Storage
Batteries, Power Backup
Systems, Automotive parts and Solar
Photovoltaic Products. PAE Ltd., has
been the largest channel partner
of Exide automotive and industrial
batteries for over a decade until March
2012. PAE has a nationwide presence
in the market with over 3,500 dealers
and distributors and over a 150+ sales
and service team members. PAE has
35 branch offices cum warehouses &
service points.
PAE has branches across the
country, with each branch having
warehousing, back office & service
facilities. Each branch has sales team
which sell products to nearest cities
and town dealers and branches also
provide dealers & customer service
facility. Each state had three to six
branch locations with all facilities. PAE
sales executives visit dealers, collect
orders and payments. Branch back
office teams will process all orders,
prepare invoices and warehouse teams
will pick up and deliver products to the
dealer. Customer also sends products
to branches for service and settling
warranty claims.
PAE started making losses due
to increased competition in market
and due to heavy operational
costs. Management wanted to
reduce operational cost without
compromising current business.
Challenges Faced
Due to heavy competition in the
market, there was a need to reduce
operations cost without compromising
business and service to the dealers
and end customer. Thus they proposed
to have one warehouse per state and
dispatches were done directly from
state warehouse to distributors instead
of branches. Small branches converted
into sales offices cum service points.
The Implementation
Prabhakar Posam, the company’s IT
head, studied all operational expenses
and proposed a completely new“Ware-
house & Back office Consolidated”busi-
ness model with current operational
cost viz-a-viz new operational cost to
the management. He also presented
how the new model will reduce op-
erational cost substantially and will
be scalable in future. A new business
model proposal has been accepted by
- Anuj Sharma
PAE Limited
Implementedamobileappandachievedmorethan30%costsavingsonRent,Manpower,
Administrative expenses, and 20% reduction on Inventory levels
MobilitywithWarehouseandBack
office Consolidation
Prabhakar Sahadeo Posam
Head IT & Business Process, PAE Limited
Project Head
the management. The key technolo-
gies used are DELL PowerEdge R710
Server with Windows 2008 OS, Angular
JS, JQuery, HTML 5, Json, BootStrap,
SQL Server, and WebSphere Applica-
tion Server.
As per new business model, the PAE
internal IT team developed a mobile
app integrated with ERP on open
source technologies. Mobile app train-
ing has been conducted for all team
members across the country. Sales
team started placing orders, record
collections, view dealers outstanding,
view online inventory and enter their
travel and attendance. Entire order to
cash process is automated, as soon as
order is booked by the sales executive,
if any price approval is required it will
be escalated to Area/Business Manager
for approval. Area/Business Manager
will approve using same mobile app.
Once order is processed invoice is au-
tomatically generated and centralised
warehousing team prints the same and
dispatch it to dealers. Dealer gets an
alert when the order is processed and

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Before Deployment
• Duetoheavycompetitioninthemarket,PAE
started making losses.
• Therewasaneedtoreduceoperationscost
withoutcompromisingbusinessandservice
to the dealers and end customer.
What was deployed
• Amobileappisimplementedfromsales
executivetoMDwithmultilevelapproval
process for each transaction.
• Complete order to cash process is
automated
• Collectionprocess(Cash/Cheque/RGTS)on
mobile.
• Projecttookeightmonthstoimplement
across all over India.
After Deployment
• Asaresult,numberofwarehousehavebeen
reduced from 35 to 15.
• Morethan30%costsavingsachievedon
Rent,Manpower,Administrativeexpenses
• 20%reductiononInventorylevels,Lower
cost of transportation
Implementation partner
Inhouse
Company Scenario
material is dispatched. Sales executive
started recording all collections on mo-
bile and started deposited collections
directly to the bank.
With new consolidated
warehousing business model, PAE
has warehousing & back office
facility to one location per state
and withdrawn warehousing &
back office facility from all other the
locations in the state. Only service
point and sales office is maintained,
in branches where warehousing
facility is withdrawn. Entire logistics is
redefined and started giving planned
deliveries from centralized warehouse
to all state dealers.
The new model has been well
accepted by the team and complete
order to cash process is fully
automated through mobile app. A
mobile app is implemented from
sales executive to MD with multi level
approval process for each transaction,
Complete order to cash process
through mobile app. Order to Invoice
automated process, Order to dispatch
tracking Online inventory, Collection
process (Cash/Cheque/RGTS)on
mobile.
Complete order to dispatch tracking
is available. Sales executive’s calls to
office has been reduced drastically
because of online inventory and
customer outstanding information.
Sales teams Travel is completely
online. MIS is available on mobile.
Entire mobile app has been designed,
developed and implemented by
internal IT team. Project took eight
months to implement across all
over India. Overall this was the most
successful implementation in the
company so far.
“More than 30% cost savings on, Rent,
Manpower&Administrativeexpenses.More
than 20% reduction on Inventory levels.”
The Result
As a result, number of warehouses
have been reduced from 35 to
15. More than 30% cost savings
achieved on Rent, Manpower,
Administrative expenses, 20%
reduction on Inventory levels,
Lower cost of transportation, Better
administrative controls, Improved
customer service. Substantial
reduction in transportation
cost because of reduction in
inter branch inventory transfers.
Improved administrative controls &
customer service.
The mobility project has brought
down expenses drastically and they
started working on very low cost
business model compare to past.
This project has contributed to the
bottom line of the company and
improved image of the company
in the market. Now they have edge
over competition and their sales
team has been treated respectfully
compare to earlier. Customers also
started feeling that the company
has a vision.