Chapter 4: Keles reborn with ERP implementation
S01 : The Untold Story of Today’s Manufacturing Business
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Recap : Keles have gone through a lot facing the challenges, consulting the consultant and now was the time to choose the correct partner to implement their ERP for which they followed to consider these factors :
This time keles had already chosen their magic vendor who was about to establish an ERP platform that was about to change their fortune, bring back the days they were ruling in the market.
This started with planning the process of the implementation and how the team would execute it, they were about to decide the strategies and method of their implementation workflow.
The complete flow of the implementation was decided to be completed in three-phase, …………………(will look into this later)
When the implementation was completed and the system was now been used for their business operations, the following benefits recognized by the Keles team were so surprising. It was able to overcome every industrial challenge like inventory management and high-quality product delivery, customer relations and services, on-time shipping, labor inefficiencies, changes in statutory compliance, and marketing.
It also helped in tracing and analyzing every departmental function while also initiating better control of actions which led to more productivity and efficiency in their business.
You won’t believe apart from departmental functions, many other management functions were improved since the base, where within,
The system assisted in quality control management, thereby helping Keles’s production with quality planning, quality controlling, quality assurance, and quality improvement of automobile products.
It does so through seamless tracking of the products in real-time, taking note of the problems that occur and their corrective measures that helped the organization to produce high-quality standards of automobile products.
Additionally, the products also have to undergo various safety tests and standard norms to ensure their quality. If a quality is not matched or requires rectification, then there is an alert system that notifies the concerned workforce of the same. Together, this helps in improving and maintaining strong customer relationships.
Maintenance Management
These helps Keles in identifying, isolating, and rectifying the fault of machinery.
System assisted Keles in identifying, isolating, and rectifying machinery faults. Preventive maintenance measures are seamlessly scheduled and tracked, reducing operational costs and ensuring timely tasks completion. Efficient organization of maintenance requests and tracking progress enhances overall organizational functions.
Additionally, organizing the maintenance requests, track their progressions, and plan the other functions of the organization accordingly.
With such quality control management systems, they were able to deliver high-quality products to the market in a timely manner. Also, with the timely undertaking of preventive measures, reducing operational costs significantly as well.
Efficient Inventory Management
Considering that there tend to be lots of upgrades and customizations in the automotive industry. An efficient and robust inventory management system facilitated by the ERP system will help in transacting clear communication between the concerned parties, elimination of the possibility of human error in information flows, and therefore smoother and timely delivery of orders.
Additionally, an ERP system will also let you order and store vehicles at dealership studios and be able to keep track of them. This also highlights one more advantage of having an ERP for your organization in the automotive industry, which is that you will get real-time information from anywhere in the world on the number and kind of vehicles that you possess.
Through the same system, you would be able to provide directions to the concerned departments on the kind of cars that are to be ordered to meet the customer’s request. Thus, the ERP system will help you with realistic delivery, ensuring maximum customer satisfaction and efficiency in your business processes.
Furthermore, by using an ERP system, you and the concerned departmental heads and employees will be able to monitor several work locations from a single unified source, ensuring that no delay happens in mid. This is followed by attending to queries like returns and essential parts stock ups, defects, etc.
Another pivotal part of inventory management is shipping management which is also offered by ERP systems. Through this, you would be able to ensure that your customers get the right delivery of the product, and you would also be able to track the shipments in transit and be able to answer any queries regarding the same.
Not only this, but an ERP will also help in mapping the shipping process with projected costs, thus informing the end-users of the amount that they have to pay. In fact, you would even be able to generate an invoice for the same, for the concerned customers, through the ERP software.
Vendor Management
Effective Vendor management that is accessible from everywhere and to everyone concerned. Details of each vendor, a list of products purchased from them, and tracking links of the shipments already sent, list of pending orders and shipments, expected delivery dates, negotiated contracts, and prices decided upon all noted.
ERP also monitored vendor performance while also paying them on time as per the agreed terms once the promised goods and services were received.
For Example, the scenario like if there was a requirement of a bonnet with the bare minimum quantity, but the shipment of the supplier is reaching you at the fourth day from your need. But there is one more supplier in the system who delivers you the shipment on the day you require, with bare minimum quantity and expected price, then ERP will automatically order the second vendor.
This efficient vendor management helped Keles in achieving business goals, harnessing opportunities, mitigating risks, preventing supply chain disruptions while increasing earnings, improving cash flow, and improving the health of the business’s financial statements, while also retaining the customers.
Financial Management and Pricing
The system tracked of all Keles’s financial transactions, including total costs, total expenses, account receivables, account payables, gross profits, COGS, net profit, net profit ratio, credit notes, and debit notes, pending invoices, revenue, and many more. These helped in consolidating in their respective financial statements like balance sheet, bank reconciliation statement, income statement, profit and loss statement, and so on.
Further on, the relevant transactions also used to get updated in their company’s general ledger and get added to their journal entries and processed as per the relevant accounting system and rules and taxation regimes to be followed. This ensured compliance with all the statutory requirements, including federal and state taxes. The system also kept the note of the registration fees, as well as its renewal due date, along with a reminder system for the same, which will again make compliance easier for them.
Electronic Document Database
Implementing an ERP system, Keles were comforted by storing, managing, and organizing company data and documents. The electronic document database generated a storage space where they could create or generate any digital documents related to the business processes and functions.
The main benefit of having all the documents on the ERP system was efficient and timely retrieval of documents for additions and deletions.
Human Resource Management
Keles were facilitated by efficient human resource management, which helped in reducing the time spent on administrative tasks by the organization. Considering the vastness of the large number of people that they have employed, ERP made their life easier, preventing errors, and make all the HR-related tasks easier.
This is because, through an ERP, all the information pertaining to an employee like his contact details, work hours, wages, bonuses and deductions, overtime, performance evaluations, employee benefits, details of dependents, job roles, etc., used to get streamlined. Additionally, the employees can be grouped based on their credentials and job roles, the system once implemented in the company. This will help in quick tracking, as well as allotment of work according to a person’s expertise.
In fact, an HR management system that is executed under the ERP software helps in easy decision-making on an employee via tests, evaluations of his or her performances, and timely assessment of the same. And then notifying the employee whether he or she got the job or not.
Right from the recruitment of the right talents, looking after the onboard training, attendance and leaves, performance evaluation, compliance with HR norms, employee appraisal, monitoring the payroll benefits. Transferring of the wages and salary directly to the employee’s bank account, and other allowance to his retirement benefits. All these aspects are taken care of by the ERP systems.
Traceability
As Keles who is part of the automobile industry and is a manufacturer, must have to abide by government regulations. This involves shipping a bunch of quality goods at the right time because if they don’t, their business’s goodwill and customer satisfaction will get affected directly. The systems help them to track their resources with precision by its facilities, letting them track individual bins, resources, packages, and all the processes included.
They were able to seamlessly track which product lots have been produced, where they went for the production process, who is handling them, And where they will be stored in the warehouses.
Hence, it is now visible in a very clear manner that how Keles has organized and scale up back in the market. The results of all this sum are not visible quickly but will be enhanced by the time when all the efforts of the development team show up, with the high ROI of Keles on them.
So the implementation process does not stop only here, still the training sessions were left for the employees, after implementation service were needed to be planned out and discuss on how Keles will be kept in touch of their partners.
