Case Study

Topics: SAP AG, SAP Implementation, SAP NetWeaver Pages: 8 (2312 words) Published: May 11, 2013
V-Guard Industries Ltd. generates greater efficiency with IBM and SAP Founded in 1977 as a small manufacturing unit, V-Guard Industries Ltd. (V-Guard) has grown to become one of the largest electrical appliance manufacturers in India. The company reported revenues of more than $126 million for the 2010 to 2011 financial year, and a 43 percent increase in net sales during the same period. V-Guard manufactures electrical products, including voltage stabilizers, wiring cables, pumps, motors, solar water heaters and electric fans. The company employs more than 1,700 people, operates some 200 distribution and service centers, and partners with around 9,500 retailers to deliver its products to a client base of approximately 50 million people. Recognizing that its existing information management systems were not sophisticated enough to cope with the changing needs of the business, V-Guard sought a robust solution that would promote enhanced information and process control, and provide Robin Joy, CIO and General Manager of V-Guard Industries Ltd, explains, “Our existing IT systems had been developed in-house and had supported us well in the past, but gaps began to emerge as the business expanded. We relied on a number of different applications for inventory management, production, product costing and financial accounting, and the lack of integration between these systems was really starting to impact operational visibility and efficiency as we continued to grow.” generated by its operations on materials, production, sales and finance threaten to overwhelm the company.

Challenge V-Guard Industries Ltd wanted to find a way to better manage the information explosion associated with rapid enterprise growth, improve operational visibility and enhance quality standards. Solution V-Guard embarked on a major business transformation project and deployed SAP ERP and SAP BusinessObjects Business Intelligence solutions, with assistance from IBM Global Business Services. Key benefits Integrated SAP solutions help V-Guard to generate month-end closing figures 70 percent more rapidly, reduce staffing needs for the same by 85 percent and produce quarterly reports 58 percent faster than before.

Major business transformation
V-Guard is growing organically and by acquisition within India, and is looking to expand internationally. As business booms, the sheer volume of information Case study

a stable foundation for continued enterprise growth.

Selecting IBM Global Business Services
After considering a number of options, Business Challenge V-Guard is growing organically and by acquisition within India, and is looking to expand internationally. The sheer volume of information that its operations generate on materials, production, sales and finance threatened to overwhelm the company. Add to the mix the need for product traceability and higher quality standards, and combine it with pressure to report on product costing, financial performance and credit management: the consequence was that V-Guard needed to find a way to enable growth – currently at around 40 percent annually – without creating an unsustainable administration workload. Along with providing SAP implementation management, IBM Global Business Services also offered SAP software license reselling services. V-Guard was able to negotiate a competitive price for the combination of SAP software licenses, implementation and infrastructure components as a single, known project cost. “We evaluated a number of companies as potential partners and ultimately chose to work with IBM® Global Business Services®,” remarks Robin Joy. “As an SAP implementer, IBM’s credentials are well known and established by the countless number of SAP implementations that they have successfully completed.” the company selected integrated SAP® ERP software as its strategic business management solution and then looked for a partner to manage the implementation.

“We evaluated a number of companies as...
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