“SAP has a clear superiority in the market. It has a large presence and good support, so we chose the SAP ERP Solution for our company. The results have definitely exceeded our expectations” Probir Mitra, CIO, Tata Motors.
AT A GL ANCE Company
Name n Industry n Product & Services
: Tata Motors Limited : Automotive
SAP® Solutions & Services
SAP® ERP helps Tata Motors to serve their customers better and faster
SAP® ERP Solution Version 4.6
: Commercial vehicles and passenger vehicles n Employees : 24,000 n Website : www.tatamotors.com n Implementation partner : Tata Technologies and a little bit of consulting organized by SAP India.
Time frame: 2 years Users: 3500
Challenges & Opportunities
Replacement for homegrown legacy systems n Build a single location-independent integrated enterprise n Richer quality of data and real-time access to database
It was the clear leader in the market for such solutions n It was the best package available for automotive industry n Multiple functionalities were covered
Rationalize business processes across all manufacturing units n Improve efficiency by reduction in effort-duplication n Reduction in operational costs n Reach and respond to the customer rapidly
Enterprise integration Financial benefits of reducing inventories n Better control of receivables n Significant reduction in time taken for financial consolidation n A single unified database
Database : Oracle Hardware : Pre-dominantly IBM with a smattering of HP and Sun Operating System : Unix
Tata Motors Limited, India’s largest automobile company, is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, mid-size car and utility vehicle segments. The company is the world’s fifth largest medium and heavy commercial vehicle manufacturer. Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth of India. Close to 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company’s manufacturing base is spread across Jamshedpur, Pune and Lucknow, supported by a nation-wide dealership, sales, services and spare parts network comprising over 2,000 touch points. Their annual turnover last year was Rs. 27,000 crores. The company’s 24,000 employees are guided by the vision to be best in the manner in which they operate, best in the products they deliver, and best in their value system and ethics.
They became the first company from India’s engineering sector to be listed in the New York Stock Exchange in September 2004. They have several international collaborations and acquisitions including Daewoo of Korea and MarcoPolo of Brazil. Tata Motors and the Fiat Group have recently signed a Memorandum Of Understanding to establish an industrial joint venture in India to manufacture passenger vehicles, engines and transmissions for overseas markets. “SAP has a clear superiority in the market. It has a large presence and good support, so we chose the SAP ERP Solution for our company. The results have definitely exceeded our expectations,” Says Probir Mitra, CIO, Tata Motors. Before implementing the SAP ERP Solution, there were several homegrown applications that managed all of the company’s IT requirements. Since they were developed over long periods of time, they were on multiple platforms and hence difficult to merge. The biggest drawback of the legacy applications was that they were function and location specific and were built on local and individual perception of needs. Common and rationalized processes and practices across all organizational units were not enforced. Therefore, managing functions like HR, sales and finance across three manufacturing units...