Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

How Crompton Greaves Integrated the ERPs of Its Acquisitions and Saved Crores of Rupees

Eric Ernest | May 8, 2013
When a slew of acquisitions hit Crompton Greaves with a host of ERPs, increasing expenses and inefficiency, its CIO rolled them all into one and saved crores of rupees.

Migrating from non-SAP to SAP was the toughest part of the project as he had to make sure he did not interrupt the smooth running of the business. "A data loss scenario along with an eventual recovery would have jeopardized my job," says Ramesh. But it was also important to do because, "unless I did this, I wouldn't be able to opt for a global SAP instance quickly enough," he adds.

The Project:After bringing all the non-SAP instances to SAP--and upgrading the existing SAP--Ramesh needed to consolidate these ERPs under a single global instance and run it from his datacenter in Mumbai. He also implemented a parallel ledger concept in SAP to accommodate different accounting standards.

He first activated the unicode feature in SAP to support multiple global languages. Then he found a way to fix transaction currencies. So, if a unit were in Sweden, the local reporting would be carried out using the Swedish kroner, whereas the consolidated reporting would be done in Indian rupee. Now that language and currency were taken care of, Ramesh decided to move SAP application support from Belgium to India.

The Benefits: Having a single instance ERP has brought several benefits to the company. It saved about Rs 5.5 crore for the company. Also, it was now easier to implement policy changes and monitor them. "Consider that I want to include an assessment of the earnings from each sales order at the time of capturing the order. The business can see whether the company is making the right value addition or not in different locations," says Ramesh. Another benefit is that with a global ERP, it is easier for the company to standardize processes.

Today, the project has added more feathers to Crompton Greaves' cap.

When a slew of acquisitions hit Crompton Greaves with a host of ERPs, increasing expenses and inefficiency, its CIO rolled them all into one and saved crores of rupees.

 

Previous Page  1  2 

Sign up for MIS Asia eNewsletters.