Tata Motors Significance Of ERP Automotive Sector

Tata Motors Signifi stinkpotce Of ERP Automotive SectorTata Motors Ltd. is a multinational company, found in Mumbai, India. It is part of the Tata assort, and formerly known as Tata Engineering and railway locomotive Company. Tata Motors is the largest automobile company in India, with consolidated revenues of $ 20 million in 2009-10. Tata Motors is sum up one in commercial vehicles and among the outstrip players in the sphere of passenger vehicles. Tata Motors has produced compact cars, segments of mid-size vehicles and utility. The company is the largest manufacturer of heavy trucks in the ordinal place, a world-wide manufacturer of buses in the second place, and employs 50 000 (2010) workers. Since its douse in 1954, Tata Motors production is oer 4 million vehicles, in India alone.When Tata Motors began manufacturing locomotives, they produced their origin commercial vehicle in 1954. They were in collaboration with Daimler-Benz AG at that metre, which ended in 1969. Tata Motors is traded on the Bombay Stock Exchange as thoroughly as on the New York Stock Exchange, its a dual listed company. Tata Motors in 2005, was placed along with the top 10 companies in India with an annual disorder of everywhere 000 000 320 000 INR. In 2010, Brand Finance and The Economic Times conducted a survey on most valu commensurate brand in India and Tata Motors stand out the confidence to win the coveted title.Car factories and assembly plants of Tata Motors argon laid in Jamshedpur, Poone, Sanand, Ahmedhabad , Dharwad, Pantnagar and Lucknow in India and also in southwest Africa, Thailand and Argentina.Company visiblenessTata Motors Limited TypePublicIndustryAutomotiveFounded1945FounderMr. JRD TataCUsersuserDocumentsCyberLinkDesktopJRD_Tata.jpgHeadquartersMumbai, Maharashtra, IndiaTop ManagementMr.Ratan Tata (Chairman)CUsersuserDocumentsCyberLinkDesktopRatan_Tata_300.jpg Mr. Ravi Kant (Vice Chairman) CUsersuserDocumentsCyberLinkDesktopRavi-Kant.jpgProductsAutomob ilesEnginesParentTata GroupWebsiteTataMotors.comCh every last(predicate)engesWhy Tata Motors needed to implement an ERP solutionTata motors always aim for best quality, in that locationfore for better data quality they want to implement current available solution.To begin substantial time access to the data management.Tata motors were experiencing encumbrance to build a case-by-case location-independent integrated enterprising.Major ch every(prenominal)enges include coordination among 4 major plants located in different parts of India.They also have 42 Regional and Sales offices.To have inventory management administration in over 27 spare parts warehousesTo keep records of all major products, components, castings and forgings.Tata motors also have their research and development centers in Spain, South Korea and UK.To have employees management system with over 50,000 employees including 1,400 in-house engineers and scientists.To have real time supply chain management with 12 00 spare parts dealer spreadhead all over the country.Working Environment of Tata MotorsDatabase OracleHardware pre-dominantly IBM with handful of HP and SUNOperating system UNIX wear fall guy AG is a German software company worldwide, providing enterprise software performances and sustentation for businesses of all sizes around the world. It is also the largest company in the world, providing ERP solutions.It has its headquarters in Walldorf, Germany, with regional offices worldwide. It is also the largest software company in Europe and 4th in the world. fool first step Resource Planning ( gull ERP) software from jack oak and Business Objects are the most popular products.SAP was founded in June 1972 by five former IBM engineers in Mannheim, Baden-Wrttemberg (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Wellenreuther Claus). It was formerly known as Systemanalyse und Programmentwicklung (System abstract and Development).The acronym was later changed to represent Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications and Products in Data Processing).SAP ERP application was developed by SAP AG to guide the urgency of the fully grown software company, and mid-sized musical arrangements in all sectors and industries. This application provides among all the other wellbeings of dissonant communication within the company and its functions.Advantages of SAP over other ERP solutionsSAP has multiple functionalities as compared to other ERP solutions.Market Leader in its segment. software product suited for Tata Motors.It had a readymade process for auto manufacturers therefore, customization requirement is less.Market parcel of land of SAPImplementationObjectives for SAP in TATA MotorsTo improve revenue charm from salesTo reduce application of efforts and increasing efficiency.To reduce cost by improvement in operations area.To increase productivity.To give timely and tolerate response to the customers.T o downsize business processes across all manufacturing units.To develop platform for organization wide communication.Most importantly cost reduction in variant departments.To have proper inventory management system to reduced inventory.To sync production scheduling with sales of product.Significant benefits achieved by Tata motorsBecause of SAP ERP answer implementation, Tata Motors has experienced increase in productivity and cost control.Another benefit is in reduction of number of different application run on them as well as the no. of servers.Introduction of disaster recovery management done for one entity.Significant reduction in the number of non-value-added activities.With the implementation of SAP, a Business Process Reengineering was also initiated to achieve supply process with all business users. in that respect is an efficiency increase in inventory management and check over receivables and other source control.Enterprise integrationSAP has created service platform s for IT, Human Resources and Financial Services.Due to this there has been reduction of almost 2 weeks time in financial consolidations.Because of SAP there is an integration with the vendors and the suppliers.SAP Solution has also helped Tata Motors to meet all their customers needs and service them better.And also now information is on real time basis, Tata motors are able to respond timely to their customers, vendors and suppliers demands.There will be better control on receivables and credit control.A single unified databaseProcurement process from various vendors will be automated.There is catalogue content management which helps in coordinating with suppliers.Streamline procurance process management among different locations worldwide.Among other significant benefits achieved by Tata Motors is that there is quick and live auctions for competitive pricing.Transparency in the process for supplies and payments military position to suppliers through portal is achieved.It is hel ping Tata Motors with negotiation power because all data of the world can be made available to Tata Motors.Parts verification through spend control and analysis.Keeping records of daily billing (invoices), receivables, and sales. upcoming PlansTata Motors after implementation of SAP ERP solutions became the greatest deployment in the automotive perseverance because of the considerate spread of functionality of TATA Group. They are a satisfied customer of SAP as claimed by SAP. Tata Motors and SAP ERP are keeping alongside all(prenominal) other of all the new developments and ensure that the applications they run commiserates with the SAP enhancements. Tata Motors would unquestionably choose SAP for their future plans of company enhancements.As mentioned above also, Tata Motors has been able to achieve a unified enterprise solution, an massive increase in productivity and also able to build a reliable, stronger and lifelong descent with its customers, all because of the SAP ERP implementation.Thus, the company has not only retained its headship in India but has also been able to enlarge its footprint in the global automotive assiduity.ConclusionTherefore we can clearly say that SAP ERP solution has turned out to be success and profitable sham for Tata Motors.Major areas of improvement are in inventory management, procurement management, imaging planning, supply chain management, logistics and production scheduling in the operations department. In Finance module SAP ERP has helped in consolidation of general cost, credit control, day-to-day billing etc. In Human Resource part they have implemented a uniform and single platform for over 50,000 employees. Overall all the departments and processes are integrated at all levels. issue employees could now work on real time basis as they have access to the data base of the company. They are also more(prenominal) closely controlled and approach able to updated processes across the manufacturing plants spread all over the world.For Tata Motors SAP setting up in the whole automotive industry worldwide has made possible connect and cooperate within themselves. Tata motors are aiming to enhance their business portfolio as they are planning to implement run through application for all IT processes but leaving out Customer kindred Management(CRM) and Product Life-cycle Management.(PLC).To improve Supply Chain Management solutions SAP is introducing The entree of SAP Advanced Planning Optimization (SAP APO). Therefore to conclude we can say that the SAP alkali granted a strong IT infrastructure to support Tata Motors globalization plans.