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Industry Automotive Revenue US$151.3 million (FY 2008-2009) Employees 1,009 (FY 2008-2009) Headquarters New Delhi, India Web Site SAP Solutions and Services SAP ERP application, including governance, risk, and compliance functionality Implementation Partner Satyam Computers Key Challenges Ensure on-time delivery while optimizing inventory levels Strengthen internal controls around budgeting, material planning, and quality Track and reduce material wastage and work-in-progress inventory levels Improve visibility into nonmoving inventory Eliminate invoice and billing errors Improve information sharing and transparency across the organization Implementation Best Practices Project maintained as a business transformation effort from start to finish Senior management support for best practices use Phased approach using knowledge from previous deployments Use of ASAP methodology tools for documentation and training Dedicated support desk for resolving queries after implementation Financial and Strategic Benets Enhanced visibility into inventory and material movement, helping plug previously unchecked leakages Streamlined planning, budgeting, and execution cycles Enhanced integration and collaboration between functions Improved collaboration with suppliers Sped up customer order processing and achieved 100% on-time delivery Enhanced focus on data analysis and business decision making Why SAP Was Selected Proven technology and market leadership Financially sound company with continued focus on R & D Focus on the automotive industry and large installed base of customers Ability to meet key requirements of automotive companies Portfolio of business solutions that meet current and future business needs

Subros Limited is Indias largest manufacturer of automotive AC systems. As business expanded, Subros chose to eliminate its legacy systems and improve its business processes by deploying the SAP ERP application at all locations. Today, SAP ERP is helping Subros drive growth and improve customer satisfaction by enhancing collaboration among production, supply chain, and sales operations setting the stage for future growth opportunities.

Low Total Cost of Ownership Completed the implementation in 8 months, on time and within budget Standardized business processes using the SAP ERP application as a best practice source Eliminated disparate legacy systems and consolidated the data center Kept IT costs almost constant while doubling business volume

Operational Benets Key Performance Indicator On-time delivery to OEMs Days in inventory raw material Days in inventory finished goods Time to close annual books Receivable outstanding days Invoice error rate Time for payroll processing

Impact Improved from 95% to 100%

-60% (2.5 months to 1 month) -75% (4 days to 1 day) -75% (4 months to 1 month) -56% (27 days to 12 days) -70% (10 days to 2 days)

-99% (2% to 0.001%)

SAP Business Transformation Study Automotive

SAP ERP has been an enabler of smart work rather than hard work.
Manoj K. Sethi, Vice President Commercial and IT, Subros Limited /contactsap

Established in 1985, Subros Limited has grown from an assembly operation with a capacity of 15,000 air-conditioning (AC) units into the largest and only integrated manufacturing unit in India for automotive AC systems.

Subros partnered with Satyam Computers for implementation. With strong management support, Subros set up a dedicated core team of business users for project execution. A technology-driven need quickly became a business transformation project the Subros management As Subros expanded, its homegrown en-sured business users complete legacy applications could not manage involvement in and ownership of the projthe business complexity and rapid ect, which was critical for its success. growth. It struggled with islands of infor- Sound governance structure, use of mation and multiple versions of truth. ASAP methodology tools, and minimal The senior management team spent customization kept the project on time more time resolving day-to-day operaand within budget. tional issues, while the lack of real-time accurate information made it hard to Enabling the Business make timely decisions. The result: mate- Transformation rial wastages and overconsumption, high inventory carrying costs, limited SAP ERP enabled integration of business visibility into work-in-progress inventory, processes with complete visibility of releand poor on-time delivery to customers. vant information to stakeholders. Subros Also, there was data duplication and sped up customer order processing, inconsistency in the product master. aligned production with customers demand plan, and improved on-time delivBuilding the Foundation for Growth ery performance from around 95% to 100%. With effective tracking of material Looking for an integrated IT system to consumption and estimation of variance, manage growth and optimize costs, Subros was able to reduce material rejecSubros evaluated enterprise resource tion allowance on third-party inventory from 2% to less than 1%. With centralplanning (ERP) solutions from SAP, Oracle, and MFG Pro. After due diliized, consistent master data, Subros now gence and extensive product evaluation, has an efficient planning cycle and has Subros chose the SAP ERP applicaeliminated discrepancies in master data. tion, based on SAPs proven technology, commitment to research, strong On the delivery side, Subros was able to presence in the automotive industry, eliminate errors in invoicing, billing, and and portfolio of advanced business documentation, thereby eliminating writesolutions for future integration. offs, excess taxes and duties paid, and

delay in collections. This, along with regular tracking and analysis of receivables aging, has helped Subros reduce days sales outstanding by more than 50%. With its core processes streamlined and enabled by SAP software, Subros also implemented governance, risk, and compliance functionality for authorizations and access controls, tightening the companys governance and internal controls while assessing potential risk associated with the level of access granted to users. Today, the focus has shifted from data compilation to data analysis and business decision making. Apart from significant financial and operational benefits, Subros has also been able to improve its customer service ratings from its leading customers, boosting their satisfaction.

Looking Ahead
Subros is considering the implementation of project system functionality and also enhancing the quality management software to strengthen its quality assurance system deployment. Also on the list: intuitive business dashboards for senior management and integration of the existing product lifecycle management application with SAP ERP.

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