Maruti Suzuki- Enterprise

Resource Planning

The
Journey
The Maruti
Maruti Journey
Commenc
ed
productio
n in 1983
with
Maruti800 Maruti
Exports
its first
car

1980s

Ranks No1 in
Customer
Launches
Satisfaction
Indias
index conducted
first OnRoad 24/7 Ranks 7th in by GOI
service the world as a
most reputable
company

1990s

2000th

2010th

Maruti
Udyog Ltd
Launches
Rolls out 1
was
Indias First
millionth
establishe
Premium
car in a
d in 1981
Hatchback
year
Grand
Started Zen
Maruti
productio
Expansion
n of the
plan
first MUV
i.e. the
iconic
Omni

Industry Overview
Market Share In Passenger Car segment

13.76
5
49.24

14
18

Maruti Suzuki
Hyundai
Motors
Tata Motors
Honda
Others

Competitor Analysis
Sr No

Maru
ti

Hyund
ai

Tata

Reven
ue

USD
6.8B

USD
86B

USD
38.6B

Net
Incom
e

USD
390M

USD
8.4B

USD
2.29B

Sales
Volum
e

11.5
Lacs

47.21
Lacs

1.09
Lacs

Brand
s

14

16

Pre-ERP Scenario at Maruti

Maruti deployed an extensive extranet to reach business partners
in 1990
At Maruti, daily activities managed by small apps running on
dealers PCs
Dependency on home grown disparate systems to manage LOBs
Different divisions followed different workflows preventing real
time access to critical data
High turnaround time and human dependence
Information Asymmetry leading to high costs
Phased
or Big
So Should
Bang?
Maruti Change?
How
about
Oracle,
the
SAP or
costs?
any other?

What if
the
system
fails?

Implementation: Phased Or Big Bang?

Maruti Suzuki decided to go with the phased
approach and moved to Oracle e-business suite

BIG BANG

No need for temporary interfaces

Limited need to maintain legacy
software
Cross-module functionality
No going back
Lower cost if no surprises

PHASED
Smoothing of resource
requirements
Able to focus on a particular
module
Legacy system fall back
Reduced risk
Knowledge gained with each
phase
Finance-
Oracle consultants were
involved in the process

Procurement-
HR

Story of Cloud ERP

Implementation
Started in 2011 headed by Rajesh Uppal, CIO(IT)
Cloud ERP for Tier I (250) and Tier II (1500+) suppliers
Adhere them to high quality std. , tight deadlines, lessen
inventory

Maruti tied up with Zensar technologies

Zensar built a public cloud platform for Microsoft Dynamics
ERP
Cloud ERP covered entire manufacturing & business opr of these
small and big suppliers

Numbers: Cloud ERP implementation

Pilot project was started with 8 TierII and 2 TierI suppliers
In 2012 it covered more than 250+ suppliers
Inventory levels have reduced 5 times

Post Implementation
Smooth transition from the old legacy systems
to integrated oracle system
Maruti selected oracle consulting for 3 months
support
Train the super users program was started to
Finance
Human
Procurement
familiarize
the
customers
to
the
system

Hyperion Systems
analyses Marutis
budgets
Compliance with
GAAP
Systems like
Procure to Pay
Credit to Cash
Financial Analytics
Asset Lifecycle
Management

Capability to
track the process
from order to
Payment
Cost Reduction
and better
inventory
management
Reduction in
number of
vendors
Purchasing

Resource
Self
Service
module for maruti
employees
Better control
over:
Payroll
Compensation
Leaves
Recruitment
Training
Staff

Recommendations
Company can integrate other modules with the
existing ERP functionalities:
1) Oracle Advanced Supply Chain module
2) Oracle Enterprise asset management
With more consumers preferring SUVs, it can
pose a threat to Marutis market share. Maruti
must try to establish its foothold in this segment