Understand how a leading textiles organization achieved effective control and enhanced efficiency through Zensar SAP textile solution
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Spentex Industries Limited implemented the SAP® Business All-in-One solution to consolidate its operations and enhance efficiency, resulting in significant cost reductions and improved governance. The company achieved a 50% reduction in IT maintenance costs, a 50% decrease in data reconciliation efforts, and a 70% decrease in auditing timelines. As a leading textile manufacturer in India, Spentex plans to further expand its use of SAP software to include all financial operations and additional international subsidiaries.
Understand how a leading textiles organization achieved effective control and enhanced efficiency through Zensar SAP textile solution
- 1. SAP Business Transformation Study | Mill Products | Spentex Industries Implementation Partner Spentex Industries: Spinning Yarn Together with SAP® Business All-in-One for Mill Products Spentex Industries Limited wanted to have more effective control and enhanced efficiency, but its many islands of business software stood in the way. The firm replaced them all with the SAP® Business All-in-One for Mill Products solution, which enabled it to consolidate and integrate operations across the board, save greatly on IT costs, and react more nimbly to business challenges.
- 2. Top Benefits Achieved “We wanted to provide the best ERP experience to all users based on a product with a clear road map from a provider with a futuristic vision to match that of Spentex management.” Kapil Choudhary, Deputy Managing Director, Spentex Industries Limited 50% Reduction in IT maintenance costs 50% Reduction in data reconciliation effort 70% Reduction in auditing timelines Business Transformation The company’s top objectives: •• Consolidate operations and improve governance capability •• React quickly to business challenges with real-time data analysis •• Reduce costs in IT and operations The resolution: •• Replaced disparate business software with the SAP® Business All-in-One for Mill Products solution •• Employed a template-driven implementation approach to minimize costs •• Consolidated the enterprise under SAP software The key benefits: •• Data integrity •• Effective management control •• Reduction in duplication of effort •• Massive reduction in processing time •• Integrated security and access control •• Maximized contribution and profitability Company Spentex Industries Limited Headquarters New Delhi, India Industry Mill products – textiles Products and Services Yarn and fabric Employees 5,000 Revenue INR 967.6 crores (US$174 million) Web Site www.spentexindustries.com Implementation Partner Zensar Technologies Limited SAP Business Transformation Study | Mill Products | Spentex Industries Executive overview See more metricsRead more 2
- 3. SAP Business Transformation Study | Mill Products | Spentex Industries Empowering consolidation and governance 3 Executive overview Company objectives Resolution Business transformation Future plans Spentex Industries Ltd. is one of India’s leading textile companies. With its vision of “Going Beyond Tomorrow,” the company has shown consistent performance and innovation to become one of the largest yarn manufacturers in the country. Its success is due to the finest-quality cotton and synthetic yarns manufactured at nine state-of-the-art facilities in India and abroad, and consistently excellent customer service. Company management wanted to consolidate the entire organization, including plants, depots, marketing, and headquarters, which were using several isolated systems. Senior executives realized that replacing this with a single solution enterprise- wide would eliminate redundant data entry and the need for data reconciliation, shorten audit times, automate manual work, and cut IT support costs dramatically. Most important, it would improve governance and central control, and enable the company to react faster to business challenges and compete more effectively in the constantly changing market. But the choice had to be the right one. An essential element was a ready talent pool familiar with the new solution, since Spentex had experienced difficulty locating technical people who knew its legacy software. Also key was a software vendor offering a one-stop shop, a clear, dependable road map, and global reach that would support the company’s growth far into the future. That road map had to encompass enterprise mobility and the other advanced technologies. “Our software implementation has facilitated optimum use of enterprise resources that has led to improved productivity and profitability.” Mukund Choudhary, Managing Director, Spentex Industries Limited
- 4. SAP Business Transformation Study | Mill Products | Spentex Industries Installing a strong new backbone head to toe 4 Executive overview Company objectives Resolution Business transformation Future plans Spentex evaluated several candidates, examining their product functionalities – especially for data security and management – as well as industry experience and references from successful implementations. In the end, a clear choice emerged: the SAP® Business All-in-One for Mill Products solution.“SAP software provides the scalability, flexibility, and security and access control we were seeking,” explains Umesh Banwari, general manager, Technologies, at Spentex.“The ease of finding skilled people was a clear differentiator for SAP. Its customer satisfaction ratings were high, and its solutions are truly global, with multiple currency and language support and worldwide acceptance as industry-proven. SAP also has a clear upgrade strategy that will support our future needs.” SAP was also Spentex’s choice from the standpoint of total cost of ownership, especially since SAP Business All-in-One solutions are implemented using a template approach for quick, fixed-scope deployment with minimal customization. Zensar Technologies Limited performed the project, which spanned four plants, headquarters, two depots, and a marketing office.“Choosing the right implementation partner was important,” says Banwari.“Zensar took a carefully planned approach and conducted a phased implementation that resulted in a smooth, fast deployment.” “The implementation has improved customer order management, customer-related policy implementations, and turnaround time for orders, along with order and production plan management. It has given immense confidence to the sales team.” Kapil Choudhary, Deputy Managing Director, Spentex Industries Limited
- 5. SAP Business Transformation Study | Mill Products | Spentex Industries Strengthening control while slashing IT costs 5 Executive overview Company objectives Resolution Business transformation Future plans Spentex’s strategy to consolidate operations proved to be immensely successful. Better controls have resulted in higher levels of adherence to company policies. The solution offers extensive, easy-to-use reporting functionality that empowers management to make timely decisions and respond quickly to business challenges. Integration of operations and financials resulted in an overall improvement in compliance, transparency, and internal accountability. Marketing and sales activities are substantially more effective. Industry- specific functionality has helped boost productivity throughout operations and streamlined business processes, especially conducting audits. On the IT front, Spentex is saving appreciably by eliminating the need for resources to support all the legacy systems, and the steep maintenance costs. Regular updates and patches from SAP are keeping the software up-to-date. Key benefits 50% Reduction in IT maintenance costs 50% Reduction in data reconciliation effort 70% Reduction in auditing timelines 100% Accuracy in data recording
- 6. CMP20518(12/11) Copyright/Trademark | Privacy | Impressum Casting a net across the globe 6 Spentex Industries Executive overview Company objectives Resolution Business transformation Future plans With the scale of its operations expanding rapidly, Spentex expects to consolidate subsidiaries and overseas manufacturing plants under SAP software in the near future. Soon, the software will encompass all financial operations. On its corporate Web site, Spentex proudly states that it inculcates into its people the flexibility and agility to provide high levels of customer responsiveness, and strives to inspire personal initiatives aligned to meet and exceed customer needs. The company’s move to SAP software will only increase its ability to heighten customer satisfaction even with its aggressive plans for growth.