Page 193 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 11: Enterprise Resource Planning – II

Notes

Case Study Oracle Implementation for a Global Electronics

Conglomerate

The Client
The North American subsidiary of a global electronics conglomerate, the client enterprise
has a revenue base of over US$ 1 billion dollars. It employs close to 1,000 people spread
across multiple office locations with a very large number of warehouses. The parent company
makes and markets semiconductors, display and storage devices for the computing, wireless,
networking, automotive and digital consumer markets and is the third largest semiconductor
company worldwide in terms of global sales for the year 2002.

Business Need
Creating value for customers by continuously improving business processes to deliver on
time, every time is critical to driving growth. This is a big challenge for the client
considering the nature of the industry, which works on extremely short lifecycles, and
therefore an impeccable ‘on-time delivery’ record is a crucial success factor.
The legacy system, however, lacked the flexibility to enable its operations to absorb
market fluctuations. Therefore, the need to implement a robust business process to keep
ahead of competition, reduce overhead costs and improve cash flow. From a technology
point of view, the diverse existing systems, built on heterogeneous technology platforms,
had to be integrated.

Challenges
The key to success, however, depended in integrating disparate systems and achieving
process efficiencies. The challenges were:

Keeping pace with the competitor’s reduced distribution times was tough and
customer service enhancement was not easy either.

Legacy systems of the client hampered the synchronisation of its operations with
market fluctuations.
As the customer is in an extremely short life-cycle industry, the ‘on time delivery’
record had to be improved while keeping inventory levels and costs low.
The client was operating on disparate systems. A large number of satellite systems
were being used that were not integrated with the host system.
Operating on disparate systems added to the complexities, as there were a large
number of satellite systems running independent of the host.

The Infosys team had to integrate the new system with the satellite systems and put
all new processes in place in a very short time frame.
The Solution

Equipped with its proprietary IntERPrize methodology, and strong Oracle Applications’
consulting and its unique global delivery model, Infosys set about to integrate best-in-
class Oracle ERP with custom applications to help the client improve their business
processes. As part of this mandate, Infosys undertook the following:
Evaluation and implementation of Warehouse Management System (WMS)/
Transport Management System (TMS) solution
Contd....

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