000 cars in a year. Fiat. The fourth plant is located in Zaheerabad in Andhra Pradesh. This one deals with the manufacture of light commercial vehicles and three wheelers. They also export their products to other countries as well. service stations etc. They are the market leaders in the utility vehicles segment. However. Then it was only restricted to the assembling and importing of Willys Jeeps. Mahindra & Mahindra has established a very strong market base in the urban and semi-urban areas. Out of them three are located in Maharastra and one in Andhra Pradesh. They are planning to sell somewhere around 50. Even their R&D division is equally strong. Mahindra & Mahindra has four manufacturing plants. they would be manufacturing Logan's in India. The three manufacturing units in Maharastra are in Mumbai. They were always very keen on working out their own indigenous technology. . Although.Mahindra & Mahindra's automobile chapter dates back to 1947. However.MAHINDRA AND MAHINDRA Mahindra & Mahindra Ltd. they haven't yet come out with a price structure for the vehicle. is one of the major automotive company of India. an auto manufacturing company from France. shortly after that they started manufacturing their own light commercial vehicles. Their USP is their capability to manufacture vehicles with having very little technological help from foreign sources. sales offices. that a specialized automotive division was created. However. The first two deal with multi-utility vehicles and the third one deal with engines. They are also a major player in the tractor manufacturing segment as well. They also have a very strong network of dealers. Mahindra & Mahindra has recently entered into a joint venture with Renault. Nasik and Igatpuri. Their first indigenously developed sports utility vehicle was the "Scorpio". it was only in 1994. They are very indigenous regarding this particular aspect. They are the only sole Indian company to be a part of the top five tractor manufacturing companies in the world. Their multi-utility vehicles are very popular among people there. They initially had collaboration with Willys Overland Corporation to import and assemble jeeps in India. This was done along with the organizational restructuring. They would be competing with Honda. the cars will only be available from mid 2007. It would be called Mahindra Logan. Hyundai and Ford in the Csegment of the Indian automobiles market.

Think of a radio with 10. SAP has subsidiaries in over 50countries around the world from Argentina to Venezuela (and pretty much everything in between). but brings with it special challenges .. Distribution. Germany which is close to the beautiful town of Heidelberg. In case you¶re ever asked. Products in Data Processing. The success of SAP R/3 in North America has been nothing short of stunning.000 people and has added the names of many of the Fortune 500 to it¶s customer list (8 of the top 10 semiconductor companies. SAP also comes in 21 industry-specific versions. and had revenues of $16.. For a full description of the modules included in SAP. Human Resources. So. SAP America (with responsibility for North America. incorporating 28 languages including Kanji and other double-byte character languages. and pretty huge. client-server architecture became popular and SAP responded with the release of SAP R/3 (in 1992). profitability analysis etc).What Is SAP? SAP the company was founded in Germany in 1972 by five ex-IBM engineers. SAP America alone employs more than 5. SAP is listed in Germany (where it is one of the 30 stocks which make up the DAX) and on the NYSE (ticker:SAP). accounts receivable etc). now you know it is also very functionally rich. SAP stands for Systeme. Configuration is the process of adjusting the settings of these tables to get SAP to run the way you want it to. 7 of the top 10 pharmaceutical companies etc).000 people worldwide today.. but it is also a product. SAP today is available in 46 country-specific versions. SAP R/3 is delivered to a customer with selected standard process turned on. Production Planning. with more than 12 million users! So now.means Systems. especially in the North American region into which SAP expanded in 1988. see the related articles.000 installations of SAP.7 billion in FY08. Andwendungen. The original five founders have been so successful that they have multiplied many times over such that SAP AG is now the third largest independent software maker in the world. Within a 5 year period.go figure!) is located just outside Philadelphia.. SAP employs over 50. Purchasing. So. SAP R/2 was the first integrated. Looking for more growth. This turned out to be a killer app for SAP. and many many other optional processes and features turned off. But read on. Sales. the full name of the parent company is SAP AG.9 billion and Net Income of $2. So and what made this company so successful? Back in 1979 SAP released SAP R/2 (which runs on mainframes) into the German market. general ledger.000 customers (including way more than half of the world's 500 top companies). So now you know! Being incorporated in Germany.000 dials to tune and you¶ll get the picture. and it is a product. South America and Australia . enterprise wide package and was an immediate success. PA. what is SAP? It is a company.g. For years SAP stayed within the German borders until it had penetrated practically every large German company. All of these modules are tightly integrated which ± as you will find out ± is a huge blessing . Payroll etc etc etc. what is SAP? It is a company. SAP functionality included is truly enterprise wide including: Financial Accounting (e. Towards the end of the 80's. with over 80. the North American market went from virtually zero to 44% of total SAP worldwide sales. At the heart of SAP R/3 are about 10.000 tables which control the way the processes are executed. cost centers. There are now more than 121. in 120 countries. what is SAP? It is a company.g. Produkte in der Datenverarbeitung which translated to English . It is located in Walldorf. Applications. Management Accounting (e. Manufacturing. it is more than just a company . SAP expanded into the remainder of Europe during the 80's.

the flagship company of the Group. SAP are maintaining and increasing their dominance over their competitors through a combination of . It is the market leader in utility vehicles in India since inception. Mahindra & Mahindra Limited. the Automotive Sector can trace its antecedents back to 1954.launching business one .s to victory in World War II is the very same vehicle that drove the Mahindra Group to success in the Automotive Sector. including three-wheelers. and now you know it is also very complex to make it work.I. was set up as a franchise for assembling general purpose utility . Although created in 1994 following an organizational restructuring. with 10.starting to embrace SOA with the Netweaver platform Mahindra¶s AUTOMATIVE SECTOR!!! Overview The Mahindra Group¶s Automotive Sector is in the business of manufacturing and marketing utility vehicles and light commercial vehicles.So.deepening the functionality on their industry solutions . it is huge. what is SAP? It is a company.000 tables to configure.for the medium market . and currently accounts for about half of India¶s market for utility vehicles. a product. The iconic Jeep that led American G.

Mahindra Navistar Automotives Ltd. It has been designed for the Indian market incorporating a contemporary styling and design. Ltd. South Asia and the Middle East. The Logan redefines its segment in terms of spaciousness as well as performance. will manufacture trucks and buses for India and export markets. focuses on producing diesel engines for Medium and heavy Commercial vehicles in India. Mahindra Renault (MRPL) announced the launch of Logan. The Automotive Sector continues to be a leader in the utility vehicle segment with a diverse portfolio that includes mass transport as well as new generation vehicles like Scorpio. India¶s first wide body car. The International Operations of the Automotive Sector focuses on the international business. technology with the latest generation dci common rail engine. a joint venture between Mahindra & Mahindra Limited and International Truck and Engine Corporation. and performance and economy. In 2002. sporting a host of class-defying features at an aggressive price. the Group has developed a large product portfolio catering to a diverse customer base spanning rural and semi-urban customers. MNEPL¶s advanced diesel engines will power the full line of trucks and buses produced by MNAL. Mahindra & Mahindra¶s foray into the three wheeler segment with Alpha and Champion has also made it a leader in its category. Africa. it launched the indigenously engineered world-class sports utility vehicle-Scorpio. The Group exports its products to several countries in Europe.vehicles from Willys. defense requirements and luxurious urban utility vehicles. Bolero and the recently launched Xylo. luxury and ruggedness. It will also provide component sourcing and engineering services to International Truck and Engine Corporation. Over the years. . USA. South America. (MNAL). which bridges the gap between style and adventure. Mahindra Navistar (MNEPL) a second joint venture agreement with Mahindra & Mahindra. Beginning in 2009.

Mahindra & Mahindra . In addition. Moreover. Mahindra needed a robust supply chain solution. . we had already implemented SAP R/3 as our ERP. and also to informing the vendors of supply schedules.Earlier shortcomings:³The legacy IT environment required M&M to stock high inventory levels in each part of the supply chain²like tractors with the dealers and at the stockyards. head-Supply Chain Planning & Control. ³We evaluated i2 and SAP and finally chose SAP as their solution matched our requirements completely. which would have not only increased the costs but would also have created accountability issues for either vendor in case problems cropped up during operations. It included everything from the start of the demand plan to the production plan.´ says Satish Moorjani. they could not easily be adjusted to changing market demand. with i2 there would have been issues of interfacing with SAP. The planning cycle was very long. raw materials and work in progress in the plant as well as with vendors and in transit.Farm Equipment Sector. 490 dealers and three plants to manage. collaborative planning with small and medium scale suppliers and customers across the supply chain was required.´ says Moorjani. The planning was done in monthly buckets. With 450 small and medium suppliers. once production plans were finalised. For this. Also.

. HCL Comnet did the networking and SAP the software² Advanced Planning Optimiser (APO). the SCM component of mySAP. Rollout has happened for supply network planning. supply network planning and deployment and production planning and detailed scheduling. SAP India.com. ³We faced lots of competition from i2 at that time. The project started in February 2001 and went live in November 2001. This study was based on SAP¶s µValue SAP¶ methodology and the SCOR (Supply Chain Opportunity Reference) model. Since then M&M has done pilot implementations of demand planning. The company already had a SAP R/3 back-end in place. Manufacturing Sector. industry manager. M&M purchased forty mySAP supply chain user licenses. A core team from M&M took care of the business side of the implementation. HP provided the hardware.The implementation:The project team comprised a lead manager from Mahindra Consulting and required team members from SAP to provide product and business knowledge. The first step was to make a detailed supply chain opportunity assessment study to identify the potential benefit areas in M&M¶s supply chain that would give the company an assured RoI for its planned investments. which is being stabilised before rolling out the other modules. associate with company personnel and garner IT inputs.´ says Alok Srivastava. During that time we met the senior management and plant heads and they were convinced that we meant business. It took three to four months for the initial study of the processes to find potential savings and map those to our product.

supply chain costs. Phase 3: Realisation. ³We got three to four key people from stores. There were four phases in this project: y y Phase 1: Project preparation including core team training (two months) Phase 2: Business blueprint (two months). The business blueprint stage was where objectives were stated as to why M&M wanted to go in for SCM. Phase 4: µGo-live¶. y y Supply chain software operates in three areas²demand planning (monthly forecasts. Of these. Reduce loss of sales due to non-availability of products by producing exactly what the dealers want. Route planning will be implemented in the next phase. creating a sales funnel for top management. finished goods). The Key Performance Indicators (KPIs) identified as measurable benchmarks were order fulfilment lead time. The system went live. This has been extended with a Web template that lets dealers put in demand figures. Consultants from SAP AG logged in and checked the configuration. calculating the best route). capacity constraints and optimisation and logistics (on which truck to load. work in progress. inventory . 2. Toward the end of the implementation. Once the modules were implemented. Key drivers 1.´ says Srivastava. the SAP team trained the core team from M&M. plant production). users from area offices were trained by the core team. Optimise inventory (raw materials.Training:During the course of the implementation. pre µgolive¶ checks were executed. cash-to-cash cycle times. To do this. Here a wish list was compiled and the vision derived from it. 3. Improve demand planning by doing it bottom up and get more accurate forecasts. M&M has implemented the first two. materials and other departments and conducted a three-week training program. the sales guys were esquipped with very good forecasting information. The aim is to have a µjust-in-time¶ system where raw material reaches the factory when it is required and carry the optimum inventory on the plant floor. We wanted them to understand the software so that they could marry the business processes and the software effectively. The blueprint was implemented in software. This in turn was mapped to the product¶s features. M&M would need to know the market demand for each and every model. optimum loading.

The team configured the autocubes for the data warehousing solution. packing material and work in progress material) and logistics cost. Further benefits accrued from designing appropriate KPIs to continuously monitor and identify areas for improvement. In addition to standard reports. The key benefits in reporting came from designing customised alerts to enable timely action and decision making.in days in the supply chain (raw material. a data warehousing solution from SAP was implemented²mySAP BI. .

³The customer was not very convinced. consultants from Germany came to India to train the team. To convince M&M we had to overcome this perception.´ says Srivastava.Challenges:For SAP. SAP India did not have a team in place that was trained on APO. SAP had the reputation of being an ERP company and there were doubts regarding our capability to implement SCM. this was the first site in the Asia-Pacific region that went in for SCM. ³Implementing a supply chain management solution required us to change the business processes across the entire supply chain²from dealers to company to suppliers. mindsets and alignments. At that time. Overseas consultants spent around one month of consulting in the overall implementation.´ says Moorjani. Three years ago we did not have the mindshare that we have today. . The implementation also required organisational alignment²changes in structure. To overcome that particular hurdle.

With SAP ERP. and manage risk. Eliminate high integration costs and the need to purchase third-party software. o Join SAP's world-class partner network. and collaboration functions to a broad business community. Reduce costs through increased flexibility o Use enterprise services architecture to improve process standardization. o Extend transactions. uniquely qualified to support the best business practices in more than 25 industries. o Achieve corporate objectives by aligning workforce and organizational objectives. Improve operational efficiency and productivity within and beyond your enterprise. o Find the best people and leverage their talent in the right job at the right time. and adaptability. accessing the right information in real time to identify concerns early. efficiency. your trusted partner for long-term growth. with 30 years of experience working with organizations of all sizes in more countries than any other vendor. o Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing. Gain higher ROI faster o y y y y y y y . information. o Increase profitability.BENEFITS OF SAP IMPLEMENTATION. SAP ERP delivers a comprehensive set of integrated. Improve financial management and corporate governance o Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics. improve financial control. Web-based technology to integrate your end-to-end processes seamlessly. Support changing industry requirements o Take advantage of the SAP NetWeaver platform's latest open. o Optimize IT spending o Integrate and optimize business processes. Improve productivity and insight o Leverage self-services and analytics across your organization. M & M has gain the following benefits: y Improve alignment of strategies and operations o Run your enterprise in accordance with strategy and plans. Reduce risk o Solve complex business challenges today with SAP. o Pursue opportunities proactively. cross-functional business processes.

y Leverage preset defaults and prepackaged versions available for specific industries. o Link employees' performance to compensation programs such as variable pay plans and long-term incentives. Provide immediate access to enterprise information o Give employees new ways to access the enterprise information required for their daily activities. Retain top performers Retain your top performers through clearly defined career and development plans. o y .o o Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost.

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