Case Study
Ramesh Hi Tech Pumps
GoodBooks ERP revolutionized Ramesh Hi Tech Pumps’ operations, enhancing productivity, financial control, and profitability while ensuring consistent product quality.
About Ramesh Hi Tech Pumps
Ramesh Hi Tech Pumps specializes in producing a wide range of high-quality pumps, catering to various industrial needs. With over 500-600 different categories of pumps and over 6000 components, managing production and inventory efficiently is crucial to maintaining their competitive edge. The implementation of GoodBooks ERP software has significantly improved their production planning, inventory management, and overall operational efficiency.
- 50% improvement in production
- 40% reduction in inventory holding costs
- Reduced lead times by 30%
Challenges Faced by Ramesh Hi Tech Pumps
1. Complex Production Planning and Inventory Management
Managing over 6000 components and ensuring their availability for the production of 500-600 different pump categories was a significant challenge. The lack of real-time data on stock availability often led to production delays and increased operational costs. Without proper inventory management, the company faced frequent stock-outs or excess inventory, resulting in wasted resources and increased lead times.
2. Inventory Reservation Issues
Managing the inventory of components, especially when the same component was used in various finished goods (FG) products, was cumbersome. There was a lack of accurate data on whether a component was reserved for another product, leading to inaccurate decision-making regarding manufacturing or purchasing components, causing further delays and inefficiencies.
3. Sales Analysis for Maximizing Profitability
The company struggled to analyze the fast-moving products and manage the FG positions across six branches and dealers. Inefficient sales analysis hindered effective inventory liquidation and working capital management, especially crucial in times of rising interest rates and shrinking profit margins.
4. Financial Control and Accounting
The accounting system lacked stringent controls and approvals at various levels, leading to potential financial discrepancies. Poor financial control increased the risk of credit limit breaches by dealers, impacting the company’s cash flow and profitability.
5. Fluctuating Raw Material Costs
Frequent fluctuations in the prices of raw materials like copper, casting, stamping, and steel made pricing decisions challenging. Inconsistent costing calculations affected the company’s ability to offer competitive pricing and timely incentives or discounts to dealers.
6. Quality Control
Ensuring consistent quality of components from various vendors was difficult without a centralized system to manage quality control (QC) data. Lack of reliable QC data led to issues with product quality and delayed identification of the best-performing vendors.
GoodBooks ERP
To tackle the challenges faced by Ramesh Hi Tech Pumps, GoodBooks ERP thoroughly examined their key issues and offered customized solutions to their team.
Solutions Provided by GoodBooks ERP Software
GoodBooks ERP optimized production planning with exceptional inventory management, offering real-time data on stock availability during order processing. Over 6000 components are now managed efficiently, enabling timely production and supply. Weekly production planning has become more accurate, saving time and money, achieving a 50%-60% improvement in production planning efficiency and a 40% reduction in inventory holding costs.
The Reservation feature of GoodBooks ERP indicates if a component is reserved for another product, providing a real stock position. Improved decision-making regarding manufacturing or purchasing components, reducing lead times and increasing efficiency, enhanced decision-making accuracy reduced lead times by 30%.
The ERP system manages FG positions across branches and dealers, allowing analysis of fast-moving products and inventory management based on the 80/20 Pareto principle. Enhanced ability to plan inventory, liquidate stagnating stock, and manage working capital effectively, improving profitability, increasing profitability by 30% due to better sales analysis.
The accounting software requires approvals at various levels and provides outstanding aging analysis to prevent credit limit breaches. Better financial control and efficiency in operations from the head office, with managed inventory levels at dealers and branches, reduced financial discrepancies by 20%, improving cash flow management.
GoodBooks ERP simplifies costing calculations and provides daily status updates against market pricing. Enabled management to offer tactical incentives and discounts based on pricing fluctuations, improving competitiveness and profitability, achieving 15% cost savings from optimized raw material usage.
QC data of products from vendors are tested and updated in the ERP system, generating inspection reports. Identification of the best vendors based on quality and timely delivery, ensuring consistent product quality, improving product quality consistency by 10%.
GoodBooks ERP revolutionized Ramesh Hi Tech Pumps Operations
GoodBooks ERP has revolutionized Ramesh Hi Tech Pumps operations, enhancing productivity, financial control, and profitability while ensuring consistent product quality.
Locations – Coimbatore | Chennai | Mumbai