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Czech Manufacturer Boosts Productivity 50 Percent on a Single System
Although Ingersoll Rand is still in the process of rolling out Oracle Procurement to five divisions and 80 plants around the world, the large, multinational manufacturer of diversified industrial products is already seeing results. So far, the company has improved productivity and cut supplier support by 50 percent, and reduced maintenance, repair, and overhaul (MRO) costs by 20 percent.
The latest implementation occurred within the Industrial Technologies Sector (ITS)—a manufacturer of air compressors—at its Czech Republic facility. Before the plant installed Oracle Procurement Release 11, including direct- and indirect-procurement modules and Oracle Advanced Supply Chain Planning, it ran multiple legacy systems, which created myriad applications that couldn't communicate with each other.
Since the consolidation, the plant is now seeing a streamlined procurement process and reporting structure, says Agus P. Loekman, a procure-to-pay implementation lead for Ingersoll Rand's corporate technology organization. "The advantages include reduced maintenance by eliminating support requirements for the many different systems," Loekman explains. "We can cut our information technology costs while also helping ITS operate in a more streamlined way, ultimately with just one system in place."
He adds that managers at the Czech facilities are pleased because they now have a state-of-the-art procurement system to run their business. In the past, the group used everything from outdated legacy systems to spreadsheets.
From a corporate perspective, Ingersoll Rand buyers like the ITS infrastructure consolidation because they can interact with just a single system when buying direct and indirect materials. "Now, whatever they do in the Czech Republic is seen almost instantly by people at ITS headquarters," Loekman says. "We see their planning, we see their purchase orders. It's all much easier to maintain."
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