Altek Beissel Needles Increases Sales by 50%, Reduces Reporting Time to Two Days
 
 

Altek Beissel Needles Increases Sales by 50%, Reduces Reporting Time to Two Days

Altek Beissel Needles Limited is an India-based sewing machine needle manufacturer marketing the Beissel brand internationally. Originally established as a joint German-Indian venture and known as Altek Lammertz, the manufacturer became an independent company in 2003, and in 2006 licensed the Beissel trademark from German manufacturers BMN Beissel Maschinnadel GmbH.

Altek Beissel Needles employs more than 150 manufacturing employees at its 80,000 square-foot factory in Chennai. The factory runs 24 hours a day and has capacity to produce approximately 100 million needles a year, each of which is subjected to 155 different quality checks. Altek Beissel Needles is the only needle company in the world to manufacture 100% of its needles under the ISO 9002 Quality system and the first company to pass the sewing machine needle performance standard set by UK-based international legislation and testing authority, SATRA.

When Altek Beissel Needles’s partner company closed in 2003, the company realized that if it was to become an independent organization, it had to develop the capability to sell needles to countries across six continents and build a reputation as a professional, efficient, and cost-effective alternative to its European, Japanese, and Korean competitors.
To do this, the company needed to create an integrated enterprise resource planning (ERP) system to support its financial, manufacturing, and customer relationship management processes. In 2007, it decided to implement modules from Oracle’s JD Edwards EnterpriseOne suite.

Oracle’s JD Edwards EnterpriseOne suite enables us to easily complete financial processes, such as payroll or purchasing and accurately track our product pricing and fixed assets,” said S. Ganesh, managing director, Altek Beissel Needles. “Since implementing the JD Edwards system, we have ramped up our manufacturing capacity and increased our sales by up to 50%, without increasing our back-office staff.”

 
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A word from Altek Beissel Needles Limited

  • “Oracle’s JD Edwards EnterpriseOne suite enables us to easily complete financial processes, such as payroll or purchasing and accurately track our product pricing and fixed assets. Since implementing the JD Edwards system, we have ramped up our manufacturing capacity and increased our sales by up to 50% without increasing back-office staff.” – S. Ganesh, Managing Director, Altek Beissel Needles Limited

Altek Beissel Needles produces needles for a variety of niche markets. Each customer has precise specifications and high expectations that the company is able to meet its requirements.

“There are thousands of types of needles used across our customer base,” explained Ganesh. “Any product you can think of―garments, shoes, bags, curtains, car-seat covers, children’s dolls―has a different set of manufacturing requirements and therefore requires a different set of needles. To meet these niche requirements, we need to consistently produce a large variety of high-quality needles, on time and to micron-level specifications.”

To maintain its existing customer base and grow the business after the company became an independent organization, Altek Beissel Needles needed to improve its capability to deliver products and services to its customers, while ensuring it maintained its cost-effective appeal.

“One of the attractions of buying from an Indian manufacturer is production costs,” said Ganesh. “We needed to keep our prices low but at the same time execute our manufacturing and customer services professionally. Because many of our customers are overseas, we never meet them face to face, so we need to make sure all our communications, from introductory e-mails to order acknowledgment and delivery, is highly efficient and responsive.”

Altek Beissel Needles was using Tally accounting software to track its accounting and production planning processes, such as invoicing and inventory management, but it had no customer relationship management system and was unable to respond to customers in a timely manner.

“We needed to inspire the customer with confidence that we were able to meet their manufacturing and delivery requirements, and to do that we needed to keep the customer updated throughout the whole order, production, and dispatch process,” said Ganesh.
“Many customers order different types of needles on one purchase order, so to keep track of their exact requirements and provide the customer with an exact delivery time, we needed to implement an ERP system that enabled us to monitor all 15 steps of the production process.”

 
Improved Efficiencies Lead to Faster Response Times

 
Accurate Production and Increased Sales

 
Month-End Reporting Times Reduced

 
Automatic Pricing Improves Invoice Accuracy

 
Maintenance Schedule Streamlined

 
Greater Insight into Purchasing and Sales

 
 

 
 

Challenges

  • Develop the capability to independently sell needles to 40 countries across six continents after partner company closed
  • Consistently produce a large variety of high-quality needles on time and to exact specifications to meet niche requirements
  • Maintain responsive services to international customers
  • Efficiently monitor all 15 steps of the needle production process

Solutions

  • Reduced the time taken to respond to a customer order from two weeks to 24 hours
  • Met targets of manufacturing the correct needle specifications 95% of the time by more accurately monitoring the production process
  • Increased sales by at least 50% in the last two years
  • Increased customer base from three or four countries in 2004 to 40 countries in 2011
  • Cut the time taken to generate month-end financial reports from three to four weeks to two or three days
  • Redeployed most of its accounts staff and enabled remaining accounts staff to work more efficiently, by providing all other staff with the ability to generate ad hoc financial reports
  • Ensured accurate invoices by integrating pricing, purchase order, and invoice information in one database
  • Lowered the costs of maintaining needle manufacturing machines to only 8% of its annual revenue by streamlining maintenance scheduling processes
  • Monitored budget and inventory more effectively by creating a weekly report showing four-week cash flows, which gives greater visibility into sales and purchasing information
  • Saved money on paper costs and reduced carbon footprint, by e-mailing purchase orders to suppliers rather than printing and posting them

Why Oracle

Altek Beissel Needles evaluated several IT providers, including Microsoft and SAP, but chose Oracle based on its strong production planning capabilities and recommendations from other manufacturing companies.

“We looked at several companies offering ERP systems, but after speaking to several vendors and peers in our industry, we decided Oracle best met our business needs,” said Ganesh. “Everyone we spoke to recommended JD Edwards based on its strong manufacturing and production support. Oracle also has an excellent reputation and support infrastructure in India and we were impressed by the level of access provided to its talented specialists.”

Implementation Process

Altek Beissel Needles engaged Oracle Gold Partner Cyret Technologies to assist its own IT department in implementing the JD Edwards EnterpriseOne modules.

The company had initially spent six months looking at a variety of ERP systems to understand how the business would benefit from various modules.

After deciding on Oracle and engaging Cyret Technologies, the modules were rolled out over two and a half years, starting with JD Edwards EnterpriseOne Financials and JD Edwards EnterpriseOne Order Processing before moving on to JD Edwards EnterpriseOne Production Scheduling, JD Edwards EnterpriseOne Advanced Pricing, JD Edwards EnterpriseOne Requirements Planning, JD Edwards EnterpriseOne Inventory Management, and JD Edwards EnterpriseOne Manufacturing – Shop Floor.

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