Berger Paints Pakistan Shortens Month-End Close from Seven Days to Two Days and Increases Sales by 17% with Enterprise Applications
 
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Berger Paints Pakistan Shortens Month-End Close from Seven Days to Two Days and Increases Sales by 17% with Enterprise Applications

Berger Paints Pakistan Ltd., established in 1950, offers the most comprehensive range of quality paints in Pakistan. With state-of-the-art local manufacturing facilities and partnerships with leading international manufacturers, it is the leading specialized paint-products supplier to industries, including building and construction, automotive, marine, and government. Berger Paints Pakistan is also the premier manufacturer of protective advanced coating products, printing ink, powder coating, adhesive, epoxies, and construction chemicals. It has eight offices in Pakistan, 450 employees, and annual revenue of more than US$41 million.

Berger Paints Pakistan, operating in a demanding and highly competitive market, recently entered into international partnerships to expand brand offerings. However, its legacy system lacked a centralized database and integrated finance and production systems, resulting in inaccurate planning, increased production lead times, mismatched orders, increased raw material inventory, order delays, and financial inaccuracies. The company’s business units were unable to gather and share timely information or confidently confirm product orders and delivery dates. Increasingly, the company spent unnecessary time generating reports and identifying accurate figures and information.

Oracle E-Business Suite Release 12.1 delivered an integrated system that reduced the month-end account closing time from seven days to two days, slashed staff-process time by 25%, and decreased inventory by 11%, ultimately enabling the company to produce paint products in a timely manner and improve time-to-market. The Oracle system also improved operational transparency and process manufacturing, increased sales by 17% and customer service by 20%.

 
Month-End Accounting Down from Seven Days to Two Days

A word from Berger Paints Pakistan Ltd.

  • “We chose Oracle E-Business Suite Release 12.1 over SAP, as it has the greatest success rate with enterprise resource planning implementations and the best support team available in Pakistan. We reduced the time for our month-end account closes by 70% and increase staff efficiency by up to 25%, enabling us to become more responsive and improve customer service by 20%.” – Abdul Wahid Qureshi, Chief Financial Officer, Berger Paints Pakistan Ltd.

Due to data centralization and better process visibility across each business unit, Berger Paints Pakistan reduced month-end account closing from seven to two days, with company data now more accurate and reliable. This enabled it to generate and submit regulatory reports much faster and on time.

“Previously, our systems were not integrated, and we had to collect data from different modules and locations, taking two to three days to compile, verify, and submit regulatory reports. Now it takes under a minute to generate the report, and only a few hours to verify data before submitting,” said Sarfaraz Arif, head of ERP, information technology, Berger Paints Pakistan Ltd.

“Our trial balance, loss, and profit accounts; expense; and other financial processes take only two days to finalize, and we can process payroll in three to four hours.”

“We also developed a report that contains all the information on a single sheet of paper for more precise analysis and decision-making, significantly improving our reporting accuracy,” Arif said.

 
Process Manufacturing Tasks Reduced to One Minute per Step

 
Reduced Inventory by 11%, Improved Customer Service by 20%

 
Reduced Manufacturing Downtime by 20%

 
Improved Staff Efficiency by 25%, Increased Sales by 17%

 
Enhanced Data Visibility Adds Value to International Partnerships

 
 

 
 

Challenges

  • Deploy an integrated ERP system to improve paint-product data visibility and information consistency across all departments
  • Cut the time to produce month-end account closing and regulatory reporting
  • Improve production process management and avoid delays and mismatched orders
  • Reduce inventory level and provide accurate planning and forecasting for raw materials
  • Provide a transparent process to ensure timely delivery of paint orders and improve customer service

Solutions

  • Reduced month-end, account-closing processes from seven days to two days, and regulatory reporting from up to three days to a few hours by centralizing financial data
  • Improved staff efficiency up to 25% by eliminating work duplication and enhancing data visibility across all departments
  • Sped up production by reducing time to complete each process manufacturing task to less than one minute
  • Improved customer service by 20% by implementing a planned production cycle that reduces customer order errors and improves paint production efficiencies
  • Cut trial balance, loss and profit accounts, expense, and other financial processes to two days and payroll to three to four hours by centralizing financial information
  • Improved raw material demand forecasting, reducing inventory mismatches and increasing production efficiency by 17% by improving paint manufacturing process visibility and oversight
  • Decreased inventory level by 11% through accurate raw-material demand and forecasting
  • Cut production downtime by 20%, enabling greater production capacity to complete more customer paint orders
  • Increased sales by 17% by enabling staff to focus on new business opportunities through improved production efficiency and customer service
  • Provided more accurate management reports, such as inventory and production planning for business analysis and decision-making

Why Oracle

Berger Paints Pakistan was committed to ensuring its selected vendor had a history of successful implementations and could provide a dedicated support function, continuing to add value beyond implementation.

“Berger Paints Pakistan selected Oracle over SAP because Oracle has a more successful implementation record in Pakistan, and superior support function,” Arif said. “Oracle E-Business Suite Release 12.1 helped Berger Paints Pakistan become more responsive, efficient, and cost effective. Oracle was the best choice for our business.”

Implementation Process

Berger Paints Pakistan implemented Oracle E-Business Suite Release 12.1 between July 2011 and September 2012.

In early July 2011, the company deployed Oracle Financials, Oracle Purchasing, and Oracle Inventory Management, followed by Oracle Order Management and Oracle Process Manufacturing in February 2012.

In September 2012, Berger Paints completed the implementation on schedule with the deployment of Oracle Payroll and Oracle Advanced Supply Chain Planning.

Partner

Oracle Platinum Partner A.F. Ferguson & Co conducted Oracle E-Business Suite Release 12.1 user training and provided comprehensive support material including a user training manual and video.

“We were very happy with A.F. Ferguson & Co’s training preparation to ensure users could deliver the benefits Oracle E-Business Suite Release 12.1 brought to Berger Paints Pakistan,” Arif said.