Hindustan Copper Limited Reduces Annual Financial Reporting from Three Months to 15 Days, Cuts Annual Inventory Holding Costs by Approximately US$720,000
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

Hindustan Copper Limited Reduces Annual Financial Reporting from Three Months to 15 Days, Cuts Annual Inventory Holding Costs by Approximately US$720,000

Hindustan Copper Limited (HCL) manufactures copper cathodes; continuous cast copper rod; and copper by-products, such as anode slime (containing minerals such as silver and gold), copper sulfate, and sulphuric acid. HCL’s mines and plants are spread across four operating units, one in each of the Indian states of Rajasthan, Madhya Pradesh, Jharkhand, and Maharashtra.

HCL is the only organization in India that manufactures copper from the initial stages of mining of copper ore through to beneficiation, smelting, refining, and casting of refined copper metal into saleable products. The company operates under the administrative control of the Government of India’s Ministry of Mines.

HCL was established in 1967, and, over many years, the organization’s four sales offices, four factories, and six warehouses across India accumulated standalone software applications.

“This meant that financial reports, invoices, and customer orders were presented in different formats,” said Jayanta Mukherjee, senior manager, corporate marketing, Hindustan Copper Limited.

“For example, individual offices would compile their monthly accounts using Microsoft Excel spreadsheets and send e-mails or printed documents by post or fax to the head office in Kolkata, so they could be compiled into one report. This was an arduous and time-consuming process.

“We also have a number of staff members who are not computer literate, and, in the past, training them to use multiple applications was a challenge,” said Mukherjee.

In 2007, HCL realized it needed a centralized, standard system that could be used across the entire organization to streamline financial, ordering, invoicing, production, and human resources management processes.

In September 2007, HCL engaged Oracle Partner Tata Consultancy Services (TCS) to deploy Oracle E-Business Suite Release 12, specifically Oracle Financials, Oracle Supply Chain and Order Management Intelligence, Oracle Purchasing, Oracle Inventory Managemen, and Oracle Advanced Pricing, and Oracle Process Manufacturing. The company also deployed Oracle Human Resources, Oracle Payroll, and racle Self-Service Human Resources.

“Customers that purchase our copper products demand competitive pricing, easy access to our latest products, and the ability to view the status of their orders,” said Mukherjee. “Oracle
E-Business Suite is an integrated system that enables us to easily meet their requirements.”

 
Dramatically Reduces Financial Reporting Times

A word from Hindustan Copper Limited

  • “Customers that purchase our copper products demand competitive pricing, easy access to our latest products, and the ability to view the status of their orders. Oracle E-Business Suite Release 12 is an integrated system that enables us to easily meet their requirements.” – Jayanta Mukherjee, Senior Manager, Corporate Marketing, Hindustan Copper

HCL deployed Oracle Financials to automate its financial reporting processes. Accounts employees at each location use the centralized Web-based system to quickly and easily submit financial data, enabling the organization to complete consolidated monthly reports within five days.

Previously, financial reports could not be completed on a monthly basis because it took too long to consolidate the data. As a result, consolidated corporate financial reports were compiled manually at the end of each quarter.

“It previously took three to four months to close our accounts for the year,” said Mukherjee.
“We are now closing annual financial accounts for the entire organization within 15 days.”
Senior managers also have fast access to financial information, which helps them better manage monthly, quarterly, and annual sales targets to protect revenue, and easily monitor nonmoving inventory items, payables, and receivables in real-time.

“We have completely eliminated the need for data entry operators to feed data into the system, and for managers to send e-mails to accounts staff to get the appropriate financial data that they require,” said Mukherjee.

 
Gives Customers Fast Access to Order Data

 
Improves Inventory Management. Slashes Costs

 
Streamlines Manufacturing Processes, Reduces Costs

 
Improves Staff Management

 
 

 
 

Challenges

  • Replace standalone software applications used by the organization’s many offices, warehouses, and factories with a standard enterprise resource planning (ERP) system
  • Streamline financial management, ordering, invoicing, production, and human resources processes

Solutions

  • Enabled accounts staff at each factory to complete consolidated monthly reports within five days rather than every quarter or the end of the financial year
  • Completed annual financial reports within 15 days compared to three to four months previously
  • Allowed senior managers to make business decisions faster by providing them with instant access to financial data and eliminating the need to send e-mails to accounts staff to obtain access the appropriate information for reporting
  • Provided customers with information about the status of their orders instantly rather than spend time answering e-mails, which significantly improved customer service
  • Reduced copper inventory holding costs by around US$720,000 annually and optimized profitability in a volatile copper market
  • Allowed staff to view items that had been purchased online, and compare the current and past costs for these items, which was not available previously
  • Enabled internal auditors to complete their audit assessments three times faster for more complex transactions
  • Provided value to customers by offering multiple price points and stayed competitive by introducing more controlled pricing policies
  • Protected profitability by enabling the company to reduce bulk purchase discounts for customers from up to US$125 per metric tonne of copper to US$20 per metric tonne of copper
  • Reduced the cost of running a primary finished copper manufacturing plant by about US$120,000 annually, by manufacturing the exact amount of copper products required by customers without operating the plant unnecessarily
  • Enabled the company to record each staff member’s personal details, job role and department, qualifications, and appraisal results online
  • Allowed staff to view and amend their details, and apply for leave online
  • Positioned to soon enable staff to view their payslips online

Why Oracle

During the initial tender process, HCL asked for submissions from Oracle and SAP. According to Mukherjee, Oracle E-Business Suite was less costly than the equivalent offering from SAP.

“The individual modules offered as part of Oracle E-Business Suite work well together—much better than other products in this market,” said Mukherjee.

“Oracle E-Business Suite can also be expanded as our business grows; we are planning to interface the applications with systems run by our customers, banks, and tax authorities. For example, we are hoping to get to a point where the company can upload its tax returns from the Oracle system into a tax portal provided by the Indian Government.

Implementation Process

In September 2007, HCL engaged Tata Consultancy Services (TCS) to implement the system and provide support services for one year. Oracle Partner CSA Consultants has provided subsequent support.

During the project, TCS worked with HCL’s IT team to check and clean the organization’s existing data and migrate it to the new system. Each module was subsequently tested and certain members of each business unit were trained on how to use the system. These trainers then assisted the remaining staff.

The deployment was completed by October 2008 and the system is now used by around 200 HCL staff.

“Without TCS’ help, we would have not been able to complete this project in such a tight timeframe,” said Mukherjee. “TCS also provided the technical expertise required to ensure the project was a success.”

Partner