Karam Chand Thapar & Bros. (Coal Sales) Cuts Sales Quote Preparation Time by 40% and Saves 25% Inventory Costs with Enterprise Applications
 
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Karam Chand Thapar & Bros. (Coal Sales) Cuts Sales Quote Preparation Time by 40% and Saves 25% Inventory Costs with Enterprise Applications

Established in 1943, Karam Chand Thapar (Coal Sales) Ltd. (KCT) is the largest coal logistics, sales, and services provider in India. A subsidiary of Thapar Group, KCT moves more than 70 million metric tons of coal annually. Customers include state electricity boards, steel plants, paper mills, and sugar mills. The company recently added coal importing––from Southeast Asia, South Africa, and Australia––to its portfolio of business activities.

With coal sales and logistics operations spread across 40 locations and the majority of India’s 28 states, KCT needed a flexible enterprise resource planning (ERP) systems to replace its time-consuming manual business processes. In 2011, the company implemented Oracle E-Business Suite Release 12.1 for its manufacturing unit, Indicon Enterprises Ltd., and automated business processes across the division.

In July 2012, KCT rolled out the second stage of its ERP system and implemented Oracle Financials, Oracle Inventory, Oracle Order Management, and Oracle Purchasing for its imported coal division to improve data visibility and achieve an enterprise view of coal sales and logistics business operations. The company reduced sales quote preparation time by 40%, cut inventory costs by 25%, and increased customer and user satisfaction.

 
Reduces Sales Quote Preparation Time by 40%, Increases Customer Satisfaction

A word from Karam Chand Thapar & Bros.

  • "We reviewed other vendors, but only Oracle E-Business Suite Release 12.1 has the flexibility and scalability to meet our business requirements. We have accelerated the speed of preparing sales quotes by 40% and reduced inventory holding costs by up to 25%." – Kunal Mukherjee, Senior Manager, Department of Information Technology , Karam Chand Thapar & Bros. (Coal Sales) Ltd.

As KCT’s customers include some of India’s largest coal-fired power stations and manufacturers, it was critical the company provide accurate sales quotes and timely order delivery. Developing quotes and delivery timelines in the manual legacy system was time-consuming and error-prone.

Using Oracle E-Business Suite Release 12.1 applications, sales team members can now quickly and easily access real-time coal landing costs––including purchase price, freight, insurance, and taxes–– on their laptop or desktop from any location to prepare quotes 40% faster and improve customer service.

“With a consolidated view of ERP data across financials, inventory, order management, and procurement, our customers are happier because they can receive accurate order details from sales representatives, which allows them to commit to their own customers’ expectations,” said Kunal Mukherjee, senior manager, department of information technology, Karam Chand Thapar & Bros. (Coal Sales) Ltd.

 
Accelerates Monthly Accounts Closure and Improves Cash Flow Management

 
Cuts Inventory Cost by 25%

 
Increases User Satisfaction and Ensures Global Adoption

 
 

 
 

Challenges

A word from Karam Chand Thapar & Bros.

  • "We reviewed other vendors, but only Oracle E-Business Suite Release 12.1 has the flexibility and scalability to meet our business requirements. We have accelerated the speed of preparing sales quotes by 40% and reduced inventory holding costs by up to 25%." – Kunal Mukherjee, Senior Manager, Department of Information Technology , Karam Chand Thapar & Bros. (Coal Sales) Ltd.

  • Gain an integrated view of financial, inventory, purchasing, and order management for coal import division to improve process efficiency and reduce inventory costs
  • Adopt a user-friendly and scalable ERP system able to span the entire enterprise and support future growth
  • Ensure strategic procurement and timely production planning to improve cash flow management

Solutions

  • Accelerated the speed of preparing sales quotes by 40% by enabling sales team to quickly and easily access coal landing costs from the integrated ERP system and provide faster response to customer queries, enhancing customer satisfaction
  • Reduced inventory costs by 25% and improved cash flow by enabling real-time inventory visibility for imported coal materials
  • Enabled coal suppliers to easily manage replenishment level by accessing inventory status and consumption rate data through Oracle iSupplier Portal, enabling more efficient and effective inventory management 
  • Improved cash flow management and production planning through enhanced visibility across financials, purchasing, and customer order cycle
  • Enabled rapid adoption of the easy-to-navigate ERP system across the entire group

Why Oracle

KCT considered other vendors but decided that the flexibility and scalability of Oracle E-Business Suite Release 12.1, combined with its ease of use, offered the best option.

“Oracle Financials offers unique benefits of data integration and allows us to gain a consolidated view of group financial statements for our future reporting requirements,” Mukherjee said.

Implementation Process

After the ERP system went live in KCT’s manufacturing unit, Indicon Enterprises, in January 2011, the company began to implement Oracle E-Business Suite Release 12.1 for its imported coal division in July 2012. The new system went live—on time and on budget—in January 2013.

Partner

KCT worked with Oracle partner Conacent Consulting Pvt. Ltd. to manage the Oracle E-Business Suite implementation in the imported coal division.

“Conacent Consulting is very flexible and has an experienced team with expertise in ERP systems. They are also committed to the timely delivery of the project and enabled our imported coal division to realize the benefits of using an integrated ERP system,” Mukherjee said.