Kıraça Holding Counts Its Inventory 22% Faster and Cuts Warehouse Space Requirements by 10%
 
 

Kıraça Holding Counts Its Inventory 22% Faster and Cuts Warehouse Space Requirements by 10%

  • Oracle Customer:  Kıraça Holding A.S.
    Location:  Istanbul, Turkey
    Industry:  Automotive
    Employees:  2,500
    Annual Revenue:  $500 Million to $1 Billion

Kıraça Holding A.S., founded in 1998, runs manufacturing and distribution operations in the automotive, independent-aftermarket, design-engineering, maritime, and energy sectors. The holding company’s main operating entity, Karsan, produces vehicles for several auto manufacturers in one manufacturing facility, as well as building and marketing vehicles under its own Kıraça brand. Karland, another of the group’s companies, is the largest automotive- spare-parts dealer in Turkey, and Kirpart produces engine components for major automotive companies.

The company’s Sirena Marine division was the first Turkish company to manufacture sailboats under its own brand. In addition, through the Suna & İnan Kıraç Foundation—owner of Pera Museum and the Istanbul Research Institute—Kıraça Holding is also engaged in education, culture, the arts, and healthcare.

 
 

 
 

Challenges

A word from Kıraça Holding A.S.

  • “We work for different worldwide automotive brands whose activities are sensitive to foreign market fluctuations. Oracle gives us a complete and reliable set of solutions for the market, and allows us the flexibility to effectively manage continually changing business volumes.” – Mustafa Yılmaz, Information Systems Application Specialist, Kıraça Holding A.S.

  • Improve efficiency of complex manufacturing and warehouse processes, such as work in process (WIP), stock-area task management, and advanced labeling, to meet the demands of changing business volumes from the company’s multinational automotive clients
  • Gain greater visibility into warehouse inventory— including raw materials, semifinished, and finished goods, such as engine cooling systems—to improve manufacturing and distribution efficiency
  • Accelerate warehouse processing times to elevate levels of customer service and satisfaction
  • Simplify IT management and reduce costs by avoiding customizations to warehouse software systems

Solutions

  • Improved efficiency and accuracy of auto-parts receiving, shop-floor replenishment, and inventory transactions for 36,000 stock-keeping units of raw materials, semifinished, and finished goods
  • Optimized warehouse operations to increase operational efficiency across Karsan’s contract-manufacturing business unit and support contract manufacturing by providing more flexibility in handling variable order loads from global automotive brands
  • Enhanced resource utilization of Karsan’s 15,300-square-meter warehouse by coordinating material flows across a global supply chain on a single platform, saving 10% of the total area used for stock
  • Simplified complex WIP management with Oracle Warehouse Management’s rules-based, task dispatching; automated task prioritization; and dashboard monitoring to improve manufacturing efficiency and flexibility
  • Modeled warehousing rules and associated business processes relating to automotive spare parts, quality assurance, consignment, and outsourcing without needing to customize code—thanks to Oracle’s flexible and powerful business-rules engine
  • Improved inventory accuracy with Oracle Mobile Supply Chain Applications—which support advanced radio frequency identification—reducing inventory-count time by 22.3% and boosting quality and speed of deliveries to domestic and international automotive manufacturers and dealers
  • Enabled flexible and rapid labeling of inbound and outbound warehouse goods, thanks to Oracle Mobile Supply Chain Applications’ automatic label-generation capability—printing labels from the mobile console’s personalized interface while updating Oracle Warehouse Management in real time—significantly reducing data entry errors and personnel movement within the warehouse
  • Aligned supply chain resources and enabled faster reporting, thanks to a single platform used across nine of the group’s companies and seamless integration with other in-house applications
  • Reduced bill-of-material setup and management time by two-thirds, and cut end-of-month closing time from three weeks to five days at Karsan—which processes 370 work orders and 1,750 WIP transactions daily—by using two instances of Oracle Discrete Manufacturing Release 12.1.3 across four manufacturing sites
  • Engaged Oracle Premier Support for Software to ensure 24/7 support for more than 750 Oracle E-Business Suite users while facilitating tight alignment of Oracle solutions with the group’s business strategies

Why Oracle

Kıraça Holding had used Oracle E-Business Suite since 2004 in different contexts across several diverse group businesses.

“With Kıraça Holding companies having different business requirements, it was critical for us to have a flexible, single-platform solution,” said Ömer Faruk Altuntaş, information systems application specialist, Kıraça Holding A.S. “By implementing Oracle E-Business Suite Release 12.1.3 applications for supply chain, manufacturing, and warehouse management, we delivered the integrated platform that our professional users require. We could not have achieved our current level of manufacturing efficiency with another vendor’s solution.”

Implementation Process

Karsan analyzed its business processes and requirements and determined that Oracle E-Business Suite Release 12.1.3 was a 95% fit to its complex requirements across the group. The implementation required no customization, only configuration of the mobile pages, such as for receiving goods and task completion. The solutions went live in five months, on time and within the expected budget.