PN International Increases Annual Revenue by 25% with Centralized Enterprise Resource Planning
 
 

PN International Increases Annual Revenue by 25% with Centralized Enterprise Resource Planning

PN International is a large manufacturer of aluminium safety products and adventure sporting equipment. The company produces a range of safety buckles, harnesses, lanyards, belts, shoes, helmets, and ropes used in various industries, such as building and emergency services, and for sports, like rock climbing.

PN International has over 5,500 end-to-end products, which it designs, manufactures, and sells in more than 40 countries, including the U.K. and the U.S. Headquartered in New Delhi, it has three manufacturing plants in Sitarganj and Lucknow and ten sales and marketing offices across India. As the company exports its products, it has to comply with European, American, Canadian, Singapore, Malaysian, and Australian industry safety and quality standards.

Before it has a centralized database, PN International relied on e-mail and telephone conversations to communicate a variety of design, manufacturing, and sales data, such as customized safety specifications and customer account and order information, which was recorded in separate, onsite spreadsheets. With such vast quantities of information to communicate, this process was time-consuming and prone to errors. The company found it difficult to meet its commitment to deliver customer orders within 60 days, so in early 2010, it decided to implement five Oracle E-Business Suite Release 12 modules to provide a centralized enterprise resource planning (ERP) system that would consolidate its product database and streamline its sales, design, and manufacturing processes.

“By integrating and streamlining our business processes, Oracle E-Business Suite Release 12 has helped us meet delivery commitments efficiently and keep better track of orders and payments,” said Mukul Anand, plant operations and ERP project manager, PN International. “As a result, we have improved customer satisfaction rates, which has helped increase our customer base and annual revenue.”

 
Revenue Increased by 25%

A word from PN International

  • “By integrating and streamlining our business processes, Oracle E-Business Suite Release 12 helped us meet delivery commitments more efficiently and keep better track of orders and payments. We have improved our customer satisfaction rates, and this helped us to increase our customer base and annual revenue.” Mukul Anand, Plant Operations and ERP Project Manager, PN International

PN International is using Oracle Discrete Manufacturing and Oracle Order Management to process thousands of products, such as climbing harnesses, belts, and buckles from design stage through to delivery. These products are tailored to customers’ exact specifications.

Because the company designs, manufactures, and sells its safety products in 40 countries around the world, many of the products have to be customized to meet complex international safety requirements or to fit various requirements of the industries in which they are used.

 “Each product has a standard bill of materials, but many of the bills need to be changed to meet specific product requirements, such as the shape and size of the buckles,” said Anand. “Oracle Discrete Manufacturing gives us the flexibility to change the bill of materials depending on product specification, which allows the design team to communicate exactly what is required for each customization, and the manufacturing team to then order exactly the right materials for each product.”

 Previously, materials had to be ordered to a standard bill of materials. Specific requirements for each safety product had to be addressed by the design and manufacturing teams manually. This added time to the manufacturing process and put extra pressure on manufacturing staff as they raced to meet the order delivery time frame of 60 days.

“Now our manufacturing process has been streamlined, we have reduced the pressure on our design and manufacturing teams and can easily meet our order commitments and international safety standards,” said Anand. “We can now produce more safety products for each customer, increasing customer satisfaction. We have also increased our annual revenue by 25% in the last year.”

 
Improved Supply Chain Processes

 
Reduced Costly Production Stoppages by 30%

 
Streamlined Invoicing

 
Improved Supplier Performance

 
 

 
 

Challenges

  • Replace separate spreadsheets with a centralized, integrated product and customer database
  • Improve communication between design, manufacturing, and sales departments to speed up the safety equipment production process and reduce the risk of human error
  • Produce products that are customized to a customer’s exact specifications
  • Ensure safety products such as belts, buckles, and harnesses are delivered within the company’s 60-day order-to-delivery timeframe to customers in 40 countries without putting unnecessary pressure on design and manufacturing staff
  • Comply with industry safety and quality standards for Europe, America, Canada, Singapore, Malaysia, and Australia
  • Streamline order, inventory, and manufacturing processes to improve efficiency and reduce costs
  • Strengthen financial management by centralizing supplier payments
  • Ensure the company receives the most competitive quotes from suppliers

Solutions

  • Produced customized safety products, such as steel buckles and harnesses within the company’s 60-day order delivery commitment by streamlining manufacturing processes
  • Increased annual revenue by 25% in 12 months
  • Cut costly production stoppages by 30% and reduced items stored as work in process inventory  by ensuring raw materials are available
  • Met customer requirements and international safety standards by gaining the flexibility to change the bill of materials according to product specifications
  • Improved the company’s supply chain processes by enabling it to order necessary materials in advance and deliver products on schedule
  • Delivered orders on time, regardless of size or specifications, which improved customer satisfaction and helped the company grow its customer base by 10 to 15%
  • Maintained good relationships with customers and suppliers by improving the accuracy and timeliness of its purchase orders and invoices and keeping better track of customer and supplier payments and collection schedules
  • Monitored its budget allocation and actual budget more closely to ensure it does not over spend
  • Reduced supplier costs and improved supplier performance by enabling the company to choose the most cost-effective option

Why Oracle

PN International undertook a proof-of-concept for a new, integrated enterprise resource planning system in November 2009. The company assessed vendors, such as SAP, Microsoft, and Oracle, but decided Oracle E-Business Suite best met its business needs in terms of cost and flexibility.

“We also wanted an application that was adaptable but ready to go, out of the box, and Oracle E-Business Suite met that need,” said Anand.

Implementation Process

PN International engaged Oracle Platinum Partner Filix Consulting to implement five Oracle E-Business Suite Release12 modules in early 2010. After assessing PN International’s business needs, Filix Consulting began deploying the modules on 1 March 2010. The implementation took six months and the system went live on  September 1, 2010.

Partner

Filix Consulting guided PN International through the proof-of-concept and implementation stages, providing support, advice, and training. The company evaluated products for PN International and demonstrated how Oracle E-Business Suite could be adapted to fit PN International’s business needs.

“Our client was worried about how the new enterprise resource planning system would fit with its business’ complexity,” said Guarav Mathur, managing director, Filix Consulting “After we mapped the company’s business processes and requirements, we could reassure PN International that Oracle E-Business Suite would meet its business needs straight away, with very little customization.”

Filix Consulting carried out user acceptance testing at PN International, followed by a master upload. The firm then visited the manufacturing plants and marketing offices to deliver staff training. Filix Consulting continues to support PN International through its centralized support desk.

“Filix Consulting provided excellent help and advice at every step of the implementation,” said Anand. “The consultants went out of their way to guide, support, and reassure us throughout the process—we couldn’t be happier with the service we received.”