Privi Organics uses Oracle Financials to create a chart of accounts best suited to the business, to better analyze revenue, and view the costs and profits generated by various products across many locations.

“Oracle Financials is scalable and will support our future growth,” said Narayan Iyer, vice president, finance, Privi Organics.

“We manufacture 50 different aroma products for sale to organizations in India, the United Kingdom, the United States, and other countries,” said Shah. “Oracle E-Business Suite R12 enables us to easily identify the products and locations that are the most profitable, so we can decide where to allocate our resources to meet our annual financial goals. This will help us increase sales by 125% over the next four years.”

According to Shah, Oracle E-Business Suite also adheres to specific Indian taxation laws, allowing the company to automate complex statutory requirements, which have undergone sweeping changes over the past few years. This ensures the company’s financial accounts always comply with local tax laws.

“The system allows us to work with more complex accounting rules leveraging subledger accounting functions that provide us with more detailed cost and liability information, allowing managers to make better business decisions,” said Iyer. “It also provides robust internal controls that enable us to reconcile our accounts quickly.”

Oracle Process Manufacturing and Oracle Discrete Manufacturing provide Privi Organics with better control over its manufacturing processes.

The system has automated the entire manufacturing process, and allows users to automatically select raw materials for production batches.

“The system allows us to create specific rules that ensure the right amount of chemicals for each production batch run,” said Shah. “We can properly allocate the direct and indirect costs of utilities, such as power, to the cost of the final product. This is important in our industry where cost leadership is the key to being competitive.

“Our staff can also easily view and manage operating costs related to the use of power, water, and various chemicals, so they can better control the manufacturing processes,” he added.

The system will also enable Privi Organics to reduce manufacturing costs by 3% to 5% over the next three years due to improved control over production processes.

“We know exactly which raw material to buy and what are the most efficient manufacturing processes,” said Shah.

Privi Organics is a process manufacturer and faces constant cost pressures due to seasonal variability of raw material prices. Oracle Procurement is a centralized system that relieves this pressure by allowing buyers at its two manufacturing plants to purchase raw materials and chemicals in bulk and better plan for production runs.

“We also have greater visibility into the type and quantity of raw materials that are being purchased, so we can easily determine the overall lead time from demand to procurement,” said Iyer. “This reduces our inventory holding period by 15 to 20 days. As a result, working capital cycle is also reduced, which means we have extra money to fund our expansion.”

Oracle Inventory Management has also streamlined the management of the company’s discrete inventory, such as spare parts and tools used to maintain machinery, as well as items for capital projects. Stock management and visibility has improved, which is expected to reduce wastage and cut discrete inventory costs.