Sona Koyo Steering Systems Reconciles Accounts Receivable Data 70% Faster, Creates Mandatory Government Reports Automatically
 
 

Sona Koyo Steering Systems Reconciles Accounts Receivable Data 70% Faster, Creates Mandatory Government Reports Automatically

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Established in 1985 and headquartered in Gurgaon, India, Sona Koyo Steering Systems Ltd is The Sona Group’s flagship company, and the country’s largest manufacturer of steering systems. The company has manufacturing plants in Chennai, Gurgaon, and Dharuhera, and manufactures a range of steering system components, such as drive shafts, manual steering columns, and rear axle assemblies for passenger cars, utility vehicles, and light commercial vehicles.

As part of the company’s globalization strategy, Sona Koyo Steering Systems has a technical and financial partnership with JTEKT Corporation, Japan—the largest producer of passenger vehicles steering systems in the world—and a share in Fuji Autotech France SAS, the fourth largest steering system supplier in Europe. The company’s customers include major vehicle manufacturers, such as General Motors, Hyundai, Mahindra & Mahindra, Mahindra-Renault, Maruti Suzuki, Tata Motors, and Toyota. It exports its steerage system components to the U.S., Europe, and Japan through its network of overseas joint-venture partners and its own increasing global footprint.

 
 

 
 

Challenges

A word from Sona Koyo Steering Systems Ltd

  • “Upgrading to Oracle E-Business Suite Release 12 enabled us to leverage a number of advanced financial and discrete manufacturing features that we didn’t have previously. This deployment has furthered the consolidation of our financial information, allowed automatically generating mandatory financial reports, and reduced our accounts receivable reconciliation time by 70%.” – O.P. Singh, General Manager – IT, Sona Koyo Steering Systems Ltd

  • Upgrade from an unsupported enterprise resource planning system that posed a risk to business-critical data, such as monthly financial results and manufacturing information about the company’s steerage system components
  • Automatically generate mandatory financial reports required by the Indian government
  • Consolidate financial information, such as accounts receivable data, from the company’s three manufacturing plants and national and international sales offices
  • Provide more detailed information in financial and manufacturing reports, so the company can improve its financial and production processes and make more informed decisions, like choosing the most cost-effective raw material suppliers for steering system components

Solutions

Oracle Product and Services

  • Engaged Oracle Platinum Partner Chain-Sys and Oracle Diamond Partner IBM to upgrade to Oracle E-Business Suite Release 12, to provide a supported and flexible enterprise resource planning application with advanced features capable of meeting the company’s financial and manufacturing needs
  • Generated mandatory CESS tax reports for the Indian government from consolidated data in Oracle Financials automatically, rather than taking at least 10 days to manually compile the required information and create the report from Excel spreadsheets
  • Reduced time to reconcile accounts receivable information by 70%, by creating a new consolidated report that can be broken down to show general ledger information, like paid invoices or profits by steerage system component product category, or rolled up to show overall profits and company value
  • Created more detailed accounts-payable trial balance reports, showing money owed to suppliers of raw materials for manufacturing steerage system components, now broken down invoice-by-invoice rather than as a consolidated total
  • Gained better control over financial processes, including activities like paying suppliers and chasing payments from customers, and automatically mitigated short-term financial risks by consolidating accounts receivable and accounts payable information in an integrated database, so that the two totals can be immediately compared and informed decisions made regarding how to manage accounts and balance books
  • Captured standardized information from quality audits of manufactured components, such as drive shafts and manual steering columns, from three manufacturing plants in a detailed, consolidated quality audit template in Oracle Discrete Manufacturing rather than disparate Excel spreadsheets
  • Ensured problems in the manufacturing process picked up by quality auditors were dealt with quickly and efficiently, by capturing the problem within Oracle Discrete Manufacturing in more detail and mapping a standardized and more effective problem-solution-action plan
  • Improved control over manufacturing processes, including regulating requirements for sending steerage system components for external processing, by creating customized data fields and reports that require standard information, such as suppliers’ identification numbers and the date of the component, enabling auto-generated answers rather than nonstandard manual data entry
  • Laid the foundation to leverage new features from Oracle Order Management Release 12, such as more detailed reports and workflow processes

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