Tanishq Upgrades ERP System to Cut Supply Chain Lead Times by 30% and Closes Monthly Financial Accounts Six Days Faster
 
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Tanishq Upgrades ERP System to Cut Supply Chain Lead Times by 30% and Closes Monthly Financial Accounts Six Days Faster

  • Oracle Customer:  Tanishq
    Location:  Bangalore, India
    Industry:  Retail
    Employees:  1,100
    Annual Revenue:  $1 to $5 Billion

Established in 1994, Tanishq is the jewelry division of Titan Industries, a large manufacturer of jewelry, watches, sunglasses, and prescription eyewear, and a division of the global conglomerate Tata Group.

Since July 2005, Tanishq had used older versions of Oracle E-Business Suite to manage its financials, inventory, order management, purchasing, and manufacturing activities. In January 2012, the organization upgraded to Oracle E-Business Suite Release 12 to streamline financial management, reduce supply chain lead times, and cut manufacturing costs.

Tanishq reduced supply chain lead times by 30%, cut month-end accounting times from 10 days to 4 days, and streamlined manufacturing processes by improving the availability of online inventory. The organization also ensured that employees ordered from the right suppliers, that were selected based on sourcing history, and gained a clear view of the profitability of each piece of jewelry sold.

 
Need for an Integrated System to Support Business Growth

A word from Tanishq

  • “Oracle E-Business Suite Release 12 has significantly improved the level of service we provide our customers by reducing the time it takes to process and deliver jewelry. Some customers were previously waiting for three to four weeks to receive their products, and we have now reduced that to around two weeks.” – C.S. Ramesh, CIO, Titan Industries Limited

Tanishq is India’s fastest growing jewelry brand, selling gold, white gold, diamond earrings, chains, bracelets, and rings. These products are sold at around 150 retail stores throughout India and manufactured at Tanishq’s state-of-the-art facilities and by subcontractors at 100 locations. The company’s main jewelry production and research facility is in Hosur, in the Indian state of Tamil Nadu.

Before 2005, Tanishq used in-house-developed legacy applications to manage its jewelry manufacturing and distribution, inventory, asset management, and purchasing operations. However, as organization outgrew these applications by expanding its multiple manufacturing plants and processes, it took too long to produce jewelry.

“Tanishq has been growing by between 20% and 30% per year, and the absence of an automated system to manage our core operations was putting a strain on our business,” said C.S. Ramesh, CIO, Titan Industries Limited.

To address these issues, Tanishq deployed Oracle E-Business Suite Release 12, using Oracle Financials, Oracle Inventory Management, Oracle Order Management, Oracle Purchasing, and Oracle Process Manufacturing.

 
Inventory Optimized with Improved Visibility

 
Monthly Accounts Closed Faster with Streamlined Costing

 
Streamlined Raw Material Purchasing and Order Management

 
More Accurate Costing for Finished Goods

 
Duplicate Sales Transactions Reduced by 60%

 
Hardware Costs Eliminated by Arresting Data Growth

 
 

 
 

Challenges

  • Deploy an automated enterprise resource planning system to manage the core jewelry operations and support annual growth of between 20% and 30%
  • Reduce the time to manufacture jewelry by streamlining raw material purchasing, inventory management, and manufacturing tasks
  • Shorten order processing to ensure customers receive their jewelry in a timely manner
  • Streamline monthly account closings to ensure managers receive sales information quickly
  • Calculate the cost of precious metals used in jewelry more accurately
  • Eliminate potential additional hardware purchasing costs by arresting data growth across the organization

Solutions

  • Reduced jewelry supply chain lead times by 30%, from three to four weeks to two weeks
  • Closed monthly financial accounts within 4 days, compared to 7 to 10 days previously
  • Cut the time it takes for staff to process jewelry transactions by 30%, by reducing the number of duplicate sales by 60%, from 500,000 to 200,000 per month
  • Enabled senior managers to quickly determine where to allocate gold and more accurately determine the amount of inventory required for each vendor
  • Provided a clear view of profitability for each piece of jewelry by using the lot-actual-costing function to precisely calculate the cost of finished jewelry
  • Improved efficiency by creating around 600,000 product SKUs and accurately reflecting the variations in the weight of each piece of jewelry
  • Enhanced customer service by easily identifying and moving jewelry between 150 stores
  • Completed a higher number of transactions than previously by simplifying sales processes
  • Eliminated the need to invest in new hardware by reducing the data growth rate
  • Reduced the number of duplicate files related to discrete and process manufacturing, so the organization manages 500GB of data rather than 3TB

Why Oracle

Tanishq chose Oracle E-Business Suite Release 12 because it met the company’s unique requirements, such as robust lot costing and the ability to manage inventory items in two unrelated units of measure.

“Jewelry in India is sold by number and weight, which means that each SKU can be sold at a different price, based on the weight of the product,” said Ramesh. “The Oracle system tracks every SKU on the lot number, enabling us to accurately price and easily track our products.”

Implementation Process

According to Ramesh, the initial implementation was a challenge because the jewelry industry is quite disorganized.

“We needed to introduce a lot of standardization and procedures to ensure best practices were implemented,” said Ramesh. “This is the first end-to-end enterprise resource planning implementation for such a large jewelry organization.

“Oracle provided the right amount of support to ensure this project succeeded, and we would experience a fast return on our investment,” added Ramesh.