Oracle Customer Success—Quimmco SA de CV

Grupo Quimmco Unifies Accounting and Inventory for Six Subsidiaries, Improving Efficiency and Profitability

Oracle E-Business Suite enables us to access consolidated information at the group level, with visibility into financial indicators and strategic processes, which enhances our business management and decision-making capabilities.

— Jorge Treviño, Chief Information Officer, Grupo Quimmco

Grupo Quimmco, an industrial, private-equity consortium, was founded in Mexico in 1994. Its 10 subsidiaries include manufacturing operations that serve the metalworking, chemical, and construction industries.

Grupo Quimmco's main products include tractors and other agricultural equipment; axles, brakes, and additional components for the heavy-truck industry; axles and suspensions for trailers; beams, and other forged components, such as machined crankshafts, gray and nodular iron castings; molds; machine and cutting tools, and machining services for the metalworking sector. The chemical division also manufactures and sells raw materials and resins for the polyurethane industry. Grupo Quimmco delivers some of these products and services through its joint ventures with Meritor in Sistemas Automotrices de México (SISAMEX) and with CNH Global in CNH de México.

Its process-unification project included of its six major companies that manufacture products in Mexico and sell them in domestic and international markets: Manufacturera de Cigüeñales de México, Blackhawk de México, Química Pumex, Forja de Monterrey, Quimmco Centro Tecnológico, and Servicios Corporativos Quimmco.

Business Challenge

Unify accounting processes of the group’s six companies by using the same chart of accounts to more easily exercise internal controls and consolidate financial information
Optimize procurement of raw materials to improve profit margins and offer customers the best prices—such as for steel used in manufacturing automotive products, trailer axles and suspensions, and polyurethane for the chemical industry

Standardize inventory controls for raw materials with up-to-date supply data to optimize resource use and avoid production delays

Implemented Oracle E-Business Suite Release 12 at the corporate level, as well as for five companies in the group, creating a unified accounting process across companies, enabling access to better internal financial information and consolidating financial statements, improving business operations and profitability within the group’s automotive and chemical businesses
Standardized invoicing and supplier-payment processes using Oracle Financials, reducing risk of paying for supplies not received, while improving accounting information and improving the certainty of receiving payments

Optimized the steel-purchasing processes for the automotive division and for polyurethane-chemical-industry use by implementing Oracle Purchasing to unify the supplier catalog—achieving synergy in acquisitions, securing more appropriate customer prices, and realizing better profit margins
Created a comprehensive system for the release of goods to suppliers with Oracle Release Management—ensuring that transactions are automatically captured when a client places an order—improving and standardizing deliveries and the overall process
Consolidated financial, provider, supply-inventory, and finished-product information with Oracle Database, Enterprise Edition—replacing IBM, SQL, and Microsoft Access databases to ensure scalability and high performance while avoiding the cost and maintenance for managing myriad databases from multiple providers

Why They Chose Oracle

Grupo Quimmco evaluated Oracle and SAP to replace its business-planning and control system.

We selected Oracle E-Business Suite for its robust features and because it enabled us to put all business processes on a single platform. Furthermore, we were able to integrate all of the group companies into a single supply chain.

— Jorge Treviño, Chief Information Officer, Grupo Quimmco

Execution

Grupo Quimmco implemented Oracle E-Business Suite Release 12 in three phases by working with Oracle partner Rapid Solutions and Consulting.

"We starting with one of our companies, Manufacturera Cigüeñales de México (MACIMEX), by using Oracle E-Business Suite Release 11, and then we migrated the parameters of this version to Release 12. Following this migration, we used best practices to strengthen strategic processes and then used that configuration for the other five companies," said Treviño.

The first phase included companies that are 100% Quimmco-owned, and the team carried this out between February and October of 2012. These six companies went into production in January of 2013, after a two-month training program, finishing the project on time and on budget. The process involved 60 people, including functional and operational leaders from all six companies, as well as 12 consulting professionals from Rapid Solutions and Consulting. The second phase included the companies Sistemas Automotrices de México and Super Diesel, and this phase went live on October 2014 and April 2014, respectively. The third phase, which in February 2015, includes CNH de México.

About Quimmco SA de CV

Headquarters

Monterrey, Mexico

Employees

5,500

Annual Revenue

$1 to $5 Billion

Quimmco SA de CV

Partners

“Rapid Solutions and Consulting conducted the planning, configuration, and go live for the six companies. The partner's tool, Rapid Suites, can read an existing configuration, and this made it possible to take the settings from one of the companies that is using Oracle E-Business Suite Release 11 and porting these settings over to the robustness and flexibility of Oracle E-Business Suite Release 12. Then, using that configuration as a model, we replicated it in the other companies. This technique helped us meet our rapid deployment and consistency goals across all defined business processes, such as procurement and inventory," Treviño said.