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Sigma Electric

Oracle Customer Success

Sigma Electric cuts infrastructure costs 30% with Oracle Cloud

Summary

Manufacturer moves its ERP, supply chain, and demand planning applications to Oracle Cloud Infrastructure, boosting performance and cutting downtime.

Business challenges

Sigma Electric is a leading, vertically integrated manufacturer of electrical fittings and other precision-engineered components. Sigma’s 10 world-class manufacturing plants in India and Mexico make metal castings, injection-molded products, and accessories for customers in the construction, power transmission, and other industries.

For Sigma, time is critical. Almost 98% of its products are manufactured in India and shipped to the company’s 180,000 square-foot warehouse and technical center near Raleigh, North Carolina, and then sent to customer locations across North America. That facility also serves as the company’s headquarters.

From planning the availability of raw materials to estimating the time to manufacture and deliver orders, everything flows through Sigma’s ERP and supply chain management systems. The company needed to ensure that those systems were always up and running, no matter what, to keep up with dynamic customer demands and enable timely delivery of goods.

With its ERP and SCM applications hosted on Rackspace, Sigma’s IT team had to maintain an infrastructure that was prone to operational glitches. It was constantly battling downtime (sometimes more than two hours), dealing with troubleshooting, and struggling to manage unexpected surges in demand, delaying delivery of goods to customers.

Sigma needed to move its ERP, SCM, and demand forecasting applications to a robust and reliable cloud platform that was not only scalable, but would also free its IT team from maintenance headaches.

With the Industry 4.0 roadmap in mind, I realized that Oracle Cloud is the best kind of infrastructure to move our business-critical applications. I don’t have to worry about the infrastructure. Oracle takes care of everything.

Rajeev Khade

Vice President and Global Head of IT, Sigma Electric

Why Sigma Electric Chose Oracle

Sigma turned to Oracle Cloud Infrastructure, initially lifting and shifting its Oracle JD Edwards on-premises ERP system and backup solution to OCI, without having to modify any of the application’s features.

Subsequently, it also moved its on-premises Service Optimizer 99 supply chain management and demand forecasting application to OCI. Company users worldwide rely on that application to calculate the time, resources, and planning needed to deliver goods to customers on time.

Sigma chose Oracle because it needed an experienced, dependable vendor to take care of infrastructure maintenance and upgrades, ensure uptime, enhance operational efficiency, and reduce delays. With Oracle Cloud Infrastructure’s flexible and scalable platform, Sigma was confident of keeping up with constantly changing customer needs.

Results

Oracle worked with Sigma round the clock to move its applications to Oracle Cloud in just six to eight weeks. Despite the COVID-19 lockdown, “we went live ahead of schedule, without hampering business,” says Rajeev Khade, Sigma vice president and global head of IT. “All the systems and applications were up and running. There was no data loss.”

Sigma’s implementation of the applications on OCI has allowed it to cut system downtime from several hours to almost zero, drastically reducing delivery times.

Sigma estimates that the implementation also has helped it cut its IT infrastructure costs by 25% to 30%, while boosting infrastructure performance by 20% to 25%. The improved system-response time has enabled finance department users to close the books on time during Sigma’s daily, weekly, monthly, and quarterly cycles without having to burn the midnight oil. Additionally, Sigma gained near real-time insights for financial reporting.

Also critical, the OCI implementation freed up Sigma’s IT people to focus on digitizing and optimizing the company’s manufacturing process instead of having to manage infrastructure. “With OCI, we get to devote more time to our core business,” Khade says. “That was the most satisfying factor for me.”

Partners

The sales and presales team at Mumbai-based Clarisity helped Sigma Electric make the decision to move to Oracle Cloud. The team was available throughout the migration process and was constantly in touch with Sigma Electric’s IT team.

When I created a business case, I realized that we could save 25% to 30% in costs with Oracle Cloud. It gave me the confidence that we should move ahead.

Rajeev Khade

Vice President and Global Head of IT, Sigma Electric

Published: November 24, 2020