Mark Jackley | Content Strategist | July 31, 2023
Whether a company makes steel wheels to keep the auto aftermarket turning or architectural building products for some of the most iconic structures, it needs data and technology to solve its toughest problems.
The case studies below show how four industrial manufacturers—Alcar Ruote, Construction Specialties, Precision Group, and ArcelorMittal—improved operational efficiency, supply chain visibility, machinery maintenance and repair, global staffing, and the overall customer experience in part by using the latest cloud applications.
Faster, better, more cost-effective. It’s the mantra of manufacturers that turn raw materials into computers, farm equipment, chemicals, plastic soda bottles, you name it. This usually means relying on automation and not just workers to perform key tasks again and again.
These case studies span a range of companies solving common challenges by implementing Oracle Cloud software applications. Let’s start with a manufacturer that believes “Swiss made” is more than a label.
Part of a multinational holding company, Alcar Ruote designs, produces, and distributes steel wheels for the automotive aftermarket. The Swiss manufacturer relies on technology to produce top-quality products at a competitive price—and deliver them on time.
When new cars hit the market, the company needs to manufacture the right wheels to spec. But its on-premises applications couldn’t provide the real-time data it needed to accelerate order management, enhance customer service, and lower costs. Fresh data was also needed to evaluate business systems and correct any problems, including production issues.
Alcar Ruote chose Oracle Fusion Cloud Supply Chain & Manufacturing and Oracle Fusion Cloud ERP applications to manage key business processes: manufacturing, planning, order management, procurement, and financials.
Oracle Fusion Cloud Order Management, part of the Oracle Cloud SCM suite of applications, automated order-to-fill processes. Now 80% of sales orders are generated automatically, accelerating the order process and boosting customer service.
Internet of Things (IoT) technology within the Oracle platform lets Alcar Ruote analyze sensor data from shop floor devices, predict equipment failures, take corrective actions, and reduce downtime. The technology runs on Oracle Autonomous Database, which processes data in real time across multiple applications.
“Swiss quality is a sort of dogma,” says Stefano Mariani, head of IT at Alcar Ruote. “You expect top-level quality and on-time delivery.” In using technology to achieve those goals, he says, “we see Oracle as not only a vendor, but also as a partner.”
For 75 years, Construction Specialties has made a wide range of architectural building products: doors, wall coverings, architectural louvers and screens, flooring, safety vents, and other treatments. Architects have specified the company’s products for the most sturdy, elegant structures, including the Kennedy Space Center Visitor Complex in Florida and One World Trade Center and the redesigned exterior of Madison Square Garden in New York.
In recent years, competitors have emerged to meet increased demand for environmentally sustainable buildings. Construction Specialties had a strong sustainability record, but it needed to get the word out to architects, interior designers, contractors, property owners, and facility managers. The company needed applications to manage the marketing and social media campaigns it created for each customer persona and to track resulting orders through their lifecycle—from marketing and online sales to production and payments.
The goal was twofold: Increase sales and enhance each customer’s end-to-end experience.
Construction Specialties chose Oracle Advertising and Customer Experience (CX) and Oracle Fusion Cloud ERP to manage orders from start to finish. The application suites integrate with others to unify digital marketing, online sales, supply chain operations, and finance. Sales staff and customers have a single place to search for, configure, and order hundreds of highly complex, engineered-to-order products.
“Our number one reason for upgrading to Oracle Cloud was to make it easier for our customers to do business with us,” says Mike Weissberg, digital marketing manager.
Construction Specialties teams now have an integrated suite of applications to view inventory, identify the best shipping options, and forecast lead times. Once quotes are approved and entered into the system, it automatically triggers events such as picking inventory, procuring parts, and scheduling production. As it processes orders, the application suite generates invoices.
“The cloud has completely taken away all of the maintenance and custom-coding requirements that were bogging us down,” says Arthur Cosma, enterprise automation manager.
Precision Group operates two manufacturing companies: Precision Dies & Tools and Precision Plastic Products. The latter makes plastic packaging for multinational companies, including Unilever and Procter & Gamble. Many customers partner with Precision on key R&D projects.
Founded in 1984 in the United Arab Emirates, Precision requires cost-effective procurement of office equipment and supplies, capital equipment, and other goods and services. But its enterprise resource planning (ERP) application, which dated back 25 years, lacked automation and integration. Tasks such as vendor evaluation were completely manual. Managers had no visibility across procurement workflows.
Precision implemented Oracle Fusion Cloud Procurement in part to accelerate the process of qualifying suppliers on their financial stability and ability to deliver quality goods and services on time. Precision’s procurement is now 100% digital; paper purchase orders are a thing of the past. The company generates POs directly from requisitions—without manual intervention—and automatically applies negotiated pricing and terms from supplier agreements.
As a result, Precision reduced purchase order approval times by 40%. Self-service procurement features let employees shop for products and services much faster, including on mobile devices. Requisitions go to managers for approval automatically, reducing approval times by days. Overall, transactions are processed nearly two times faster than before.
ArcelorMittal is the world’s leading steel and mining company, with primary manufacturing facilities in 16 countries and an industrial presence in 60. Formed when India’s Mittal Steel merged with Luxembourg’s Arcelor, ArcelorMittal is based in Luxembourg City and produces steel for numerous industries, including automotive, construction, mining, household appliances, and packaging.
In competing for talent globally, the company faced stiff challenges. Its recruitment teams were decentralized, using different applications and practices, making it difficult to coordinate talent searches, especially for specialized jobs. That lack of standardization also led to overreliance on costly staffing agencies and prevented ArcelorMittal from creating the consistent branding needed to attract top talent.
ArcelorMittal turned to Oracle Fusion Cloud Recruiting, part of the Oracle Cloud HCM suite of applications, to standardize the process of staffing jobs globally, including positions as varied as factory worker, logistics coordinator, sales executive, and mining specialist.
Oracle Recruiting has helped land talent for hard-to-fill high-tech jobs. In Poland, home to many high-tech companies and startups, ArcelorMittal received 1,400 applications in only eight weeks after launching Oracle Recruiting. Previously, HR teams often received just one or two applications per job opening in key markets.
Company recruiters have visibility into all recruitment activities, including requisitions, to avoid duplication. Standardized reports across a range of metrics help ArcelorMittal continually improve its recruitment strategies.
Metrics such as time to hire, number of applicants, and applicant-to-interview ratios per geography or job type inform when and how ArcelorMittal should use staffing agencies.
The unified recruitment system lets HR teams in different locations working on similar types of jobs exchange candidate information. Teams can also pool external advertising resources.
A single branded ArcelorMittal careers site lists every open position and makes it easy for people to apply and track the status of their applications. Delivering such a smooth application experience helps present the company as a desirable place to work.
Oracle Fusion Cloud Supply Chain Management(SCM) & Manufacturing, integrated with Oracle Cloud ERP, lets industrial manufacturers plan demand, supply, and production more accurately, reducing disruptions, containing costs, and getting products to customers more consistently and reliably. Omnichannel order fulfillment accelerates orders and boosts customer satisfaction. Simpler, automated, more uniform procurement helps companies pick the best suppliers, create and approve orders faster, and enforce compliant spending.
Oracle Fusion Cloud Manufacturing offers IoT capabilities that simplify shop floor scheduling and production runs while monitoring machine health. Oracle industrial manufacturing cloud infrastructure, in tandem with Oracle Autonomous Data Warehouse and Oracle Analytics Cloud, lets manufacturing teams analyze data across application workloads. Oracle Cloud Human Capital Management (HCM) helps companies hire and retain the talent they need to compete globally.
The companies in these case studies relied on the products above, in various combinations, to overcome major challenges in procurement, order management, production monitoring, and financial standardization.
What are examples of industrial manufacturing?
Industrial manufacturers make and process various products, including automobiles, aircraft, steel, plastics, rubber, chemicals, semiconductors, computers, consumer electronics, oil and gas, and building products.
What are some of the top issues in industrial manufacturing?
The industry faces issues that include a shortage of skilled workers, continued supply chain disruptions, compliance with myriad regulations, pressure to establish environmentally friendly and ethical business practices, further automation of production processes, and the manufacturing of products just in time to meet demand.
How are manufacturers solving their biggest challenges?
Increasingly, industrial manufacturers rely on a range of technologies to help solve their biggest challenges. For example, IoT technologies that make it easier to monitor production, inventory, and machine maintenance. Integrated financial applications that help business units work as one. SCM applications that help keep their supply chains humming and gather the data they need to increase sustainability and transparency. Human capital management applications that improve recruiting, onboarding, training, and career development.