Air India Gets Materialistic

by CXOtoday Staff    Jan 06, 2006

Air India has spruced up its procurement process with ORACLE’s advanced supply chain management solution, replacing its paper-based process.

Time and speed of delivery being of special importance in the aviation industry, Air India has rolled out the ORACLE supply chain solution, a module of ORACLE ERP application, implemented by Satyam.

According to Air India, paper-based procurements are inconvenient and time consuming due to inconveniences like Inability to contact all vendors regarding requirements, dependence on specific buyers and procedural delay in procurement.

Commenting on the implementation, Krishan Dhawan, MD - ORACLE India, said, “The solution will enable Air India to streamline its essential supply chain processes and help in continuous business process improvement while future-proofing its IT system through the use of standardized IT infrastructure”.

V. Thulasidas, Chairman & MD - Air India, said “Having implemented ERP solution in the Materials Management Department, Air India now proposes to adopt such modern IT solutions across the company in a short and time-bound manner, particularly, as Air India is entering a phase of rapid growth.”

The airline expects the solution to simplify its procurement process and offering greater transparency by bringing about economics in unit procurement cost and participation of more vendors, irrespective of their geographical location. Air India, procures/ replenishes over 30,000 items, costing Rs700 crores annually.

The solution will tackle all these issues besides offering real-time information to all users within Air India, regulatory bodies in India and abroad and to suppliers associated with various products.

The roll-out project, costing Rs5 crores was managed by IBM Global Services and took 10 months to complete.