Apollo Tyres Goes Live With SAP
The Rs 2,300 crore Apollo Tyres, has gone live on mySAP business suite that was deployed to manage all its critical activities, the key being managing a massive 5,000 dealer distribution network.
Disclosing the deployment details with CXOtoday, Dheeraj Sinha, Chief Technology Officer, Apollo Tyres, said, “The SAP solution has been deployed at over 150 locations and around 450 users access this solution. The locations are connected by a VPN over leased lines. The solution runs on an Oracle 9.6 database on IBM RS6000/ AXI operating system.”
The SAP solution went live in ten months and now manages all the core activities including demand forecasting, production planning, logistics and supply chain management.
Narrating the factors that favored SAP, Sinha maintained, “When the company was scouting various alternatives, we were basically looking for a centralized environment that would bring in the best practices from across the world.”
“The choices were very clear as we did not want to go in for a custom built or a tailored product. We thoroughly evaluated two to three leading ERP providers and realized that SAP’s offering suited our requirements the best,” affirmed Sinha.
According to Neeraj Kanwar, chief operating officer, Apollo Tyres, the decision to implement SAP was a strategic one, as the company operates in a high-cost, low-margin under an extremely competitive environment. The company is of the view the SAP deployment will enable them to gain a distinct edge over their competitors.
In terms of benefits the deployment has helped the company in reducing the total cost of ownership (TCO) by streamlining the business processes.
The mySAP business suite encompasses all functional areas including supply chain optimization and backend applications like financials, production, HR, materials management. The tyre major plans to implement strategic enterprise management and CRM.
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