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SAP Business Transformation Study | Consumer Products | Usha International
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Usha International: Improving Profit Margins with SAP® ERP powered by SAP HANA®
Starting with a simple black sewing machine in 1937, the Usha brand was the most trusted name in its industry. Today, India counts on Usha International to deliver the highest-quality products, including ceiling fans, kitchen appliances, automobile parts, and more. Dedicated to meeting consumer demands in an ultracompetitive market, the company needed to respond to ever-changing trends quickly. With SAP® ERP powered by SAP HANA®, reporting performance is five times faster, allowing the company to analyze sales and pricing more quickly and resulting in significant savings in time and labor costs. Financial close processes have also been accelerated. Since deployment, Usha has realized a net profit margin improvement of US$7.7 million for bottom-line results, which means the business can more easily get the right products into the hands of their consumers.
SAP Business Transformation Study | Consumer Products | Usha International
Executive overview
Top objectives • Maintain profitability by growing revenue 23% annually • Rapidly respond to market changes with full supply chain visibility • Transform real-time information into a competitive edge Resolution • Deployed SAP ERP powered by SAP HANA® in just 10 weeks, 2 weeks
ahead of schedule • Performed a technical upgrade to the latest release of the SAP ERP
application along with Unicode conversion, custom-code testing, and deployment of third-party add-ons
• Created high-availability and disaster-recovery environments with minimal effort
Key benefits • Faster analysis of open sales orders, resulting in better cash management • Faster purchase price simulations, for improved gross margins • Five times smaller database size • Greater system responsiveness for business tasks, resulting in significant
savings in time and labor costs
Company Usha International Limited Headquarters Gurgaon, Haryana, India Industry Consumer products Products and Services Household appliances, electric motors, pumps, and automotive products Employees 2,200 Revenue US$400 million (2014) Web Site www.ushainternational.com Partner SAP® Consulting organization
“With SAP ERP powered by SAP HANA, our “maintain sales order” report has seen the highest performance increase, improving by a factor of 1,480. This is going to save up to 100 individual working days each year and will give users more time to focus on other business activities.”
Subodh Dubey, Group CIO, Usha International Limited
BUSINESS TRANSFORMATION TOP BENEFITS ACHIEVED
$7.7 million Net profit margin improvement for bottom-line results 34,400 hours Saved per year $177,637 Saved in labor costs 5%–10% Reduction in days needed to close annual books 320x Faster analysis of open sales orders 130x Faster purchase price simulations