Jay Chemical Industries Ltd. (JCIL) is a manufacturer and exporter of industrial reactive textile and industrial dyes, conventional reactive dyes, high performance reactive dyes etc. For over 40 years, it has met the needs of Indian and international customers. Managing multiple stand-alone systems was becoming increasing difficult for JCIL, hindering business processes and expansion plans. Situation
Founded in 1967, Jay Chemical Industries Ltd (JCIL) is a leading manufacturer of dyes and intermediates in India. With headquarters in Ahmadabad, Gujarat and six manufacturing locations also based in Gujarat, JCIL caters to the need of textile industries with products range like reactive dyes, auxiliaries, pigments etc. in local as well as international market. With strength of 750 employees and a cluster of agents operating as its arms across the country, the company markets more than 250 self-manufactured reactive dyes to its various customers.
JCIL exports 60 to 70 percent of its products to international markets in more than 40 countries across the globe. The annual sales of the company is close to U.S.$ 70 million (INR 320 crore). The company meets international standards in quality assurance with ISO 9001 and ISO 14001-1996 certifications.
||….In contrast, all these variances such as quality, cost, price etc. are now system based and are generated automatically saving 10-15 percent person hours each week.
General Manager – Finance
Jay Chemical Industries Ltd.
Previously, JCIL had deployed multiple legacy systems. These included an ERP solution from a local vendor in Gujarat, a bespoke solution for HR, another off-the-shelf solution to manage exports. As the existing systems weren’t integrated nor were these standardized across locations, manual interventions were required at various check points across all processes such as product costing, transfer of raw materials, monitoring inventory, banking transactions and so on. This not only slowed down the process but also reduced the accuracy.
A key challenge for JCIL was automating product costing. Due to complex manufacturing processes which could not be customised in the existing applications, the process continued to be handled manually, reducing precision.
The major flaw with the existing ERP system was it considered different manufacturing units as different entities; and data from multiple units could not be collated directly. This exercise was left to the corporate accounts and finance organization slowing down analysis, decision making, and to generate consolidated reports.
Similarly, sub-contracting process and generation of bill of material (BOM) received no support from the system. With growing competitive and fast paced technology driven market, the management was awed by these restrictions.
With continuous growth and ever increasing demands, the company identified all the limitations and short comings associated with the existing systems. Hence it decided to deploy an integrated business management system for better management of information and adoption of best business practices. Solution
After the decision was taken to implement an integrated ERP system, the management started review and analysis of various options available in the market like SAP, Microsoft Dynamics NAV etc. After lots of pondering and discussions, Microsoft Dynamics NAV 5.0 emerged as the unanimous choice of the managers and executives to replace the existing stand-alone systems across all the units. JCIL decided to implement Microsoft Dynamics NAV as the core platform. The top management was keen to review the inventory on real time basis and narrow down the decision making process.
Microsoft® Gold Certified Partner, Blue Star Infotech (BSI) played an active role in the implementation of Microsoft Dynamics NAV 5.0 with Service Pack 1 for 25 concurrent users at JCIL. The expertise and knowledge of personnel at BSI resulted in quick, smooth and hassle free deployment. Fast implementation minimized the disruptions to the company’s business. Deployment started in September 2008 and the solution was live in April 2009. Even during the implementation process, it was business as usual for JCIL. This initiative covered the company’s head office and all factories located within the state of Gujarat.
Finance, Purchase and Payables, Sales and Receivables, Manufacturing, Sub-contracting and EXIM modules were implemented.
The solution was customized to meet specific functional requirements. Online data views were customized for tracing sales, purchase and production in a single screen. Complete EXIM module was tailored to fulfil the company’s demands. It incorporated various exports schemes and pre cum post shipment documents were proficiently generated from the system.
The solution focused on user wise and location wise control using global dimensions that could be used individually for a single manufacturing unit or combined for multiple units as per the requirements. “We now have automated processes within sales and marketing with customized reporting facilities for collective data analysis,” states Alpesh Shah, General Manager – Finance, JCIL. “Thus access to real time updated information and transforming it into insight and knowledge in no longer a challenge.” Higher user adoption with professional training also helps to reduce administrative overheads and saves time. “We can gladly affirm that we are benefitting from all fronts in terms of saving time, man-power and money.”Benefits
“After the deployment of Microsoft Dynamics NAV, we are experiencing higher user response rates, self service, forecasting and accuracy,” explains Alpesh Shah, General Manager – Finance, JCIL. Enhanced decision making capabilities and accurate business information do not allow us to miss even a single profitable opportunity.Automated Processes Saves 10-15 Percent Person-Hours Per Week
Microsoft Dynamics NAV has totally eliminated the manual invention at multiple stages of manufacturing, production, marketing and sales processes. Costing is totally system based up to the last stage. “Prior to implementation, out various teams spent hours or days in data entry, data consolidation, costing, bill of material and sub–contracting processes. We had no support from our systems,” states Alpesh Shah, General Manager – Finance, JCIL. “In contrast, all these variances such as quality, cost, price etc. are now system based and are generated automatically saving 10-15 percent person hours each week.”Visibility in Inventory Results in Better Inventory Control
Owing to Microsoft Dynamics NAV, systematic and controlled inventory prevents the possibilities of overstocking and obsolescence. The system clearly pin points the problems of too much of the wrong kind of inventory which can create shortages of needed inventory for production and sales. “Microsoft Dynamics NAV indicates better liquidity and superior materials management and merchandising. With access to real time reports and information on inventory levels and complete visibility of the operations, we have now better control over inventory holdings, as well as better co-ordination between production and marketing department,” elucidates Alpesh Shah, General Manager – Finance, JCIL.Customization Abilities Improve Business Scenarios
After the implementation of Microsoft Dynamics NAV, it is easier to monitor the movement of materials across various units or department. With customized EXIM module for export and import, the system keeps a tab on each and every transaction and generates reports as required. Generation of sales and purchase orders are facilitated in desired currencies due to valuable currency conversion feature. Pre and post shipment reports and documents, certificates etc, required for bankers, customers are handy and readily available. “With better central control and authentic system, we have observed the reduction in complexities and free flow of data and information across the company,” says Alpesh Shah, General Manager – Finance, JCIL. “Allows Control Over all the Locations
Microsoft Dynamics NAV integrates all the six manufacturing locations with the head office. Total control and monitoring from the head office allows sound business planning and decision making capabilities.
As explained by Alpesh Shah, General Manager – Finance, JCIL, “With multiple legacy systems, each of our manufacturing unit was considered as a separate entity and data from all the six units was brought to head office for consolidation and final analysis. We lacked control over our manufacturing plants which at time had adverse implications over business.”
Alpesh Shah continues, “Post implementation of the new business solution, we have improved user wise and location wise control. Microsoft Dynamics NAV has seamlessly connected various locations, integrating business processes and people into one big connected organization.”
Automated processes permit employees to accomplish any task from any business location. This has enhances the productivity and efficiency of staff without increasing the costs.
The new solution fully supports regulatory compliance for the company. Statutory requirements with respect to excise, service tax, sales tax, taxes deducted at source (TDS) etc. are timey and easily calculated and taken care of.
“We have standardized our processes on a common platform using Microsoft Dynamics NAV,” concludes Alpesh Shah, General Manager – Finance, JCIL. Tighter integration with Microsoft Office enables employees to work faster. “The solution increases our productivity, collaboration and business insight and thus profitability.”Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to:
www.microsoft.com/dynamicsAbout Blue Star Infotech
Established in 1983 and part of the Blue Star Group of Companies, Blue Star Infotech is a global provider of product development services, enterprise solutions and services, travel technology solutions and testing services. With operations in North America, Europe, UK, Japan and India, it delivers high-performance technology-based services by adopting a partnering approach with its clients. Its dual expertise in building software products for industry leaders and IT solutions brings into play a set of unique capabilities and solutions that increases certainty of technology initiatives. Blue Star Infotech has been ranked 12th amongst the top fifteen global R&D Service providers by Zinnov Management Consulting Pvt. Ltd, in a first-of-its-kind ranking of the Top Global Outsourced Product Development service providers across geographies such as India, China and Eastern Europe.
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For more information about Jay Chemical products and services, call (91) (79) (2642 3363) or visit the Web site at: www.jaychemical.com
For more information about Blue Star Infotech products and services, call (91) (22) (2829 2669) or visit the Web site at: www.bsil.comThis case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.