Apps Run The World

Indus Motor Company Digital Transformation Initiatives

Apps Run The World

About the Customer

Founded in 1989 as a joint venture between the House of Habib, Toyota Motor Corporation and Toyota Tsusho Corporation, Indus Motor Company is a manufacturer, assembler, distributor and importer of Toyota and Daihatsu vehicles, spare parts and accessories in Pakistan. The company operates a dealership network with 45 locations across the country, and generates gross annual revenues exceeding USD1 billion. 

Scope and Challenges

With competition in its domestic market intensifying, Indus Motor Company aimed to capture sales by delivering high-quality vehicles rapidly. With more than 60 suppliers and three-month procurement lead times for imported parts, forecasting demand accurately is vital—but using many separate systems and processes in the value chain made it difficult for the company to predict the most popular vehicle models in each region in a timely manner, leading to missed sales opportunities. The previous approach also meant the company was unable to detect and respond to defective components early in the manufacturing process, increasing the risk of delays to customer orders. To solve these challenges, Indus Motor Company decided to integrate its value chain from end to end, and looked for a way to enable this new way of working.

For more than a decade, Indus Motor Company has relied on SAP enterprise applications to manage its workflows for manufacturing, production planning, finance and controlling. To achieve its business goals, Indus Motor Company decided to build on its success with SAP solutions by seamlessly integrating its entire value chain using SAP S/4HANA.

“In the past, it took months to deliver reports to our managers about what was happening on the ground, which is simply too long to make competitive decisions,” - said Faizan Mustafa, CIO/Head of IT at Indus Motor Company Ltd.

Outcome and Implications

To accelerate implementation and reduce its exposure to risk as it drove its digital transformation process, the company decided to partner with IBM Global Business Services to help size, deploy and configure its new SAP solutions. To drive the implementation process, Indus Motor Company decided to mix the IBM Ascendant methodology with the SAP Activate framework—combining the structure of traditional waterfall-based processes with the responsiveness of agile development.

Working together with IBM Global Business Services, Indus Motor Company deployed SAP S/4HANA with applications for materials management, production planning, materials requirement planning, finance and controlling, project management and quality assurance. The new platform leverages SAP Fiori to personalize and simplify the user experience, making it even easier for business users to consume and leverage real-time business insights.

After its new business systems go live, the company ensure complete front-to-back integration—enabling sales forecasts from its dealerships to flow seamlessly to the primary suppliers and manufacturers in its value chain. Combined with real-time insight into the results of parts inspections, Indus Motor Company gain the ability to detect defects at the earliest possible opportunity, reducing the risk of costly delays downstream in the manufacturing process.

With SAP S/4HANA on IBM Power Systems servers at the heart of its new digital business processes, Indus Motor Company will be in a strong position to drive competitiveness as new players enter its domestic market.

Quotes

“SAP S/4HANA will become the nervous system that collects and analyzes data from across the business, and transforms that data into actionable insight,” - said Faizan Mustafa CIO/Head of IT at Indus Motor Company Ltd. “Our decision-makers will have up-to-the-minute information at their fingertips to make better-informed strategic decisions. Currently, our quality management team inspects all new components and records the information manually, and later enters it into a standalone system in batches. Because our production volumes are so high and we work in a just-in-time environment, this manual approach limits our ability to detect patterns of defects that indicate a manufacturing fault at one of our suppliers. “Soon, our team will record information on defects directly into a SAP Fiori app from a mobile device, enabling us to use real-time predictive analytics to detect and alert our suppliers to issues before the parts have time to move into our downstream manufacturing process. We see that closer collaboration with our suppliers will enable us to work together to help develop their capabilities, ultimately enabling them to improve their quality assurance processes, work more efficiently and reduce operating costs.”

“In the new solution, we will be able to calculate our materials requirements in near-real time, and any changes we make will automatically flow through into dependent data in other systems, such as production planning. As a result, if one of our suppliers is disrupted or market demand fluctuates for any reason, we can adjust our materials requirements quickly to keep things moving—maximizing our manufacturing capacity utilization.” – continue Mustafa


Port Qasim Authority
Karachi, N.W.Z/P-1 , x
Pakistan
92 21 34721100
https://www.toyota-indus.com/
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Enterprise Software & Cloud Applications Purchased by Indus Motor Company


Vendor Old Product New Product Function Market Users VAR/SI When Live
SAP SAP ERP ECC 6.0 SAP S/4 HANA Enterprise Resource Planning ERP Financial Management n/a IBM 2016 2017

IT Decision Makers and Key Stakeholders at Indus Motor Company


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