Oracle E-Business Suite Release 12 and 12.1

Online Ordering Improves Production Planning
According to Sridhar, Oracle Discrete Manufacturing has helped AMCO Batteries improve
production planning by ensuring customer orders are made to exact specifications.
“Everything related to meeting a customer order is now done online,” he explained. “The
order is placed by head office staff. The factory receives the order and makes the batteries
according to the customer’s precise requirements. By keeping all orders in a central
repository, factory staff can ensure each order received is scheduled into the weekly
production plan. There is no risk that an order will go missing, something that could affect
a customer’s production cycle.”
Inventory Costs Down
AMCO Batteries has also improved inventory control. It uses Oracle Inventory Management
to track the amount of raw materials, such as battery panel plates, lead components, and
separators at its two main manufacturing units.
“Because we know in advance the type and quantity of batteries that are planned for
production each week, we can make sure we have the right amount of raw materials and
components to meet production requirements,” said Sridhar. “We have increased inventory
turnover and hence reduced inventory costs.”
The company also uses Oracle Inventory Management to track finished goods and prepare
sales plans. Finished goods must travel vast distances to reach distribution points in major
cities. For example, batteries made in Bangalore can take up to a week to reach Delhi 2,500
kilometers away. However, sales staff can use Oracle Inventory Management to see the
number and type of batteries that are in transit and the estimated arrival date. “They can
then inform the dealers to place their orders accordingly,” said Sridhar.
More Control over Procurement
With Oracle Purchasing, staff must raise a purchase order against purchases, and a purchase
order has to be included on all vendor invoices. This enables procurement staff to easily check
vendor invoices against orders for raw materials and other items. In addition, vendors must be
registered in the Oracle system before they can supply raw materials to AMCO Batteries.
“Under the Oracle system, there is very little scope for any wrongdoing, or for a vendor to
complain that they have not been paid, or have been paid the wrong amount,” said Sridhar.
“The procurement process is more streamlined and accurate.”
Vendor Payment Cycle Shortened by 50%
AMCO BATTERIES
AMCO Batteries has improved vendor relationships by ensuring they are paid on time and
accurately. Previously, factory staff entered details of vendor invoices and inspection documents
(confirming that the goods received met quality requirements) into the in-house system.
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