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Racold Thermo gains competitive advantage in a heated market with SAP and IBM
Technology Category
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Electronics
Applicable Functions
- Sales & Marketing
- Business Operation
Use Cases
- Supply Chain Visibility
- Demand Planning & Forecasting
Services
- System Integration
- Software Design & Engineering Services
The Challenge
Racold Thermo, a leading manufacturer of water heaters in India, was facing fierce competition in the rapidly growing water-heating industry. The company wanted to optimize its sales and distribution activities to capture a larger market share and increase profitability. However, the lack of integration between its many branches was hindering its ability to gain deep insight into sales and control over manufacturing, supply chain, and distribution operations. The company needed a solution that would provide a clear view of market demand and customer buying habits to shape its sales strategy effectively. The limitations of its existing business planning applications necessitated new tools and technologies.
About The Customer
Racold Thermo Ltd., headquartered in Pune, India, is a leading manufacturer and seller of electrical, gas, and solar water heaters. The company produces more than 500,000 units annually. Racold Thermo is a wholly-owned subsidiary of the Ariston Thermo Group, a world-leading manufacturer of water and space heating products based in Italy. The company has ambitious plans to double its turnover in the next three years and expand its retail footprint by 50 percent in the same timeframe. To achieve these goals, Racold Thermo needed to gain deep insight into sales and maintain tight control over its manufacturing, supply chain, and distribution operations.
The Solution
Racold Thermo partnered with IBM Global Business Services to deploy an integrated suite of SAP ERP applications. The implementation was completed on time and within budget. The new SAP ERP solution includes applications for Financials and Controlling, Materials Management, Sales and Distribution, Production Planning, Quality Management, and Supply Chain Management, covering the core areas of Racold Thermo’s business. The company also introduced SAP BusinessObjects Business Intelligence to drive deep insight into its extensive operations. Once the new SAP solution was in place, the IBM consultants worked with Racold Thermo managers to redesign business processes to boost operational efficiency.
Operational Impact
Quantitative Benefit
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