TITAN INDUSTRIES
TIME FOR AN EFFICIENT SUPPLY CHAIN
Quick facts
Key Challenges Why SAP Was Selected
Industry
• Increase responsiveness to market • Smooth integration of SAP® Supply Chain
Consumer products – consumer
demands by reducing manufacturing Management application with the existing
durables and appliances
and procurement lead time SAP ERP application
Revenue • Reduce demand and supply mismatch • Best practices incorporated for the
US$200 million • Reduce inventory imbalance in consumer products industry
(watch division as of 2007–2008) distribution channels • Competitive advantage over other
• Eliminate manual production planning planning solutions
Employees • Improve utilization of critical resources • Scalable and robust functionality and
2,500 • Reduce and optimize wait time and product maturity of the SAP Advanced
Headquarters queue time Planning & Optimization (SAP APO)
Hosur, Tamil Nadu, India component
• Organizational stability and future integra-
Web Site tion possibilities with other SAP solutions
www.titanworld.com
SAP® Solutions and Services Implementation Best Practices Low Total Cost of Ownership
SAP® Supply Chain Management • Implementation by a 12-member core • Big-bang implementation of SAP APO
application, including SAP Advanced team with a variety of functional expertise functionality for demand planning, supply
Planning & Optimization component • Strong governance and guidance by a network and production planning, and
steering committee consisting of detailed scheduling in 15 months
Implementation Partner senior management • Minimal integration requirements
IBM Business Consulting Services • Progress monitored along 6 key areas: • Elimination of need for external
business benefits, work schedule, project technical support
Titan Industries Ltd. manufactures scope, team and infrastructure, stake- • Support from SAP in all phases
holder commitment, and risk assessment of implementation
India’s largest and best-known • Strong support and process audits from
range of personal accessories in- the implementation partner, IBM Business
Consulting Services
cluding watches, jewelry, sunglass-
es, and prescription eyewear. It is
Financial and Strategic Benefits Operational Benefits
India’s largest watch manufacturer • Common platform for collaborative Key Performance Indicator Impact
and the 5th largest in the world, forecasting
Mean absolute percentage –30%
• Improved planning accuracy and on-time
To tightly connect its entire supply completion of production planning forecast error
chain and increase its competitive • Improved decision making for production Production planning –57% (from 7 days
scheduling in constrained situations lead time to 3 days)
advantage, Titan implemented the • Transportation cost, route, and
SAP® Advanced Planning & Optimi- load optimized Production alignment +8% (Titan brand)
• Improved distribution efficiency, leading to with resources +3% (Sonata brand)
zation component of the SAP Sup- higher availability at carry-forward agents
Sales +20% (5% directly
ply Chain Management application (CFAs), leading to increased sales
• Improved shop-floor alignment and due to SAP APO)
through its internal project
machine utilization Availability of +8% (Titan brand
“Connect.” • Greater visibility into assembly-plant-level finished goods at CFAs)
plans and optimized production plans
+3% (Sonata brand at CFAs)
SAP Business Transformation Study
Consumer Products – Consumer Durables and Appliances
“We had evaluated other planning solutions such as i2 and Adexa. . . . However, www.sap.com /contactsap
the decision in favor of SAP APO was taken considering the product’s tight
integration with SAP software and its maturity.”
C. S. Ramesh, General Manager – IT, Titan Industries Ltd.
Watching Its Growing Supply core team had a combination of functional functionality for supply network plan-
Chain expertise covering sales, supply chain, ning optimization to create a feasible,
manufacturing planning, IT, technical synchronized, and optimized supply
Titan Industries Ltd., which started as a issues, and SAP software. Implementa- plan in a short- to midterm horizon. Its
joint venture between the TATA Group tion partner IBM Business Consulting production plans are feasible because
and the Tamil Nadu Industrial Develop- Services (IBM BCS) delegated a four- capacity constraints are being consid-
ment Corporation, has become one of member team to help in the project ered, resulting in higher alignment with
the most successful and respected implementation. the execution plan. Production planning
Indian brands. Its growth has increased and detailed scheduling optimization
the complexity of the company’s supply Open communication was another key to improved shop-floor alignment and
chain for watch components and success. The steering committee headed machine use. Titan has implemented a
assembly – more than 2,200 types of by the COO monitored the scope and deployment optimizer for dispatching
watches, 10,600 finished components, progress of “Connect.” Reviews were finished products, a process which is
5 manufacturing plants, 55 distribution conducted by internal subject matter run daily.
areas, and 35 vendor locations. experts, and IBM BCS experts carried
out process audits during the design and The “Connect” project earned a
The SAP® ERP application had already blueprint stage. Finally, SAP Germany Customer Excellence Award from SAP
helped Titan to integrate its business provided support in terms of new executa- in the “Business Innovation” category
transactions, improve alignment to the bles, extra parameters for product decom- and was recognized by PCQuest
market, and reduce inventories. position, parallel processing option, and magazine for best implementation
However, Titan now required a planning runtime monitoring during the realization in India.
solution to improve its forecast accura- and final preparation stage. Titan’s ambi-
cy, product availability, and feasible tious strategy of a big-bang implementa- The Way Forward
production scheduling. Following an tion of SAP APO functionality for demand
assessment conducted by external con- planning, supply network, and production Looking ahead, Titan plans to continue
sultants, Titan chose the SAP Advanced planning and detailed scheduling was driving secondary sales-based forecast-
Planning & Optimization (SAP APO) successfully completed in 15 months. ing and explore collaborative forecast-
component to handle the complexity of ing. In the longer term, the company
production, capacity constraints, and a Tapping the Benefits wants to differentiate its planning strat-
multitier distribution channel. egies for products with long lead times
Today, Titan has integrated its supply to improve market alignment. With SAP
Tightly Connecting the Supply chain to streamline its demand planning APO improving forecasting and helping
Chain country-wide as well as by region. In turn, in production planning, the time is near
this has led to higher availability of fin- for Titan to realize overall inventory
Implementation of the supply chain man- ished products at the 32 carry-forward optimization in the supply chain.
agement project “Connect” across the agents across the country. Sales have
enterprise in three phases required increased by 20%, out of which Titan can
meticulous project management at all attribute at least 5% as a direct result of
stages of deployment. The 12-member the SAP APO implementation. Titan uses
50 092 004 (08/10)
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