SKH Metals Limited

Facilitating two-hour just-in-time manufacturing

Published on 12-Oct-2010

Validated on 16 Dec 2013

"We now have data visibility across the entire enterprise." - Sunita Bahadur, information technology manager, SKH Metals Limited

Customer:
SKH Metals Limited

Industry:
Automotive

Deployment country:
India

Solution:
Smarter Planet

Smarter Planet:
Smarter Logistics, Smarter Supply Chain

Overview

SKH Metals Limited is an auto component supplier in India. It has three principal manufacturing locations that supply automakers throughout the country.

Business need:
In the intensely competitive auto components marketplace, manufacturer SKH Metals wanted to shift from the old style of supplier relationship toward a just-in-time partnership with the customers it supplies.

Solution:
SKH Metals selected SAP ERP applications, including financials, controlling, materials management, sales and distribution, production planning, warehouse management, quality management and materials requirements planning, supported by IBM DB2® information management software.

Benefits:
• Captures sales orders automatically, helping to optimize manufacturing and meet just-in-time requirements from customers, allowing all SKH Metals locations to operate as a single enterprise • Reduces finished goods stock position by 50 percent, from four to two hours, with a tightly integrated manufacturing chain that meets customers’ just-in-time schedules • Releases cash formerly tied up in inventory back to the business for reinvestment in new projects

Case Study

SKH Metals Limited

India
Automotive

Solution Components
• IBM DB2 for Linux® software
• IBM DB2 for Microsoft® Windows® software
• SAP ERP software



SKH Metals Limited is an auto component supplier in India. It has three principal manufacturing locations that supply automakers throughout the country.

The Need
In the intensely competitive auto components marketplace, manufacturer SKH Metals wanted to shift from the old style of supplier relationship toward a just-in-time partnership with the customers it supplies. To do so, SKH Metals needed to gain an end-to-end view of its order, manufacturing, stock and logistics chain. Existing systems could not support this strategy, and SKH Metals needed to switch to an integrated enterprise resource planning (ERP) solution to allow it to take the next steps in its business evolution.

The Solution
SKH Metals selected SAP ERP applications, including financials, controlling, materials management, sales and distribution, production planning, warehouse management, quality management and materials requirements planning, supported by IBM DB2® information management software.

What Makes it Smarter
• Captures sales orders automatically, helping to optimize manufacturing and meet just-in-time requirements from customers, allowing all SKH Metals locations to operate as a single enterprise
• Reduces finished goods stock position by 50 percent, from four to two hours, with a tightly integrated manufacturing chain that meets customers’ just-in-time schedules
• Releases cash formerly tied up in inventory back to the business for reinvestment in new projects

“We now have data visibility across the entire enterprise.” — Sunita Bahadur, information technology manager, SKH Metals Limited

For more information
Please contact your IBM sales representative or IBM Business Partner.
Visit us at:

ibm.com/automotive

Products and services used

IBM products and services that were used in this case study.

Software:
DB2 for Linux, DB2 for Windows

Legal Information

© Copyright IBM Corporation 2010 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States of America September 2010 All Rights Reserved IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet, the planet icons, and DB2 are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. IMC14594-USEN-00