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Oracle Implementation for Philips Electronics Corporation

Sourav Kumar Jain S 1321437

Oracle Implementation for Philips Electronics Corporation ERP Product Implemented - Oracle Application R11.0.3 Client Philips Electronics Corporation Implementation Support Infosys

The Client Philips, the client enterprise has a revenue base of over US$ 1 billion dollars. It employs close to 1,000 people spread across multiple office locations with a very large number of warehouses. The parent company makes and markets semiconductors, display and storage devices for the computing, wireless, networking, automotive and digital consumer markets and is the third largest semiconductor company worldwide in terms of global sales for the year 2002.

Business Need Creating value for customers by continuously improving business processes to deliver on time, every time is critical to driving growth. This is a big challenge for the client considering the nature of the industry, which works on extremely short lifecycles, and therefore an impeccable 'on-time delivery' record is a crucial success factor. The legacy system, however, lacked the flexibility to enable its operations to absorb market fluctuations. Therefore, the need to implement a robust business process to keep ahead of competition, reduce overhead costs and improve cash flow. From a technology point of view, the diverse existing systems, built on heterogeneous technology platforms, had to be integrated.

Challenges The key to success, however, depended in integrating disparate systems and achieving process efficiencies. The challenges were:

Keeping pace with the competitor's reduced distribution times was tough and customer service enhancement was not easy either

Legacy systems of the client hampered the synchronization of its operations with market fluctuations.

As the customer is in an extremely short life-cycle industry, the 'on time delivery' record had to be improved while keeping inventory levels and costs low

The client was operating on disparate systems. A large number of satellite systems were being used that were not integrated with the host system

Operating on disparate systems added to the complexities, as there were a large number of satellite systems running independent of the host

The Infosys team had to integrate the new system with the satellite systems and put all new processes in place in a very short time frame

Our Solution Equipped with its proprietary IntERPrize methodology, and strong Oracle Applications' consulting and its unique global delivery model, Infosys set about to integrate best-in-class Oracle ERP with custom applications to help the client improve their business processes. As part of this mandate, Infosys undertook the following:

Evaluation and implementation of Warehouse Management System (WMS)/Transport Management System (TMS) solution

Standardization of performance metrics across the organization to streamline the client's internal processes. Infosys was involved in business process definition, program management, project management, package evaluation, package implementation, key user training, and post-production support

Strategy Leveraging the IntERPrize, a team of 45 experts from Infosys decided on the methodology and approach to implement the Oracle Application R11.0.3 to achieve process efficiencies. Infosys, using Oracle solutions, streamlined the manufacturing, distribution, procurement and financial accounting processes of the client. These were integrated with i2 Technologies' Demand Planner, a forecasting and planning tool. Also, a new enterprise WMS / TMS product from HK Systems was evaluated and implemented for improving order-execution efficiency, outbound visibility, and reverse logistics. (The applications of i2 Technologies and HK Systems run on Sun Solaris 5.6 and Windows NT platforms.) An enterprise-wide data model was prepared for standardizing performance metrics across the organization and streamlining the client's internal processes.

Benefits Infosys completed the implementation in a record 18 months, which was 50% faster than the timeline given by competitors and reflected a significant increase in ROI for the client. Other tangible benefits included the following:

The implementation imparted high visibility to the supply chain and improved demand planning and execution

There was a significant improvement in cash flow due to real-time processes. A large number of processes have been automated which has increased the efficiency and reduced overhead costs

The client witnessed significant improvement in its 'on time delivery' record due to the processes and applications implemented by Infosys

There was closer understanding of business processes, leading to continuous, incremental changes since post-implementation

A WMS/TMS package was evolved along with an Online Analytical Processing (OLAP) tool, which resulted in an improved integrated system