IBM Case Studies Racold Thermo gains competitive advantage in a heated market with SAP and IBM

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	Racold Thermo gains competitive advantage in a heated market with SAP and IBM IBM

Racold Thermo gains competitive advantage in a heated market with SAP and IBM

IBM

Technology Category	Analytics & Modeling - Real Time Analytics Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Electronics
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Demand Planning & Forecasting Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Real Time Analytics

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Electronics

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

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 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.

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.

Impact #1	With a centralized and standardized ERP platform in place, and SAP BusinessObjects BI solutions supporting improved insight and reporting, the company has enabled easier management and better visibility of all aspects of its business.
Impact #2	The company has standardized global processes and connected teams to timely information, boosting efficiency and unearthing operational insight.
Impact #3	The company is now able to compare the actual cost movement, and see any variances at a product level – supporting better pricing decisions.

Impact #1

With a centralized and standardized ERP platform in place, and SAP BusinessObjects BI solutions supporting improved insight and reporting, the company has enabled easier management and better visibility of all aspects of its business.

Impact #2

The company has standardized global processes and connected teams to timely information, boosting efficiency and unearthing operational insight.

Impact #3

The company is now able to compare the actual cost movement, and see any variances at a product level – supporting better pricing decisions.

Benefit #1	The company plans to double its turnover in the next three years.
Benefit #2	The company plans to expand its retail footprint by 50 percent in the next three years.

Benefit #1

The company plans to double its turnover in the next three years.

Benefit #2

The company plans to expand its retail footprint by 50 percent in the next three years.

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Overview

Racold Thermo gains competitive advantage in a heated market with SAP and IBM

Operational Impact

Quantitative Benefit