The success story of TISCO ERP

17 Feb

Tata Steel is one of the most old steel giant of India which was established in 1907, and it was started to offer multiple products and offerings to the customer. The company follows the vision of maximising the value to the customer and stakeholders through product innovation and improvisation. 

Tata steel is one of the best top 10 global steel companies which is the capacity of having more than 29 million tonnes per annum. The company has introduced more than one brands like - tata shakti, TISCON, tata steelium etc.

Why ERP in TISCO - 

If we analyze the work culture of TISCO there were following problems -

  • The information system was not customer friendly

  • A very low attention was paid to the customer demands

  • The information system was too complex and not error free

To set back from these problems TISCO felt that there is no need of information system and there is the need of other type of information system which can provide the real time data and can interconnect the customer demands with the company work culture.

TISCO started ERP software of SAP R/3 to streamline the core processes of the all business entities and many modules were implemented from the software like - video conferencing, video streamlining, VoIP and wireless integration with mobile cell phones for mobile computing.

Benefits of ERP software in TISCO -

  1. There were many benefits happened to the company in terms of financial, technical and managerial parameters.

  2. There was the total cost of 40 crores INR and within next months they were able to save 33 crores cost. 

  3. The manpower cost was reduced from 200$ per ton to the 140$ per ton in 2000. The inventory cost was drastically reduced to 190 to 150 rs per ton.

  4. SAP implementation has empowered the company which can store the customer data and provide the insights of customer analysis in proper decision making.

TISCO is regularly working on the improvement in their existing information system, which is benefitting to them in every possible manner.

Conclusion -

From today’s case study it has been proven that the ERP has benefitted to the competitive industry of steels and has proven its usability. The overall ERP implementation in tata steel has established the data transparency and transparency in data is really necessary for the proper decision making.     

Resource - university ERP

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