ERP IMPLEMENTATION

IN
TATA Motors
ASHISH DAgA
(07BS0835)
TATA MOTORS
Reasons For Implementation of ERP
Reasons for the implementation of ERP
WHY SAP: Tata motors
perspective
SAP is the world leader in ERP systems for
manufacturing companies
Ready made processes for auto manufacturers
level of customization required is less
The success of SAP SCM module hinged on the
success of the Tata Motors implementation
TATA MOTORS A Digital Enterprise
Goals
 SAP Product Implementation

Functional and Technical Consulting for

implementation of mySAP portfolio of products
SAP R/3 Implementations including Industry Specific
Solutions
BIW, CRM, SRM, APO, SCM, Enterprise Portals
Change Management
SAP Implmentation Audit
Identification of Risk Factors
Risk mitigation Planning
Solution / System Optimization
System Operations Plan
 Project Scope - mySAP

Phase 1
Phase 2
 Rechristened as Project VECTOR:
Value Enhancement by Collaboration
through Technology and Operational
Restructuring

Project VECTOR Mission:

Revolutionize the supply chain by
uncovering the hidden value through
technology driven Sourcing and
collaborative Purchasing
 The ultimate goal of project VECTOR is stated in bullet points
below:
Automate procurement process
Enhance Supplier capability through catalogue content
management
Streamline procurement process across locations
Quick sourcing through live auctions
Clear visibility of supplies and payments status to suppliers
through portal.
Bring global Spend visibility to maximize negotiation power
Parts rationalization through spend analysis
Competitive price through live auctions
Harness state of the art technology Netweaver, Web enabled
collaboration
 VECTOR Project
Schedule
Organization Chart for implementation
SAP Commitment
SAP SCM
module
success
hinges on a
robust
implementatio
n in TATA
Motors.
Logical Structure
Physical Structure
e-Procurement
Supplier Relationship Management
SRM
Tata Motors has used the following features
Self Service procurement.
Catalog and Content Management.
Strategic Purchasing Scenario: Spend Analysis, Contract
Monitoring.
Sourcing Scenario: Rfq, Rfx.
Supplier Self Registration Module.
Live Auction Cockpit
Order Collaboration Scenario with full support for Goods
Movement.
Contract Re-Negotiation Scenario for Retrospective Price
Amendments.
Usage of SAP Netweaver: People Integration, Process Integration
and Information Integration
Purchase Process Flow

Tender Floatation Evaluation of tender

Selection of
Vendor

Material transport & Documents Exchange

Material Acquisition
Evaluation of tender
Parameters
Quality aspects
Competitive price rates among
consignor
Freight rates
Price conditions ( transit insurance,
packaging )
Tax structure to be applied on
consignor Location basis
Business Process Supply Strategy Development
DEFINITION
Supply Strategy Development is Strategy
Data
initiated by assessing the
organizations supply needs. collection collaboration

Products and/or product groups are

combined into sourcing categories.
Categories are positioned according to
their business impact.
Market information, technology and Strategic
industry trends are collected along analysis
with information about the supply www..
base.
Based on the analysis of this
combined information a supply
EXAMPLES
strategy is derived for each of the SRM COMPONENTS
souring categories.
A company opens a new facility in SAP Enterprise Buyer (Prof. Ed.)
East Asia, and defines the sourcing SAP Decision Support
strategy for that region. SAP Business Information
Analysis of hidden procurement Warehouse
costs kicks off a supplier de- SAP Collaborative Room
proliferation initiative.
SAP Supplier Collaboration Services
 Supply strategy development
SUPPLY STRATEGY DEVELOPMENT
Supply Strategy
Supply need Business impact collaborati
market
assessment assessment on
assessment

AP Business Information Warehouse

AP Decision Support
AP Collaborative Room
AP Supplier Collaboration Services
Product key mapping & synchronization
cross multiple backend systems
Hub-based analytics architecture SAP Business Information Warehouse
Cross-organization purchasing visibility SAP Decision Support
Collaborative demand aggregation Import and analysis of
using documents in C-ROOM Dun & Bradstreet data

SAP Enterprise Buyer Pro

SAP Business Information Warehouse SAP Collaborative Room
SAP Decision Support SAP Supplier Collaboration Services
Vendor key mapping & synchronization Collaborative document mgmt with C-ROOM
cross multiple backend systems Sharing of spend reports & research documents
Cross-organization supply in a commodity team
base analysis Structured discussions about documents
Contract & Spend analysis Trigger RFQ process via C-ROOM
Business Process Supplier Selection (commodity goods)

DEFINITION
Bidding
Strategic Sourcing is the process of scenario
sourcing a strategic contact for a
material group where design
collaboration is less important.
A request for proposal is submitted to
qualified suppliers and responses are
evaluated. A contract negotiation
phase usually follows. RFQ / Bid Strategic
Reverse Auction Analysis Contract

EXAMPLES SRM COMPONENTS

Consulting company reduces SAP Enterprise Buyer Professional
supplier base, by aggregating SAP Business Information
airline tickets to one airline. Warehouse
Bank aggregates paper demand to SAP Decision Support
improve MRO pricing. SAP Dynamic Bidding
 Supplier Selection (commodity goods)
Commodity Sourcing
Initiate Publish Bid analysis Determine
Create and
RFQ/Aucti RFQ/Aucti and
submit bid Winner
on on evaluation

SAP Dynamic Bidding

RFQ/Reverse auction
capabilities in DB
Initiate RFQ from C-ROOM SAP Enterprise Buyer Pro
SAP Dynamic Bidding
Contract Management in EBP
Integration of DB and EBP

SAP Dynamic Bidding

Online bidding in DB
Attach document to bids

SAP Dynamic Bidding SAP Dynamic Bidding

RFQ/Reverse auction SAP Business Information Warehouse
capabilities in DB
SAP Decision Support
Bid invitation via e-mail
Export of RFQ/Bid to BW
Multi-parameter bid analysis
1
 Supplier Collaboration
Extend process control to your suppliers
Design Order Collaborative
Collaboration Collaboration Replenishment
New product design Account Stock requirement
Collaborative project information visibility
management Bidding event Supplier managed
notification inventory
Order management Advance shipping
Invoice processing notification
Dispute resolution

Reduce administrative
overhead for supplier
communication
Supplier Supplier
Registration Connectivity
Supplier self- Integration broker
registration Supplier network
Supplier
qualification
 Supplier Self-Registration

 Order Collaboration
Functions & Benefits
BUYER SUPPLIER Documents supported:
Purchase Order
Release schedule
Order Response
Purchase
Order/Change order Confirmation/ASN
Purchase Sales
SalesOrder
Order
Invoice/ERS Invoice
Order
Order
Order Order Response*
e-mail notification for
Order
response
Order
Orderresponse
response new/changed orders/release
response Confirmation/A schedules
SN
Confirmation/ Confirmation/
Confirmation/
ASN Receipt** Confirmation/ Overview of all
ASN ASN orders/release schedules
ASN
Invoice* Print & download
functionality
Invoice Invoice
Invoice Invoice
Receip**t Service Agent for Service
ERS Invoice Entry
Confimation/Service entry
creation in easy to use Web
Note that EBP-SUS scenario is only fully supported UI for EBP-SUS scenario
in local deployment mode.
ASN creation in easy to use
* Order Response and Invoice creation is not supported for Release schedule Web UI for MM-SUS scenario
** Receipt message is only supported for EBP-SUS scenario
Easy invoice creation* based
on Confirmation/ASN or
orders
 Supplier Self Service
SUPPLIER SELF SERVICE
Content Receive Respond to Data
Capture Invoice
Creation orders Orders

SAP Supplier Self Service

AP Supplier Self Service Supplier manages orders SAP Supplier Self
Supplier content Management Service
Process order acknowlegement
Suppliers can modify their catalog data or Create Invoice based
can manually create new catalog data Changing status of order
Changing of delivery times, on order or without
reference
quantities etc. to order
Changes are distributed to procur- Data is distributed to
ement system via xml documents procurement system
via xml document

SAP Supplier Self Service

SAP Supplier Self Service
Receive order via xml documents
Orders can be viewed
Ability to download orders
Entering the information about
services performed and Material needed
Data distribution to procurement
system via xml document
Web reports accessible to suppliers
 Business Process Self Service
DEFINITION
Procurement
Self Service Procurement is the Catalog
process of purchasing non-strategic requisitioning
goods, i.e. goods not directly linked to Purchase
the value chain (often called MRO Order
maintenance, repair and operations
items).
Demand is generated mostly ad hoc by
humans. Users are all employees in an
enterprise, not just professional Approval
buyers. Example commodities: office
material, work clothes, IT equipment.

EXAMPLES SRM COMPONENTS

Catalog buying of office materials, SAP Enterprise Buyer Professional
IT equipment and more by Requisite BugsEye
employees.
Employee requesting some special
materials or service not found in
catalogs or frame contracts.
 Self Service Procurement
SELF SERVICE PROCUREMENT
Requisitio Goods Invoice Accountin
Approval Ordering Payment
n Received Handling g

SAP Enterprise Buyer Pro SAP Enterprise Buyer Pro

Requisite Bugs Eye Centralized procurement
Catalog buying from any OCI- using EBP
certified catalog. Order tracking functionality
Off-line access via mobile
devices mySAP Enterprise Buyer
Pro
Download toAccounts
Payable/General
SAP Enterprise Buyer Pro Ledger systems
Workflow for order approval
SAP Enterprise Buyer Pro
Invoice verification against
purchase order and goods
SAP Enterprise Buyer Pro delivery note
Standalone or backend-integrated
procurement dependent on
product category

** Selected customers only

SRM Supplier Collaboration
SRM Live Auction Cockpit
Overall Benefits
Overall Integration of the departments Finance, Sales,
Production etc.
On Demand Decision making data
Backward Demand Integration
Reduction in inventory cost as real time info is available
Reduction in production bottleneck with better
scheduling
Seamless integration across the Supply Chain
Standardization of processes across plants at various
locations
Reduction in manual efforts of Invoice Capture
Reduction in Transaction Cost & Compress Cycle time