Vega Implements MS Dynamics ERP

In a bid to integrate and consolidate all of its distributed systems and processes and make optimum use of its resources, Hyderabad based Vega Conveyors & Automation Ltd is deploying Microsoft Dynamics Navision ERP.

A manufacturer of a wide range of products and solutions for material handling systems, industrial automation/packaging and other related fields, Vega hopes to put in place tighter inventory controls, an effective monitoring system and perform better financial management by implementing the ERP.

Unique business model

Operating since 1994, the company follows a business model wherein close to 80% of all its manufacturing jobs are subcontracted and out sourced to smaller discrete component manufacturers. Vega assembles and integrates these different parts and components at its facilities when it receives them from different vendors. This business model puts them in a unique position, one which requires a highly efficient and sophisticated subcontracting and inventory operations.

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To manage this rather demanding task, the company had been using a specially tailored offering from Kompsos, a Hyderabad based ISV. However, unfortunately for Vega, the Kompsos solution wasn’t delivering on its promise and meeting company’s expectations.

Talking to Biztech2, Srinivas Garimella, managing director, Vega said, “We really needed to better our operations as our earlier system was not allowing us to release purchase orders on time to our subcontractors and we were not able to follow up with our vendors. In addition to these there were quality issues, lack of proper financial planning and management and several other issues which often hampered our commitment to deliver products on time to our customers."

Enter MS Dynamics NAV

With an intent to turn things around on the IT front, Vega started looking for a solution that would meet all its requirements and help establish a streamlined and closely integrated IT infrastructure. Hence, when B2B Software approached Vega with MS Dynamics ERP and demonstrated its capabilities, Vega gave them the go-ahead for the deployment.

B2B kicked off the implementation in late April this year and the entire process is expected to be complete in the next few weeks.

The key processes the new ERP is expected to integrate include Marketing & Sales, Purchase & Procurement, Subcontracting, Stores & Inventory, Admin & HR, and Accounts & Finance. The company is using IBM Servers and clients which are distributed over two of its manufacturing units and working facilities. These locations are to be connected via a wireless network.

ERP to support growth initiatives

As a company, Vega has been clocking a CAGR of close to 75% for the past 5 years and according to Garimella keeping pace with this kind of growth is by no means an easy task.

According to him, “The key to business growth the next five years is in being able to deliver consistent quality and newer products to customers quicker than they anticipate. In order to achieve this, we will need to be efficient and nimble footed at functions such as driving down supplier costs, sourcing, improving supply chain management, project management, customer relationship management notwithstanding the most important challenge of finding high quality people. We hope that by automating business processes and functions using IT, we are able to address a lot of those issues if not all, to stay ahead of competition.”

Vega hopes to go live with the ERP before the month end.