Jaguar Land Rover (JLR) Brazil in Sao Paolo can hardly keep up with demand. The subsidiary consistently sells every car shipped from UK headquarters. Despite this impressive achievement, doing business in Brazil does have its challenges.
The complex tax system means administrative costs can be prohibitively high, and heavy government regulation drives up labor costs. In addition, JLR is a multinational company, owned by Tata Motors in India with headquarters in the UK. So compliance, back-end integration, and smooth deployments were essential requirements for JLR Brazil.
Business One: An easy choice
JLR Brazil implemented SAP Business One software in January 2010, becoming SAP’s 30,000th customer running Business One. The implementation took four months and was carried out by the SAP-certified channel partner, RAMO. Prior to implementation JLR Brazil integrated its back-end applications with those at headquarters.
SAP Business One, the all-in-one solution for small businesses, is well-suited to the needs of subsidiaries like JLR Brazil. The solution saves time and money by automating core business processes, including Financials, Production, Customer Relationship Management, Purchasing, Reporting, Sales, Service, and Marketing.
At the same time, it allows businesses to customize functionality through industry-specific add-ons from over 1,150 partners.
Customized for profit
JLR Brazil uses nearly all of the included software functionality except for Production and Material Requirements Planning, which are not necessary for the subsidiary as all cars are manufactured in the UK.
Administrative costs were reduced through automated logistics, sales, distribution, financials, and tax compliance processes. And as a result, JLR Brazil has been able to double its annual revenue while increasing staff by only 20%.
In order to address specific tax and regulation challenges of doing business in Brazil, JLR Brazil implemented a custom add-on for intercompany integration from Mastersaf, a Brazil-based company that develops fiscal and accounting software.
Now JLR Brazil is able to complete closing processes only seven days after the end of the month and fulfill all their tax and accounting obligations in a timely manner.