SAP Drives Growth at MRF

Global Tyre Manufacturer chooses SAP to replace competitor applications to support growth strategy

IndiaSAP India today announced that MRF Limited, India’s leading tyre manufacturing company, has selected SAP for Automotive solutions to support efforts to drive operational excellence across its global organization. Following a detailed evaluation process, MRF opted to replace existing applications from Oracle in favour of SAP’s leading SAP ERP and SAP CRM solutions, based on the SAP NetWeaver platform. With global operations manufacturing and distributing tyres to more than 75 countries, MRF was faced with the need to improve visibility throughout its entire value chain from raw materials to finished-goods partners in order to better plan for and adapt to fluctuations in global supply and demand. With SAP the company will be able to seamlessly integrate data between logistics and finance, eliminating redundant work and saving time and operational costs. With this, all major tyre companies in India run SAP solutions. MRF has selected Siemens Information Systems (SIS) as the partner for implementation, HP Integrity servers and IBM DB2 as the database, on which this SAP deployment will happen.

Today’s global tyre manufacturers are faced with volatile pricing of raw materials such as rubber, and need to be able to plan for fluctuations in customer demand, changes in materials prices, availability of materials while working to meet strict timelines for shipments. In addition, as competition increases in an expanding global marketplace, it is necessary for manufacturers to monitor and respond to competitor behaviour specific to pricing, promotions and discounts.

“At MRF, we selected SAP after a detailed evaluation process,” said Prince Azariah, chief information officer, MRF Ltd. “SAP came out on top in terms of product superiority, post sales support, record customer satisfaction and we’re confident that taking advantage of SAP’s enterprise SOA product roadmap would be a strategic decision supporting our plans for continued growth.”

MRF will implement SAP solutions at its six global manufacturing plants and 100 sales offices including the company headquarters in Chennai. The implementation is currently underway with a go-live expected in the fourth quarter of 2007. MRF will also establish an automotive user group within the company in its efforts to better user reception and ensure better ROI.

“SAP is proud to be chosen as the catalyst for MRF’s transformation journey,” said Guenter Lasser, director, Automotive Business Unit, SAP. “With SAP for Automotive solutions and SAP NetWeaver as the platform for collaboration, SAP will provide MRF the best-suited solutions to enable innovation, deliver better value at lower costs with a broad range of best practices in the industry.”

With this deal, MRF joins a growing number of Indian enterprises who have replaced their existing solutions with SAP. In 2006, over 20 Indian enterprises moved on to SAP solutions from various other solutions. Enterprises including Havells, Umrin Products, Camlin, Shriram Pistons & Rings among others, decided to migrate to SAP solutions from their existing software solutions.