Proton ties up with Accenture to revamp ERP
Proton has announced a tie-up with renowned consulting firm Accenture in a project to revamp the car maker’s Enterprise Resource Planning (ERP) system. The project is expected to take 21 months and help Proton improve its overall operating efficiency, enable faster and more effective decision making, and improve responsiveness to customer requests.
For the uninitiated readers, Enterprise Resource Planning usually refers to a centralized computer framework in which various company resources are tracked and managed. In engineering-intensive companies like Proton, such resources also include the various engineering data such as schematics and specifications stored in the company’s R&D repository.
ERP is especially useful in companies whose operations span multiple sites. A good ERP system ensures good integration in the operations of the company’s various branches. A poorly setup ERP system, and this happens very often, results in situations akin to the left hand not knowing what the right hand is doing.
Proton’s initiative in bringing its ERP up to scratch is part of the earlier announced Propex programme of 13 major initiatives to transform the company. With a strong ERP in place to manage and regulate the allocation and flow of company resources, Proton hopes that this would bring about quality improvements, cost reductions, shorter delivery times and reduced inventory levels.
Speaking on the project, Proton Holdings Bhd Group Managing Director Dato’ Syed Zainal Abidin Syed Mohamed Tahir said, “As we move on to our business expansion programme reaching out to our international markets under the AMLO (ASEAN Multi-Local OEM) strategy, it is important for us to be able to improve our customer satisfaction through more effective end-to-end order-to-delivery times. An integrated and seamless platform is crucial to ensure the efficiency and productivity of our regional operations, and to ensure our responsiveness to both our local and regional markets.”
The project is group-wide, encompassing all of Proton involving even Lotus, and will cover all aspects from order to delivery. This includes everything from demand forecasting, finance, procurement, manufacturing and distribution network. A major focus will be on improving working relationships between Proton and various members of the supply chain, from suppliers to dealers.
With some 25 years’ worth of archives in its stores, the migration process from the existing ERP to the new one is set to be a lengthy one. Facilitating Proton’s upgrading is Accenture’s very own Accenture Global Manufacturing Business Solution (AGMBS).
Describing the abilities available at Accenture’s disposal for the task, Mr Luca Mentuccia, Accenture’s Global Automotive Industry Managing Director said, “Combining industry and business process knowledge with unique insights into existing and emerging technologies, we have developed a range of innovative, end-to-end offerings for the automotive industry, spanning consulting, systems integration and outsourcing. Deploying these solutions, we can help clients to identify and enter new markets, increase revenues in existing markets, improve operational performance, and deliver products and services more effectively and efficiently – and ultimately outpace their competitors.”
