VELAMMAL ENGINEERING COLLEGE

(An Autonomous Institution, Affiliated to Anna University, Chennai )

DEPARTMENT OF MANAGEMENT SCIENCES

ASSIGNMENT

Name of the student : YUGESH C

Register Number : 113221611050

Degree : MBA

Year : II

Semester : IV

Batch : 2021-2023

Subject code & Title : 21BA6241T - ENTERPRISE RESOURCE PLANNING

Topic : ERP IN MARUTI SUZUKI

Submitted to : Ms. CHARUPREETHY C

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 VELAMMAL ENGINEERING COLLEGE
(AN AUTONOMOUS INSTITUTION), Chennai 600066
DEPARTMENT OF MANAGEMENT SCIENCES
NAME: YUGESH C SUBJECT CODE:21BA6241T
REG.NO: 113221611050 SUBJECT NAME: Enterprise Resource Planning
YEAR: II SUBJECT FACULTY: Mrs. C. CHARUPREETHY
SEMESTER: IV SUBMISSION DATE: 01.04.2023
ASSIGNMENT RUBRIC
Below Approachingn At Exceeds
Parameters (100) Standard Standard Standard Standard 100% TOTAL MARKS
50% 75% 90%

1. Direction and
Understanding of
Assignment Topic. (15)
Introduction, Information gathering
about the organization.

2. Detailed
Overview (40)
Detailed explanation
and understanding
about the topic

3. Mechanism and draw

Conclusions with suggestions
to identify related outcome.
(30)

4. Quality of Assignment
paper (15)
These errors include spelling,
grammar, word usage,
capitalization, presentation,
paragraphing etc.

TOTAL MARKS:

NAME OF THE FACULTY SIGNATURE

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 TABLE OF CONTENTS

S.NO CONTENTS PAGE NO

1 INTRODUCTION 4
1.1 BACKGROUND 6
2 EVOLUTION OF MARUTI SUZUKI 7
2.1 FUTURE OF MARUTI SUZUKI 10
2.2 OBJECTIVE 11
2.3 SCOPE 12
2.4 LIMITATIOS 12
2.5 MARUTI SUZUKI’S VISION 12
2.6 Maruti Suzuki’s Mission 13
3 LEADERSHIP 13
4 ERP 14
4.1 COMMON ERP MODULES 15
4.2 ERP INTEGRATION 17
4.3 ERP DEPLOYMENT TYPES 17
5 BAVARIAN AUTO ADVANCES MISSION 20
WITH OPEN-SOURCE ERP SOLUTION
6 BENEFITS 23
7 ADVANTAGES 24
8 CONCLUSIONS 25

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1 INTRODUCTION

MARUTI Suzuki India Limited formerly known as MARUTI UDYOG Limited is an

automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle
manufacturer Suzuki Motor Corporation. As of January 2016, it had a market share of 47% of
the Indian passenger car market. MARUTI Suzuki manufactures and sells popular cars suchas
the Ertiga, Alto, Swift, Zen, Celerio, Swift-DZire,SX4 and Omni. The company is
headquartered at New Delhi.

In February 2012, the company sold its ten millionth vehicles in India. It is a type of public
company is deal in Automotive, earlier their name was MARUTIUDYOG Limited. It was
founded in 1981, its headquarters in New Delhi, India. Their key people R.C. Bhargava
(chairman), Kenichi Ayukawa (Managing Director & CEO).Their product line is in
automobiles. Net income Rs.4, 630.90 crore (US$690 million) (2016) Number of employees
working in the organization are 12,900 (2015), their parent company name is Suzuki Motor
Corporation. The slogan of MARUTI Suzuki is “WAY OF LIFE”.

The automotive industry is at the center of India’s new global dynamic. The domestic market
n expanding rapidly as incomes rise and consumer credit becomes more widely available.
Manufacturer’s product lines are being continually expanded, as is the local automotive
manufacturing base. Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global automotive industry solution
high up the automotive value chain. The automobile manufacturing industry in India dates back
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to 1948. At that time there were just three companies manufacturing passenger cars i.e. Premier
Automobiles in Mumbai, Hindustan Motors (HM) in Kolkata & Standard MARUTI Motors
Products India in Chennai. In early years the Indian automobile Industry faced several
challenges and road blocks to growth because in those days automobile manufacturing was
subject to restrictive tariff structure, strict licensing and limited avenues for expansion. Due to
lack of competition initially the prices of cars were extremely high. And the customers had to
wait for a long period of time for car. Before Independence India was considered as a market
for imported vehicles. In the 1950s the arrival of Tata Motors. Mahindra & Mahindra & Bajaj
Auto led to steadily increasing vehicle production in India. In 1953 the government of India
and the private sector launched efforts to create an automotive component manufacturing
industry to supply to the automobile.

The first commercial car from the joint venture company was launched in 1983 called Maruti
800 which was very popular. In 1984 they launched Maruti Omni which fits one full size
family. In 1985 they introduced Maruti Suzuki Gypsy. In 1997 company exposed to foreign
market and imported 500 cars to Hungary. In 1990 they launched three box cars with 1000cc
engine; this was the major transformation in the company. In 1992 Suzuki Motor Corporation
increased its share value to 50% in Maruti. Later year they launched with Maruti Zen and in
1994 they introduced Maruti Esteem into the market.4

Maruti has inaugurated its second plant in 1995. In 1997, Maruti started Maruti Service Master
as model workshop to take care of its sales in India. In 2002, Suzuki Motor Corporation
increased the share in Maruti to 54.2%. By 2002 they established 10 finance companies in
which 8 of them were finance companies and two were joint ventures. They started a new
business strategy for its purchase, sales and trade of old cards is Maruti True Value. With the
first worlds strategic model with the help of Suzuki Motor Corporation they launched ‘the
SWIFT’ in 2005.5

Maruti started working on new car plant and the diesel engine facility at Manesar plant,
Haryana in 2006-07. They opened a new institute of Driving Training and Research (IDTR) in
2006 is a mutual project with Delhi Government for better Research in the field of automobile.
They introduced diesel cars like Swift and SX4 luxury sedam in 2007. Maruti launched Multi
Utility Vehicle (MUV) called Grand Vitara stylish, muscular and 5 setter car in 2007. Formerly
they changed their name from Maturi Udyog Ltd to Maruti Suzuki India Ltd in 2007. After this
they made an joint venture agreement with Magneti Marelli Powertrain SpA, both turned into
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Magneti Marelli Powertrain India Pvt Ltd and they were manufacturing Electric Control Units
for cars. They also went into other joint venture agreement with Futaba Industrial Co Ltd and
formed FMI Automotive Compoments Ltd for manufacturing Exhaust System Components. In
2008-09, they introduced a new A2 segment car, A-star in India and in Europe as new alto.
They also raised their production capacity to 1million cars. In 2008, they launched a dual fuel
called Maruti 800 Duo which runs on Liquefied petroleum gas (LPG) as well as petrol.

1.1 BACKGROUND

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to
meet the growing demand of a personal mode of transport caused by the lack of an efficient
public transport system. It was established with the objectives of - modernizing the
Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources
and producing indigenous utility cars for the growing needs of the Indian population. A license
and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct
1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technolo y
as well as
Japanese management practices. Suzuki was preferred for the joint venture because of
its track record in manufacturing and selling small cars all over the world. There was an option
in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later,
in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government
organization managed on the lines of Japanese management practices. Maruti created history
by going into production in a record 13 months. Maruti is the highest volume car
manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by
May 2005. Maruti
is one of the most successful automobile joint ventures, and has made profits every year since
inception till 2000-01. In 2000-01, although Maruti generated operating profits on an
income of Rs 92.5 billion, high depreciation on new model launches resulted in a book
loss.
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to
meet the growing demand of a personal mode of transport caused by the lack of an efficient
public transport system. It was established with the objectives of - modernizing the
Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources
and producing indigenous utility cars for the growing needs of the Indian population. A license

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and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct
1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology
as well as
Japanese management practices. Suzuki was preferred for the joint venture because of
its track record in manufacturing and selling small cars all over the world.
Maruti Suzuki Ltd. is a prominent Indian vehicle maker with subsidiaries across all of India. It
is amongst the most dependent on Indian manufacturers, controlled jointly by Suzuki Motor
Agency as well as Maruti. Maruti Suzuki’s fashion is widely known for its fuel mileage,
protection, and financial worth. It has the greatest chain of sellers and after-income providers
inside the U.S.A. that routinely satisfies the needs of customers and enables consumers to thrive
at the height of its game amongst its rivals.

2 EVOLUTION OF MARUTI SUZUKI

HISTORY

Maruti udyog limited was established in february 1981, though the actual production
commenced only in 1983. It started with the maruti 800, based on the suzuki alto kei car which
at the time was the only modern car available in india. Its only competitors were the hindustan
ambassador and premier padmini. Originally, 74% of the company was owned by the indian
government, and 26% by suzuki of japan. As of may 2007, the government of india sold its
complete share to indian financial institutions and no longer has any stake in maruti udyog. In
1970, sanjay gandhi the son of indira gandhi envisioned the manufacture of an indigenous, cost
effective, low maintenance compact car for the indian middle class. Indira gandhi’s cabinet
passed a unanimous resolution for the development and production of a people’s car. Sanjay
gandhi’s company was christened maruti limited. The name of the car was chosen after a hindu
deity named maruti ltd. That time hindustan motors’ ambassador was the chief car and the
company had come out with a new entrant the premier padmini that worked slowly gaining a
part of the market share dominated by the ambassador. For the next ten years the indian car
market had stagnated at a volume of 30,000 to 40,000cars for the decade ending 1983. Sanjay
gandhi was awarded the exclusive contract and license to design, develop and manufacture the
“people’s car.” These exclusive rights of production generated some criticism in certain
quarters, which was directly targeted at indira gandhi. Over the next few years the company
was side lined to bangladesh liberation war and emergency. In the early days under the
powerful patronage of sanjay gandhi the company was provided with free land, tax breaks and

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funds. Till the end of 1970 the company had not started the production and a prototype test
model was welcomed with criticism and scepticism. The company went into liquidation in
1977. The media perceived it to be another area ofgrowing corruption.

Unfortunately maruti’s started to fly only after the death of Sanjay Gandhi, when suzuki motors
joined the government of india as a joint venture partnered with50% share. After his death
indira gandhi decided that the project should not be allowed to die.maruti’s entered into this
collaboration with suzuki motors. The collaboration heralded a revolution in the indian car
industry by producing the maruti- 800. It created a record of taking 13 months time to go from
design to rolling out cars from a production line. The production of maruti-800 in 1983 marked
the beginning of a revolution in the indian automobile industry. It brought in the latest
technology of that time more fuel efficiency and lower prices that led to the creation of a huge
market for all car segments as the indian, middle class grew in size. This in turn brought in
more players in this segment. A number of auxiliary car parts making units were set up as more
car manufacturers realized it was more cost effective to make their car parts in india rather than
importing them.

Maruti’s major influence was in helping the component industry in the country because of its
emphasis on localization and indigenization. As in the beginning that sector hadn’t grown much
maruti’s had to start dozens of joint ventures with indian entrepreneurs. It got them from foreign
collaborations that led to collaborations for other manufacturers so that over a period of time
the whole component industry was able to upgrade itself and improve its quality who had
given their income leading to major existing export potential vehicle components. It also
brought in better methods of financing that allowed more people who given their income levels
could not afford to buy a car on their own, to buy cars. It still remains the leader not only in the
terms of market share but also in customer satisfaction surveys. It has consistently topped j.d.
Power quality surveys, including 2005.by the year 1993 the company had sold 1, 96,820 cars.
By march 1994 it produced 1 million vehicles becoming the first indian company to cross the
2 million mark in october, 1997 and rolled out 4 millionth vehicles as alto-lx .then it introduced
wagon-r followed by swift has been a great success in the market .in 2007 maruti came up with
sx4 and grand vitara.

PRODUCTION MILESTONES

1st vehicle produced, December 1983

 1,00,000 vehicles produced by August, 1986

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  5,00,000 vehicles produced by June, 1990
 1st vehicle produced, December 1983
 1,00,000 vehicles produced by August, 1986
 5,00,000 vehicles produced by June, 1990
 10,00,000 vehicles produced by March, 1994
 15,00,000 vehicles produced by April, 1996
 20,00,000 vehicles produced by October, 1997
 25,00,000 vehicles produced by March, 1999
 30,00,000 vehicles produced by June, 2000
 35,00,000 vehicles produced by December 2001
 40,00,000 vehicles produced by April, 2003
 45,00,000 vehicles produced by April, 2004.
Current scenario
Being present in india for over three decades, the country is now the second most important
market for the parent company. Over the next three years, suzuki is planning to launch 16new
vehicles in japan; india will see 14 new vehicles from the suzuk istable while europe and china
will see only seven each. Maruti suzuki was expected to play an important role in the company's
expansion plan in west asia and africa. But this was before the present deal, was, announced.
There were expectations earlier that the parent company would increase its take in maruti
suzuki from the existing levels of around 56 per cent. But with the setting up of a 100 per cent
subsidiary f or manufacturing, it is unlikely that suzuki would be keen in increasing its stake.
This is a negative for those who were trading the stock for such an eventuality. As a business
decision it boils down to the return the parent company will get by investing in a green field
project as compared to increasing its stake in the list edentity. Maruti suzuki currently trades
near its all-time high level and is giving a dividend yield of less than 0.5 per cent. For suzuki
capital appreciation is not a choice as it will not be selling or reducing its stake. Thus investment
in the listed entity is barely giving any returns to the parent at current valuations. The only
other choice is to create a parallel manufacturing-set-up. Maruti suzuki's chairman rc bhargava
argues than the green field project is beneficial for the company as it would not have to
sacrifice returns during the gestation period of five years. According to him, return on capital
from the gujarat car unit will be around 17 percent, which is what the company is enjoying at
present. The gujarat plant would need a capital expenditure of around rs3,000 crore, which
maruti suzuki could have easily managed given its rs7,500 crore cash level. According to

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bhargava, maruti will be free to use the rs3,000 crore to expand its marketing set-up. But the
company has invested close to rs5,300 crore in mutual funds, which no one is stopping it to
invest in marketing. Also, the long term steady return of 17 percent that maruti could have
received if it would have set up the project is any day better than the uncertain returns on its
mutual funds investment, even if we take the gestation period into account.

2.1 FUTURE OF MARUTI SUZUKI

In coming years, Indian automobile industry has automobile has tremendous potential to grow
influenced by many demand drivers.US
based consultancy, keystone predicts that India will become world’s third largest
automobile market by 2030. Overall size expected to exceed 20 million with compounded
annual growth rate of over 12%.

TOP PLAYER
MARUTI Suzuki
Tate motors
Hyundai
Others

 MARUTI Suzuki
 Fiat
 General motors (Opel, Chevrolet)
 Ford Hindustan motors,
 Mitsubishi
 Honda
 Hyundai
 Baja tempo
 Marinara
 Maine elect
 Mercedes Benz
 Nissan
 San engineering
 Soda
 Toyota

Competitors

 MARUTI Ciaz

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  Honda City
 Hyundai Verna
 Audi
 Bentley
 MARUTI SUZUKI
 Chevrolet
 Daewoo
 Fiat
 Ford
 Hindustan motors
 Honda
 Hyundai
 ICML
 Lamborghini
 Mahindra
 Mahindra-Renault
 Maini
 MARUTI- Suzuki
 Maybach
 Mercedes Benz
 Mitsubishi
 Nissan
 Opel
 Porsche
 Premier
 Rolls-Royce
 San
 Skoda
 Tata
 Toyota
 Volkswogen

2.2 OBJECTIVE

 To know the Level of Customer Satisfaction on Sales of MARUTI Vehicle.

 To know the Customer Satisfaction on Performance of Dealer.
 To know whether the dealer renders after sales service, and if he, how far the consumers
are satisfied with services rendered by dealer.
 To know the motivated factors to buy the MARUTI vehicle.
 To know the factors that influences the customer, to switch the brand.
 To know the customers are satisfied with price and service network
 To know the whether Maruti performance matching with the customer expectations

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2.3 SCOPE

 The Sample Size is Limited, So as to give the accurate information regardingCustomer

Satisfaction.
 The scope is very limited, because attitude & expectations of the people
changeaccording to the time & situation.
 The study is restricted only to Pitampura and that to among 60 respondents.
 The study is conducted only for 60 days.Consistency was lacking with regard to the
information given by few customers.
 The study is restricted to the certain area, I.e., pitampura so it could not give whole
picture .

2.4 LIMITATION

Geographical area

The rana motors auto company located in Pitampura ,so very far away from the South Delhi
people, so people lived in here very rare knew about this company.

Respondents

We only took survey from 60 people that is limited, upon that data is made then analyse &
interpretation, assumption This survey is restricted only to MARUTI Suzuki company, not on
any where else.

2.5 MARUTI SUZUKI’S VISION

“The Leader in the Indian Automobile Industry,

Creating Customer Delight and Shareholder’s Wealth; A Pride of India”.

MARUTI SUZUKI’S CORE VALUES:

 Customer Obsession

 Fast ,Flexible and First Mover

 Innovation and Creativity

 Networking and Partnership

 Openness and Learning

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2.6 MARUTI SUZUKI’S MISSION:
To provide a wide range of modern, high quality fuel efficient vehicle in order to meet the need
of different customers both domestic and export markets.
There are 258 sales outlets 1838 service centres across 922 cities as on 01-03-2008. Service
available in 41 cities across the country

3 LEADERSHIP

MR. R. C. BHARGAVA MR. KENICHI AYUKAWA

Chairman Managing D irector & ceo

MR. OSAMU SUZUKI MR. KAZUNARI YAMAGUCHI

Director Director (production)

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4. ERP

ERP stands for enterprise resource planning, which is the integrated administration of
key business operations used in real time and mediated by software and technology. ERP stands
for enterprise resource planning, and it is a type of business management software—typically
a set of linked applications—that a company may use to gather, store, manage, and analyse
data from a variety of business processes.

Enterprise resource planning (ERP) is the integrated management of main business

processes, often in real time and mediated by software and technology. ERP is usually referred
to as a category of business management software—typically a suite of integrated
applications—that an organization can use to collect, store, manage, and interpret data from
many business activities. ERP Systems can be local based or Cloud-based. Cloud-based
applications have grown in recent years due to information being readily available from any
location with internet access.

ERP provides an integrated and continuously updated view of core business processes
using common databases maintained by a database management system. ERP systems track
business resources—cash, raw materials, production capacity—and the status of business
commitments: orders, purchase orders, and payroll. The applications that make up the system
share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that
provide the data. ERP facilitates information flow between all business functions and manages
connections to outside stakeholders.

The ERP system integrates varied organizational systems and facilitates error-free
transactions and production, thereby enhancing the organization's efficiency. However,
developing an ERP system differs from traditional system development. ERP systems run on
a variety of computer hardware and network configurations, typically using a database as an
information repository.

ERP delivers an integrated and constantly updated picture of fundamental business

activities via the use of shared databases managed by a database management system. ERP
systems keep track of business resources such as cash, raw materials, and manufacturing
capacity, as well as the status of business obligations such as orders, purchase orders, and
payroll. The system's applications share data across multiple departments (sales,
manufacturing, accounting, purchasing, finance and so on) that give the data. ERP streamlines

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information flow across all corporate processes and maintains relationships to external
stakeholders.

4.1. COMMON ERP MODULES

Enterprise resource planning systems include a variety of different modules. Each ERP
module supports specific business processes – like finance, procurement, or manufacturing –
and provides employees in that department with the transactions and insight they need do their
jobs. Every module connects to the ERP system, which delivers a single source of truth and
accurate, shared data across departments.

Finance: The finance and accounting module is the backbone of most ERP systems. In addition
to managing the general ledger and automating key financial tasks, it helps businesses track
accounts payable (AP) and receivable (AR), close the books efficiently, generate financial
reports, comply with revenue recognition standards, mitigate financial risk, and more.

Human resources management: Most ERP systems include an HR module that provides core
capabilities such as time and attendance and payroll. Add-ons, or even entire human capital
management (HCM) suites, can connect to the ERP and deliver more robust HR functionality
– everything from workforce analytics to employee experience management.

Sourcing and procurement: The sourcing and procurement module helps businesses procure
the materials and services they need to manufacture their goods – or the items they want to
resell. The module centralises and automates purchasing, including requests for quotes,
contract creation, and approvals. It can minimise underbuying and overbuying, improve

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supplier negotiations with AI-powered analytics, and even seamlessly connect with buyer
networks.

Sales: The sales module keeps track of communications with prospects and customers – and
helps reps use data-driven insights to increase sales and target leads with the right promotions
and upsell opportunities. It includes functionality for the order-to-cash process, including order
management, contracts, billing, sales performance management, and sales force support.

Manufacturing: The manufacturing module is a key planning and execution component of

ERP software. It helps companies simplify complex manufacturing processes and ensure
production is in line with demand. This module typically includes functionality for material
requirements planning (MRP), production scheduling, manufacturing execution, quality
management, and more.

Logistics and supply chain management: Another key component of ERP systems, the
supply chain module tracks the movement of goods and supplies throughout an organisation’s
supply chain. The module provides tools for real-time inventory management, warehousing
operations, transportation, and logistics – and can help increase supply chain visibility and
resilience.

Service: In an ERP, the service module helps companies deliver the reliable, personalised
service customers have come to expect. The module can include tools for in-house repairs,
spare parts, field service management, and service-based revenue streams. It also provides
analytics to help service reps and technicians rapidly solve customer issues and improve
loyalty.

R&D and engineering: Feature-rich ERP systems include an R&D and engineering module.
This module provides tools for product design and development, product lifecycle management
(PLM), product compliance, and more – so companies can quickly and cost-effectively create
new innovations.

Enterprise asset management: Robust ERP systems can include an EAM module – which
helps asset-intensive businesses minimise downtime and keep their machines and equipment
running at peak efficiency. This module includes functionality for predictive maintenance,
scheduling, asset operations and planning, environment, health and safety (EHS), and more.

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4.2. ERP INTEGRATION

Today’s ERP systems provide an enormous range of business functionality, but they
still need to connect to and synchronize with other applications and data sources – such as
CRM and HCM software, e-commerce platforms, industry-specific solutions, and even other
ERPs. With ERP integration, companies can gain a unified view of information from different
systems, increase business process efficiency, improve customer experiences, and facilitate
collaboration across teams and business partners.

Modern ERP systems are open and flexible – and can easily integrate with a wide range
of software products using connectors or customised adaptors, such as application
programming interfaces (APIs). Other methods for ERP integration include ESB (enterprise
service bus) and iPaaS (integration platform-as-a-service). iPaaS, which offers a cloud-based
approach, is a very popular option for modern businesses. iPaaS platforms can rapidly sync on-
premise or cloud-based ERP with SaaS applications from the same vendor or third-parties.
They typically require little-to-no coding, they’re flexible and relatively inexpensive, and they
offer a whole host of other uses – such as automatic API generation, machine learning data
integration, Internet of Things (IoT) network integration, prebuilt content, and more.

4.3. ERP DEPLOYMENT TYPES

Modern ERP systems can be deployed in a number of ways: in a public or private cloud,
on premise, or in various hybrid scenarios that combine environments. Here are some of the
high-level benefits of each to help you identify the ERP deployment option that makes the most
sense for your business.

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Cloud ERP also known as SaaS ERP

In cloud ERP, the primary licensing model is software-as-a-service (SaaS). The system
provider will have its own data center – or may lease space on a public cloud to host its
applications and systems. All hardware, systems, and support services are provided through
the Internet. This makes implementation quicker and easier for the user company because, with
all the hardware and software pieces already in place, they can start right in on the data transfer
and user training.

With this cloud ERP deployment option, your software provider will also take care of
all the installation, maintenance, and support – including any and all software updates and
upgrades such as adding computing power or storage. As well, systems, applications, and
resources can “auto scaled,” or increased or decreased automatically to meet changing, short-
term needs. This eliminates having to pay for computing resources that may sit unused most of
the time as is the case with on-premise ERP systems.

Cloud-based SaaS ERP has little or no upfront cost (a “capital expense”) but has a
somewhat higher monthly cost (an “operating expense”), compared with a typical on-premise
installation. When viewed over the normal lifecycle cost period of five to seven years, total
cost of ownership (TCO) is similar to, if not less than, an on-premise installation and offers
potentially better service, support, and security.

Cloud ERP also offers the fastest path to innovation, making it ideal for businesses that
want to aggressively pursue their digital transformation strategy. This deployment option
allows companies to easily reimagine, optimize, and adapt their business processes as needed
– and to take advantage of standardized best practices which modern ERP vendors should
support.

On-premise ERP systems

On-premise is how most companies historically deployed their ERP systems. In this
deployment model, ERP software is installed in your data center at the locations of your choice.
The installation and maintenance of the hardware and software is your staff’s responsibility.

Today businesses are embracing the cloud for its flexibility, ability to scale, and ease
of innovation. Though still, for some companies, especially those in highly controlled
industries, on-premise is a preferable approach due to legal, regulatory, or organizational
constraints.
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Hybrid ERP systems

Elements of a cloud and on-prem ERP deployment can be combined to create a hybrid
cloud, which provides the flexibility to choose the optimal deployment for each application.
Hybrid cloud ERP can be used as a stepping stone to the cloud, or to satisfy industry regulatory
issues and special security requirements that may dictate the need for on-prem applications in
certain situations. There may also be other restrictions or preferences that make on-prem
desirable for certain applications. The complexity of a business and its current environment as
well as desiring a slower speed of change factor into the decision to deploy in a hybrid scenario.

A hybrid implementation allows applications and data to move between the options
based on workload changes. It delivers cloud benefits from that part of the system that is on
the cloud. However, it requires more local IT involvement to support the on-prem pieces, as
well as the coordination between the two – or more – ERP system environments.

Two-Tier ERP

Really a variation of the hybrid approach implemented for the same reasons, two-tier
ERP deployment – sometimes called hub-and-spoke deployment – employs a central system
with smaller satellite systems supporting remote facilities. Think of corporate ERP as the hub,
with individual ERP systems at subsidiary plants, warehouses, or offices all feeding data back
to the hub. This is not a new idea; it emerged during the 1990s’ distributed processing phase,
with companies choosing to implement smaller, simpler, and less costly systems at remote
locations while maintaining the larger, more capable, corporate system at company
headquarters. Any or all of the systems in a two-tier network can be on-prem or cloud-based,
purchased or SaaS-licensed.

The overall cost for a two-tier ERP deployment – with less costly systems at the nodes
instead of the same corporate system everywhere – will yield a lower cost for the initial
purchase. However, integration and support can result in a higher overall, continuing cost
because the interfaces must be built and maintained. And, year after year, it will take more IT
support to coordinate with multiple suppliers, as well as manage uncoordinated upgrade
schedules and interface changes.

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5. BAVARIAN AUTO ADVANCES MISSION WITH OPEN-SOURCE
ERP SOLUTION

Bavarian Autosport was founded in 1974 as a regional MARUTI SUZUKI service shop
by three friends passionate about maintaining MARUTI SUZUKIs.

Simultaneously, they accumulated an inventory of parts and accessories to service any

MARUTI SUZUKI that came their way. Bavarian Autosport’s well-curated inventory attracted
local MARUTI SUZUKI enthusiasts who enjoyed performing their own maintenance, repairs
and, modifications. Bavarian Autosport took off as the leading MARUTI SUZUKI parts and
accessories provider in the Northeast.

In 200 Bavarian Autosport became a MINI parts retailer in addition to MARUTI

SUZUKI. Today, Bavarian Autosport is the leading MARUTI SUZUKI and MINI parts and
accessories in the world.

Bavarian Autosport is high volume shop, with large numbers of orders each day, for
highly engineered parts on rare or vintage cars. They are enthusiasts as well, who know and
love cars.

SITUATION

In 2015, the integration between Bavarian Autosport’s e-commerce platform and

backend system was holding them back. Managing inventory, sales, and customer service in
real time was a laborious process.

Bavarian Autosport began researching systems that could combine inventory, ordering,
forecasting, sales, while integrating with Magento E Commerce, at a cost-effective price point.

After several experiments, Bavarian Autosport decided on using Odoo ERP as their
order management, accounting and fulfillment backend, while continuing to use Magento for
their E-commerce presence. Odoo fit Bavarian Autosport’s needs for stability and reliability,
enabling seamless sales and fulfilment.

Bavarian Autosport’s team is extremely talented, and was able to partner successfully
with OSI, building self-sufficiency and resilience. Bavarian Autosport pursued an Odoo Open-

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Source ERP solution because they needed freedom and flexibility in their system. They
partnered with OSI to guide them through OSI’s proprietary four-step integration process.

CHALLENGES

 Maintain business functions during transition

 Tight deadlines

 Integration of multiple systems

GOALS FOR NEW ODOO ERP

 Improve customer purchasing experience.

 Build a strong and flexible e-commerce platform that creates opportunities for growth

and productivity improvements.

 Maintain product traceability and improve customer service.

 Ensure continuity across business functions throughout the legacy service

decommissioning.

 Streamline all business functions.

5.1. APPROACH

OSI’s proprietary in-depth, four-step approach to integration ensures a smooth

transition to a reliable ERP system which provides better business guidance and control:

Analyze

Bavarian Autosport and OSI performed an in- depth analysis of functional requirements
for the new system. Together, Bavarian Autosport and OSI created a timetable and benchmarks
of success to measure project progress.

Optimize

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 Bavarian Autosport optimized the most critical aspects of their business functions.
Integrating their e-commerce platform with backend systems was a key focal point during the
optimization phase.

Automate

Bavarian Autosport contracted OSI to configure the software to achieve the benchmarks
laid out in the analysis phase. In doing so, Bavarian Autosport automated and streamlined
central processes, saving them time and money.

Transition

Bavarian Autosport utilized change management tools to get their team ready for the
transition to the new system. OSI trained and coached the Bavarian Autosport team before,
during, and after going live.

5.2. PROBLEMS

1. MARUTI SUZUKI build customised car in a production environment. To meet the high
expectations of the customers in this luxury market segment. So, the company requires the
flexibility, speed, business integration and automation of the business processes.

2. The new 1.2 million square feet facility is designed to produce up to 300 cars a day operating
on 16-hour operating cycle. So, the company requires maintaining speed and proper co-
ordination among the various department and assembly lines.

3. MARUTI SUZUKI plants in Germany are supported by mainframe-based information

systems that are connected through interfaces to a variety of different system and application.
The result are high maintenance cost and complicated system integration. The amount of time
and money spend on system maintenance in Germany was very high.

4. The company also wanted an integrated information system to speed up the flow of
information across the enterprise. It wanted to enter data only once and have it automatically
sent to all the functional areas that requires the information without any delay.

5.3. SOLUTION

1. MARUTI SUZUKI Manufacturing first creates the process model of its operations to derive
the selection criteria for the commercial application suit that would meet its information needs.

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In addition to being able to match the processes model, MARUTI SUZUKI requirement for
the software include international scope, latest IT architecture and technology

2. MARUTI SUZUKI put together a list of top five vendors in the marketplace and mapped
the system against its needs. SAP R/3 was the best fit of all.

3. MARUTI SUZUKI implemented basic system rapidly moving through planning and
configuration in just only four months. It runs R/3 on Hewlett Packard Model 170 business
server supported by a 30 GB database. Some 600 PCs are attached to the network as client with
100 users running concurrent sessions at any given time. The company is using HP overview
system and HP network software to manage the distributed client/server installation.

6. BENEFITS

1. With a well-integrated system and with all the information on line, the company do not need
and army of people to reconcile problems, it’s all done automatically.

2. Cost and time reduction. SAP R/3 was 50% cheaper as compared to custom made software
that company was planning to use and was implemented in only four months.

3. The other benefits includes-

 Integrated manufacturing

 Automatic Invoicing

 Integrated requisitioning

 Flexible reporting and analysis

 Better decision making

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7. ADVANTAGES

The most fundamental advantage of ERP is that the integration of a myriad of business
processes saves time and expense. Management can make decisions faster and with fewer
errors. Data becomes visible across the organization. Tasks that benefit from this integration
include:

 Sales forecasting, which allows inventory optimization.

 Chronological history of every transaction through relevant data compilation in every
area of operation.
 Order tracking, from acceptance through fulfilment.
 Revenue tracking, from invoice through cash receipt.
 Matching purchase orders (what was ordered), inventory receipt
(what arrived), and costing (what the vendor invoiced).

ERP systems centralize business data, which:

 Eliminates the need to synchronize changes between multiple systems—consolidation

of finance, marketing, sales, human resource, and manufacturing applications.

 Brings legitimacy and transparency to each bit of statistical data.

 Facilitates standard product naming/coding.

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  Provides a comprehensive enterprise view (no "islands of information"), making real–

time information available to management anywhere, anytime to make proper

decisions.

 Protects sensitive data by consolidating multiple security systems into a single

structure.

8. CONCLUSIONS

Bavarian Autosport and OSI built a flexible and integrated system to build a more
successful future. Their system is based on a unified integration between open-source ERP
software and open-source e-commerce software. Bavarian Autosport capitalized on the
strengths of each software to extend their competitive advantage as the top MARUTI SUZUKI
and MINI parts and accessories retailer.

Bavarian Autosport is successfully using their new integrated open-source system for:

 Accounting
 Sales
 E-commerce integration with Magento
 Marketplace integrations with Amazon and Ebay
 Point of sale for the showroom
 Marketing email campaigns
 Inventory Management
 RMA
 Purchasing
 Shipping

Bavarian Auto’s Return-on-Investment:

 Improved online customer purchasing experience

 Added growth opportunities through a robust e-commerce platform

 Enhanced product traceability

 Maintained productivity and output throughout the transition to the new system

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 Bavarian Autosport’s has been operating successfully on Odoo for years, and have found
that this solution grows with them, helping them scale with harmony.

By implementing an open-source solution, Bavarian Autosport grew their culture and

trademark of sharing their passion for MARUTI SUZUKIs and MINIs with customers.
Bavarian Autosport’s high quality products and unmatched service continues to equip car
lovers to carry out any at-home project on their MARUTI SUZUKI or MINI. OSI is honored
to partner with this outstanding organization.

Bavarian Autosport’s hard work has paid off by helping them adapt from a time of
paper catalogs and fewer products to countless products, multi channeled sales and marketing,
while maintaining high engagement and trust from their customers.

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