The origin of the Indian Tyre industry dates back in the year of 1926, the first Tyre Company was established in West Bengal by Dunlop Rubber Limited. Later MRF Tyres followed the suit in year 1946, since then the Tyre industry in India has grown rapidly. Tyre industry is highly raw-material intensive. Raw materials cost approx. 63 percent of Tyre industry turnover and 72 percent of the production cost. The industry is a major user of domestic rubber market and constitutes almost 80 percent of natural rubber while 20 percent of synthetic rubber. On an average total weight of raw materials consumed by Tyre industry is 15.50 Metric Ton and total cost of raw materials consumed by this industry is INR 16,000 Crores.
Tyre Industry in Fiscal Year (FY) 2014-15
Indian Tyre industry is supposed to remain strong during fiscal year 2014 – 2015 with estimated revenues to grow by 7 to 8 percent, up from 5.8 percent during last year (Source: ICRA latest research update)
The demand of Tyre in domestic market grew by 10 to12 percent during 2014-15, supported by the 7-7.5 percent growth in OEM (Original Equipment Manufacturer) segment and in replacement segment by 12- 15% growth.
Talking about the contribution of Tyre Industry in Indian Economy; The Tyre industry provides direct and indirect employment to almost 1 million people across the country; this includes Raw material supplier, Manufacturers, dealers and retarders. In total there are 5,000 Tyre Dealers in India geographically spread all across the country, serviced through over 500 depots. Vast majority of Tyre dealers in India handle multi-brands sales under one roof, also they have exclusive retail distribution outlets. The industry is vast and connected with different chains that in a loop forms one of the biggest industry of India. While managing entire business process there are n-number of things that can’t be done manually. From procurement to selling and inventory management to Stock Level Balancing and Bin Location Management or Due Services reminders all this and many more needs a proper software solution that is dedicated to industry specific needs to cater in a better way. Here the ERP comes in.
About the Company
Mona Tyre is a decade old firm which deals in various types of Tyres. Apart from Tyre dealing, Mona Tyres is also a service providing company which provide services for almost all types of Tyres like; Tubes & Flaps, Bike Tyre, Farm Tyre, Car Tyres and Heavy Commercial Tyres. Mona Tyres head office is in Gondia however their branch offices are in three different locations and the operations are operated by six users respectively.
- Un-Skilled staff
- Unable to take follow-up for services likes AMC due etc.
- Improper monitoring on Inventory & finance at branch levels due to poor internet connection
- No price control & credit controls
- Improper monitoring of receivables, payables and supplier schemes
- Multi-location Multi-Branch
- Can’t figure out how to retain old customers to renew services
- No proper Internet Connection
- No proper tool to view stock and warehouse details
During our conversation with Mona Tyres owner ‘Piyush Agarwal’ he share the difficulties and challenges their business is facing because of the pitfall of their existing software. He was very clear about the attributes he is looking for in an ERP software. As the Company is located in remote area the internet connection is not proper and keep on fluctuating every now and then. Due to this they don’t want a solution that runs on real time basis instead they need something which works absolutely fine offline and whenever it get a proper net connection the data can sync to the server. As the company has expanded its presence with 3 branches, the biggest challenge that they face is inventory management. They realized it becomes more difficult day by day to streamline the supply chain. Piyush Agrawal said; without an integrated ERP system it becomes more difficult to plan the inter branch stock transfer from central branch. Another major challenge was to manage the information of kit as the company sell and purchase Tyres in kit; which is a combo of (Tire/Tube/Flap). Apart from all this, Mona Tyres Owner share his thoughts about using barcodes on every Tire. They want to generate barcode for every single Tyre and stick them on Tyres. However using barcode is not in trend among Tyre Dealers but Mona Tyres shows keen interest to use this feature.
The company also faces huge issues while managing inventory due to multi location and multi branches and they don’t have any proper system which can manage the customer credit details easily.
Solution offered by RnR
- Implemented offline Rujul ERP
- Our solution allows to sync data on real time basis when connected with internet
- Implementation of workflow management and credit control at all the levels
- Centralized inventory & commercials monitoring
- Contract / AMC sales
- Dynamic tax configuration
- Barcode Printing
- Generate Barcode Item-wise
- Job Card management
- User friendly Tyre search, compare and suggest utilities
When we implement our RujulERP-Tyre at Mona Tyres head office, they use it for a week to check its performance and after seeing the effective and quick performance of our software they ended up implementing it to all the three branches. TyreERP in Mona Tyres is used by six different users. As they all are non-technical people, complete support was provided from our end to ensure that they don’t find it difficult to use. However the software is quite easy to use and requires very less training. RujulERP-Tyre enable Mona Tyres to effectively monitor the operations of their different branches, and have a single window of information that grant them purposeful insights into their business operations.
The business modules offered by RnR to Mona Tyres includes
- POS/ Barcode
- Sales & Distribution
- Tyre Search Tools
- NSD Management
Highlights of solutions provided to Mona Tyre
- Comprehensive offline solution covering all the business operations
- Go-Live when proper internet connection is available and sync the data
- All 3 branches were operational within — weeks
- Ease of generating, printing and scanning of barcodes
- Flexibility to accommodate new branches and users
- It allows to review business 24×7
Can RnR Do It For You?
Of-course we do! To know more details about our software contact us @ email@example.com. Let’s take your business to the next level with RujulERP-Tyre.