About The Client
ERP IMPLEMENTATION FOR A LEADING LIGHTING MANUFACTURER
Industry: Consumer Electronics / Lighting
Locations: India, USA, China
Turnover: ₹2500+ Cr
Employees: Multi-location Workforce
Business Footprint: Exporting to 60+ countries
A leading manufacturer in the lighting industry, this company is recognized as one of the largest producers of bulbs and tubelights in India. With over 1000 SKUs including bulbs, tubelights, and compact fluorescent lamps (CFLs), the organization has extensive manufacturing capabilities. The plants in India are fully integrated, producing components like filaments, caps, glass shells, and fluorescent powder in-house. Additionally, the company operates a satellite plant in China and has a wholly owned subsidiary in the USA.
Its vast network includes 27 branches across India, facilitating order bookings, distribution, and dealer management, along with extensive export operations. The organization has built a strong brand presence both domestically and internationally through a robust distributor and dealer network, backed by strategic schemes, subsidies, and incentive structures.
Understanding the Challenges
Due to the scale of operations and global competition from major international brands, the company faced a variety of challenges in managing its business effectively:
Lack of Centralized Item Coding: The organization struggled to maintain unified item codes across multiple locations, making data consolidation a time-consuming and error-prone process.
Data Fragmentation: Disconnected systems within the same locations led to duplication of work and inconsistent data across functions.
Delayed and Inaccurate Reports: Crucial business reports (e.g., sales, stock, and pending orders) were not available in real-time.
Inadequate Financial Consolidation: Trial balances and profit and loss statements from different branches could not be easily compiled, affecting financial planning.
Absence of Role-Based Access: Lack of user restrictions led to unauthorized data access and inconsistent business processes.
Ineffective Credit Control: Dealer incentives and schemes were decentralized, lacking head office control, resulting in mounting outstanding receivables.
Production Planning Gaps: The company lacked real-time production capacity utilization data and effective material requirement planning.
Inefficient Returns & Claims Processing: Handling of defective returns, freight bills, and credit/debit notes lacked centralized monitoring and approval workflows.
Market Insights Deficiency: Sales performance lacked alignment with market potential data such as per-capita income and population demographics.
The Solution: NEWTON ERP by Nippon Data Systems
To address these challenges, the company chose to implement NEWTON ERP from Nippon Data Systems Ltd. The solution covered all critical business functions across manufacturing, head office, and sales branches. The implementation occurred in two major phases:
PHASE 1: Factory & Head Office Automation
Modules Implemented:
Purchase & Inventory
Production (including WIP & Quality Control)
Finance & Accounts
Budgeting
Finished Goods Warehouse
Sales & Payroll
Benefits Realized:
Real-time profitability monitoring (by plant, profit center, organization-wide)
25% reduction in inventory carrying costs
Improved vendor negotiation through historical data tracking
Enhanced production planning through integrated capacity utilization data
Reduced cost of poor quality through better error detection and controls
Stronger procurement price control via visibility into price trends
PHASE 2: Branch-Level Integration
Each branch, being a sales and stock point, was connected via a secure VPN to the centralized system.
Outcomes Achieved:
Real-time business data visibility across the country
Faster response to market fluctuations
Integration of census and demographic data to evaluate sales potential
Improved sales team performance analysis against market capacity
Policy-driven incentive and claims approval processes from the head office
Automated material reconciliation (dispatch vs receipt, breakage, shortages)
Centralized credit and incentive control, improving dealer engagement and reducing outstanding dues
Nippon Data’s Impact and Results
The company saw tangible improvements in operational efficiency, reporting, and strategic decision-making. Some key outcomes included:
Streamlined inventory management and reduction of excess stock
Consolidated financial reporting and budgeting
Greater visibility and control over the entire supply chain
Enhanced planning and forecasting using real-time and demographic data
Empowered management to focus on strategic growth rather than routine processes