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

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