To drive year-on-year growth, Sammitr Motors is developing new products to diversify into the agricultural sector. How could it bring them to market at low cost and international scale?
By implementing Oracle E-Business Suite, Sammitr is laying the foundation for greater operational efficiency, lower manufacturing costs and wider market reach for its new products.
Enableshigher-quality manufacturing at lower operational cost, boosting quality
Createsopportunities to increase share of international markets
Opensthe way to year-on-year business growth
Business challenge story
Targeting new opportunities
In periods of low economic growth, diversification can be a powerful way for enterprises to increase their revenues. To drive year-on-year growth, Sammitr Motors decided to apply its decades of expertise producing vehicles for the logistics market to win new customers in the agricultural sector.
Sammitr Motors designed a range of modular components such as excavators, irrigation pumps and aerial work platforms—allowing a single truck chassis to support a variety of use agricultural cases. The company knew that it had a major opportunity for business growth across Southeast Asia, but faced tough competition to bring its new products to market.
M. L. Samornmas Posirisuk, Vice President, Corporate System & ICT at Sammitr Motors Manufacturing PCL, takes up the story: “In recent years, we have seen an increasing number of international competitors entering the small vehicle segment in Thailand. Greater domestic competition, combined with the cost pressure of the global economic downturn, means we have to work smarter to continue our business growth.
“Currently, exports make up a relatively small proportion of our overall sales. To drive expansion and reduce the risk of competitors in our domestic market, we set ourselves the goal of becoming a leading brand across Southeast Asia. To achieve these goals, we knew it would be essential to deliver high-quality products on time, every time.”
M.L. Samornmas continues: “In the past, each of our business units was managed using separate processes and systems. The challenge with this approach was that it was extremely difficult to optimize our sales, production planning and manufacturing processes, all of which share complex interdependencies. To reduce the risk of disruption, delays and missed delivery deadlines to our customers, we looked for a way to integrate our processes from end to end.”
Integrating the business
To solve the challenge, Sammitr Motors took a fresh look at its business processes, and assessed the changes required to achieve the new, joined-up way of working.
“We realized that our business transformation would impact three key areas: our business processes, people, and IT systems,” recalls M.L. Samornmas. “Currently, our business depends heavily on manual processes. We realized that achieving the targeted efficiencies meant turning our people’s substantial knowledge, experience and skills into best-practice workflows, supported by automation wherever possible.”
For more than a decade, Sammitr Motors has relied on Oracle E-Business Suite to drive its finance, supply chain management and logistics processes. To determine whether the platform was the right fit for its long-term goals, the company engaged an expert team from IBM® Services.
“As a business with its sights set on global growth, gaining enterprise-class business systems was a key priority,” says M.L. Samornmas. “We worked closely with IBM to analyze the gaps in our existing solution—a process that helped discover that upgrading the system and re-architecting our business processes would give us the robust foundation we needed to move to the new, centralized way of working.”
To enhance its Oracle solutions, Sammitr Motors worked side-by-side with IBM Services.
“We knew that if our business process owners were not engaged in the project from the earliest possible stage, it would be very difficult to drive adoption of integrated workflows,” comments M.L. Samornmas.
“The IBM team understood these challenges, and worked hard to obtain support from across the business—from the grass roots up through our middle and top management. By bringing together the right people, processes and systems at an early phase of the project, we succeed in reducing risk further downstream.”
M.L. Samornmas continues: “The IBM team brought a proven methodology and toolset for Oracle E-Business Suite upgrades, which helped us to accelerate the process of moving to the latest version substantially. Throughout the deployment, IBM collaborated with stakeholders in every part of the organization to gather the requirements for the new business processes and build them into the new platform. Throughout, IBM kept us thoroughly up to date on progress, which made it easy to secure continued support from our senior leadership team.”
Cultivating international growth
With the all-important first step of its business transformation successfully completed, Sammitr Motors can begin to move forward with its strategy for growth in Thailand and internationally—helping it serve a growing market for agricultural automation in Southeast Asia.
“We see that our competitiveness will improve substantially as we enable information to flow more quickly between different areas of the business,” explains M.L. Samornmas. “Many of our products are built to order, and currently we depend on manual processes to estimate the cost, labor and time required to deliver on each customer order. These manual processes limit our ability to utilize our manufacturing capacity effectively, which drives up our operational costs.
“By designing an automated, data-driven quote-to-cash process, we will increase the accuracy of our estimates—enabling us to quote at competitive prices without losing valuable margin. Ultimately, we want data on customer orders to flow automatically into our production planning systems.”
M.L. Samornmas continues: “As well as making it easier to utilize our manufacturing capacity, automated production planning will ensure that we can fulfil each customer order to a high quality in a timely manner. This will be an essential capability as we begin our efforts to establish a strong presence in international markets.”
As it moves forward with its business process reorganization, Sammitr Motors can widen the market for its agricultural vehicles and bring its growth goals to fruition.
“International expansion is an important aspect of our long-term strategy,” concludes M.L. Samornmas. “Targeting new customers will enable us to continue our fast-paced growth, and we are confident that our work with IBM Services puts us in a strong position to outperform competitors at home and in the global marketplace.”
Founded in 1967, Sammitr Motors Manufacturing PCL is a leading producer and distributor of car and truck body parts, molds and fixtures for auto makers. Headquartered in Thailand, the company manufacturers key components including pick-up canopies and hydraulic cylinders for its own brand of dump trucks, trailers and semi-trailers, as well as supplying components to other domestic and international manufacturers.
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