Reducing Costs for an Automotive Parts Manufacturer
Client Background
An automotive parts manufacturer supplying 200+ clients globally faced rising operational costs due to inefficient procurement and project management. Manual processes and limited analytics hindered cost control and scalability. The company sought a Zoho solution to optimize procurement, streamline projects, and gain actionable insights for cost reduction.
Challenges
- High Procurement Costs: Manual supplier coordination led to overpaying by 10% on average.
- Project Overruns: Poor task tracking caused 20% of projects to exceed budgets.
- Limited Insights: Lack of analytics made it hard to identify cost-saving opportunities.
- Scalability Issues: Existing systems couldn’t support growing client demands.
Solution
We implemented a cost-focused Zoho ecosystem to enhance efficiency and scalability:
- Zoho Inventory: Streamlined procurement with vendor portals and automated purchase orders. Integrated with Zoho CRM for supplier performance tracking.
- Zoho CRM: Centralized client and supplier data, with custom modules for contract terms and delivery schedules. Automated workflows for quote approvals and order confirmations.
- Zoho Projects: Configured project templates for parts production, with budget tracking and cost alerts. Integrated with Zoho Inventory to monitor material costs in real time.
- Zoho Analytics: Developed dashboards for procurement costs, project profitability, and supplier performance, with predictive analytics for demand planning.
- Security Measures: Implemented two-factor authentication and encrypted data transfers to protect proprietary designs and client data.
Implementation Process
- Stakeholder Engagement: Gathered requirements from procurement, production, and finance teams.
- System Design: Built a scalable Zoho architecture with 12+ custom integrations using Zoho Deluge and APIs.
- Data Migration: Migrated 3,000+ supplier records and 10,000 inventory items to Zoho Inventory and CRM.
- User Training: Trained 100 staff members on procurement, project management, and analytics tools.
- Deployment and Optimization: Launched with a 90-day optimization phase, tweaking workflows based on cost analytics.
Results
- Reduced Procurement Costs: Automated processes cut supplier costs by 12%, saving $200,000 annually.
- Fewer Overruns: Project budget adherence improved to 90%, reducing overspending by 15%.
- Actionable Insights: Dashboards identified $100,000 in annual savings through optimized material usage.
- Scalability Achieved: The system supported a 30% increase in client orders without additional staff.
- Operational Efficiency: Automated workflows saved 25 hours per week across departments.
Client Testimonial
“The Zoho solution gave us unprecedented control over costs and projects. We’re saving hundreds of thousands annually while scaling our operations. The team’s expertise was critical to this success.” – Carlos Mendes, CFO