VEONEER INDIA

The Challenge:

SPIN-OFF FROM PARENT COMPANY REQUIRES INDEPENDENT ERP SOLUTION

Following the separation from Autoliv, Veoneer was faced with the need to implement an independent ERP system quickly. It wouldn’t be a simple implementation. The company operates multiple sites in different locations, plus four warehouses in different districts. They needed the ability to consolidate data and maintain common security across sites, all in real-time and across multiple closely related functions such as inventory visibility and order promising.

In addition to a rapid implementation, Veoneer needed to ensure they chose a technology partner that understood the challenges an automotive manufacturer faces today. The automotive industry is currently facing unprecedented disruption driven primarily by four main factors: ACES. ACES stands for autonomous, connectivity, electrification and ridesharing.

The term ‘Autonomous’ can be measured by the guidelines outlined in SAE J 3016-2018. This standard defines five levels of driving automation. Most of Veoneer’s products fall into Level 3 or Level 4 on the standard. Level 3 is conditional automation that requires a human onboard, while Level 4 is full automation technology except under unusual or adverse conditions. Veoneer focuses on producing products that improve thrust and stability as well as helping their OEM customers achieve safety ratings.

The company prides themselves on the long-term relationships they have established with their customers, and they needed to be sure nothing would disrupt their customers during the implementation.

“It’s all about trust in mobility, which we create. As part of Autoliv, we had a very strong legacy in the business with our OEMs,” states Navin Agarwal, Head of Finance for Veoneer India.

When they had been running other systems on-premise, they experienced frequent downtime that created a challenge both with access to data and satisfying customers. An automotive manufacturer can lose an average of $22,000 per minute as a result of stopped production, and some surveys have indicated that number can be as high as $50,000 per minute. Veoneer wanted to avoid similar problems in the future.

The Solution:

SWIFT IMPLEMENTATION OF QAD ERP ENSURES REAL-TIME DATA WITHOUT DISRUPTION

Autoliv is a satisfied, long-time QAD customer, so Veoneer India users were comfortable that they could get up and running quickly with minimal training. Rather than go on-premise, they decided to implement QAD ERP in the cloud because of its robust architecture and the ability to access necessary data anywhere at any time. QAD Adaptive ERP has a strong record for continuous uptime. “This was crucial for us since site connectivity and real-time data access was a key need,” explains Agarwal. “With QAD in the cloud, downtime is no longer an issue.” 

In addition, Veoneer’s experience with the QAD team made them confident they would have a  flexible system and could count on a responsive support team with QAD. “We always get good service from QAD. The support team is very good.”

Implementation speed was another crucial factor, and Veoneer India was impressed with how quickly the system went live. 

“I have never seen another ERP implementation with such a short implementation time frame,” says Agarwal. “ The project went off without any glitches, even with the quick pace. It was the smoothest, shortest implementation I’ve ever seen.”

The Benefits:

WITH QAD IN THE CLOUD, VEONEER INDIA HAS SEEN A SAVINGS IN TIME AND MONEY

Veoneer has already saved money by moving to the cloud, since they no longer have to perform routine maintenance functions or worry about excessive downtime which can lead to loss in revenue as a result of a halt in production. In fact, although Veoneer built their ROI case around the reduced costs of cloud, they have found that the reduced downtime has also been a big contributor to the reduced investment. 

“Another great advantage for us is that we have seen savings in terms of our infrastructure and we can access the data anywhere and any place. It’s also very easy to use. Many of our team was using QAD as part of Autoliv, so the migration was a very smooth transition for them.”

Agarwal added, “Before, we often had to pull data from several different systems. Now with QAD in the cloud, we have access to that real-time data from one source. It’s improved our business functions across the organization.”