Ratan Tata backed B2B commerce company, Moglix, has helped Uno Minda Group achieve digital transformation in its procurement process with Moglix’s vendor portal solution. The announcement comes after the automotive components manufacturer showed a considerable increase in operational efficiency following adoption of the solution.
Uno Minda Group has 30+ manufacturing plants and 2000+ BOM suppliers across India, the interaction between its vendors and individual buyers was completely unorganized and offline prior to the company’s adoption of Moglix’s solution, leading to excessive manual effort resulting in loss of time and information in transition. There have been multiple cases that led to a mismatch in ledgers leading to delayed reconciliations and extra-human effort by finance department and vendor’s team. Other challenges at Uno Minda Group included mismatching of invoices and inefficient means of supplier performance.
Uno Minda group also proactively identiﬁed, that post the GST regime if a vendor’s ledger mismatches with their ledger, the Input Tax Credit(ITC) will be unnecessarily blocked in the system. ITC is typically 18% to 28% of the working capital. With GST coming in, this was the perfect time for them to streamline and digitize the entire procurement interaction with their suppliers. To battle these challenges, Uno Minda Group successfully adopted the vendor portal solution that Moglix developed on SAP’s SCP environment and seamlessly connected the portal to SAP using HCI connectors.
Rajeev Gandotra, Chief Procurement Officer, Uno Minda Group said, “At Uno Minda, we are aggressively working to meet and exceed rising demands in technology, cost, and quality. Adoption of vendor portal is a strategic move to achieve cost savings, by improving man-hour efficiency and ensuring a tighter control over inventory. Improved supplier communication has helped us receive just in time delivery, thereby, helping us in inventory control and faster new product development.”
“We have always been open to technological advancements and have been amongst the early adopters of technology solutions. Moglix has added to the technological progression of our company via its vendor portal solution. The digitalization of the interaction between our users and suppliers has increased productivity of the company and the overall business,” said Parna Ghosh, Group Chief Information Officer, Uno Minda Group.