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 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.
“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 in 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.
The Impact at Uno Minda Group
Uno Minda Group has successfully eliminated glaring loopholes in the procurement interaction with vendors leading to efficiencies. Earlier, the interaction was offline leading to excessive manual effort and loss of time. The procedure is now in real time. A supplier could now see the schedules or purchase orders against which he had to send the products. If there are any changes in schedules, the same is provided to suppliers in real time basis, and they can adjust their production accordingly.
The mismatch of invoices is taken care of through Vendor Portal. In case of any discrepancy in value, taxation, quantity, freight, amortization or any other charges, the system doesn’t allow ASN generation. Uno Minda’s quality department can efficiently monitor vendor quality performance and decide on supplier ratings as well as allocation of Share of Business (SOB) to the vendor.
“With the launch of the vendor portal, we have addressed the need of the hour following the implementation of GST in India. The solution has completely digitalized the procurement process at Uno Minda Group. The manufacturer’s entire procurement process has been eased and have become more efficient. As an industry leading automotive supplier, this adoption has not only benefitted the UNO Minda group, but also the entire ecosystem they operate in. It is a step forward in Moglix’s dream of a completely digitalized supply chain in India,” said Rahul Garg, Founder and CEO of Moglix.
Moglix is an Asia based B2B commerce marketplace that specializes in B2B procurement of industrial products such as MRO, fasteners, electrical, hardware, pneumatics, safety items and more. Its aim is to be the largest technology platform where demand and supply can be matched through price discovery and product availability.
Moglix was founded in April, 2015 by Rahul Garg who was previously the Head of Advertising Exchange at Google Asia. Moglix is led by a group of young and motivated individuals passionate about shaping the manufacturing/ B2B commerce landscape in India.
The total amount of funds raised by Moglix till date is approximately USD 18 million from International Financial Corporation (IFC), Accel Partners, Jungle Ventures, Venture Highway, SeedPlus and Rocketship.vc. The company is backed by Ratan Tata, Chairman Emeritus, Tata Sons as an investor. Moglix is a part of the first cohort of startups incubated by SAP Startup Studio and supported by Bernd Leukert, Member of the Executive Board, SAP.
For more information, visit www.moglix.com.