ERP upgrade halts Suzuki's production for 12 days

KARACHI: Pak Suzuki has recently upgraded its Enterprise Resource Planning (ERP) to SAP from Oracle which resulted in a 12-day deadlock in the company’s production processes, it was learnt reliably.

“Shifting to SAsoftwaresogtware has caused a 12-day deadlock in the production. There is a consistent demand but this up-gradation has affected deliveries,” a Suzuki Dealer Showroom Manager told Pakistan Today on condition of anonymity.

ERP system is an integrated management of core business processes. By integrating different levels of production at production unit and also integrating it with other departments of a company, ERP system aims to reduce slack period. This is achieved with the help of a combination of different customised software and technology for different types of business.

The manager said that as a result of the 12-day deadlock due to this up-gradation, it has approximately deferred the planned production of 3600 vehicles.

“Suzuki produces 110,000 units (four wheelers) annually. According to my calculation, due to the deadlock of 12 days, production of around 3600 cars has been delayed. It has affected and increased delivery periods,” he added.

Suzuki generally takes three months to deliver a car after an order has been placed.

Following recent restrictions imposed by the government on import of used cars, the demand is expected to rise for Suzuki cars since it dominates the market in 1000CC and below segments. Meanwhile, most of the used cars imported in Pakistan are of 660CC engines.

According to sources, this was not the ideal time for Suzuki to upgrade its ERP system.

Moreover, Suzuki dealerships are delaying motorbike deliveries by 10 days whereas motorbikes are generally delivered at the time of order and payment.

Profit reached out to Suzuki spokesperson on WhatsApp, but no response has been received till now.