Case Study: Somic ZF Components slashes inventory holding costs 47% and doubles reporting speed with Oracle E-Business Suite

Somic ZF Components Slashes Inventory Holding Costs by 47%, Doubles Reporting Speed, and Supports Business Growth

Somic ZF Components Pvt. Ltd. (SZCPL) is an Indian automotivecomponents manufacturer supplying steering and suspension parts to major OEMs from plants in Gurgaon and Chennai. After becoming independent in 2012, the company lacked visibility and control over inventory, purchasing, and manufacturing because it relied on a legacy partner’s ERP; manual, time-consuming processes hurt reporting reliability and management confidence, and SZCPL needed a new ERP deployed within three months to avoid outsourced service costs.

SZCPL implemented Oracle E-Business Suite (with Inventory Management, Purchasing, Order Management, Financials, and Enterprise Asset Management) using Oracle Business Accelerators and Filix Consulting, standardizing supply-chain processes across both plants. The rollout cut inventory holding costs by 47% (from US$3.8M to US$2M), boosted inventory accuracy to 99.5%, halved reporting and invoicing times, reduced aging stock by 26% in three months, saved 50 man-days per month, and supported sustained 15% year‑over‑year growth.

Somic ZF Components

Parveen Mehta

Assistant Vice President, Operations