Marine Manufacturing: 30% Cost Reduction Through ERP Optimization
From fragmented systems to integrated operations. Implemented Accurate Manufacturing ERP across 6 departments with zero launch disruption.
THE SITUATION
CLIENT:
Marine manufacturing company
Size: 150+ employees
Locations: Indonesia
Industry: Manufacturing & Marine Products
THE CHALLENGE:
• Multiple disconnected systems (accounting, inventory, production)
• No visibility into real costs
• Manufacturing processes not tracked properly
• ISO 9001 certification requirement looming
• Unable to scale operations
THE APPROACH
1
ASSESSMENT (Week 1-2)
What we found:
✓ Current system: Mix of Excel, one department with system, manual tracking
✓ Problem areas: Financial reporting took 10+ days, production costs unclear
✓ Opportunity: ERP system would provide real-time visibility ✓ Recommendation: Implement Accurate Manufacturing ERP
2
IMPLEMENTATION (Week 3-8)
What we did:
✓ Process mapping using BPMN methodology
✓ Configured Accurate ERP for manufacturing + financial modules
✓ Migrated 5 years of historical data
✓ Built custom manufacturing reports
✓ Trained 40+ staff across 6 departments
3
LAUNCH & SUPPORT (Weeks 9-10)
What happened:
✓ Go-live on schedule with zero disruption
✓ 30-day support period with daily monitoring
✓ Quick resolution of issues (all resolved within hours)
✓ Full team adoption (95%+ daily usage)
THE RESULTS
BEFORE ERP:
• Financial close took 10+ days (manual reconciliation)
• Manufacturing costs estimated (not tracked)
• Inventory inaccurate (actual vs. system)
• Vendor payments delayed (no visibility)
• No management certification and documentation
AFTER ERP (6 months):
✓ 30% cost reduction (found inefficiencies, eliminated waste)
✓ Financial close now 2 days (mostly automated)
✓ Manufacturing costs tracked in real-time
✓ Inventory accuracy 99%+ (daily automated checks)
✓ Vendor payments on schedule (better cash management)
✓ ISO 9001:2015 certified (met all documentation requirements)
FINANCIAL IMPACT:
• Cost savings: IDR 1.5B annually
• Faster decision-making: 5x quicker month-end close
• Better negotiations: Real data for vendor discussions
• Improved cash flow: Better visibility = better management
WHERE THE 30% CAME FROM
1. Manufacturing Efficiency (40% of savings)
BEFORE: Scrap rate estimated at 8%
AFTER: Tracked real-time, optimized processes, reduced to 2% Savings: IDR 600M annually
2. Inventory Management (35% of savings)
BEFORE: Too much inventory (safety stock excessive)
AFTER: Better demand forecasting, JIT procurement
Savings: IDR 525M annually
3. Vendor Negotiations (15% of savings)
BEFORE: No data on spend by vendor
AFTER: Clear spend analysis, renegotiated rates
Savings: IDR 225M annually
4. Labor Efficiency (10% of savings)
BEFORE: Manual data entry across departments
AFTER: Automated, real-time data capture
Savings: IDR 150M annually
KEY SUCCESS FACTORS
Why this project succeeded:
✓ Clear scope (knew what we were implementing)
✓ Strong sponsorship (leadership committed)
✓ Phased approach (not trying to do everything at once)
✓ Thorough training (team understood the WHY)
✓ Post-launch support (quick resolution of issues)
✓ Change management (addressed concerns, managed resistance)
"Paulina and I worked together on the start-up projects of a marine rope factory in Indonesia. She consistently gave 100 percent effort to the team and played a significant role in the business and the implementation of the manufacturing accounting system, ensuring the country’s standard compliance.
Nicke, Sweden
Timeline
Week 1-2: Assessment → Accurate ERP selected
Week 3-4: Process mapping, system configuration
Week 5-6: Data migration, testing
Week 7-8: Staff training, parallel testing
Week 9: Go-live (Friday launch)
Week 10: Full support, quick fixes
Month 2-6: Continuous optimization
LESSONS LEARNED
What worked:
✓ Involving team in process mapping (they understood WHY)
✓ Realistic timeline (not rushed)
✓ Strong post-launch support (built confidence)
✓ Celebrating wins (showed tangible value)
What would have helped:
- Earlier change management communication
- More time on one process before training others