Leading Indonesian Automotive Dealer Group Improves Data Processing With Epicor ERP
Listed on the Jakarta Stock Exchange in 1995, PT Tunas Ridean Tbk is an award-winning Indonesian automotive distributor and dealership. Its major automotive brands include Toyota, Daihatsu, BMW, Isuzu, Peugeot, and Honda Motors. The company also provides financial and rental services and sells used cars. Headquartered in Jakarta, Indonesia, Tunas Group has grown organically and through acquisition, and now boasts a total of 152 outlets spread across the vast Indonesian archipelago.
PT Tunas Ridean Tbk is the holding company for all subsidiaries (the “Tunas Group”). Each of these businesses has been using old business systems that operated independently for accounting and other management functions. Various systems and processes had been implemented separately, and functioned independently with little or no integration across departments. This situation led not only to difficulty in data collection and input, but made the sharing of information nearly impossible. Despite the continuing success of the business, the goal of operating more smoothly was not met because of the difficulty with data integration and accuracy.
Facing the challenge
Ester Tanudjaja, general manager of accounting, describes the challenge. “The struggle to access data and rapidly produce actionable reports reflected the management team’s lack of visibility into the organisation.” The company’s board of directors, together with Ester and Eko Putranto, general manager of information technology, agreed that the company needed to upgrade its business software solution.
“We knew we needed to look for a new enterprise resource planning (ERP) solution to enhance collaboration between subsidiary business units and help us achieve sustainable growth,” says Eko.
The objective for the new ERP system was clear. Tunas wanted to integrate data from a variety of sources into one system and completely replace the old system for accounting, asset, and tax. The new system needed to have the tools to help the company improve the accuracy of data as well as the quality and timeliness of reporting in order to improve the business decisionmaking process.
After an open-tender process, Tunas chose Epicor ERP. This decision was based primarily on the flexibility of integrating data from a variety of sources using Epicor Service Connect, a central integration point for secure workflow orchestrations where users can automate tasks and streamline processes to promote efficiency across the supply and demand chains.
The system implementation was managed by local Epicor partner PT Rajawali Adikarya, who worked with Tunas’ accounting and IT divisions.
With Epicor ERP in place, Tunas now has an interface for all frontline systems. Data is automatically transferred daily from the frontline systems into Epicor ERP, providing full visibility into the organisation, while ensuring that data is accurate.
Tunas also implemented the financial modules in Epicor ERP, allowing users to enter transactions directly into the ERP system. This means that fixed asset recording, financial consolidation, and reporting is more accurate and up-to-date. As such, Tunas has reduced its account closing process time by two and a half working days overall, because of the reduced time spent checking and correcting errors or replicated data.
Tunas is already seeing significant measurable benefits from its new Epicor ERP system. Data is now integrated from all subsidiaries in real time, and the accounts closing process and data analysis is faster and more accurate. This means timely and precise report generation, which in turn gives the management team greater visibility into the business. Being a listed company, having real-time financial data at their fingertips is crucial for Tunas to respond to market changes, and gives them greater confidence when making decisions for the business, as well as dealing with shareholders and investors.
Eko says, “Implementing Epicor ERP has helped improve our data accuracy and the flow of information across different departments. Tunas’ senior management team can now focus on business growth without worrying about how the IT systems can support it.”