Escorts goes digital, creates new lines of business

Escorts is not only improving its operational efficiency by deploying digital technologies, it has started creating new revenue streams with the help of digital transformation

VIPIN KUMAR

ESCORTS

We recently automated the shop-floor operations for the first time which led to better quality, elimination of rework leading to reduced manpower cost and enhanced efficiency of operations due to automation at various levels within the shop-floor.

Engineering and manufacturing firm Escorts is a strong believer in product and process innovation, customer-centric business growth and new avenues to connect with its customers. In line with its ethos, Escorts has started using digital technology in all spheres of its existence, be it creating the workplace for tomorrow, automation of business operations, new and innovative ways of connecting with customers or creating innovations in products for a better customer experience.

“In the foreseeable future, we propose to be a digital organisation which is highly innovative, efficient, customer-centric and creates value for our stakeholders. Escorts has already taken many initiatives in digital technology and many more are under planning and execution to transform Escorts into a new generation company which is globally competitive and creates benchmark in the industry,” shares Vipin Kumar, Group CIO, Escorts.

The group recently took a strategic decision to leverage digital technology for business benefits. To enable digital strategy, IT along with the business teams launched and implemented various initiatives to help increase productivity, efficiency and growth.

The first of these initiatives was deployment of a business intelligence (BI) tool which has been implemented in all the divisions of Escorts and across all critical departments including supply chain, inventory, sales, finance, compliance, BOM and breakeven analysis along with dashboards for functional and senior management.

“Departments are now tracking their critical parameters as they get highlighted on their dashboards. Importantly, BI is now helping process owners to improve effectiveness of their processes as the operating mistakes get highlighted and serve as triggers for improvement. The BI output has become the only source of truth company wide and a basis for taking informed business decisions to improve the present and future state of the business,” explains Kumar.

The next initiatives were focussed around shop-floor digitisation. Escorts makes multiple variants of different tractor models. From the outside, most of the tractors and major assemblies like engine, transmission, rear axle, hydraulic lift, tyres and battery look the same. To eliminate the problem of wrong fitment of assemblies on tractors, all major assemblies were barcoded. These barcodes were then mapped to various tractor models so that whenever a unique model of tractor is to be made, the barcode of various sub-assemblies is scanned which immediately highlights whether the assembly picked for fitment is right for that model or not. The automation of tractor manufacturing process led to increased visibility on the shop floor and helped the succeeding stages on manufacturing line prepare the right parts for the incoming tractor. The automation of manufacturing process was tightly integrated with backend IT systems. Escorts has taken many other initiatives in the field of IoT, customer-facing applications to further the digitisation of business.

Business has reaped many benefits out of Kumar's digital transformational initiatives. While some have created new lines of revenue streams like spare parts selling on the web, many others have had a direct impact on productivity and efficiency.

Some of the more popular digital initiatives like video conferencing is extensively used by Escorts to connect with both, the domestic and international stakeholders. Within a few months of operation, the group recovered the entire cost of VC deployment.