AutoTodo is a Mexican automotive wholesaler distributing mechanical spare parts to thousands of clients scattered around the country through its 11 distribution centers. They were spun out of Genuine Parts Company two years ago through a management buyout and currently employ 780 people with 100,000 SKUs in existence and 300,000 in catalog.
The company faced many operational issues, including aging finance and HR systems that existed in silos and couldn’t handle a growing volume of operations. With these challenges in mind, leadership believed there was a need for a thorough system overhaul and sought a partner willing to support them along with this digital transformation.
They required a robust platform that would help them integrate their systems to accelerate customer service and the processing of accounting information, including payments and collections. Additionally, they needed to optimize their warehouse operations with an inventory management system that would help them reduce errors costing the company dearly in terms of dissatisfied clients, increased costs, and time losses. Within HR, they sought to streamline operations and link workforce performance metrics with business data to enhance performance management and optimize outcomes—all managed in modules and on the cloud.
AutoTodo evaluated a wide range of options, but the final choice was ultimately driven by a firm determination to acquire a single integrated HR and ERP solution—something only Oracle and SAP could provide. They concluded that Oracle Fusion Cloud outperformed SAP’s competing solution and would provide more value for their investment while noting Oracle’s global presence, dependable support, and industry expertise.
“We are happy and satisfied to have chosen Oracle as our partner for our system-change megaproject. The most important transformation this company has undergone in years was deciding to change the system from start to finish,” says Juan Lujambio l, AutoTodo Mexicana’s CEO. “There have been issues along the way, but what I really like about Oracle is that from an operative and support level to the executives in charge of our account, there has always been an answer.”
The newly-found traceability enabled by digital processes has enhanced audit and control capabilities, which represents a huge improvement to the company. Moreover, with all the information in cubes and available real-time, reporting has become both easier and faster.
Within HR and finance, the company has found in Oracle the platform they needed to support their digital structure: cloud-based systems AI, interconnected digital processes, and traceability. Now that their information is readily available, they are also working on big data.
Moreover, order processing times have been reduced by 40% and they have seen an average 70% drop in warehouse error rates. All of the company’s information is now in cubes and available real time, which has resulted in improved reporting and auditing capabilities. With improved collections, executives are now free to turn to more proactive tasks such as client negotiations.
Also, the staff’s enhanced performance resulting from leveraging staff productivity data has impacted the company’s overall results.
“We’re currently working on stabilizing the systems, so we’re just starting to see the improvements. But as they kick in, the results are immediate. The fact is our digital strategy could only begin once we had the platform up and running, and the platform is already here,” concludes Lujambio.