How Vertex Found Four Points of Margin It Was Losing
The problem
Four systems, one version of the truth missing.
Costing was done once a year on a spreadsheet. Overtime, rework, machine downtime and freight were all real costs that never made it into the per-part number. Discounting was approved over the phone. By the time the annual accounts showed the problem, three quarters had passed.
The solution
One data model, activated a module at a time.
Vertex moved onto the Everything Plan with the Manufacturing pack. Job costing now draws on live labour, machine and material data, and Omni AI was asked the direct question: why did gross margin fall.
Rohit Malhotra
Managing Director, Vertex Auto Components
I asked why margin dropped and got an answer in nine seconds that would have taken my team two days to assemble. That is the whole pitch, really.
The result
Less reconciliation, faster decisions.
The answer took nine seconds and named three causes — a six percent rise in raw material at one supplier, three lakh of overtime caused by two machine breakdowns, and eleven orders discounted above the approved band by one regional team. All three were fixable, and margin recovered within two quarters.
Imran Sheikh
Operations Head, Vertex Auto Components
Preventive maintenance actually gets done now, because the schedule sits in the same system as the job card and somebody is accountable for it.