To anticipate rapid business growth in the future, PT Adi Sarana Armada Tbk replaced its system with SAP ECC6.
PT Adi Sarana Armada Tbk, or known as ASSA Rent, is one of the top players in car rental business. With 44 branches and representatives in cities like Medan, Batam, Jakarta, Bandung, Semarang, Yogyakarta, Pekanbaru, Palembang, Surabaya, Bali, Balikpapan, Banjarmasin, Makassar, and Manado, ASSA Rent manages more than 13,000 rental armada.
“We are the fastest growing company in the business," says, Jany Candra, Business and Service Director at ASSA Rent.
These achievements continue to accelerate the company's growth even faster. By the end of 2013 ASSA Rent has more than 597 authorized service centers, 13.000 fleet, and over 2,600 experienced, drivers.
Supported with mature system
“One of the success key that made ASSA Rent as big as today is the system. We had no problem, in the entire Triputra Group subsidiary, we are always the fastest in closing our book, having our audit report always comes out on-time. However we shall look forward," Jany says.
That is the main reason for ASSA Rent to switch from its conventional system to SAP ECC6.
"Our business is growing at a minimum of 20% annually, we add 2 to 3 branches each year, and grow our employee by 15%-20%. New business is growing, this year we will launch our pawn unit. As a consequence, we should have an IT system that is capable of handling the fast growth," Jany explains.
Fek Ly Immanuel, IT Manager at ASSA Rent says, the first issue studied was the platform.
"We were still using Visual Basic 6, the database used SQL 2000. The technology was outdated," Fek Ly says.
After a series of feasibility studies and benchmarking with other companies the SAP ECC6 turns out to best option. The platform is expected to cope with ASSA Rent fast growth.
Disseminating the transformation
After making the choice, the IT team with the support of the management informs the company’s entire component about the shifting. It was a challenging phase considering that the system shifting will be implemented in all ASSA Rent branches simultaneously across the nation.
“Without any exceptions, we plan to go live simultaneously," Jany says. "If we do it one by one and each branch took a month to complete, then it would take more than a year to finish in all our fifteen branches. We don't have that much time. It has to be done simultaneously," he says.
Having the new system cost high investment, but it would be compensated with the company's going concern. "But if we are not investing in new system there is a huge possibility of shocks as the company grows. The financial risk is higher than the first," he says.
The reasons assure the company’s entire component to accept and support the shifting.
Jany says the system shifting is best done when the company is in a stable condition. When deciding the shifting ASSA Rent was in a good growth level, the team was solid; the trust level was high and very confident.
Where office politics are tense, trust is low and team is not solid. While those are significant factors needed to guarantee the success of the shifting. We are lucky that we did it when the company was is a good condition," Jany says.
Like choosing on what system to use, ASSA Rent puts tight criteria to select implementation partner. At the time, the company was looking at some vendors, and the decision fell to PT SOLTIUS Indonesia (SOLTIUS), one of Metrodata Group subsidiary.
There are several important factors a vendor should possess, which are the size of the company, the consultant quality, and the solution offered. From the consultant quality, Jany considers that SOLTIUS is able to bring experienced consultant. "This is what we want, we felt that the system should be supported with senior consultant," he says.
ASSA Rent Car took the right decision in choosing SOLTIUS. The SAP ECC6 implementation was smooth and on schedule.
The implementation processes took 7 months to complete started in June 2013 and go live in January 2014. There were 6 modules implemented but it is open for development in the future.
“Our medium-term priority is to empower the middle management in generating report. If previously report making took 2 to 3 days, it is much faster now. If the decision making cycle was once in a week, now we could make 2-3 times in the same period. This means the business could be 2-3 times faster," Jany says.