Litoplas gains manufacturing efficiency with Oracle Cloud SCM

Litoplas is a leading Colombian manufacturer of plastic packaging for food, health, and hygiene products. With over five decades of experience in the industry, the company is known for its innovation, sustainability, technology, and simplified logistics for customers.

The company had been using its in-house enterprise resource planning (ERP) system for years, but limitations began to arise. Litoplas had good control over its manufacturing operation, but it wasn’t well connected to the finance and accounting side of the business. This disconnect, combined with aging systems, was causing problems. For example, it was difficult to plan and schedule preventative maintenance, gain a clear view of business performance with limited KPIs, and keep machines running with frequent unplanned breakdowns.

With new facilities under construction in other countries, the company needed a standardized process that it could replicate at different plants. The goal was to gain more control over the entire operation, gather deeper insights into data, and create more efficiency throughout the business.

"Oracle helps us be a dynamic company so we can modernize our processes and stay ahead of the curve."

-Eugenio Velez, CFO, Litoplas

Why Litoplas chose Oracle

Litoplas considered several vendors in its search for a cloud solution but came to the conclusion that Oracle Supply Chain Management (SCM) was the best fit. After having success with Oracle Enterprise Resource Planning (ERP), the company decided to extend its capabilities beyond finance and into its supply chain.

With Oracle Cloud SCM, Litoplas could bridge the gaps between separate areas of the company, while Oracle’s simple integrations would allow data to flow seamlessly between systems, offering a complete view of the business and more efficient processes.

The cloud native Oracle Cloud SCM application would also provide more mobility and flexibility while reducing the amount of maintenance required compared to its on-premises environment. The application is also intuitive and user-friendly, making it possible for all employees regardless of technical skill to easily use it. The ability to scale with the company’s growth while providing continuous improvement through new functionalities and automatic updates was an additional advantage for the future of the company.

With Oracle Cloud SCM, Litoplas saved over 160 hours of unplanned corrective maintenance per month, reducing spend and staying within budget.

After implementing Oracle Cloud SCM to add to its use of Oracle Cloud ERP, Litoplas modernized its supply chain and connected separate areas of the business, becoming more efficient. Maintenance was a big focus area, and Oracle helped the company gain more control to increase productivity and reduce downtime. Oracle Cloud SCM helped Litoplas streamline the processes to source and deploy maintenance services. This increased machine availability by 5%, which immediately increased total production capacity. The company took 16 fewer days to produce the same number of products. Litoplas also saved more than 160 hours of unplanned corrective maintenance per month, keeping the maintenance budget under control.

Oracle’s platform gave the company the ability to obtain more insightful KPIs across accounting, operations, and manufacturing. This connected view of data enabled Litoplas to accurately forecast maintenance needs and plan work orders ahead of time, saving 15% in the total budget. Teams across the organization were empowered to do more with data, thanks to the application’s overall ease of use. Collaboration also improved because everyone has a clear view of the data, and teams such as sales and marketing also have input. Managers get reports faster, allowing for quick, data-driven decisions to help move the business forward.

Additionally, Litoplas did a pilot test with Internet of Things (IoT) sensors, applying them to smart manufacturing. By gathering signals from connected devices throughout its factories, the company gained more visibility into the production process. For example, enhanced work-in-progress monitoring increased use of production lines by 5%. Litoplas also prevented unplanned downtime to further increase machine availability and boost production. With a better understanding of its manufacturing ecosystem, the company maximized product quality, which reduced non-quality costs by 20%.

About the customer

Litoplas is a Colombian-based plastic packaging manufacturer that distributes its products to customers across Central and South America.

Learn more about Litoplas.