ERP and eCommerce value strategies

Case study of FMCG companies in India
& Year-End rush

BY

Jyotindra Zaveri / /
ERP Co...
Year-End? 

.  Financial year in India is April to March. 

- Other countries like USA it is January to
December. 

www.  ...
Year—end rush

IT service providers usually are
flooded with requirements to change
things within systems at the time of
ye...
Management audit is not
mere account audit

- Contact Zaveri
for help in
implementing

ERP

www.  dn5erp_com ERP Implement...
Avoid year—end rush

e As a consequence of inadequate planning across the
whole business community,  a rush is experienced...
Plan changes well in advance

a User will wait till last minute to inform changes
required in the system.  This demonstrat...
If you want real—time information,  you need
to enter data also in real—time and not post-

dated (or back-dated). 

Where...
PUSH MIS

Adoption of projects like ‘push
technology’ in sales expected to improve
efficiency

Fast moving consumer goods ...
Case Study — Marico,  ITC,  Emami, 

FMCG companies in India,  will
spend around 10-15 per cent of
their net profit on new...
MARICO -
FMCG CASE

STU DY

wwwydngerpcom ERP Implementation 10
Marico

www. dnserp. com

M

fTial'lCO

Marico's Consumer Products Business houses well-
known brands such as Parachute,  ...
ERP IN MARICO

-.  “We believe that common thinking gets
common results and an uncommon
approach to business can bring

ab...
Enterprise portals

- Marico,  on its part,  is investing in
better connectivity through enterprise
portals;  Wi—Fi enable...
According to Udayraj Prabhu, 
head,  business applications,  M
Marico: 

“We have commenced Pro'ect Edge,  using
IBM-Cogno...
ITC

-.  ITC’s manufacturing locations have
increased rapidly to about 200 from
about a dozen owned manufacturing

facilit...
FM FO

« ITC Ltd is building an IT infrastructure to
barcode its produce at the warehouse itself, 
even before it reaches ...
VVR Babu,  chief information
officer,  ITC Ltd,  says: 

. /7

/ ’ “Each salesman is allotted specific

‘ locations and he...
Emami is using SAP ERP ECC
5.0

o Its business processes are integrated
and connects processes such as order-

to-cash,  p...
Mr.  Mohan Goenka,  director,  Emami,  says: 

“ We foreseen an improvement of 10 per
cent in production and efficiency le...
Standardize work process

o Imagine a scenario in which we can analyse and
evaluate our global inventory with a few stroke...
Accuracy of information

It is not only about having the right data.  It is
about having that data presented in the right
...
Emami:  l| o year—ending rush? 

Emami’s recent investment in IT
has ensured finalization of its
balance sheet in a record...
Countering the challenges

o SAP,  our core ERP business system,  is now
implemented in overseas subsidiaries. 

SAP went ...
EIVIAIVII IT department plans: 

Implement budgeting,  business planning and
consolidation. 

Implement business intellige...
1 l“ GROSSLY
unommro

‘1IuAANT

I A RAISE

mu uoizic I
aim:  roux nit
c-4AtLrNor- J

"Ir ‘ '
ix‘. 

(Qua xvi 1:103’ Mn ((1...
K

 1, About Jyotindra Zaveri

3“. 

Fifteen years of experience in implementing ERP.  Proven track-record
of 100+ success...
K .  . . 
is All3pm Additional learning resource

ERP,  eCommerce Social Hub created and
* managed by Jyoti

 Like http: /...
’c3:'l"s

H‘
II II
. >

ll<e_ep,  in touch. .. 

I / L "1. ; _~. .

1' aw 

I A "7 7'3’ .  Don’t’f
I.  1  «ed 6,.  ’9et to...
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Year End rush - ERP and eCommerce Case study of FMCG companies in India

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March 31 is the accounting year-end in India. Learn how enterprise such as Emami is benefited by investing in Information Technology - ERP strategies enables enterprise to gather, store, analyse, and provide easy access to the most up-to-date information to users, all updated in real-time - In USA accounting year is January to December!

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  1. 1. ERP and eCommerce value strategies Case study of FMCG companies in India & Year-End rush BY Jyotindra Zaveri / / ERP Consultant and Trainer j. zaveri@dnserp. com
  2. 2. Year-End? . Financial year in India is April to March. - Other countries like USA it is January to December. www. dnserpyco m ERP Implementation 2
  3. 3. Year—end rush IT service providers usually are flooded with requirements to change things within systems at the time of year—end. In India it will be 31 Mach, or other countries like USA it will be 31 December. This is because user departments HAPPYNEW know IT people are magicians. They mY“§: ;‘, “Y’ can work under pressure and deliver changes in the system overnight. Well, this is not a good idea. This only shows the stakeholders were not given enough training. wwwdnserpcom ERP Implementation 3
  4. 4. Management audit is not mere account audit - Contact Zaveri for help in implementing ERP www. dn5erp_com ERP Implementation 4
  5. 5. Avoid year—end rush e As a consequence of inadequate planning across the whole business community, a rush is experienced at any time of year usually arrives at the time of closing of the balance sheet. It is important that top management visualize the practical deliverables that are necessary and furthermore consider the timing required to implement improvement. There is rarely a quick-fix, or a little change having no impact across the systems ecosystem. Generally in business we have an expected desire to ‘corroborate everything’ by the year end; yet in reality the preparation will normally initiate at an earlier time. www, dnserppo m ERP Implementation 5
  6. 6. Plan changes well in advance a User will wait till last minute to inform changes required in the system. This demonstrates a lack of stakeholder involvement between the two corporate areas. Most of software vendors are staffed by highly proficient technicians, who will often excel themselves to achieve miracles. If the sole way improvement is deployed is through a succession of panic responses, then evidently there is a continual lack of insight that superior quality components involve appropriate preparation. There is a need to make changes through properly planned procedures. www, dnserp, com ERP Implementation 6
  7. 7. If you want real—time information, you need to enter data also in real—time and not post- dated (or back-dated). Where it comes to year end requirements it may be imperative to setup a deadline; for instance three months before the closing of the year. Holding a BPR (business process reengineering) meeting well in advance by all stakeholders will help in closing the year in time, and filing of the returns in time. By the way some experts call BPR as Business process re-design or change management. Call what you like, but do change the legacy culture of delays. www, dnserp, com ERP Implementation 7
  8. 8. PUSH MIS Adoption of projects like ‘push technology’ in sales expected to improve efficiency Fast moving consumer goods (FMCG) companies are looking at improvement in production and efficiency levels because of the adoption of Information Technologies to track expansion of product portfolio and manufacturing locations. Vl, ’/ Vi/ ' dnserppom ERP Implementation 8
  9. 9. Case Study — Marico, ITC, Emami, FMCG companies in India, will spend around 10-15 per cent of their net profit on new technology Companies like ITC Limited, Eami and have forayed into diverse businesses in FMCG alone This has not only led to the rapid expansion of the supply chain but has also increased complexities. AN/ Vi/ 'dnSerp_C0lT1 ERP Implementation 9
  10. 10. MARICO - FMCG CASE STU DY wwwydngerpcom ERP Implementation 10
  11. 11. Marico www. dnserp. com M fTial'lCO Marico's Consumer Products Business houses well- known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, among others, which occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti—lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Every month, over 70 Million items from Marico, reach approximately 130 Million consumers, in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas. ERP Implementation 11
  12. 12. ERP IN MARICO -. “We believe that common thinking gets common results and an uncommon approach to business can bring about radically different results” o “We also believe that uncommon sense enables the creation of an organization that is boundariless in approach and limitless in sizing and seizing the potential of opportunities all around. www, dnserp_com ERP Implementation 12
  13. 13. Enterprise portals - Marico, on its part, is investing in better connectivity through enterprise portals; Wi—Fi enabled offices and in unified communications e The company has also launched HR portal platforms as active channels of communication within the Organization www, dnserp, com ERP Implementation 13
  14. 14. According to Udayraj Prabhu, head, business applications, M Marico: “We have commenced Pro'ect Edge, using IBM-Cognos, etc. (e. g. ata Mining Software) This will enable us to strengthen our budgeting, planning and review processes by making them quicker, error-free and less tedious. This should lead to a significant saving in time for those involved in these activities. ” Marico is investing in automation of many workflows like write-offs insurance claims, and media spend management portal (websites) wwwdnse-rp, com ERP Implementation 14
  15. 15. ITC -. ITC’s manufacturing locations have increased rapidly to about 200 from about a dozen owned manufacturing facilities for its different businesses - In addition to these manufacturing locations, ITC’s aggregating of godowns and shipment warehouses have grown exponentially in a couple of years. www_dnserp_com ERP Implementation 15
  16. 16. FM FO « ITC Ltd is building an IT infrastructure to barcode its produce at the warehouse itself, even before it reaches the retailers ~ This is expected to help ITC keep track of product manufacturing time, thereby enabling implementation of first manufactured-first—out (FMFO) strategy, which means items manufactured first are shipped out of the factory and the warehouse earlier than products manufactured later. www, dnserp, com ERP Implementation 16
  17. 17. VVR Babu, chief information officer, ITC Ltd, says: . /7 / ’ “Each salesman is allotted specific ‘ locations and he has to track sales and requirements of all shops and stores of a particular area. We are working on an integrated IT system which will gather and push information onto our salesmen s laptops so that they don’t have to waste time Iookin up details on the company portal. or instance, if a salesman is covering 10 outlets of a refiion, every evening ITC’s systems wi push onto his laptop the sales, distribution and requirements of that region and also the target to be / / me . www_dnserp_com ERP Implementation 17
  18. 18. Emami is using SAP ERP ECC 5.0 o Its business processes are integrated and connects processes such as order- to-cash, procure—to-pay, production planning, quality management, sales and distribution, among others. www, dnserppo m ERP Implementation 18
  19. 19. Mr. Mohan Goenka, director, Emami, says: “ We foreseen an improvement of 10 per cent in production and efficiency levels at Emami for financial year 2008-2009. This will be achieved by implementing sales and operation planning, demand management, and distribution resource planning which will enable system control to forecast sales, check inventories at locations, plan manufacturing resources and logistics to meet the customer schedules. ” www, dn5erp, com ERP Implementation 19
  20. 20. Standardize work process o Imagine a scenario in which we can analyse and evaluate our global inventory with a few strokes of the keyboard. That scenario is now within reach because our new applications and processes allow us to apply a simplified and standardized approach to doing business. The ERP implementation is helping to reduce the amount of time and effort it takes to fulfil customer requests and transactions. Having a robust, online transactional system with a single data base is making that happen. www, dnserp, com ERP Implementation 20
  21. 21. Accuracy of information It is not only about having the right data. It is about having that data presented in the right format, at the right time and in the right place. And it is about carrying that customer information all the way through the product cycle, from order commitment to production scheduling to delivery to invoicing. www, dnserp, com ERP Implementation 21
  22. 22. Emami: l| o year—ending rush? Emami’s recent investment in IT has ensured finalization of its balance sheet in a record 35 days against the 60-day norm AN/ VI/ 'dnSerp_C0lT1 ERP Implementation 22
  23. 23. Countering the challenges o SAP, our core ERP business system, is now implemented in overseas subsidiaries. SAP went live at Bangladesh in November 2011, the first overseas implementation by Emami’s IT team. Emami FZE International (UAE) is scheduled to go live in June 2012. Implemented a 3PSCM (Third Party Supply Chain Management) system successfully at one 3P unit for better control across the contract manufacturing units. www, dnserppo m ERP Implementation 23
  24. 24. EIVIAIVII IT department plans: Implement budgeting, business planning and consolidation. Implement business intelligence system Implement and integrate export documentation modules in SAP Enhance information security by implementing high- end firewalls and upgrading the data centre. Run SAP optimisation for continuous improvement and enhanced system efficiency. www, dnserp, com ERP Implementation 24
  25. 25. 1 l“ GROSSLY unommro ‘1IuAANT I A RAISE mu uoizic I aim: roux nit c-4AtLrNor- J "Ir ‘ ' ix‘. (Qua xvi 1:103’ Mn ((1- - 970051.: ht nan snun ht. ' OM, D1LB[RT, ‘ mi BERT. LDILBERT. ‘l l_ _ ‘ IT CHALLENGES ARF HORF VALUAILL THAN MONEY. Copyright © 2000 Llmted Feature Syndicate, Ion: Redistribution in vhoio or in part prohibited VlNJN. ClI'lS8l'p. COl11 . /:. '.HY DON'T YOU GIVE ME ‘(OUR MONEY AND I LL GIVE YOU NV K ciiAi. .i>. Noi-. s« *1- . // . ..— ERP Implementation '—"" ' Peon: com: U“ 27 a UDRK HERE FOR E MOINEY. , . firs? KILL wt'. -? ' / um BEFORE 8 ' " Nit. INFLCTS {rm omr as 25
  26. 26. K 1, About Jyotindra Zaveri 3“. Fifteen years of experience in implementing ERP. Proven track-record of 100+ successful ERP projects. Broad techno/ commercial background, with over 38 years experience in Information Technology. Author of nine books, including ERP books. Usually users are not satisfied with ERP Implementation. Jyotindra Zaveri has received testimonials from manufacturing companies! Travelled extensively from India: Bahrain, France, Germany, Italy, Japan, Malaysia, Netherlands, Singapore, Switzerland, Thailand, UAE, UK, and USA. IT professional since. ...1975 combined with academic credentials in electronics and electrical engineering from VJTI, Mumbai, India. Formerly worked in IBM, trained in Germany. Contact j. zaveri@dnserp. com www, dnserp _ co m ERP Implementation 25
  27. 27. K . . . is All3pm Additional learning resource ERP, eCommerce Social Hub created and * managed by Jyoti Like http: //www. facebook. com/ dnserp Like Facebook Page ERP " 5-. “.. ‘.“. .,; ‘:"_"_(. j3_. https: //www. facebook. com/ groups/ discuss. erp I Join Facebook Group ERP fi"““; :'edv_ . H http: //| inkd. in/ lFj98r Gmup Join LinkedIn Group ‘ERP, E-business Forum‘ http: //www. twitter. com/ followERP Follow on Twitter http: //news. dnserp. com Newspaper focusing on ERP, eCommerce Subscribe 27
  28. 28. ’c3:'l"s H‘ II II . > ll<e_ep, in touch. .. I / L "1. ; _~. . 1' aw I A "7 7'3’ . Don’t’f I. 1 «ed 6,. ’9et to C, - 7‘“‘ 2 :5’ . - foll '°" 0n s -‘*f"x“3{. , 12>‘ 5° that yoow tiutton ubscnbe / A 4? 5* aut°”°atic / Iyu Lilli” getemal thes W 9” W I Join Prof. Jyoti on Facebook and Linkedln eLe m‘ 9 Sftgpdate j. zaveri@dnserp. com S pinterest. com/ digitalpin Follow Boards on P Interest “Ill” www. youtube. com/ dnserp Subscribe | www. scribd. com/ Digitalvivekananda Follow u »h. :r~- www. slideshare. net/ jzaveri Follow Presentations ERP Implementation 28

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