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Analysis of case study which deals about ERP implementation in HLL

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  • DRP helps in computing demand dynamically based on daily sales ordersIt helped HLL for workflow automation in supply chainCompute demand dynamicallyImplemented VMIForward sales order help in inventory management
  • Distribution Resource Planning (DRP) is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements
  • HLL Net

    1. 1. Case study of HLL Net<br />
    2. 2. Agenda<br /><ul><li> Objective
    3. 3. Background
    4. 4. Business Network Systems
    5. 5. About HLL
    6. 6. SCM
    7. 7. HLL distribution network
    8. 8. Implementation of ERP
    9. 9. ERP extension and redesigning ( DRP module)
    10. 10. Future Network distribution chain
    11. 11. Business Impact</li></li></ul><li>Objective<br />
    12. 12. Background<br />The case discusses about<br />
    13. 13. Business network systems<br />
    14. 14. Types of BNS<br />
    15. 15. About HLL <br />
    16. 16. FMCG Sector<br />
    17. 17. To Manage this – We Require ??<br />
    18. 18. What is SCM?<br />Information <br />Systems to <br />coordinate <br />these <br />activities.<br />
    19. 19. Networked Enterprise Model<br />
    20. 20.
    21. 21. Optimizes the mode of Planning for the Balanced Supply of products having varied demand<br />SCP: Supply Chain Planning<br />
    22. 22. Is responsible for timely execution of purchasing, moving, manufacturing, and ordering. <br />SCE: Supply chain Execution<br />
    23. 23. Facilitates the collaboration among the participants of key business processes. Includes<br />CP: Collaborative Planning<br />
    24. 24. ERP vis-à-vis SCM<br />
    25. 25. HLL Existing Distribution Network<br />
    26. 26. Existing Supply Chain of HLL<br />
    27. 27. Integrate<br />Manufacturing<br />Financial <br />Distribution process<br />Problems with<br />Time Lag- lead to pushing stock<br />Supply chain had chronic inventory problems<br />To Improve<br />Working capital <br />Reduce channel inventory<br />Standardize Business Processes<br />Need for Change<br />
    28. 28. In 1997, HLL implemented MFG/PRO ERP package from QAD<br />MGF not a market leader<br />Implemented at 234 sites<br />100 manufacturing<br />13 sales branches<br />121 warehouse depots<br />Solution<br />
    29. 29. Why MGF/PRO<br />
    30. 30. Problem in implementation<br />
    31. 31. Solution <br />HLL installed 128 VSAT systems<br />VSAT provides connections for a wide range of applications such <br /> databases<br /> ERP<br /> messaging<br /> intranet<br /> voice and video. <br />Provides intranet applications <br />information warehousing<br />database connectivity<br />training<br />
    32. 32. Extended ERP<br />
    33. 33. Systems Schematics of HLL Net<br />
    34. 34. Distribution Resource Planning (DRP)<br />
    35. 35. DRP helps in computing demand dynamically based on daily sales orders<br />It helped HLL for workflow automation in supply chain<br />Forward sales order help in inventory management at company’s distribution center<br />System handles exceptions involving dispatching, wildly varied truck capacities, lead-time variances and changes in demand.<br />DRP <br />
    36. 36. Distribution Resource Planning (DRP)<br />System integrated 40 raw material suppliers, 60 finished goods suppliers and 600 large stockists<br />At the end of day, HLL factories & 4 buffer depots know exactly what needs to be dispatched based sales that evening.<br />
    37. 37. Supply chain integration<br />HLL enabled, its suppliers to know about production plans and delivery<br />Vendors were suppose to maintain enough stocks to keep factories going. <br />It means look in demand surge and even rejections.<br />Information integration at supply level checked “bullwhip” effect<br />
    38. 38. VMI<br />HLL also implemented Vendor Managed Inventory (VMI) to integrate 750 large stockists.<br />It took HLL 1 year to implement the concept and realize its benefits.<br />It helped in aggregate daily demand <br />
    39. 39. Future Networked Distribution Chain<br />
    40. 40. Starting point is about collection of daily sales data from retailers and feeding into HLL’s distribution centers for that area<br />Data is sent back to 60-odd factories and they in turn inform their suppliers.<br />Factories interact with suppliers directly for delivery, scheduling and quality issues<br />Redesigned BNS<br />
    41. 41. Workflow automation of the supply chain<br />Variances in lead time, dispatching and truck capacities taken care of<br />Need not maintain high inventory levels<br />Company can focus on data warehousing<br />Application of VMI to further dampen Bullwhip effect and effective demand forecasting<br />Lesser credit period leads to quicker receivables collection<br />Advantages to HLL<br />
    42. 42. Fast transfer of funds across business partners through relationship networks-External BNSs<br />Increased coordination of economic activities<br />Reduced coordination costs<br />Planning cycle changed from monthly to daily resulting in better control<br />Stock reduction (105000 tons to 55000 tons)<br />Management of finished goods<br />Better inventory management (supplier inventory levels at 3 days from previous 7)<br />BNS and Coordination<br />
    43. 43. Stockists place order for stocks that can be replenished quickly<br />Improved flow of demand and supply information<br />25% SKUs weren&apos;t available on any given day earlier. This is down to 5%<br />Response time reduced to 2 days from 14<br />BNS & Customer Value<br />
    44. 44. ERP system can be extended as transaction oriented BNS<br />Implementation of ERP across supply chain will result in improved business performance across the business network<br />HLL shifted its decision making powers to the point that is closest to the customer thus saving costs and time tremendously which is the biggest learning from this case<br />Conclusion<br />
    45. 45. “Enterprise Resource Planning”, by A.R. Singla<br />http://en.wikipedia.org<br />http://logistics.about.com<br />References<br />
    46. 46. Thank You<br />