2. Enterprise Resource Planning
Enterprise Resource Planning - a software system that integrates
core business areas such as manufacturing, distribution,
financials and human resources.
Example: A warehouse in Singapore enters a customer order
data automatically flows to other areas of the company.
It would flow to the financial and accounting people in New
York
Automatically update accounts receivable.
The order would also flow to the manufacturing operations in
Europe instructing them to make another component.
Inventory levels would automatically be reduced in the
warehouse and an order would be placed to replenish inventory.
3.
4. Example: Before ERP Systems
Transfer to
Accounting Office
Secretary’s New printer
application
7. ERP market in India steadily growing for the last few years(2000).
The main factors such as industry best practices, easy and faster
implementation and good cost predictions.
The Indian ERP market experienced CAGR (compounded annual growth
rate) of 25.2 during the period of 2004-2009. The market was $83 million
in 2004, and is projected to be over $250 million in 2009, according to a
research report.
8. ERP facilitates a company-wide integrated Information Systems covering
all functional areas such as manufacturing, sales and distribution, accounts,
payables, receivables, inventory, human resources. Etc.
ERP bridges information gaps across a company and focuses on key issues
such as productivity enhancement, customer service, cash management,
inventory, quality control and prompt delivery. Etc.
ERP is the solution for better project management.
ERP not only addresses the current requirements of the company but also
provides an opportunity for improvement and refinement in the business
process on a continuous process
9. E-resource ERP solutions are designed to seamlessly integrate personnel, processes,
applications, and data across an enterprise, enabling the organization to streamline its
operations and support business growth.
E-resource renders services for complete Enterprise implementation life cycle-
Selection of ERP vendor
Risk Analysis & Mitigation Plan
Pre Implementation Approach
Project Management and Monitoring
ERP Training and Implementation
Operational Audit
Post Implementation Audit
Measuring Range compatibility and ROI
10. 1. OPERATIONAL EFFICIENCY:
Automates all business and functional processes thereby increasing overall operational efficiency.
2. CUSTOMER SATISFACTION:
E-resource ERP solution help in enhancing internal business processes and enables organizations to
improve customer satisfaction.
3. EASY ACCESS:
Our web-based ERP solution enables easy accessibility and availability of timely information,
which results in better decision making and forecasting.
4. FLEXIBILITY:
E-resource ERP packages have a flexible and scalable structure thereby enabling organizations to
adapt and cater to future business expansions and requirements.
5. COST-EFFECTIVE:
E-resource ERP for Small and Medium Enterprises is affordable, quick to implement thus enabling
the SMEs to focus on growth and improvement of their business rather than worrying about
software
11. • Interaction with other areas of the system, gives you a 'clear' view of the
customer .
• Maximizing opportunities and retaining high value customers enhances
revenue and profit.
• Provides value-added services enable you to stay ahead of your competitors.
• Improves product development and service delivery processes
• Prepare your personnel with in-depth knowledge of the customer's needs
• Organizes the customer experience through quick problem resolution
• Easy re-run of customer information over and over again
14. • To take the battle to its competitors
• With an entry into the FMCG sector and believes IT to be an
indispensable weapon in this war
• The distribution network is the lifeline for an FMCG company and is a
greater value add in terms of IT returns than manufacturing
• For years, Dabur had been using FoxPro based systems for handling
logistics.
• By 2000, the company distribution network had grown, spanning 29
factories, 6 mother warehouses, 47 stocking points, 4 zonal offices and
over 10,000 stockiest and dealers.
• In addition, about one hundred trucks were dispatched daily. With
distribution pressures rising, technology up-gradation was necessary.
• The company therefore initiated automation of its outward logistics
system in April 2001 with its primary distribution system.
• Named ‘Project Synergy’, this involved implementation of the
MFG/PRO ERP system
15. Dabur works on two ERP systems.
For the outbound logistics it runs QAD ERP suite known as MFG/PRO.
For manufacturing locations, there's BaaN
BaaN requires a central server. To fit so many locations many of them situated in
small and remote areas into a central processing system, Dabur needed a VSAT
(Very Small Aperture Terminal) network.
As with most companies, sales at Dabur peak towards the last 4-5 days of the
month.
If the company were to depend on this kind of a central server architecture , which
would be connected through VSATs, the network would be enormously
overburdened during every month-end.
However, the company never wanted to make the network a critical component in
the automation of outbound logistics.
The company decided to go for an ERP solution that was 'network independent'.
It found that MFG/PRO could be run on independent servers at each location it was
a good choice that suited its unique needs
16. Once it was decided that MFG/PRO it will be to handle outbound logistics, a
core implementation team which comprised end users from departments, like
distribution and planning, finance, sales and IT was setup.
The deployment was made in four stages.
The first included a requirement study where a model was developed . Dabur
has five SBUs (Strategic Business Units), each with diverse needs in terms of
the outbound logistics.
Since it is a traditional FMCG company into family and health care products,
pharmaceutical products, food products, which is a perishable products division
, Ayurveda products for both the medicine and home segments. All these
divisions have diverse requirements.
The core team had its job cut out: It had to develop a common business model,
which could cater to every segment at the same time.
17. Improvement in sales dispatches to the CFA(Chartered Financial Analyst).
The sales earlier were heavily loaded towards the last week of the month
with over 80 percent of sales taking place during this time. This led to a
number of problems such as sales returns and cheque bouncing from
pushed· sales to meet sales targets.
Improvement in collections. Collections have recorded an improvement of
about 6 days and are more evenly spread over the month. This leads to
considerable saving on working capital locked up in out-bound logistics.
Reduction in sales returns and unsold stock inventory. Stocks in CFAs are
visible to central distribution planners in saleable and un-saleable
categories leading to better management and distribution.
Central management of sales schemes. The schemes and free issues are
now managed centrally at the corporate office and the ERP system keeps a
strong check on schemes leading to reduction in misuse of schemes in the
field
18. Use of Mfg Pro gives real-time information about the inventory and sales
situation of distributors and improves the accuracy of demand forecasts.
These demand forecasts are then fed into the back-end system (Baan) for
materials planning and production scheduling. Integration of the two
systems is expected to significantly enhance their efficiency in 2003-04.
Mfg Pro is fully operational in the zonal offices, mother ware houses and
CFAs and Baan is already live in five manufacturing locations.
A Secondary Sales System is also being implemented to provide country
wide information on Secondary pipelines and sales by brand.
This new Secondary Sales System, by making focus on secondary sales
possible, has played an important role in tracking brand-wise sales, and
reducing pipeline inventories
19. The improvement in area-wise and brand-wise inventory management has
scaled up the entire supply chain management through better sales
forecasts, production scheduling, materials planning, vendor management
and raw material sourcing.
Company has implemented yet another new initiative of Claims Settlement
using an Intranet/ Extranet based system, for systematic tracking and
settlement of claims.
The Company also implemented another major initiative-Employee
Management System (EMS), an intranet based HR-information system,
including Payroll and PF processing
20. By 2005 Dabur started to feel the pinch of maintaining two independent ERP
systems. They were facing following issues:
There were still data redundancies and inconsistencies at times.
Considerable amount of rework was necessary in just data format conversion
between the two systems.
It still did not provide a holistic picture and thus posed problems in formulating
a strategy or taking business critical decisions
Maintenance costs climbed up because of the above stated points.
Therefore, to realize not just the operational excellence but also decision
support infrastructure, the idea of a single organization wide ERP
implementation was proposed in Dabur. So, With Accenture’s help, Dabur
implemented strategic and operational changes by implementation of
organization wide SAP core modules
21. Migrated from standalone ERP systems -Baan and Mfg. to centralized SAP
ERP system from 1stApril, 2006 for all business units (BUs).
Implemented a country wide new WAN infrastructure for running
centralized ERP system.
Setting up of new data center at KCO head office in Ghaziabad.
Extension of Reach system to distributors for capturing Secondary Sales
Data to collect near real-time pipeline information was done by 2004.
Roll out of IT services to new plants
22. Competing on core competencies, while outsourcing non-core functions to
trusted third-party providers.
Viewing information technology (IT) as a strategic asset that creates real
value not simply a cost to be managed.
Streamlining processes wherever possible
From an IT perspective, Accenture recommended a two-pronged strategy
Migration to a nimbler outsourcing model that would generate
Value through agility and support business initiatives and maintenance of
its SAP enterprise resource planning (ERP)system
23. Implementing a new sales and distribution strategy-
To identify key customer segments in urban and rural markets, customize
sales programs for key accounts and reorganize Dabur’s sales teams by one
of four trade channels(modern trade, rural, mom-and-popµ and drugstores).
The Accenture and Dabur team optimized the company’s internal logistics
and distribution processes for mega retail customers, and put metrics and
incentives in place to drives pacific goals
24. Developing a new supply chain management capability-
Focused on bringing a market-driven perspective to the new supply chain
and building collaboration skills
Accenture helped Dabur create capabilities to facilitate the launch of new
initiatives, products and trade promotions
Instituted a plan to leverage SAP by automating Dabur’s material resource
planning processes across the complex manufacturing arena
The new approach allowed employees to shift their focus from simple
transactions to more strategic procurement efforts such as cost management
25. Optimizing Dabur’s ERP capabilities-
While Dabur had deployed a SAP ERP system to link its corporate
headquarters, 12 manufacturing plants and more than 30 distribution
centers, the company was not using the system to its maximum potential.
Accenture launched a three-phase ERP improvement program that involved
Correcting the transactional and management information systems.
Conducting change management and synchronizing Dabur’s business
processes with realities in an ERP context.
Developing value realization projects
26. Leveraging IT for business initiatives
Accenture designed a Web-based demand planning and trade promotion
forecasting tool, and installed point-of-sale software at select retail and
wholesale sites
This latter initiative allowed Dabur to integrate key customers into its IT
network and gather real-time market information that would drive better
sales and distribution decisions
Outsourcing IT operations
Accenture delivered industrialized and cost-effective skills that would
allow Dabur to remain at the leading edge of IT delivery . Plus, Dabur
gained the flexibility of being able to focus on its core capabilities while
realizing increased value and lower costs through improved performance
27. Forward integration of SAP with distributors and stockists.
Backward integration of SAP with suppliers.
Implementation of new Point of Sale (POS) system at stockist point and
integration with SAP ERP.
Implementation of SAP HR and payroll.
SAP roll out to Dabur Nepal Pvt. Ltd. (DNPL) and other businesses
