ERP
SUB CODE-MS-235
SUBMITTED BY-PRACHI SINGH
SUBMITTED TO-SURABHI PANDEY
Challenges faced
Ballooning deployment costs ranging from 40 lakhs to 2 crores depending on the degree of complexity
and customization
Additional costs on implementation, installation, and data migration is 3-4 times more than the original
cost of the ERP package
Unreasonably long implementation time ranging between 8 and 18 months, with 60% of
implementations overshooting project time by over 50%
Unwanted functionalities imposed as additional baggage with 70% of the companies use only 26% of
their ERP functionalities
Rigid model that forces changes in business models with changes in market conditions and makes exit
a complex process
No guaranteed ROI: This always made the benefits it brought take a backseat.
With ERP on Reliance Cloud, not any more
Low Cost Subscription Model: No large up-front investment and no infrastructure costs incurred
Immediate Access: Start operating within a few days after paying a subscription fee.
Minimal set up time: Helps reap better ROI and benefit of implementation in never before times heard
in ERP implementations
Access to data any time anywhere: Unlike conventional ERP which need fixed machines to access
data with ERP on Reliance Cloud you can access data on the move only requirement - an internet
connection
World-Class Security: Completely secured layers with role based authorization for access. Information
security practices based on BS 7799 / ISO 27001 standard certificates
No Risk Proposition: Very low cost of entry and exit. If customer decides to exit, we would hand over
the data CDs within a week, provided customer have honored their commercial commitments.
Discrete Production
Process Production
Tool Management
Maintenance
Financial Management
Service Management
Validation
Testing
Issues tracking
Change management
End user training
Success factors
Disaster Recovery
Process Consultants
Project Managers
Business Analysts
Technical Architects
Security Professionals
Management Consultants
Dabur
Modules Used
For outbound logistics-QAD erp suite known as MFG/PRO.
For manufacturing location there is BaaN. DABUR needed a VSAT network ( Very Small Aperture Network).
Erp benefits
It helped them to improve the sales dispatch to the Carrying and Forwarding Agents (CFA).
Improvement in collections.
The ERP system has provided them with a platform for visibility of the data across all the domains in the
organization. Thus the stocks with the CFA are visible to the central distribution planners in saleable and
unsalable categories.
In FMCG sector one of the major sources of income is the sale and promotion schemes. Without an
ERP system it becomes very difficult to track the changes in this area especially when one is to monitor
a base as huge as the whole of India.
MFG/PRO gives real-time information sales situation of distributors,about their inventory and improves
the accuracy of demand forecasts.These demand forecasts are then fed into the backend system
(BaaN) for materials planning and production scheduling. Integration of these two systems has
significantly enhanced their efficiency.Mfg Pro is fully operational in the zonal offices, motherwarehouses
and CFAs and Baan is already live in five manufacturing locations. Information on inventories, return of
products, collections done and dispatch orders from warehouses are now all available at a central
location.
Reduction I sales return and unsold sales inventory.
Central management of sales schemes
Implementation
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 set up. 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.
Explains the CIO: "We're a traditional FMCG company into family and healthcare products. We've pharmaceutical
products. We also have food products, which is a perishable products division. We even have ayurvedic 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..
Architecture of ERP