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1. ? ?PRESENTED BY: - PRESENTED TO:-SURAJEET SINGH Prof- Kapil Mohan Garg2. 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 customerorder ? data automatically flows to other areas of the company. ? It would flowto 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. Example: Before ERP Systems Transfer to Accounting OfficeSecretarys New printer application4. ERP Software Companies & Marketshares Software Market Share SAP 15.6 Peoplesoft 4.9 SAP; 15,6 Oracle 4.8 Peoplesoft; 4,9 Baan 3.0 Oracle ; 4,8 CA 3.0 Baan; 3JDE 2.2Others ; 59 CA; 3 JDE; 2,2 SSA 2.1 SSA; 2,1 GEAC 2.0 GEAC; 2 IBM 1.8 IBM; 1,8 JBA; 1,7 JBA 1.7 Others 59.05. ? 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 annualgrowth rate) of 25.2 during the period of 2004-2009. The market was $83 millionin 2004, and is projected to be over $250 million in 2009, according to a research report.6. ? ERP facilitates a company-wide integrated Information Systems covering allfunctional areas such as manufacturing, sales and distribution, accounts, payabl

es, receivables, inventory, human resources. Etc.? ERP bridges information gapsacross 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 addressesthe current requirements of the company but also provides an opportunity for improvement and refinement in the business process on a continuous process7. ? E-resource ERP solutions are designed to seamlessly integrate personnel, processes, applications, and data across an enterprise, enabling the organizationto 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 Managementand Monitoring ERP Training and Implementation Operational Audit Post Implementation Audit Measuring Range compatibility and ROI

8. 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 ERPpackages 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 software9. Interaction with other areas of the system, gives you a clear view of the customer .Maximizing opportunities and retaining high value customers enhances reve

nue and profit.Provides value-added services enable you to stay ahead of your competitors.Improves product development and service delivery processesPrepare your personnel with in-depth knowledge of the customers needsOrganizes the customerexperience through quick problem resolutionEasy re-run of customer informationover and over again10. ? ?11. ? ?12. To take the battle to its competitorsWith an entry into the FMCG sector andbelieves IT to be an indispensable weapon in this warThe distribution network isthe lifeline for an FMCG company and is a greater value add in terms of IT retu

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rns than manufacturingFor years, Dabur had been using FoxPro based systems for handling logistics.By 2000, the company distribution network had grown, spanning29 factories, 6 mother warehouses, 47 stocking points, 4 zonal offices and over10,000 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 system13. ? Dabur works on two ERP systems.? For the outbound logistics it runs QAD ERP suite known as MFG/PRO. For manufacturing locations, theres BaaN? BaaN requires a central server. To fit so many locations many of them situated in small andremote areas into a central processing system, Dabur needed a VSAT (Very Small Aperture Terminal) network.? As with most companies, sales at Dabur peak towardsthe last 4-5 days of the month.? If the company were to depend on this kind of acentral 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 networkindependent.? It found that MFG/PRO could be run on independent servers at eachlocation it was a good choice that suited its unique needs14. ? 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 madein four stages.? The first included a requirement study where a model was devel

oped . Dabur has five SBUs (Strategic Business Units), each with diverse needs in terms of the outbound logistics.? Since it is a traditional FMCG company intofamily 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 hadits job cut out: It had to develop a common business model, which could cater toevery segment at the same time.15. ? 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 ofabout 6 days and are more evenly spread over the month. This leads to considera

ble 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 andfree issues are now managed centrally at the corporate office and the ERP systemkeeps a strong check on schemes leading to reduction in misuse of schemes in the field16. ? 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 inthe zonal offices, mother ware houses and CFAs and Baan is already live in five

manufacturing locations.? A Secondary Sales System is also being implemented toprovide country wide information on Secondary pipelines and sales by brand.? This new Secondary Sales System, by making focus on secondary sales possible, hasplayed an important role in tracking brand-wise sales, and reducing pipeline inventories17. ? 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 cla

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ims.? The Company also implemented another major initiative-Employee ManagementSystem (EMS), an intranet based HR-information system, including Payroll and PFprocessing18. By 2005 Dabur started to feel the pinch of maintaining two independent ERPsystems. They were facing following issues:? There were still data redundancies and inconsistencies at times.? Considerable amount of rework was necessary in justdata 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 statedpoints.? 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 Accentures help, Dabur implemented strategic and operational changes by implementation of organization wide SAP core modules19. ? Migrated from standalone ERP systems -Baan and Mfg. to centralized SAP ERPsystem from 1stApril, 2006 for all business units (BUs).? Implemented a countrywide new WAN infrastructure for running centralized ERP system.? Setting up ofnew 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 plants20. ? Competing on core competencies, while outsourcing non-core functions to trusted third-party providers.? Viewing information technology (IT) as a strategicasset that creates real value not simply a cost to be managed.? Streamlining processes wherever possible? From an IT perspective, Accenture recommended a two-p

ronged strategy? Migration to a nimbler outsourcing model that would generate? Value through agility and support business initiatives and maintenance of its SAPenterprise resource planning (ERP)system21. Implementing a new sales and distribution strategy-? To identify key customer segments in urban and rural markets, customize sales programs for key accountsand reorganize Daburs sales teams by one of four trade channels(modern trade, rural, mom-and-pop and drugstores).? The Accenture and Dabur team optimized the companys internal logistics and distribution processes for mega retail customers, and put metrics and incentives in place to drives pacific goals22. Developing a new supply chain management capability-? Focused on bringing amarket-driven perspective to the new supply chain and building collaboration skills? Accenture helped Dabur create capabilities to facilitate the launch of newinitiatives, products and trade promotions? Instituted a plan to leverage SAP by

automating Daburs 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 management23. Optimizing Daburs 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 changemanagement and synchronizing Daburs business processes with realities in an ERP context.? Developing value realization projects24. 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 decisionsOutsourcing IT operations? Accenture delivered industrialized and cost-effective skills that would allow Dabur to remain at the leading edge of IT delivery . Plus, Dabur gainedthe flexibility of being able to focus on its core capabilities while realizingincreased value and lower costs through improved performance25. ? Forward integration of SAP with distributors and stockists.? Backward integration of SAP with suppliers.? Implementation of new Point of Sale (POS) systemat 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