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Case Study

Case Study

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Published by shab-i-tab
this case study on hadri biverges papsi is related to supply chain managemnt.
this case study on hadri biverges papsi is related to supply chain managemnt.

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Published by: shab-i-tab on Sep 12, 2009
Copyright:Attribution Non-commercial


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 The Haidiri Beverages Group was set up in 1979 and is Pepsi's sole sellingagent for District Rawalpindi and Islamabad. Hairdi Beverages’ primaryfunctions are to conduct a systematic manufacturing and supply of theproduct without any tactical flaws. It manages the supply for severalwholesalers, retailers, restaurants, hotels and other such food outlets. Inorder to get along well with the current Information Technology era, HaidriBeverages planned to purchase and implement ERP system within theorganization. Since the outsourced ERP system estimation went beyond Rs7.5 million, the company decided to hire IT professionals for an in-housedevelopment of their ERP system. The MIS department has successfullyimplemented modules like Accounts, HR, Inventory control and Sales whichhave been in use for more than 3 years duration. Only minor changes aremade and updation in hardware, software and backend databases are doneat regular basis. The scope of ERP, however, is limited to Transaction Processing Systems(TPS) only, and the far-reaching benefits of ERP systems are yet to bediscovered and implemented by the company. Besides this, limiting thescope to TPS only has given birth to a number of problems for all levels of management. Such setbacks include lack of decision-making support andexcessive manual work yet to be done by the managers.Supply chain is considered to be a backbone of every manufacturingcompany. Unfortunately, Haidri Beverages has been unable to design andimplement the Supply Chain Management (SCM) module as yet, which
caused them a huge price since the company maintains a history of bearingloss of production due to lack of communication with their suppliers.Problems such as poor inventory management, inaccurate demand forecast,and lack of internal communication through ERP systems have been reportedas one of the major setbacks of the current scenario. Other problems,incorporated with the above, which have been reported by the management,include unnecessary purchase of raw materials since the exact data to beproduced is still ambiguous as well as producing more or lesser than therequired quantity. The limited TPS functionality of the deployed ERP system further adds to theproblem. The managers need a system which would help them makedecisions about how much to produce, how much to procure, monitoringdistributor and supplier performance, sales analysis as to which productgives the maximum profit and which one needs more marketing, and manyother decision–related features. The company doesn’t seem to adopt the idea of connecting the supply chainparticipants with their ERP system through a web-based SCM module. Theyfear that the supply chain system could only be able to connect a maximumof 10 percent of their suppliers and distributors although they have notconducted a survey yet from their supply chain partners. The far–reaching benefits of the ERP system is yet to be discovered andimplemented by the company. As what they call an “ERP system” is only anautomated system generating static reports. The management of PepsiHaidri Beverages needs to be convinced that a mere automated systemcannot drive the company towards maximized profitability and accurate real-time information sharing to build a strong collaborated supply chain.

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