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mySAP ERP Implementation Project

FMCG HEMAS GROUP
Customer Overview
The business house of Hemas is among the large professionally managed, publicly listed &
diversified conglomerate in Sri Lanka. Its business interests include FMCG, Pharmaceuticals,
Leisure, Transportation & Power, and notch up annual revenues of Sri Lanka Rupee 9 billion
p.a.

The SAP project covered about 28 company codes in diverse businesses ranging from Make-
to-stock to Distribution to Services & Hospitality to Aviation & Shipping Services, including 3
Plants and across 6 major locations.

Business Challenges

Production planning module was implemented in FMCG sector which has 3 plants in which
personal care products, personal wash products and paper products are manufactured.

Annual budgeting and capacity requirements planning are done in the year beginning based on
the annual sales plan. Sales planning are done hierarchal brand wise, Product category wise
and SKU wise based on historical sales quantity.

Every month rolling plan for the current + 3 months period is created. This rolling planning used
for production planning and material requirement planning.

Production planning made based on the rolling plan in such a way that the monthly production
should meet not only the current month sales requirement as well as 50%of next month sales
requirements. The produced quantities are subjected to quality check before the sales.

Materials Management module allows ‘HEMAS’ staff to be aware of stock levels and ensures
that inventory is optimized. ‘HEMAS’ subsidiaries are empowered with real-time information that
enables them to make determinations based on reliable data.

Purchasing component, automates the entire purchasing cycle. Purchasing allows ‘HEMAS’
organizations to harness the power of organizational spending.

Inventory Mangement: Materials management can minimize inventory carrying costs. Usin
forecasting features of SOP, planning can be done and the required quantities can be set to
automatic replenishment through the seamless integration with Purchasing component
maintaining the stock holding policy of ‘HEMAS’. SEAL Infotech Pvt Ltd
15 Habibullah Road T.Nagar, Chennai 600017, India. , Phone : +914428225253,+914455871200 , Fax : +914428282322
Office 103, Building 10, Dubai Internet City, Dubai – UAE, Phone: +97143670378 , Fax: +97143902649
http://www.sealconsult.com
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SEAL’s Approach:

• Fully automate the purchase requisition-to-pay process and reduce the paper piles and
approval bottlenecks as the electronic approval process make the life simple.
• Use spends data to analyze purchasing trends and gain leverage in vendor
negotiations.
• Ensure purchases comply with ‘HEMAS’ internal policies as well as contracted vendors
and terms and eliminate "maverick spending."
• Stopping of procurement if a budget is to be overspent.
• Track materials once they are purchased with Inventory Management and Asset
Management components.
• Procure services and pay to the vendors according to the percentage of service
accepted by ‘HEMAS’ staff.
• Reduces organizational wide un wanted inventory.
• Identifies build up of excess or obsolete inventory.
• Provides for automatic stock replenishments.
• Decrease transaction cycle times .
• Simplifies the physical inventory process.
• Reduce data errors .

Results:

Hemas point of view:

• This allows organization to strategically focus on planning and analysis of

relationships, rather than managing catalog data.

• Material Management module accommodates these differences while presenting a

unified process to the end-users. The end result is the ability to take advantage of
vendor capabilities with minimal impact on the user's experience.

SEAL Infotech Pvt Ltd

15 Habibullah Road T.Nagar, Chennai 600017, India. , Phone : +914428225253,+914455871200 , Fax : +914428282322
Office 103, Building 10, Dubai Internet City, Dubai – UAE, Phone: +97143670378 , Fax: +97143902649
http://www.sealconsult.com