DIGITAL TRANSFORMATION STRATEGY

FOR
KISAN MOULDINGS LTD.

By- GSCM Study Group 1

Akshay Bangera
Akshay Sivach
Roshan George
Sandeep Sabat
Saransh Chandra
 KISAN MOULDINGS LTD.
Company Background
Kisan Mouldings Limited (KML) has built a plethora
of products in the plastic piping and irrigation
industry and is positioned to gain traction in the
market thereby bringing in with it stronger sales,
higher growth, improved customer services and
higher profitability. The products address the needs
of various customers spanning from architects,
builders, farmers and individuals.

On a consolidated basis, total revenue for Financial Year 2020-21

Financial Performance
was 21,203.44 lakhs, 16.76% less than in Financial Year 2019-20.
On a standalone basis, the Company's sales dropped to
21,204.64 lakhs during FY Financial Year 2020-21 vs. 2019-20:
25,469.42 lakhs. The company reported a complete loss after tax
of 4710.54 lakhs for Financial Year 2020-21 vs. 4208.71 lakhs in
Financial Year 2019-20.
 KISAN MOULDINGS LTD.
Supply Chain Structure
Company Priorities
Kisan Mouldings Ltd. (KML) efficiently caters to
100 Distributors and more than 3000 strong
Dealer networks. On the basis of this large
network, KML can efficiently service its valued
customers & successfully cater to the ever-growing
need across India with the help of 5 manufacturing
facilities and 18 branch offices spread across the
country.
The company is undergoing a process of consolidation and
.
centralization of several functions such as production, logistics and
sales. Several new policies are being put in place in a structured
manner to improve operational efficiency, reducing redundant and
lengthy processes and resulting in long-term costs. The company is
aiming to achieve improved profitability by reducing overheads.
 1. BUSINESS CASES – DATA MANAGEMENT
Master Name As-Is Process Problems Faced Proposed Solution
Material Master • Records are maintained • Slow, manual creation and • Implement SAP MDM module
Vendor Master on an Ad hoc basis update process • ETL to be used for Data
• Anyone can create • No process for data validation Migration while shifting from
Customer Master master data • Duplication of records legacy ERP to SAP ERP
Bill of Materials • Reporting errors • Setup Internal Data
Pricing/conditions • No records are • No provision for entering Governance Team
maintained custom fields specific to the • Form SOPs and SLAs for
company’s needs like MOQ, data creation/edit requests
Warehouse Management Min/Max • Setup Internal Security Team
(Bin storage etc) • No SOP followed while editing and establish SOP for
master data leading to issues authorization to each role
during the Audit
• Manual entry of master data in
transactions can lead to
unstandardized, poor-quality
data

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 2. BUSINESS CASES - PROCUREMENT
Process Name As-Is Process Problems Faced Proposed Solution
Purchase Contract • No record in the system • Manual entry of data is • Implement SAP S4HANA for better
• Contract negotiation time-consuming and prone ERP capabilities
outside system to human error • Custom build MRP in ERP and
Purchase Requisition • Process not followed • No MRP auto-generation of PR for
• No approval of pricing replenishable products
Purchase Order • Recorded in Legacy • Warehouse person not • Establish PO Approval Matrix
ERP aware of the incoming PO along with Fiori App
Purchase Order Approval • Process not followed leading to delay in GR • Auto-generation of IBD w.r.t ASN
Purchase Order • No record in the system • No information on the
Acknowledgment + • Informed over mail/call PO/delivery status for Suppliers with Digital Capabilities;
Advanced Shipping others in the organization • Integrate ERP with Blockchain for
Notification Purchase Contracts for fetching
pricing
• Interfaces to be established with
Inbound Delivery + • Manually created in Supplier for PO Ack and ASN.
Goods Receipt legacy ERP

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 3. BUSINESS CASES - PRODUCTION
Process Name As-Is Process Problems Faced Proposed Solution
Planned Order • Manfully done in Excel • Manual cycle time • Implement SAP S4HANA for better
calculation which may not ERP capabilities
Production Order • Recorded in Legacy be accurate always • Implement IoT sensor for;
ERP • System does not ❑ Predictive analysis of failure &
differentiate scraps pilferage
Goods Issue & • Recorded in Legacy
leading to wrong ❑ Auto cycle time calculation
Confirmation ERP
production data • Develop subscription models for
Goods Receipt • Recorded in Legacy • Manual entry of IoT Predictive analysis of failure
ERP transportation slip for Customers for revenue
between machines generation
leading to missing • Establish a process for segregation
products of finished products & scraps

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 4. BUSINESS CASES – WAREHOUSING & LOGISTICS
Process Name As-Is Process Problems Faced Proposed Solution
Picking & Packing • No particular process in • Products are randomly • Implement SAP S4HANA for better
(Outbound) place placed leading to the time ERP capabilities
Storage Bin Sorting delay in finding them • Introduction of RFID Solutions in
(Inbound) • Can lead to Warehouse for reducing human
missing/damaged parts efforts of data entry and reducing
Inbound Logistics • Manually logistics is • No segregation in the manual errors
Outbound Logistics arranged area between good • Establish a bin system for better
materials and allocation of materials
scraps/damaged material • Tie up with a Logistics Partner to
• No visibility of materials have a platform for real-time
in transit visibility of the supply chain

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 5. BUSINESS CASES – SALES
Process Name As-Is Process Problems Faced Proposed Solution
Lead Management • No record in the system • Manual entry of data is • Implement SAP S4HANA
• Leads are managed outside system time-consuming and prone for better ERP capabilities
Quotation • No record in the system to human error • Activate Credit Check
• Quotation to customers done outside • Credit Check is done Management for better
the system manually which can lead customer outstanding
to huge customer management
Sales Order • Recorded in Legacy ERP outstanding • Integrate Oracle CRM for
Credit Check • Not activated. Checked manually. • No process established Lead Management
Outbound Delivery • Recorded in legacy ERP for Goods Return from • Develop a Customer App
+ Goods Issue suppliers/customers for increasing the
• No proper reporting of company’s offerings in the
Invoice • Recorded in legacy ERP profitability Online channel
Goods Return • No process established • Connect to Azure Data
Stock Transfer • Recorded in legacy ERP Lake to integrate with
Orders Power BI for leadership
dashboards

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 DIGITAL CAPABILITY DEVELOPMENT
Phase 1

• Digital Team to be
Phase 2
formed separately
from IT Team
• Implementation of SAP • Implement Oracle CRM
Phase 3
S4HANA as ERP for Lead Management
Solution • Custom Build
• Establish Interfaces functionalities/reports • Connect to Azure Data
in SAP ERP specific to
Phase 4
with Vendors for Lake to integrate with
seamless data transfers company needs Power BI for
• Setup Internal Data • Develop a Customer leadership dashboards • Introduce Blockchain
Governance Team App for increasing the • Tie up with a Logistics for contract
• Setup Internal Security company’s offerings Partner to have a management
Team and establish • Introduction of RFID platform for real-time • Develop subscription
SOP for authorization Solutions in visibility of the supply models for IoT
to each Roles Warehouse for chain Predictive analysis for
• Setup SAP Solution seamless operations • Implement IoT sensor Customers
Manager for ticketing • Implement Fiori App for predictive analysis
and establish SLAs for PO Approval of failure & pilferage
 VALUE REALIZATION - QUALITATIVE

Improved Efficiency Better Customer Experience

• Increased order processing efficiency • Real-time customer insights for demand forecasting
• Shorter Sales Cycle • Quicker & better resolution to customers issues
• Reduced reporting efforts

Increased Transparency Better Operating Model

• One truth of data across the • A connected ecosystem enhances performance
organization • Limits manual errors and improves accuracy
• Process driven rather than people • Common process framework & language
driven

Cost Savings Enhanced Data Collection

• Lower Inventory carrying cost due to • Data can be used for predictive, descriptive &
better forecasting prescriptive analysis
• Efficiency leads to better resource • Better data quality improving decision making
management

Revenue Growth Enables Software Monetization

• Increased Sales due to better • Subscription model can be offered to Customers for
forecasting failure predictive analysis from IoT sensors
• New revenue & distribution channels
 VALUE REALIZATION – QUANTITATIVE
Benefit Area KPIs
Revenue Revenue
Sales Sales Cost as % of Revenue
Cost of Goods Sold Procurement Cost as % of Revenue
Manufacturing / Operations Cost as % of Revenue
Supply Chain Planning Cost as % of Revenue
Warehouse Cost as % of Revenue
Transportation Cost as % of Revenue
Inventory Days in Raw Materials Inventory
Days in WIP Inventory
Days in Finished Good Inventory
Accounts Receivable and Payable Days Accounts Receivable
Days Accounts Payables
Additional Operating Costs Inventory Carry Costs as % of Inventory
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Indirect Materials Costs as % of Revenue
THANK YOU