Use of ERP in supply chain management

Deepak kumar(14) Manoj Mishra (21) Arti chudhary (09) Namrta Sinha (26) Ruche Rachna (34) Vasundhara Jaiswal (46)
INMANTEC BUSINESS SCHOOL GHAZIABAD

Synopsis of project on

Use of ERP in supply chain management

By

Group No -7 Session -2011-2013

Under The Guidance Of

PROF. R.K.Singal.
Dean, Management studies INMANTEC, Ghaziabad

INMANTEC BUSINESS SCHOOL

GHAZIABAD

Supply chain management (SCM) is the management of a network of interconnected business involved in the ultimate provision of product and service packages required by end customer. Supply chain management spans all movement and storage of raw materials, work in progress inventory, and finished goods from point of origin to point of consumption.

1.Abstract:

2.ERP in pantaloons

Introduction: Pantaloons is one of the most popular Retail Brands in India,

having a large retail chain in India. Better known as Pantaloons, the Pantaloon Retail (India) Limited, entered the retail market in 1997 with its first flagship store hosted by Kolkata. Pantaloons began as a fashion retail chain. The Future Group launched it as its introductory venture. Such was its popularity that by the year 2001, many more sub-retail lines were launched that dealt in specific merchandise like footwear, fashion accessories, food, grocery and electronics.

3.Supply chain management in pantaloons: In 1998,

Pantaloons recruited ex Ernest & Young employees to develop in-house supply chain mgmt. tools such as point of sales software. Pantaloon adopted MIS with a reporting module for its back office transactions. It monitored price flections daily in whole sale market. A vendor mgmt. system enabled vendors to send report directly to the pantaloons.

Pantaloon institutionalized both at vendor premise & its own warehouses. In 2001 pantaloons switched to bought out sales, where pantaloons were responsible for the merchandise sold in the stores.

4.Objective of the study: How ERP helps in managing.. ?

y Inventory Management. y Sales and Operations Planning y Order Management y Manufacturing Planning and Scheduling y Supplier Collaboration y Procurement Management y Network Design and Optimization

5.How ERP helps pantaloons

y y y y y y y y Reduction of Lead - Time On - Time Delivery to Customers Effective utilization of resources Satisfaction to Customers Improved supplier performance Increase flexibility Reduced quality costs Improved information accuracy and decision making capability

6. What is ERP
Enterprise resource planning is an information system(multi module application software)that integrates all manufacturing and related application for an entire enterprise.

7.Advantages of ERP
y Integration among different functional areas to ensure proper communication, productivity and efficiency y Design engineering (how to best make the product) y Order tracking, from acceptance through fulfillment y The revenue cycle, from invoice through cash receipt y Managing inter-dependencies of complex processes bill of materials y Tracking the three-way match between purchase orders , inventory receipts , and costing. y Tracking the revenue, cost and profit at a granular level.

8.History of ERP
y Concept of ERP has been around since 1960s. y In 1972 five managers of IBM left to start SAP. y SAP was the first company to invent ERP software .

y Different ERP software solution vendors in the market are BAAN, RAMCO, ORACLE, PEOPLE SOFT, SAP ,etc. y SAP is the market leader in ERP software solution y SAP being a GERMAN company ,known as SYSTEM APPLICATION AND PRODUCTS IN DATA PROCESSING. y It is the third largest software company after MICROSOFT AND IBM How ERP works in pantaloons: y Customer order comes in y Software checks inventory/customer credit y Order sent to warehouse ,packed and picked up y If order needs manufacturing ,orders are sent to material software y Invoice and Accounts Receivables are updated y There is no re entering of data, all the departments receive information for the customer order.

9.Our visit overview at pantaloons on 25.02.2012

We personally met Mr. kamal Soni , store head of pantaloons ,Shipra mall. The appointment was taken before so we got enough time to discuss the subjected topic with him.

Discussion outcome: At Pantaloon Retail, they believe that their supply partnerships are a critical component for their success. Their strategic partners help them provide customers with unique products and unprecedented services through collaborative development and implementation They ensure transparent business practices, fair pricing terms and an honest partnership with their supplier partners. Scalability of the business, consumer-led

product insights and best practices along an all-India distribution reach are some of the key advantages in partnering with them. From sourcing to distribution, they engage with varied business partners, jointly sharing insights, promoting brands, creating new products, expanding their capacity and developing new markets. Their businesses create economic benefits for all their partners, including their suppliers and distributors.

10.Questions with Answers, Which we asked him during the discussion:

Question: Why they use ERP & SAP software ? Answer :- Qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfill orders according to strategic merchandising plans and optimize cost, quality, and speedvariables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing and brand management; managing mark-downs and capturing customer reactions, analyzing data, and using it to optimize the next phase of the design process

Question :- What is the benefit of ERP? Answer :- Pantaloon has not been able to see immediate benefits from this implementation. This application certainly has long term benefits which will be seen when the performance of various aspects will be analyzed. It is too early to calculate RoI. We have already started working on MAP (Merchandise Assortment Planning), Auto-Replenishment and Purchase Orders. We hope to use these systems to optimize our inventory and cut it by about two to four weeks (depending on the line of business),

Question: - How they Maintain it? Answer :- This application is currently being used by around 1,200 employees across the organization. For maintaining this implementation and its related applications, Pantaloon has an in-house team and it has outsourced ABAP resources. They are also in the process of setting up a SAP Competency Centre. The system runs on a HP Superdome server on HP UNIX 11i and the database is from Oracle. The cost of this project was about $10 million. Question :- Are there any problem or Challenges in ERP&SAP ?

Answer :- key challenges in this project were not in the implementation. Rather, the difficulties were faced during the data migration and in managing the interim period when the project was underway for about six months. Migrating unorganized data to an organized format is a challenging task.

Finally He monition it that :- key challenges in this project were not in the implementation. Rather, the difficulties were faced during the data migration and in managing the interim period when the project was underway for about six months. Migrating unorganized data to an organized format is a challenging task We thank him for his valuable suggestion on the topic and information.

11. Research Methodology

We all group members personally visited the Pantaloons and collected the information regarding ERP. www.google.com

www.pantaloonretail.in