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A tale of two ERPs

a)

Dabur has implemented two ERP systems: MFG/PRO: For outbound logistics. It can run in an offline mode on independent servers located at different locations using local database and is network independent. BaaN: For the manufacturing locations It has been able to leverage the benefits of two ERP systems by streamlining its primary distribution system and outbound logistics

b)

Primary Distribution - inventories that are moving out from our locations and reaching the stockists. Outbound Logistics: Goods manufactured in 29 factories are cleared & forwarded by 47 C&F (Carrying and forwarding) agents and stored in six major warehouses to be despatched to various stockists and distributors. About 100 truckloads of goods are despatched everyday to about 750 distributors nationwide.

Strong Brand Image - Dabur is synonymous with nature care for more than hundred years. Product portfolio - Products that are always in high demand Distribution System Its products reach 47 stocking points, 10,000 stockists and 1.2 million retailers. IT Co. aims to leverage IT to make its schemes and promotions more effective and profitable.

Star topology with six DAMA (Demand Assigned Multiple Access) links from HECL (Hughes Escorts Communications Limited). Around 40-50 TDMA (Time Division Multiple Access) VSATs (Very Small Aperture Terminals), which are used for connecting the distribution network. (Virtual Private Network) connectivity between Dabur's offices in Delhi and Mumbai, and the corporate office.

RF (Radio Frequency) links for connecting the local offices within the city. IDSN connectivity as a backup for its primary connectivity.

Revenue is generated by the outbound logistic. 29factories where different products are manufactured and delivered to various parts of the country. Finished products are stored in six major warehouses. Scale of operations is such that the company dispatches 100 truckloads of goods every day from the 29 factories. Products reach to more than 750 large distributors all over the country through the C&F agents

IT systems maintain detailed inventory of each location where finished goods are despatched. Outbound billing done on the system. Distribution forecast planning helps to figure out difference between the need and actual inventory status and take decision on stocking different warehouses. Outbound logistics and the entire supply chain are incorporated in the information systems. Raw material demand generated various locations. Imp. to control over inventory & outbound logistics.

When Mr. Gopal Shukla (CIO) joined Dabur, the company was using BaaN requiring a central server. VSAT network required to fit many locations situated in small and remote areas. Network would be overburdened during month end, since sales would peak during last 4-5 days of the month. Co. wanted to do away with the criticality of any network in the automation of outbound logistics. MFG/PRO is network independent and runs on independent servers

A core implementation team comprising of end users from departments like distribution and planning, finance, sales and IT was set up. Four-stage deployment 5 SBUs- Strategic Business Units, each with diverse needs of outbound logistics family and healthcare products, pharmaceutical products, food products (perishable products division) and Ayurvedic products for both the medicine and home segments. Role of the core implementation team was to develop a common business model, which could cater to all segments at the same time

Fully integrated ERP (Enterprise Resource Planning) solution, which includes manufacturing, distribution, customer service and financial applications Action plan integrate marketing strategies with ERP solution. Helps to create deliverable processes in the outbound logistics and seamlessly integrate them with strategic inventory management, Credit control and sales generation. The system significantly helps in tracking primary sales through an analysis of stock movements online.

ERP helps brand building by helping to assess the regional performance of brands. In areas with low brand penetration, the company can use the ERP system to gear up the brand communication exercise

Thirdware solution ltd has conceptualized this project for Dabur. Objectives: To reduce the inventory level, ensure the right product-mix for promotional schemes and enhance visibility at every level of the supply chain. Effective brand leveraging. Primarily targeted at optimizing the strategies that incorporate product movement, promotions and distribution.

First stage: For Primary sales From the point of despatch of the finished goods from manufacturing plants to the nationwide network of C&F agents. Sale and distribution solution implement at Dabur within the agreed time due to a strong supply chain edge. Second stage: Pilot test conducted functionalities

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Third stage: Pilot rolled out in a small setup- one C&F agent , one warehouse and one factory. Fourth Stage: Product rolled out zone by zone across different locations. Thus, Dabur now has a very tight control on its distribution infrastructure. Users can now access information from all the countrywide locations on receivables, like finances and inventories, and the supply chain.

Central location -Information on inventories, return of products, collections and despatch orders from warehouses now accessible on the intranet. Information on the performance of different SKUs (Stock Keeping Unit) and the corresponding returns can be obtained. Evaluate the performance of individual stockists. Primary distribution system has been streamlined in the first phase. Streamlining of secondary distribution system would be carried out in the second phase.

MM-11-05 Samita Ghag MM-11-01 Sachin Borase MM-09-05 Ashish Gangolli MM-11-08- Stanely Moras MM-11-13- Vivek Samvedi