sales mgmt - dabur case study.pptx
TRANSCRIPT
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A tale of two ERPs
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Dabur has implemented two ERP systems:
a) 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.
b) 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
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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 despatchedeveryday to about 750 distributors nationwide.
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Strong Brand Image - Dabur is synonymous withnature care for more than hundred years.
Product portfolio - Products that are always in high
demand
Distribution System
Its products reach 47 stockingpoints, 10,000 stockists and 1.2 million retailers.
IT Co. aims to leverage IT to make its schemes and
promotions more effective and profitable.
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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 usedfor connecting the distribution network.
(Virtual Private Network) connectivity between
Dabur's offices in Delhi and Mumbai, and the
corporate office.
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RF (Radio Frequency) links for connecting the local
offices within the city.
IDSN connectivity as a backup for its primaryconnectivity.
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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
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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 inventorystatus 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.
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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
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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 healthcareproducts, pharmaceutical products, food products
(perishable products division) and Ayurvedic
products for both the medicine and home segments.
Role of the core implementation team was todevelop a common business model, which could
cater to all segments at the same time
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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 outboundlogistics 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.
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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 brandcommunication exercise
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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.
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First stage: For Primary sales From the point of despatch of the
finished goods from manufacturing plants to thenationwide network of C&F agents.
Sale and distribution solution implement at Dabur withinthe agreed time due to a strong supply chain edge.
Second stage: Pilot test conducted to test the product and
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 itsdistribution infrastructure.
Users can now access information from all the
countrywide locations on receivables, like finances and
inventories, and the supply chain.
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Central location -Information on inventories, return ofproducts, collections and despatch orders from
warehouses now accessible on the intranet.
Information on the performance of different SKUs
(Stock Keeping Unit) and the corresponding returnscan be obtained.
Evaluate the performance of individual stockists.
Primary distribution system has been streamlined inthe first phase. Streamlining of secondary distribution
system would be carried out in the second phase.
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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