Sales Mgmt - Dabur Case Study.pptx

7/27/2019 Sales Mgmt - Dabur Case Study.pptx

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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

Documents

Sales Mgmt - Dabur Case Study.pptx