1. ? ?PRESENTED BY: - PRESENTED TO:-SURAJEET SINGH Prof- Kapil Mohan Garg 2. Enterprise Resource Planning?

Enterprise Resource Planning - a software syste m that integrates core business areas such as manufacturing, distribution, finan cials and human resources.? Example: A warehouse in Singapore enters a customer order ? data automatically flows to other areas of the company. ? It would flow to the financial and accounting people in New York ? Automatically update accoun ts receivable.? The order would also flow to the manufacturing operations in Eur ope instructing them to make another component.? Inventory levels would automati cally be reduced in the warehouse and an order would be placed to replenish inve ntory. 3. Example: Before ERP Systems Transfer to Accounting OfficeSecretary s New printe r application 4. ERP Software Companies & Marketshares Software Market Share SAP 15.6 Peopleso ft 4.9 SAP; 15,6 Oracle 4.8 Peoplesoft; 4,9 Baan 3.0 Oracle ; 4,8 CA 3.0 Baan; 3 JDE 2.2Others ; 59 CA; 3 JDE; 2,2 SSA 2.1 SSA; 2,1 GEAC 2.0 GEAC; 2 IBM 1.8 IBM ; 1,8 JBA; 1,7 JBA 1.7 Others 59.0 5. ? ERP market in India steadily growing for the last few years(2000).? The mai n factors such as industry best practices, easy and faster implementation and go od cost predictions.? The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to a resear ch report. 6. ? ERP facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payabl es, receivables, inventory, human resources. Etc.? ERP bridges information gaps across a company and focuses on key issues such as productivity enhancement, cus tomer service, cash management, inventory, quality control and prompt delivery. Etc.? ERP is the solution for better project management.? ERP not only addresses the current requirements of the company but also provides an opportunity for im provement and refinement in the business process on a continuous process 7. ? E-resource ERP solutions are designed to seamlessly integrate personnel, pr ocesses, applications, and data across an enterprise, enabling the organization to streamline its operations and support business growth.? E-resource renders se rvices for complete Enterprise implementation life cycle- Selection of ERP vendo r Risk Analysis & Mitigation Plan Pre Implementation Approach Project Management and Monitoring ERP Training and Implementation Operational Audit Post Implement ation Audit Measuring Range compatibility and ROI 8. 1. OPERATIONAL EFFICIENCY: Automates all business and functional processes th ereby increasing overall operational efficiency.2. CUSTOMER SATISFACTION: E-reso urce ERP solution help in enhancing internal business processes and enables orga nizations to improve customer satisfaction.3. EASY ACCESS: Our web-based ERP sol ution enables easy accessibility and availability of timely information, which r esults in better decision making and forecasting.4. FLEXIBILITY: E-resource ERP packages have a flexible and scalable structure thereby enabling organizations t o adapt and cater to future business expansions and requirements.5. COST-EFFECTI VE: E-resource ERP for Small and Medium Enterprises is affordable, quick to impl ement thus enabling the SMEs to focus on growth and improvement of their busines s rather than worrying about software 9. Interaction with other areas of the system, gives you a clear view of the cus tomer . Maximizing opportunities and retaining high value customers enhances reve nue and profit. Provides value-added services enable you to stay ahead of your co mpetitors. Improves product development and service delivery processes Prepare you r personnel with in-depth knowledge of the customers needs Organizes the customer experience through quick problem resolution Easy re-run of customer information over and over again 10. ? ? 11. ? ? 12. To take the battle to its competitors With an entry into the FMCG sector and believes IT to be an indispensable weapon in this war The distribution network is the lifeline for an FMCG company and is a greater value add in terms of IT retu

rns than manufacturing For years, Dabur had been using FoxPro based systems for h andling logistics. By 2000, the company distribution network had grown, spanning 29 factories, 6 mother warehouses, 47 stocking points, 4 zonal offices and over 10,000 stockiest and dealers. In addition, about one hundred trucks were dispatch ed daily. With distribution pressures rising, technology up-gradation was necess ary. The company therefore initiated automation of its outward logistics system i n April 2001 with its primary distribution system. Named Project Synergy , this invo lved implementation of the MFG/PRO ERP system 13. ? Dabur works on two ERP systems.? For the outbound logistics it runs QAD ER P suite known as MFG/PRO. For manufacturing locations, theres BaaN? BaaN require s a central server. To fit so many locations many of them situated in small and remote areas into a central processing system, Dabur needed a VSAT (Very Small A perture Terminal) network.? As with most companies, sales at Dabur peak towards the last 4-5 days of the month.? If the company were to depend on this kind of a central server architecture , which would be connected through VSATs, the netwo rk would be enormously overburdened during every month-end.? However, the compan y never wanted to make the network a critical component in the automation of out bound logistics.? The company decided to go for an ERP solution that was network independent.? It found that MFG/PRO could be run on independent servers at each location it was a good choice that suited its unique needs 14. ? Once it was decided that MFG/PRO it will be to handle outbound logistics, a core implementation team which comprised end users from departments, like dist ribution and planning, finance, sales and IT was setup.? The deployment was made in four stages.? The first included a requirement study where a model was devel oped . Dabur has five SBUs (Strategic Business Units), each with diverse needs i n terms of the outbound logistics.? Since it is a traditional FMCG company into family and health care products, pharmaceutical products, food products, which i s a perishable products division , Ayurveda products for both the medicine and h ome segments. All these divisions have diverse requirements.? The core team had its job cut out: It had to develop a common business model, which could cater to every segment at the same time. 15. ? Improvement in sales dispatches to the CFA(Chartered Financial Analyst). T he sales earlier were heavily loaded towards the last week of the month with ove r 80 percent of sales taking place during this time. This led to a number of pro blems such as sales returns and cheque bouncing from pushed sales to meet sales t argets.? Improvement in collections. Collections have recorded an improvement of about 6 days and are more evenly spread over the month. This leads to considera ble saving on working capital locked up in out-bound logistics.? Reduction in sa les returns and unsold stock inventory. Stocks in CFAs are visible to central di stribution planners in saleable and un-saleable categories leading to better man agement and distribution.? Central management of sales schemes. The schemes and free issues are now managed centrally at the corporate office and the ERP system keeps a strong check on schemes leading to reduction in misuse of schemes in th e field 16. ? Use of Mfg Pro gives real-time information about the inventory and sales s ituation of distributors and improves the accuracy of demand forecasts.? These d emand forecasts are then fed into the back-end system (Baan) for materials plann ing and production scheduling. Integration of the two systems is expected to sig nificantly enhance their efficiency in 2003-04.? Mfg Pro is fully operational in the zonal offices, mother ware houses and CFAs and Baan is already live in five manufacturing locations.? A Secondary Sales System is also being implemented to provide country wide information on Secondary pipelines and sales by brand.? Th is new Secondary Sales System, by making focus on secondary sales possible, has played an important role in tracking brand-wise sales, and reducing pipeline inv entories 17. ? The improvement in area-wise and brand-wise inventory management has scale d up the entire supply chain management through better sales forecasts, producti on scheduling, materials planning, vendor management and raw material sourcing.? Company has implemented yet another new initiative of Claims Settlement using a n Intranet/ Extranet based system, for systematic tracking and settlement of cla

ims.? The Company also implemented another major initiative-Employee Management System (EMS), an intranet based HR-information system, including Payroll and PF processing 18. By 2005 Dabur started to feel the pinch of maintaining two independent ERPsy stems. They were facing following issues:? There were still data redundancies an d inconsistencies at times.? Considerable amount of rework was necessary in just data format conversion between the two systems.? It still did not provide a hol istic picture and thus posed problems in formulating a strategy or taking busine ss critical decisions? Maintenance costs climbed up because of the above stated points.? Therefore, to realize not just the operational excellence but also deci sion support infrastructure, the idea of a single organization wide ERP implemen tation was proposed in Dabur. So, With Accenture s help, Dabur implemented strateg ic and operational changes by implementation of organization wide SAP core modul es 19. ? Migrated from standalone ERP systems -Baan and Mfg. to centralized SAP ERP system from 1stApril, 2006 for all business units (BUs).? Implemented a country wide new WAN infrastructure for running centralized ERP system.? Setting up of new data center at KCO head office in Ghaziabad.? Extension of Reach system to d istributors for capturing Secondary Sales Data to collect near real-time pipelin e information was done by 2004.? Roll out of IT services to new plants 20. ? Competing on core competencies, while outsourcing non-core functions to tr usted third-party providers.? Viewing information technology (IT) as a strategic asset that creates real value not simply a cost to be managed.? Streamlining pr ocesses wherever possible? From an IT perspective, Accenture recommended a two-p ronged strategy? Migration to a nimbler outsourcing model that would generate? V alue through agility and support business initiatives and maintenance of its SAP enterprise resource planning (ERP)system 21. Implementing a new sales and distribution strategy-? To identify key custome r segments in urban and rural markets, customize sales programs for key accounts and reorganize Dabur s sales teams by one of four trade channels(modern trade, ru ral, mom-and-pop and drugstores).? The Accenture and Dabur team optimized the com pany s internal logistics and distribution processes for mega retail customers, an d put metrics and incentives in place to drives pacific goals 22. Developing a new supply chain management capability-? Focused on bringing a market-driven perspective to the new supply chain and building collaboration ski lls? Accenture helped Dabur create capabilities to facilitate the launch of new initiatives, products and trade promotions? Instituted a plan to leverage SAP by automating Dabur s material resource planning processes across the complex manufa cturing arena? The new approach allowed employees to shift their focus from simp le transactions to more strategic procurement efforts such as cost management 23. Optimizing Dabur s ERP capabilities-? While Dabur had deployed a SAP ERP syste m to link its corporate headquarters, 12 manufacturing plants and more than 30 d istribution centers, the company was not using the system to its maximum potenti al. Accenture launched a three-phase ERP improvement program that involved? Corr ecting the transactional and management information systems.? Conducting change management and synchronizing Dabur s business processes with realities in an ERP c ontext.? Developing value realization projects 24. Leveraging IT for business initiatives? Accenture designed a Web-based deman d planning and trade promotion forecasting tool, and installed point-of-sale sof tware at select retail and wholesale sites? This latter initiative allowed Dabur to integrate key customers into its IT network and gather real-time market info rmation that would drive better sales and distribution decisionsOutsourcing IT o perations? Accenture delivered industrialized and cost-effective skills that wou ld allow Dabur to remain at the leading edge of IT delivery . Plus, Dabur gained the flexibility of being able to focus on its core capabilities while realizing increased value and lower costs through improved performance 25. ? Forward integration of SAP with distributors and stockists.? Backward inte gration of SAP with suppliers.? Implementation of new Point of Sale (POS) system at stockist point and integration with SAP ERP.? Implementation of SAP HR and p ayroll.? SAP roll out to Dabur Nepal Pvt. Ltd. (DNPL) and other businesses