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Mother Dairy Fruit & Vegetable Pvt. Ltd. a wholly owned company of Indias National Dairy Development Board markets dairy products, edible oils, and fresh fruits and vegetables through a national distribution network. Disparate systems among these multiple lines of business once hindered profitable growth. But Mother Dairy has consolidated operations on the SAP ERP application and established standard business processes across the enterprise.
Financial and Strategic Benets Increased support for perishable food operations with real-time functional integration Reduced monthly close cycles by 50% Reduced time spent on financial reconciliation of interunit transfers by 75% Gained support for multiple costing methods and dynamic price changes Achieved enterprise-wide, real-time visibility of inventory Improved capital planning with automated capital asset budgeting and accounting
Impact -65%
-7.5% despite business growing by 10% Plan versus actual within a range of 5%
The SAP ERP application addressed our immediate needs for standardization, integration, and consolidation while providing us a solid business platform on which we can continue to grow and innovate.
Executive Leadership Team, Mother Dairy Fruit & Vegetable Pvt. Ltd.
www.sap.com /contactsap
it required an innovative approach. First, the company decided to roll out financials, production planning, materials manageMother Dairy Fruit & Vegetable Pvt. Ltd. ment, and sales and distribution functionwas founded in 1974 as part of a ality in a big bang across locations nationwide development program and businesses. Second, it adopted SAPdesigned to revolutionize milk producsupported best practices and minimized tion in rural India. Today, Mother Dairy customizations, in order to standardize markets 2.8 million liters of milk every business processes and centralize conday. This once regional company boasts trol. Only customizations that were unique a national presence with three separate to the business such as dual-axis pricing lines of business: dairy products, fruits for milk and retro pricing for fresh foods and vegetables, and edible oils. were undertaken. Finally, the firm chose SAP Consulting to manage the overall As Mother Dairy grows, so does its project to help ensure its success. need for integrated business technology. Operating in the fresh foods indusDelivering Fresh Benefits Every Day try, Mother Dairy requires clear visibility across complex supply chains and the Today, Mother Dairy has an enterpriseability to respond quickly to dynamic wide SAP software footprint that supmarket conditions. In the past, a fracports increased visibility and greater tured IT landscape resulted in siloed control across its fast-paced operations business processes, and the companys where procurement, processing, and distop management had very little visibility tribution can all occur on a daily cycle. For into vital information such as sales, example, the company now has real-time inventory, costs, and margins. visibility into inventory at all locations. Moreover, Mother Dairy has the ability to Mother Dairy decided to replace all of compute both moving-average and stanits legacy applications and consolidate dard cost methods for inventory valuation operations on the SAP ERP application and product costing. And the company with the SAP NetWeaver Business can dynamically effect price changes Warehouse component. Company when necessary. executives were confident that the softwares broad functionality met the Having a better view and control of cusunique needs of the industry and tomer receivables and credit limits, couoffered the scalability required by the pled with the ability to integrate its SAP software with its bank accounts, has growing company. resulted in improved cash flow and robust Developing a Recipe for Success working capital management at Mother Dairy. The company can also forecast business results more accurately, and the Mother Dairy was the first large-scale time needed to close annual accounts has SAP software implementation in the Indian dairy and fresh foods sector, and dropped significantly.
The most significant benefit, on which the executive leadership team is unanimous, is enforced process discipline, which has paid off in faster, more accurate financial information management and reporting. This in turn has led to the ability to make better decisions faster, which is paramount in Mother Dairys business.