ERP CASES TUDYERP CASES TUDYGROUP MEMBERS:GROUP MEMBERS:PRIYANKA JAGTAP – 16PRIYANKA JAGTAP – 16PRIYANKA DALMIA – 10PRIYANKA DALMIA – 10SUMEET KATARIYA – 24 SUMEET KATARIYA – 24 ABHIJEET DHAR – ABHIJEET DHAR – DEEPAK MODANI - 37DEEPAK MODANI - 37

FLOW OF PPTFLOW OF PPT

OBJECTIVESOBJECTIVES

SUMMARYSUMMARY

MAIN PROBLEMSMAIN PROBLEMS

SOLUTIONSSOLUTIONS

INDUSTRY EXAMPLESINDUSTRY EXAMPLES

CONCLUSIONCONCLUSION

OBJECTIVESOBJECTIVES

SUMMARIZE THE CASESUMMARIZE THE CASE

HIGHLIGHT IMPORTANT ASPECTSHIGHLIGHT IMPORTANT ASPECTS

UNDERSTAND COMPETITIVE PERSPECTIVESUNDERSTAND COMPETITIVE PERSPECTIVES

ANSWER THE QUESTIONSANSWER THE QUESTIONS

SUGGEST SOLUTIONSSUGGEST SOLUTIONS

DRAW LOGICAL CONCLUSIONSDRAW LOGICAL CONCLUSIONS

SUMMARYSUMMARY

Indian Distributors Ltd. - a small trader 50 yrs Indian Distributors Ltd. - a small trader 50 yrs back - who used to import goods from third world back - who used to import goods from third world countries and sell these in India now substantial countries and sell these in India now substantial nation-wide selling and distribution organization nation-wide selling and distribution organization within Indiawithin India

Headquarters - Mumbai Headquarters - Mumbai

Warehouse and regional sales offices - Delhi, Warehouse and regional sales offices - Delhi, Calcutta, Chennai, Jaipur, Lucknow and Amritsar. Calcutta, Chennai, Jaipur, Lucknow and Amritsar.

It also has regional sales centers in all the major It also has regional sales centers in all the major towns of all states of India. towns of all states of India. 

Today they sell about 50% of indigenous Today they sell about 50% of indigenous manufactured products, while 50% products manufactured products, while 50% products continue to be imported from other countries. continue to be imported from other countries.

SUMMARY contdSUMMARY contd

Markets imported products and popular domestic Markets imported products and popular domestic brands. Also started marketing products of smaller brands. Also started marketing products of smaller manufactures under its brand name ‘XEON’. manufactures under its brand name ‘XEON’.

The variety and the range of products - over 10,000 The variety and the range of products - over 10,000 items. The business is divided into six product items. The business is divided into six product divisions. divisions.

1.1. White Goods DivisionWhite Goods Division

2.2. Electrical Engineering DivisionElectrical Engineering Division

3.3. Electronics DivisionElectronics Division

4.4. Apparel & Footwear DivisionApparel & Footwear Division

5.5. Food & Confectionary DivisionFood & Confectionary Division

6.6. CosmeticsCosmetics

SUMMARY contdSUMMARY contd

First three divisions – First three divisions –

Complete solution to its customers. Complete solution to its customers.

Guidance to the customer, installation and may need Guidance to the customer, installation and may need to take orders for customized products. to take orders for customized products.

Other 3 divisions – Other 3 divisions –

Standard products either imported or of domestic Standard products either imported or of domestic brands. brands.

No customization. Sales are made for stock and the No customization. Sales are made for stock and the invoice is generated and dispatched latest by next invoice is generated and dispatched latest by next day. The stocking levels are decided based on the day. The stocking levels are decided based on the demand and lead time of supply.demand and lead time of supply.

SUMMARY contdSUMMARY contd

DISTRIBUTION DISTRIBUTION

Each division may have number of distributorships Each division may have number of distributorships and many productsand many products

The divisional manager is not always concerned The divisional manager is not always concerned with the profitability of individual products but also with the profitability of individual products but also with the distributorship as a whole. with the distributorship as a whole.

SALESMENSALESMEN

Each divisional manager has specialized salesmen in Each divisional manager has specialized salesmen in each regional sales office that is attached to it and / each regional sales office that is attached to it and /

or reporting through it. or reporting through it.

SUMMARY contdSUMMARY contd

ORDER PROCESSING SYSTEMORDER PROCESSING SYSTEM

Got order processing software to manage its orders and Got order processing software to manage its orders and the invoicing process.the invoicing process.

The software is menu driven one, which allow the user The software is menu driven one, which allow the user to capture the order and invoice details. to capture the order and invoice details.

The salesman visits the shops and collects the orders in The salesman visits the shops and collects the orders in a standard format, which are processed by the a standard format, which are processed by the computer department of the company under the order computer department of the company under the order processing systems. processing systems.

PROBLEMSPROBLEMS

The order processing system does not have the provision of The order processing system does not have the provision of monitoring the partially fulfilled orders, because of which the monitoring the partially fulfilled orders, because of which the shops do not get the complete delivery, which leads to lost shops do not get the complete delivery, which leads to lost sales. sales.

Limited amount of sales analysis Limited amount of sales analysis

Analyses can be carried out only on the current data. The Analyses can be carried out only on the current data. The software does not support any level of comparison with the software does not support any level of comparison with the passed data. passed data.

Forecasting is based on the current data only. Forecasting is based on the current data only.

With increase in competition and advancement in With increase in competition and advancement in technological options, - requirement and to develop an technological options, - requirement and to develop an efficient and effective information system. efficient and effective information system.

Challenges being faced by the company include product Challenges being faced by the company include product selection, inventory management, customer satisfaction, selection, inventory management, customer satisfaction, transportation and logistics, etc.transportation and logistics, etc.

Flow chartFlow chartStart

Customer sends a

request for order at head

office

Regional Sales Office informs

a salesman

Salesman goes to shops and

collects orders

Salesman sends order at

head office

Order processed at head office in

Computer system

Stock is allocated for

the order received

Duplicate Slip 1- Transport 2- store to draw items

Stock delivered to

customer

Customer sends

acknowledgement / issue slip

and cash/cheque

Updating Customer Account/ Billing in Computer System

Stop

Check for the inventory /stock of required

Add Stock to inventory as

required

EDIEDI

EDIEDI in Procurementin Procurement

EDIEDI in Procurementin Procurement

EDI in Indian Distributors EDI in Indian Distributors LimitedLimited

All the data transactions can be undertaken through an EDI systemAll the data transactions can be undertaken through an EDI system Customer Sending request for order through EDI systemCustomer Sending request for order through EDI system Salesman sending order at head officeSalesman sending order at head office Updating the computer SystemUpdating the computer System Acknowledgement of supplies and paymentAcknowledgement of supplies and payment

Process automation and real-time information accessProcess automation and real-time information access

Persistent, real-time identification information with minimal human Persistent, real-time identification information with minimal human interventionintervention

Increases in speed Increases in speed

Improved accuracy in the transfer of critical informationImproved accuracy in the transfer of critical information

Improves Operational EfficiencyImproves Operational Efficiency

Reduction in costs Reduction in costs

RFIDRFID

Radio-frequency identification (RFID) is Radio-frequency identification (RFID) is a technology that uses communication via radio waves to a technology that uses communication via radio waves to exchange data between a reader and an electronic tag exchange data between a reader and an electronic tag attached to an object, for the purpose of identification and attached to an object, for the purpose of identification and trackingtracking

Most RFID tags contain at least two parts. One is an Most RFID tags contain at least two parts. One is an integrated circuit for storing and processing information, integrated circuit for storing and processing information, modulating and demodulating a radio-frequency (RF) modulating and demodulating a radio-frequency (RF) signal, and other specialized functions. The second is an signal, and other specialized functions. The second is an antenna for receiving and transmitting the signal.antenna for receiving and transmitting the signal.

Fixed RFID and Mobile RFID: Depending on mobility, Fixed RFID and Mobile RFID: Depending on mobility, RFID readers are classified into two different types:RFID readers are classified into two different types:Fixed RFID Fixed RFID Mobile RFIDMobile RFID

RFID

RFID in Indian Distributors RFID in Indian Distributors LimitedLimited

RFID can be used in enterprise supply chain managementRFID can be used in enterprise supply chain management

RFID can be used to improve the efficiency of inventory tracking RFID can be used to improve the efficiency of inventory tracking and managementand management

Managing updates of stocksManaging updates of stocks

Transportation and logistics of the productTransportation and logistics of the product

Security from theft of expensive suppliesSecurity from theft of expensive supplies

Improve operating efficiency, reduce business risk and drive Improve operating efficiency, reduce business risk and drive additional revenue opportunitiesadditional revenue opportunities

Integrity—improving the integrity of real-time supply-chain Integrity—improving the integrity of real-time supply-chain informationinformation

Removal / Reduction in supply chain errorsRemoval / Reduction in supply chain errors

Industry ExamplesIndustry Examples

Eresource ERP iSEEresource ERP iSE: : http://www.eresourceerp.com/http://www.eresourceerp.com/

Industry Examples Industry Examples contdcontd

BNG : BNG : http://www.bng.co.in/salesdistribution.htmlhttp://www.bng.co.in/salesdistribution.html

Industry Examples Industry Examples contdcontd

ITTI:ITTI: http://itti.com/http://itti.com/ A CMMi Level 5 & ISO 9001:2008 CompanyA CMMi Level 5 & ISO 9001:2008 Company

VM InfotechVM Infotech: : http://www.indiamart.com/vminfotech/http://www.indiamart.com/vminfotech/

ERP(SCM + CRM) for small and medium size industries. ERP(SCM + CRM) for small and medium size industries.

CONCLUSIONCONCLUSION