Casestudy - ERP Software for FMCG

ROADMAP ERP

ERP Software for FMCG Industries

ROADMAP IT SOLUTIONS (P) LTD. No. 5, Republic Street | Reddiarpalayam | Pondicherry - 605 010 | India Phone: +91 413 4207 333 mktg@roadmapit.com

www.roadmapit.com

Company Profile The food processing industry is a leading Indian FMCG company with interests in a variety of healthy Indian food choices. Headquartered in Dindigul, Tamil Nadu, India; and established in the year 1984, the company manufactures and deals with food products including roasted vermicelli, rice vermicelli, wheat vermicelli, corn vermicelli, ragi vermicelli, kambu vermicelli, varagu vermicelli, thinai vermicelli, chakki fresh atta, super fine flour, rice flour, ragi flour, idiyappa flour, murukku flour, kozhukattai flour, rava dosa flour, rava, samba ravai, noodles, soya, happla, crystal salt, freeflow salt, and more.

With over 3 decades of expertise in the food processing sector, the company, at present has 49 state of the art factories located in and around South India. There are 3000+ people working for the company's corporate and its factory workforce is comprised of 2000+ people.

The food processing industry has a production capacity of six lakhs packets per day, and caters to consumers spread across Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Andaman, Mumbai, Dubai and Singapore. The organization champions the cause of fulfilling its customer's legal requirements as per the Food Safety and Standards Authority of India (FSSAI), the Food Safety Management System's (FSMS) regulation rules, and the Food Safety and Standards Act -2006.

Implementation Financial Management

Roadmap understood the needs and purposes of the company's business processes, through the

Supply Chain Management

Roadmap Business Process Re-engineering (BPR)

Planning & Manufacturing

with the organization's core team and, through

Customer Relationship Management Payroll Management Plant Maintenance Gate Entry Management

approach. Roadmap's BPR experts collaborated Preliminary Analysis & As-Is Study, captured the changes required to address the digital needs of all its business processes, especially the pain points. The Roadmap ERP modules implemented into the businesses workflow to digitize, integrate, streamline, and sufficiently automate the system are: 1

ROADMAP ERP 45%

20%

100%

The Food Processing Industry's Pain Points Addressed by Roadmap ERP: The client had siloed accounting software that did not permit: 1

The computation of accurate manufacturing cost of material leading to the inability to formulate competitive as well as profitable selling prices. Further the time consuming tedious manual costing procedures rendered the results prone to errors.

Roadmap ERP's ability to accurately arrive at the manufacturing cost based on actual material consumption, machine usage, manpower and overheads; accurately projects the actual manufacturing cost, thereby easing the determination of a competitive as well as profitable selling price. All these are achievable at the touch of a button owing to customized company-specific formulation of the entire process.

2

The tracking of Pending Receivables and the performance of Aging Analysis.

Roadmap ERP's Finance Management system generates precise country-wise, area-wise, territory-wise, subterritory-wise, customer-wise and currency-wise AR Aging Analysis reports and notifications to enable the tracking and procuring of all pending receivables.

3

The translation of price change in the raw-materials into the adjustment of the price of FGs Roadmap ERP integrates all the functional units of the industry and initiates rate-revision to FGs based on rate change in raw materials.

Client had a manual tracking & monitoring system for the Inventory mechanism, which led to: 1

Raising of POs without knowledge Level of Stock Roadmap ERP's stock verification facility enables the automated and appropriate raising of PO based on the Level of Stock.

2

The need for A and B class items was not known due to lack of knowledge of Inventory status Roadmap ERP's monitoring and tracking facility of the ERP automatically raises 'Reorder Level' intimations whenever the stock level of A and B class items go below the prescribed limits.

3

Inefficient performance of the planning and execution of promotional activities.

The automated tracking facility to monitor the promotional activities ensures the appropriate stocking and disbursement of promotional material without wastage and in a fool-proof manner so that all the purchases and appropriations are perfectly accounted for.

4

The manual unit by unit verification of the Level of Stock in multiple units.

Dashboards enable the tracking of multiple units' levels of stock right from the corporate office through the combined activity of remote access facility and the automated facility to track the Inventory status.

ROADMAP ERP Lack of integration between Stores and Finance department had resulted in: 1

Frequent defaults in 'Bill movement to Finance' After stocking the warehouse.

Only after the bill booking and the movement of the bill to Finance dept and an acknowledgment for the same is registered, the payment for freight is released.

2

Failure to register the materials rejected at the warehouse by means of raising a debit note. So payment for incoming materials were made without reducing the value of those rejected materials.

The systems tracks all rejected materials. Until debit note for all rejected materials are raised the payment for the entire consignment is not released.

3

Inability to ascertain debit note deviation.

The total digital linking of the Stores and Finance department rules out all irregularities between PO and Billing, and enables the correct deduction of monies through the projection of exact debit note deviation value.

4

Flawed reports on actual status of materials Vs Materials as per bill, as the Physical Quantity of materials and the Company bill Quantity could not be determined for comparison.

The system cross-checks the quantity of material physically present in the Inventory against the materials mentioned in the bill, and gives a clear picture of discrepancies if any. This ensures the appropriate deduction of the difference in price and avoiding over-payment.

The absence of an apt tracking system for Planning and manufacture caused: 1

The inability to capture a vector of actual WIP Vs work scheduled for any given time frame.

Stringent real-time product-wise and unit-wise monitoring and tracking of WIP and Process Rejections give clear visibility into the real-time status of daily-target Vs actual-progress.

2

Minimal efficiency of manpower and machine due to lack of visibility into workflow.

Task-wise lead time tracking for each job automatically triggers escalations through the appropriate hierarchy and gets the attention of authority into the lag. This ensures performance efficiency of man and machine.

3

The difficulty in ascertaining the estimated consumption of material and actual consumption of material for production, and therefore posing the inability to determine the production efficiency of the company The Norms Fixing function of the ERP closely registers the amount actually consumed by the production process and verifies it against estimated consumption of material for the same and reveals the actual efficiency of the production process, thereby giving the scope to appropriate the inputs to achieve maximum efficiency

ROADMAP ERP Lack of digital presence in sales activities had resulted in: 1

The manual monitoring of sales activities denying the scope for any analytics or real-time data tracking.

The system plans and tracks in real-time Distributor-wise, Product-wise, and Sales Person-wise sales target, to capture and furnish the accurate status of sales performance.

2

Impossibility of Order Vs Invoice verification.

Order Vs Invoice verification is made possible.

3

Planning of sales target using conventional methods and great difficulty in tracking status of sales.

Distributor-wise / Product-wise / Area-wise automated sales analytics on monthly / yearly / periodical basis projects accurate efficiency of sales performance.

An HR & Payroll system was not in place: 1

So the performance level of employees could not be appraised properly and had to be vaguely calculated to generate a payroll involving manual process The integration of the attendance registry with the in / out time registry system captures details of employee attendance, early/on-time/late arrivals, early/on-time departures, and over-time details and generates the accurate payroll fitting for all the employees of the business at the touch of a button.

Insufficient tracking system for monitoring transportation had caused: 1

The inability to generate the concerned analytics as the GPSs in vehicles were not integrated with the database.

The ERP's Vehicle GPS Tracking facility integrates the GPS system with the company database, thereby facilitating the generation all related analytics like delivery status analysis, on-time delivery analysis, delays, etc

2

The lack visibility into the availability status of vehicles and inefficient usage of transportation for delivery of products, resulting in wastage of resources and manpower The Vehicle planning faculty of the system automates Distribution and Demand analytics to provide vivid details on the route-wise availability of vehicles, and route-wise allocation of units of stock for delivery; and trigger notifications with cost-efficient Dispatch Plans. The faculty also enables the generation of each vehicle's Trip-wise & Vehicle-wise P&L statement, which supports the determination of the transport operation's efficiency.

Manual Plant Maintenance plant maintenance system resulted in unexpected downtimes and caused frequent production disruptions: The robust plant maintenance module's preventive maintenance, predictive maintenance, and breakdown maintenance provisions through automated periodical notifications ensure the maximum efficiency of machine usage and minimization of downtime.

Paper Approvals were delaying all business functions: Internet powered Mobile Approvals facilitate quick and uninterrupted business functionality at anytime from anywhere and on any device, and renders the process paperless.

ROADMAP ERP

IIm mpplleem meennttaattiioonn SSuucccceessss The comprehensive integration of Roadmap full-suite ERP with the entire business process of the Food Processing Industry has made the management of the business a lot easier by integrating all the business and manufacturing units from within and also with vendors and retail outlets.

The ERP solution facilitates faster and better management decisions by providing crucial information in a timely manner. The ERP has ultimately delivered high ROI by totally solving all the snags that were pulling the company behind from functioning smoothly.

www.roadmapit.com R

Integrate Innovate Succeed

Roadmap IT Solutions (P) Ltd. No. 5, Republic Street | Reddiyarpalayam | Pondicherry - 605 010 | India Phone: +91 413 420 7333 Email: mktg@roadmapit.com

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