Analysis of case study which deals about ERP implementation in HLL

1. Case study of HLL Net

3. Background

4. Business Network Systems

5. About HLL

6. SCM

7. HLL distribution network

8. Implementation of ERP

9. ERP extension and redesigning ( DRP module)

10. Future Network distribution chain

12. Background The case discusses about

13. Business network systems

14. Types of BNS

15. About HLL

16. FMCG Sector

17. To Manage this – We Require ??

18. What is SCM? Information Systems to coordinate these activities.

19. Networked Enterprise Model

21. Optimizes the mode of Planning for the Balanced Supply of products having varied demand SCP: Supply Chain Planning

22. Is responsible for timely execution of purchasing, moving, manufacturing, and ordering. SCE: Supply chain Execution

23. Facilitates the collaboration among the participants of key business processes. Includes CP: Collaborative Planning

24. ERP vis-à-vis SCM

25. HLL Existing Distribution Network

26. Existing Supply Chain of HLL

27. Integrate Manufacturing Financial Distribution process Problems with Time Lag- lead to pushing stock Supply chain had chronic inventory problems To Improve Working capital Reduce channel inventory Standardize Business Processes Need for Change

28. In 1997, HLL implemented MFG/PRO ERP package from QAD MGF not a market leader Implemented at 234 sites 100 manufacturing 13 sales branches 121 warehouse depots Solution

29. Why MGF/PRO

30. Problem in implementation

31. Solution HLL installed 128 VSAT systems VSAT provides connections for a wide range of applications such databases ERP messaging intranet voice and video. Provides intranet applications information warehousing database connectivity training

32. Extended ERP

33. Systems Schematics of HLL Net

34. Distribution Resource Planning (DRP)

35. DRP helps in computing demand dynamically based on daily sales orders It helped HLL for workflow automation in supply chain Forward sales order help in inventory management at company’s distribution center System handles exceptions involving dispatching, wildly varied truck capacities, lead-time variances and changes in demand. DRP

36. Distribution Resource Planning (DRP) System integrated 40 raw material suppliers, 60 finished goods suppliers and 600 large stockists At the end of day, HLL factories & 4 buffer depots know exactly what needs to be dispatched based sales that evening.

37. Supply chain integration HLL enabled, its suppliers to know about production plans and delivery Vendors were suppose to maintain enough stocks to keep factories going. It means look in demand surge and even rejections. Information integration at supply level checked “bullwhip” effect

38. VMI HLL also implemented Vendor Managed Inventory (VMI) to integrate 750 large stockists. It took HLL 1 year to implement the concept and realize its benefits. It helped in aggregate daily demand

39. Future Networked Distribution Chain

40. Starting point is about collection of daily sales data from retailers and feeding into HLL’s distribution centers for that area Data is sent back to 60-odd factories and they in turn inform their suppliers. Factories interact with suppliers directly for delivery, scheduling and quality issues Redesigned BNS

41. Workflow automation of the supply chain Variances in lead time, dispatching and truck capacities taken care of Need not maintain high inventory levels Company can focus on data warehousing Application of VMI to further dampen Bullwhip effect and effective demand forecasting Lesser credit period leads to quicker receivables collection Advantages to HLL

42. Fast transfer of funds across business partners through relationship networks-External BNSs Increased coordination of economic activities Reduced coordination costs Planning cycle changed from monthly to daily resulting in better control Stock reduction (105000 tons to 55000 tons) Management of finished goods Better inventory management (supplier inventory levels at 3 days from previous 7) BNS and Coordination

43. Stockists place order for stocks that can be replenished quickly Improved flow of demand and supply information 25% SKUs weren't available on any given day earlier. This is down to 5% Response time reduced to 2 days from 14 BNS & Customer Value

44. ERP system can be extended as transaction oriented BNS Implementation of ERP across supply chain will result in improved business performance across the business network HLL shifted its decision making powers to the point that is closest to the customer thus saving costs and time tremendously which is the biggest learning from this case Conclusion

45. “Enterprise Resource Planning”, by A.R. Singla http://en.wikipedia.org http://logistics.about.com References

46. Thank You