A report on Introduction To Enterprise Resource Planning Systems. National Foods Limited

1. INSTITUTE OF BUSINESS MANAGEMENT
COURSE
Introduction to Enterprise Resource Planning Systems
PROJECT ON
National Foods Limited
Submitted to
Sir. Eng. Asghar Khan
Submitted by
Fajar Lateef 20181-23857
Shamsher Ali 20181-23667
Abdul Aziz Afzal Siddiqui 20181-23465

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Contents
Organizations’ and Industry Introduction.....................................................................................................3
Why you select that organization.................................................................................................................4
Implementation Methodology......................................................................................................................4
Challenges Faced During ERP Implementation.............................................................................................5
Decision Making........................................................................................................................................5
Ensuring a Standard Quality......................................................................................................................5
Adequate Training to All the Users...........................................................................................................5
Integration Issues......................................................................................................................................5
Resistance of Change................................................................................................................................5
ERP Benefits to the Company .......................................................................................................................6
Investment Not an Expense......................................................................................................................6
Gives Competitive Edge ..........................................................................................................................6*
Overall Presence .......................................................................................................................................6
Reporting Becomes Easier ........................................................................................................................6
Efficiency Is Improved...............................................................................................................................7
Standardization of business processes.....................................................................................................7
Scalability ..................................................................................................................................................7
Reduce Functional Silos ............................................................................................................................7
System’s Flexibility....................................................................................................................................7
Information Is Safe....................................................................................................................................7
Responsibility Matrix ....................................................................................................................................8
References ....................................................................................................................................................8

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Organizations’ and Industry Introduction
National Foods began its journey in 1970 as a Spice company with a revolutionary product that popularized
the concept of having clean, healthy food. National foods’ initiatives since then is to make hygienic food,
reduce time spent in the kitchens, foster health and contribute towards a positive and a more rewarding
lifestyle. The Company was incorporated in 1970 as a private limited company under the Companies Act
1913, subsequently they converted into a public limited company. The Company is listed on Stock Exchange
of Pakistan. The principle business of the company is the manufacturing and selling of Food Products. The
Company is now a multinational company with three subsidiaries;
a) Middle East part with National Foods DMCC.
b) UK Part with National Foods Pakistan (UK) Ltd
c) Western Hemisphere with National Epicure Inc. (Canada).
The company has four Industrial Units;
a) SITE Plant (Karachi)
b) Bin Qasim Industrial Unit (Karachi)
c) Gujranwala Unit
d) Muridkay Unit (Lahore)
All along National Foods has responded meticulously to these rapid changes and challenges by pioneering
developing of innovative food products based on convenience and quick preparation. These diverse food
products are perfectly in line with contemporary lifestyles while retaining the traditional taste and values
which are so close to our hearts. The focus of the company is to see National Foods as professionally
managed self-stabling food company, the owners have contributed well in the overall development by
turning a local giant into a progressive management structure in line with the industry practices. Winning
the hearts of millions of people worldwide the company not only strives to deliver excellence in food taste
and quality but also managed to expand its global footprint across 40 countries in 5 continents. And they
continue to spread happiness by offering authentic flavors and reuniting people with Pakistani Heritage.
National Food Limited values and core competencies constantly at all levels and use the SPICE and Building
Excellence in People platform to construct and maintain a healthy positive vibe across the organization.
National Foods Limited reinforces its core values and competencies by not only communicating them down
to every level in the organization but also by rewarding them. National Foods Limited gives confidence to
their employees sharing ideas and out of box thinking & through that way they create a lasting change and
build up a mindset of a truly productive and an equally accountable workforce.
In respect of industry of food manufacturing sector, they transform agricultural and livestock into process
to create final product as an outcome for end user or consumer. Food manufacturers sell their stock to the
whole seller then whole sellers sell these stocks to the consumer or end user. Basically, whole sellers play
bridge role between end user and manufacture. In this scenario, Enterprise Resource Planning System can
assist National Foods Limited to record, report and display clearer picture of their business transactions or
day to day operations. Enterprise Resource Planning System is being used in National Foods Limited in

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various departments in order to ensure smooth transactions and business processes so that National Foods
Limited would achieve its organizational goal.
Why you select that organization
The idea of selecting National food for our term report is based on many factors. National foods limited is
one of the premium producers of the recipe mix and additives products which provide purity and quality
its consumers. Of course, we have personally tried many of the products and they have really made it easy
to cook while maintain good taste of the meal as well as quality. Having an experience of almost four
decades, national foods really know what the consumers want from them. A couple of years ago, national
foods launched a promotional campaign “naye such ke naye zaiqe” keeping in mind that urban lifestyle is
changing. Now men along with their families love cooking. And this campaign introduced a different angle
of thought to the people and the product got more popularity. National foods with its approximate 250
products enjoy a good perception in the consumer’s mind and we as a team were curious to know more
about the company. So, we chose the industry about our term report.
As food industry has also limited and easy to identify ingredients and processes (relatively simple industrial
processes) and in the assigned project, we were learning the ODOO and other ERP systems/ processes, so
it was easy for us to relate these industrial processes with it. It was easy for us to find the information
related to the company by using internet and from some of the peers who are currently working in the
national foods. So, we got valuable information from them. Food industry is very sensitive to reputation
and they have a very good mechanism of dealing customer complaints and feedback from them. So, we
are of the opinion that application of customer relationship management “CRM” can be related in a very
good way to the industry. Similarly, sales and purchase cycles were easily grasped in the ERP system when
we related it to the national foods industry. Inventory management was also easy to relate. We consider
all the above-mentioned factors when we chose national industry for our project.
Implementation Methodology
It is believed that mainly the success of the implementation of ERP system depends on the redesigning of
the processes rather than customization of the ERP technology, because customization require additional
cost and it takes more time and many headaches to implement. So, to implement ERP system at National
Foods Limited, the company need align their processes according to ERP software, hence filtering of the
unnecessary processes, redundant practices and complex procedure turning into easy tasks is a core job.
When we plan to implement any new system into the organization there is always number of complexities.
Either in the form of different business processes or in the form of strict policies and procedure of the
organization, implementation officer must ensure that the project can be completely implementable
considering the software requirements. Implementation officer ensure that the User of the system should
be completely satisfied. ODOO implementation is an integral part of the ERP system. Through
implementation of ODOO, the user can get the successful solution to their problem. Following steps must
be considered while implementing ODOO in the organization. Management backup is required to do these
tasks. The company can use standard version (non-customization of the software) of the ERP system. This
is called plain Vanilla implementation. The software supplier vendors like SAP, ORACLE have a very good
experience/ best practices worldwide to implement the ERP system in different industries so any company
can benefit from their plain version. But it can cause dramatic changes of the existing processes, so it will

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require more efforts to align the processes according to ERP functionalities. But once the processes are
redefend than later it will be quite easier to the management and all employees. So, when these changes
are going to be done, their impact will be monitored and addressed timely. Because if these impacts are
not addressed, they can cause gaps in the operation, and will cause difficulty in the coming days. Secondly
the ERP system can be implemented phase wise or it can also be in big bang approach. As per available
resource (budget, manpower, time constraint etc.) management to decide it. As in National foods vanilla
implementation looks a best fit so the company need aligning of its processes according to ERP system and
hence cost of the implementation can be saved and a lot of finance can be saved as compared to the
customized ERP version. Available vendors like SAP and ORACLE can be a good option. Afterwards updating
can also be perform easily as it will require only basic design updating. Also customized system is very
difficult to update so when it is updated a lot of issues occurs. So, patches and add-ons will be required for
updating of the customized ERP.
So plain vanilla might not be fulfilling the 100% requirement, but it can fulfill more than 80% of the
requirement which can be a good choice for the company.
Challenges Faced During ERP Implementation
Decision Making
This is one of the most endeavoring challenge to have to implement ERP. It gives you the guidelines by
defining tasks and roles to be performed. It gives a transparent system and specifies the decision-making
powers among the organization hierarchy. It helps in implementation of strategy and helps in achieving
tasks efficiently. Hence it gives administrative control as per the size and volume and limitations of the
software.
Ensuring a Standard Quality
It is the primarily responsibility to maintain quality of data and statistics to meet the needs of the industry.
The maintaining of competitive edge in the corporate environment is essential while getting advanced and
new technological software keeping in view that all the previous records remain safe.
Adequate Training to All the Users
In implementation of any technology it is necessary to provide adequate training to the users before getting
the software in running. If employees are not trained to cater the needs of new system, it will result in
some serious backfire which can lead to any mishap.
Integration Issues
Systems like ERM and others tend to have silos due to their contrasting nature makes it difficult to smoothly
run the integration of the organization. Individuals who continuously put efforts in ensuring the
connectivity between the two leads to have the custom point-to-point integration. Applying this
methodology is challenging, costly, and hard to maintain. Hence it overcomplicates the process as the
business grows making sure that precautionary measures are taken.
Resistance of Change
To every change occurring in the organization employees resist to that environment due to fear of losing
their livelihood. In implementation of any technology it is important to conduct workshops, training

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sessions to make them aware of new technology. If not properly planned it can lead to backfiring of the
decision and chaos within the organization
ERP Benefits to the Company
Enterprise resource planning systems are an asset to many organizations. Enterprise Resource Planning or
ERP software is a set of applications that manages core business processes such as CRM, Sales, Purchase,
Accounting, HRM, E-Commerce, Manufacturing and Inventory. They smooth your business by integrating
and protecting your information, running automation and creating easy-to-understand trends. With these
and many other capabilities, the benefits of an ERP system within an organization make daily operations
and long-term planning more effective, easy and efficient. ERP can be completely modified according to
the business processes.
For the company we decided to use ODOO as the ERP software. ODOO proves to be very beneficial as it:
Investment Not an Expense
Although ERP is a huge investment for an organization but if we look at it in look run it is a onetime spending
that saves an organization from a lot of other expense. Since ERP is an integrated system, we get CRM,
Sales, Purchase, Accounting, HRM, E-Commerce, Manufacturing and Inventory in one system, it reduces
the cost of in-house IT team, developing and maintaining an infrastructure for that team. Through ERP you
get all modules under one umbrella which is an investment rather than an expense.
Gives Competitive Edge
In the fast-moving world, every organization tends to have a competitive advantage with installation of
latest software. As it provides better access on both parts meaning customers and within the organization.
Competitors are left behind as you are faster with controls and information. Moreover, your overall
expenses are reduced as it is onetime IT Focused cost you can produce more than your competitor and
capture their share as well. In a nutshell, an organization can now better focus on its core competencies.
Having a merged ERP system could considerably decrease IT-related costs, which consists of:
a. Management/administration team
b. Assistance
c. Facilities demands
d. Application licensing
Overall Presence
ERP enables complete accessibility to every crucial procedure in your service by making information from
every division conveniently available to you and, you’re elderly monitoring. For instance, you could keep
an eye on supply degrees on a day-to-day basis. Consisting of future consignments that are yet to be gotten
and stock that's presently in transportation. By understanding specifically where you stand relating to stock
degrees.
Reporting Becomes Easier
ERP software application assists make reporting much easier and extra personalized. With boosted
reporting capacities, your business could reply to complicated information demands extra quickly.

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Conserve time as well as boost efficiency degrees. By having repetitive procedures automated, individuals
have even more time to function on various other pushing jobs as well as jobs.
Efficiency Is Improved
As the system is fully computerized, it reduces any discrepancies and helps in efficient and fast completion
of processes. The processes become automated which almost nullifies the chances of error.
a. Service of the customer
b. Quality and security of data
c. Increment in cooperation and workflow
Standardization of business processes
As makers expand, their procedures end up being more complicated. Production software program
automates service procedures cross-departmentally, offering exact, real-time info to everybody making use
of the remedy
a. Facilitates regulatory compliance
b. Improved chain of supply
Scalability
Structured ERP systems permit the enhancement of brand-new individuals. It also features to expand at
first carried out remedy and gradually which is important in terms of growth.
Reduce Functional Silos
Through ERP, inter department cooperation gets enhanced and functional silos reduces automatically
which is the fundamental need in better implementation. All the information gets centralized and can be
streamlined for regular use.
System’s Flexibility
Modern ERP software program systems are;
a. Durable
b. Adaptable
c. Configurable
ERP systems likewise could adjust to the ever-changing demands of an expanding company, guaranteeing
you will not have to get a brand-new option when your demands alter, or your organization expands.
Information Is Safe
The greatest benefit that an organization enjoys in ERP implementation is data safety. It creates a
trustworthy relationship on both ends. As the modules can be assigned according to the responsibilities of
the employees there is less chance of changing or deleting the information once entered in the system.

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Responsibility Matrix
S. No Modules practical in class Fajar Shamsher Abdul Aziz Afzal
1 CRM YES
2 Sales YES
3 Purchase YES
4 Website YES
5 E-commerce YES
6 Technical Support YES
7 Point of Sale YES
8 Inventory
9 Organizations’ and Industry Introduction YES
10 ERP benefits for the company YES
11 Challenges faced during the Implementation YES
12 Why you select that organization YES
13 Implementation Methodology YES
References
http://nfoods.com/
https://www.myplan.com/careers/industries/food-manufacturing/summary-08.07.html
National Foods' new thinking on new flavors - Recent – Aurora Published in Sep-Oct 2018
Reference: Enterprise Systems for Management
Luvai F. Motiwalla University of Massachusetts Lowell and Jeff Thompson Oracle Consulting
Class lecture