Professional Documents
Culture Documents
OUTLINE
Introduction to Marico
Initiative Implemented
Future Ahead
ABOUT MARICO
Found in 1991, Public Limited Company A leading Indian Group in Consumer Products and Services Renowned Brands like Parachute, Saffola, Kaya Skin Clinics CAGR of 21% in turnover, 30% in profits - over last 5 years Turnover of 2660 Crores (2009-10)
12 Brands, Turnover Rs 1550 Crores 100 SKUs, 1500 Suppliers 7 Factories, 15 Contract Manufacturers 30 Depots, 1000 Distributor 25 lac Retail Outlets (Reach) Reaching 13 Crore consumers
Networking environment
Citrix Presentation Server running on one HP
ProLiant DL 360G4P server and one HCL Global Line server Citrix GoToAssist Microsoft Windows Server 2003 Connectivity through VSATs, VPNs, leased circuits and Internet VPNs HCL/Zenith desktops and Toshiba laptops.
Super Distributors
Stockists
MARICOS PROBLEMS
More brands and more products incur costs: This entails more
sales and markets to track, more forecasts to make, more production to plan, more SKUs to track, more pallets and truckloads to configure and route. The SKU/distribution point combinations run in millions. The distribution network became more costly and complex, exposing many process inefficiencies. The resulting growth strained Maricos highly regarded distribution network and exposed shortcomings in its forecasting, planning, and supply chain processes.
MARICOS PROBLEMS(Contd..)
Forecast accuracy was at 70%.
Distributors were suffering stock-outs and loss of sales on
30% of Marico SKUs. Excess inventory The costs of errors in shipments to remote depots were mounting.
Peak / Minimum Sales ratio Variation across the year as high as 3:1 (Key Brand)
EXCEL
PINS
MPS
Lack of Visibility of stocks on a frequent basis even at depot Departmental System for Transactions, No Integration
DISTRIBUTION VISIBILITY
PC-supported legacy systems use of relational database libraries Struggling to meet increased logistics needs
Poor visibility into depot stocks-no prioritization rules in place in configuring for optimal truck loads Excess stock- hire temporary spaces and demurrage charges
Stock-outs Maldistribution of goods- higher delivery costs
The Approach
Fully integrated system consisting of
Enterprise Resource Planning (ERP) business application SAP R/3, a Supply Chain Management (SCM) suite. The Advanced Planning and Optimization (SAP APO)
component of my SAP Supply Chain Management (my SAP SCM) My SAP Business Intelligence Solution for Supply Chain Performance Management.
ERP
Minet
APO
BIW
ERP, APO, BW MIDAS for Distributors Minet :- The face of all the above to users in the field Outcome - Stock visibility of depot and distributor real time
SAP
Finance,
Cost Accounting,
Materials Management,
Production Planning,
Quality Management,
Administrative resources.
SAP(Contd..)
SAP R/3 integrated business systems, including finance,
cost accounting, materials management, production planning, quality management, and sales and distribution A key component of mySAP SCM, SAP APO, including its demand forecasting and planning, supply network planning (SNP), deployment, and supply chain cockpit modules mySAP Business Intelligence for supply chain performance management activities, a system that provides data warehousing functionality, business intelligence tools and analytics, best-practice models, and administrative resources
SAP APO
Not used for Sourcing and Manufacturing
few commodity raw materials no manufacturing capacity constraints no sales seasonality- no promotions and minimize artificially induced demand surges
Improve internal Collaborative forecasting between manufacturing sites and warehouses. Assigned and accountable ownership- distribution from warehouses to distributors met service levels
Production Capacity Vs Raw Material Availability and provide feedback (1st week)
Minor modifications using Primary and Secondary data for every region now available
Release final demand plan to the supply chain group at the Head Office
Production and Dispatch related decisions for the planning period of a month
Firm Production Plan prepared for Factories and Contract Manufacturing Plants
Plans in blocks of 10 days- tradeoff between Transportation Costs and Inventory Carrying costs
Assign relative priority of depots and SKUs in the TRUCK BUILDER MODULE
Depot heuristics run thrice a month (primary sales data vary from forecast)
R3
MIDAS
BIW
MI-Net
MIDAS
APO
SD MIDAS
USERS
MARICO IT SYSTEMS
Distribution Automation Software package- MIDAS (MARICO INDUSTRIES DISTRIBUTION AUTOMATION SOFTWARE)
Internet based system MI-NET in which distributors could log
in and supply data online Application which could automatically transfer data from distributors PC to MARICOs central servers
MARICO IT SYSTEMS
MI-NET directly linked to SAP R/3
Stock
in Transit Depot Stocks Pending Orders Statement of Accounts Promotion Schemes to distributors
MARICO IT SYSTEMS
Potential Primary developed using mySAP
Business Intelligence
Average sale of the previous three months Develops and reports brands and regional sales potential
that should be targeted by the sales group Cumulative actual sales to datemySAP provides daily updates through Primary Potential Proactive work rather than Postmortem analysis
distributors of Marico spread across the country to the company MiNet also enables the company to get daily updates at the stockist level At the backend, Marico has installed the SAP R3 transaction handling modules for sales, finance and materials management The company has also installed the Advance Planner & Optimizer (APO), a supply chain module, which works right from demand forecasting to materials management and production planning. Marico claims to be the first APO installation for SAP in India The company has in place a Business Information Warehouse (BIW) which is the repository of every bit of information relevant to the company. This backend is linked to the outside world comprising scores of business associates for Marico, through MiNet.
Marico Industries Distributor Application Software (MIDAS) which is akin to an ERP (enterprise resource planning) software to capture secondary sales data MIDAS has been created by Marico in conjunction with Chennai-based firm Botree Every morning the distributor logs on to MiNet and uploads information from MIDAS and we pass on the information regarding invoices, running schemes etc to the distributor This means that the distributor can keep feeding his data on MIDAS and then dial in periodically and feed the information on MiNet. He doesnt have to be online all the time
EARLIER
Marico
relationships Bolster trust among sales personnel and win distributor trust Dumping has stopped
Thank You