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Parle : Company Background

Challenges facing Parle and competitive advantageusing IT

Need for MIS at Parle

MIS in BritanniaProblems in the Existing System

Benefits of MIS at Britannia

Challenges to MIS Implementation

Implementation Strategy

Proposed new ERP System

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PARLE PRODUCTS PVT. LTD BACKGROUND

*Source: Business today

Ranked 7thin Brand Equitys Most trusted Brand

2012

Founded in1929

BeganManufacturingbiscuits in 1939

Showcased glucobiscuits as alternativeafter 1947

Parle as it istoday since1974

Biscuits Snacks

Sweets Occasions

Brands

US $ 1 Billion conglomerate.

biscuit baking oven is the largest of its type in Asia.

14 manufacturing units for biscuits & 5 for confectionaries.

5 mother units & 31 contract units.

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Challenges in front of Parle G

Profit margin of ParleG decreased from

15% of revenue to10%.

Cannibalization ofParle G with new and

similar products

Value for moneyperception

Increasing input costs

First attempt toincrease price from

Rs 4 to 4.5 resulted in40% decline in sales

Competitive Advantage IT can give

E Business

Supply ChainManagement

Timeliness

Moving

beyond EMail

EmployeeAdvantage

CustomerRelationshipManagement

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NEED FOR MIS AT PARLE

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REQUIREMENT FOR MIS

Done by sales department based on projected requirements by whole sellers & retailers Often leads to overcapacity in some areas & stockouts in others

Parle has large number of SKUs, difficult to forecast accurately for each of them

Parle employs substantial number of contract labor, incorrect forecasts lead to excess manforce

Demand Forecasting

All the information sharing between the headquarters and production facilities is done via email

Each production plant gets monthly production targets via email from Mumbai headquarters Difficult for the HQ to track daily production figures

No direct means of communication between different factories, has to go through Mumbai HQ

Information Sharing

Single piece of information has to be entered into multiple software systems

Instances of data inconsistency has in the past led to delivery at wrong locations

Standalone Modules

Quality control and measurement is a completely manual process

Inconsistency in the weight of biscuits coming from a particular plant led to significant loss for the company

Quality Control

No channel connecting Parles large network of distributors/ whole sellers etc.

Difficult to create reports for 45 million retailers

Distribution Channel

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REQUIREMENT FOR MIS

Currently there is no system to measure employee productivity

No single analysis report is created, Different reports are created for various divisions

Measurement & Control

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MIS AT WORK IN BRITANNIA

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Secondary sales reporting which was carried out using a third party application,was static whereas dynamic data was required by Britannia.

SALES

The third part reporting was done on a month to date basis whereas the businesswanted to do it at day level

The reporting was done on pre aggregated data. The requirement was to considerline item level data for reporting

Drill down was not possible at detailed level in a single report.

Multiple reports were used to analyse the sales on different dimensions while the

requirement was for a single report to analyse the secondary sales at variouslevels.

REPORTING

Drag & Drop and Slice and Dice of information were not possible.

DATA MINING

PROBLEMS IN THE EXISTING SYSTEM

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Consistent Data Sharing

Increase in efficiency Reduction in operational overheads

Better working capital management

Increased control over inventory management

Realistic production scheduling

Effective cost control system

Optimal usage of capacity

Timely purchasing and efficient vendor management

Minimal effort in following regulatory norms because of a strong excise system

SUPPLY CHAIN

Flexible reporting with multilevel drilldown

Offline reporting - save offline reports on desktop

Easy access to detailed information in a single report

Multi dimensional reporting possible

Item level reporting for better analysis

REPORTING

Single report for Effective Coverage of Outlets (ECO) analysis. This was earlier done using 5 or 6different reports.

MARKETING

Integration with portal for easy access - Single sign-on

ACCESSIBILITY

BENEFITS OF ERP AT BRITANNIA

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New policies and procedures will be created.

New job skills must be learned.

Individual job roles may change.

New reporting structures may affect individuals and whole departments/functions

Resistance to Change

Inter-departmental conflict Power-brokering

Not embraced at all levels

Politics

Perceived Risk

Habit

Resistance to Innovation

Lack of Top management involvement in project- restricted to introduction level

Choosing inappropriate group for implementation- project failures

Unequal representation from relevant departments

ERP software selection and implementation process doesnt work for everyone

Insufficient training to user

Selecting an inexperienced vendor

No Project Management

Poor Management

PERCEIVED PROBLEMS AT PARLE

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IMPLEMENTATIONSTRATEGY

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ERP Implementation StrategyA Phased Transition Strategyshould be implemented at Parle

Why Phased?

Each business unit can have

its own instances of ERP

Reduces risk of installation,customization and operation

Interface programs help bridgegap

Often used in situations thatdo not have strong centralized

synchronization

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PROPOSED NEW ERP SYSTEM

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Functional Modules

Finance PLM SCM

CRM HCM WMS

Inventory Order Project

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FinancialAnalytics

Working

CapitalOptimization(C2C Cycle)

TreasuryCash

Analysis

Debtor/Payables Analytics

CustomerAnalytics

TradePromotionAnalytics

ChannelAnalysis

IntegratedCustomerDemand

MarketPerformance

Visibility

SupplyChainAnalytics

Supply Chain

Performance

Product Cost&

ProfitabilityAnalysis

OperationalPlanning

Efficiency

SupplyNetworkEfficiency

OperationsAnalytics

PlantPerformanceManagement

MESAnalytics

Sales andMarketingAnalysis

DivisionalSales

Analysis

Sales OrderPerformance

Analysis

Region WiseAnalysis

Product SalesPerformance

DistributionChannelAnalysis

Efficiency ofDistributionNetwork

Impact onCustomer

Satisfaction

Impact onInventory,

Sales

ProfitabilityAnalysis

EvaluateCompetition

Analyze RiskTrends

ForecastProfitability

BUSINESS INSIGHTS AND ANALYSIS

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