inventory management - vikas gadre

8/6/2019 Inventory Management - Vikas Gadre

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Inventory management forInventory management forfertilizer industry throughfertilizer industry through

ICTICT

vikas.gadre

IntroductionIntroductionPrimary aim of this presentation is to stateopportunities for inventory management forbusiness growth in fertilizer market spaceMy Brief introductionI would like this presentation to generatedebate in the present context .



My presentation will touch onMy presentation will touch onFour topicsFour topics

Weather information for inventorymanagementGIS for customized fertilizersSales order processing ,warehousemanagement using mobile phones ,Creation of farmer database for improvingsupply chain using Mobile phone.

Weather information for inventoryWeather information for inventoryManagementManagement

Weather information relates to salesforecasting, inventory planning , reductionin logistics costUpdated daily weather information can leadto weather forecasting .High tech solutions of satellite mapping areavailableSimple cost effective solutions are also

possible



Weather forecast informationWeather forecast informationA central server receives the SMS

Checks the mobile number , instrument IDand employee number with the masterEliminates duplicatesSends the SMS text to a database

Keeps track of name salesman , district ,date for incentive calculation.



Weather forecast informationWeather forecast information

SMS text are grouped by district , by cropConverted into a web page and publishedon intranet .Can be taken up to map the weathercondition on the state map .Farmer level , distributor level informationcan be used for inventory movement .

Weather forecast informationWeather forecast informationAll the fertilizer companies can pool inresources to get All India level/ commandarea level information .Interpretation of the data can be left tocompanies , but the basic data can bepooled and shared .

Pooling can help in cross checking ofinformation



What is the business implicationWhat is the business implication

Advance knowledge of weather coupledwith field data on acreage under coverage ,will help fertilizer companies in inventorymanagement.Lower inventory lower cost higherprofitability

GIS for customized fertilizersGIS for customized fertilizers



Ca Cl Mg P K Cu S Zn FeNa Fl I Se

Ca Cl Mg P K Cu S Zn B FeNa Fl I Se

N P K S Ca MgZn B Mn Cu Mo Cl

O r g a n

i c / i n o r g a n

i c F e r t i l i z e

r

F o o d

F o d d e r / f e e

d

Nutrient Bank Soil

FYM

Soil Health Vs Human Health

F o o d

Ca Cl Mg P K Cu S Zn FeNa Fl I Se

Ca Cl Mg P K Cu S B Fe ZnNa Fl I Se

N P K S Ca MgZn B Fe Mn Cu Mo Cl

O r g a n

i c / i n o r

g a n i c F e r

t i l i z e r

M a n u r e

F o o d

F o d d e r /

F e e d

F o o d



Soil Health ConceptSoil Health Concept

CHEMICAL

BIOLOGICAL

PHYSICAL

Soil Health

12 10.79.11 8.79

0

2

4

6

8

10

12

14

1960-69 1970-79 1980-89 1990-99

Decreasing response to NPK (kg food grain/ kg NPK) in India



0

5

10

15

20

25

30

1 9 6 0

- 6 1

1 9 6 4

- 6 5

1 9 6 7

- 6 8

1 9 7 0

- 7 1

1 9 7 3

- 7 4

1 9 7 8

- 7 9

1 9 8 0

- 8 1

1 9 8 4

- 8 5

1 9 9 0

- 9 1

1 9 9 8

- 9 9

1 9 9 9

- 2 K

Year

N u

t r i e n t s ( M t / a n n u m

)

Removal

Addition M i n i n g o f n u t r i e

n t s f r o m s o i l

Nutrients (NPK) addition through fertilizers and removal by crops

Balance Use & ProductivityBalance Use & ProductivityUrea Other Fert. Total Yield Food Grain Food grKg/Ha Kg/Ha Kg/Ha /kg Ha /kg Urea /kg Nut

Punjab 303 118 421 3346 11.0 7.9UP 178 95 273 1375 7.7 5

Bihar 175 62 237 918 5.2 3.9

WB 107 161 268 1636 15.3 6.1



Farmers DilemmaFarmers Dilemma

Primary Secondary Micro-nutrients

NPK Ca Mg S Zn, Mn,Cu,Fe,B, Mo,Cl, Ni,Co

Established NPK S Zn, B

Early stage Ca Mg Fe, Mo, Mn

No Deficiency Cl Cu Ni,Co

Source

Urea, DAP,SSP, MOP,NPK, ASand Acl

BentoniteSulphur,Gypsum,CaNO3,

MagnesiumSulphate

Zinc Sulphate,Borax/Boric Acid,

Micronutrientmixture, Copper

Ferrous Sulphate,ManganeseChloride

Plant Nutrient

Deficiency

Transfer Scientific Findings into

Practice…

the Need of the Hour…



Way ForwardWay Forward

Short TermSite Specific Nutrient Management

Long TermSite Specific Crop Management practices

Site Specific NutrientSite Specific NutrientManagementManagement

Soil and Crop specific Fertilizers are

Customized Fertilizers



Marketing TerritoryMarketing Territory

Total Area : 35 lac ha

Total Soil Sample : 34,912

Site Specific Management:Site Specific Management:ToolsTools

Geographical Information System(GIS)Global Positioning System (GPS)Remote Sensing TechniqueFarmers



ApproachApproach --CustomizedCustomized

FertilizerFertilizer

ApproachApproach --CustomizedCustomizedFertilizerFertilizer

100 ha

1 Km2Area

1 KmWidth

1 KmLength

Grid Information

GPSReference No 175Village ADAULIFarmer's Name Puran SinghFather's Name Ramavtar SinghKhasra No. 70Latitude N 27 053.462'

Longitude E07800

2.791'Elevation 569'



Defining Soil Fertility ManagementDefining Soil Fertility ManagementZonesZones

Overlayering ofSoil Fertilitycontours todefinemanagementzones

N P K

N=108.65

P=9.93K=137.04

Computation of Customized FertilizerComputation of Customized FertilizerGradesGrades

Kg ppmN P2O5 K2O Zn S B

98.7 23.816 124.63 0.44 10 0.5

Soil Nutrient

Status

KgN P2O5 K2O Zn S B

90 49.5 135 0 13.5 0

Total Nutrient RemovedRice

(%)N P2O5 K2O Zn S B

30 15 60 3 5 2

Nutrient Use

Efficiency

Crop ModelCustomizedFertilizer Grade N P2O5 K2O Zn S B

Rice (Kg/ha) 0 60 30 1.2 15 0

P r o c e s s F

or C om p u t a t i on of C F

Gr a d e

Rice

4.5

Targe t Yie ld(MT/ha )

KgN P2O5 K2O Zn S B

Rice 20 11 30 0 3 0

Nutrient Removal/tonn produceCrop



Comparison & InferenceComparison & InferenceProcess

Agronomic Efficiency Cost effectieness Most effective fortification wCapital cost

Quality inHandling /Storage Environment

Bulk Blending Good Most Cost effective Low Consistent Mini impact to environmentCost add 5% of raw material cost

Compaction Excellent High Hazardous environmentgranulation Environment HazardChemical Excellent High Consistent Medium impact to environmentGranulationSteam Excellent Low Consistent Micro impact to environmentGranulation

ManufacturerFarmers

Effective quantity ofmicronutrient in < 2%

No IssueInconsistent due to

poor stability ofChemical compactibility of

micro nutrient is issue

Most effective fortification way

Cost add 10-15% of raw materialcost



“Steam Granulation is

the Appropriate Option”

Customized FertilizerCustomized Fertilizer – – Yield ImpactYield Impact

Paddy-Rice 40 44 10Wheat 51 55 8Maize 16 22 38Potato 293 338 14S.cane 592 651 10

CropYield (qt/ha)

Farmers PracticeYield (qt/ha)

Customised Fert.Yield increase

(%)

Note: Trials in progress at 16 locations in West UP




Use of GIS mapping and informationtechnology will help farmers , fertilizercompanies and the country .Use of IT will help increasing farm levelproductivityIt should be possible to have small farmlevel mixing units to control micronutrientinputs ( Israel experiments),

Sales order processing ,warehouseSales order processing ,warehousemanagement using mobile phones ,management using mobile phones ,

Mobile phone density is over 20% in IndiaFarmers use mobile to get prices frommandies.Agrochemical companies provide SMSinformation to farmers.Cost of connectivity per transaction iscomparable to Vsat.Mobility is of prime importance



goMobile Suite for TatagoMobile Suite for TataChemicals (TCL)Chemicals (TCL)

goMobile Suite(powered by SAP NetWeaver)

Role: Field Officer

goMobile Sales

Role: Dealer

goMobile Payments

Role: WarehouseManager

goMobile IWM

An order taking processwith payments and orderfulfillment is illustrated todescribe mobilization ofprocesses using goMobile

STEP 1:The field officer creates anorder using goMobile Sales

STEP 2:The dealer can now view hisorder confirmation and cancreate a payment for his order

STEP 3:The warehouse manager canlist orders and payments perdealer and verify the same tocreate a Delivery / DeliveryChallan so that he can pick upmaterial from the warehouse

All of this is completely integrated with SAP R/3 and automated by goMobile System interaction

Physical interaction

STEP 1 STEP 2

STEP 3

goMobile Sales for the FieldgoMobile Sales for the FieldOfficerOfficerThe field officer, during his visit to thedealer, can view his credit limit, the list oforders placed and their statusTo create an order, the Field Officerchooses a dealer, the product required bythe dealer, the quantity and the deliverydateA new order is immediately created andtransmitted to the central goMobile serverThe Field Officer can also do a creditcheck, product availability check and verifyquota limits before creating the order.

Role: Field Officer

goMobile Sales



goMobile Payments for thegoMobile Payments for theDealerDealer

The dealer is given a mobile portal wherehe can enter payments, view outstandingpayments, check status of orders, etcThe Dealer can view his list of ordersplaced with Tata ChemicalsHe can enter the payment details eitheragainst outstanding or against advance(DD No., Bank, Branch, City, Amount,etc.), and send the same to the goMobilecentral server

Role: Dealer

goMobile Payments

goMobile IWM for thegoMobile IWM for theWarehouse ManagerWarehouse ManagerThe Warehouse manager can view

different orders placed by each of thedealers and the corresponding paymentscreated by the dealers for the sameOnce the dealer arrives at thewarehouse with the physical DD andDDFL, the warehouse manager canverify the same and acknowledgephysical receipt so that the payment isparked into SAPThe WM can then create a delivery and

delivery challan to enable the dealer pickup material from the warehouse

Role: WarehouseManager

goMobile IWM




Currently , in many remote areas Hub andspoke model of information gathering isused .Considerations of Vsat cost , number oftransactions , operating cost drive thedecisionCurrent requirement of daily salesinformation upload is difficult in Hub / Spoke model

What is the business implicationWhat is the business implicationMobile phone based sales order , dealerand warehouse transactions can ensurethat district level data is captured on realtime basis .Mobiles are used for extracting informationfrom system on sales , inventory ,on ordermaterial , payment status ,credit check etc .



Creation of a farmer level databaseCreation of a farmer level database

TCL has a strong network of TKSMobile phone based data collection isattempted to create the farmer database.This will cover farmer name , area undercultivation , crops ,other data on customer (ownership , purchase habits , education)This database will help in designing

advertisement/ promotion campaigns .

What is the business implicationWhat is the business implicationFarmer database will help us in knowingour customer. And directing the marketingstrategies appropriately.



What This MeansWhat This Means

Convergence of Information technologyand mobile telephony are poised to makepath breaking changes for the Indianfarmers and fertilizer Industry as a whole .Low cost solutions can provide businesscritical information.Micro financing , retail growth, urbanizationis changing the farmer profile and hisaspirations levels significantly .

‘KNOWING HIM IS ESSENTIAL

Next StepsNext StepsDebate and share viewsCreate a Action point agenda



ThankThankYouYou ……

inventory management - vikas gadre

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