Parle : Company Background

Challenges facing Parle and competitive advantage

using IT
Need for MIS at Parle
MIS in Britannia
Problems in the Existing System
Benefits of MIS at Britannia
Challenges to MIS Implementation
Implementation Strategy
Proposed new ERP System
PARLE PRODUCTS PVT. LTD BACKGROUND
*Source: Business today
Ranked 7
th
in Brand Equitys Most trusted Brand
2012
Founded in
1929
Began
Manufacturing
biscuits in 1939
Showcased gluco
biscuits as alternative
after 1947
Parle as it is
today since
1974
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.

Challenges in front of Parle G
Profit margin of Parle
G decreased from
15% of revenue to
10%.
Cannibalization of
Parle G with new and
similar products
Value for money
perception
Increasing input costs
First attempt to
increase price from
Rs 4 to 4.5 resulted in
40% decline in sales
Competitive Advantage IT can give
E Business
Supply Chain
Management
Timeliness
Moving
beyond E
Mail
Employee
Advantage
Customer
Relationship
Management
NEED FOR MIS AT PARLE
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
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
MIS AT WORK IN BRITANNIA
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 business
wanted to do it at day level
The reporting was done on pre aggregated data. The requirement was to consider
line 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 various
levels.
REPORTING
Drag & Drop and Slice and Dice of information were not possible.

DATA MINING
PROBLEMS IN THE EXISTING SYSTEM
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 6
different reports.
MARKETING
Integration with portal for easy access - Single sign-on
ACCESSIBILITY
BENEFITS OF ERP AT BRITANNIA
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
IMPLEMENTATION
STRATEGY
ERP Implementation Strategy
A Phased Transition Strategy should 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 bridge
gap
Often used in situations that
do not have strong centralized
synchronization
PROPOSED NEW ERP SYSTEM
Functional Modules
Finance PLM SCM
CRM HCM WMS
Inventory Order Project
Financial
Analytics
Working
Capital
Optimization
(C2C Cycle)
Treasury
Cash
Analysis
Debtor/Payab
les Analytics
Customer
Analytics
Trade
Promotion
Analytics
Channel
Analysis
Integrated
Customer
Demand
Market
Performance
Visibility
Supply
Chain
Analytics
Supply Chain
Performance
Product Cost
&
Profitability
Analysis
Operational
Planning
Efficiency
Supply
Network
Efficiency
Operations
Analytics
Plant
Performance
Management
MES
Analytics
Sales and
Marketing
Analysis
Divisional
Sales
Analysis
Sales Order
Performance
Analysis
Region Wise
Analysis
Product Sales
Performance
Distribution
Channel
Analysis
Efficiency of
Distribution
Network
Impact on
Customer
Satisfaction
Impact on
Inventory,
Sales
Profitability
Analysis
Evaluate
Competition
Analyze Risk
Trends
Forecast
Profitability
BUSINESS INSIGHTS AND ANALYSIS