Use cases

Dabur India Ltd. is one of Indias leading FMCG Company and the largest
Ayurvedic and Natural Health Care Company in the world. Its products are
today available in more than 100 countries. Distribution network of Dabur is very
wide and covers more than 5 million retail outlets in both rural and urban areas.
The distribution network is the lifeline for an FMCG company and is a greater
value addition in terms of IT returns than manufacturing. For years, Dabur was
using systems based on FoxPro for handling its logistics activities.
The distribution network of the company expanded to 29 factories, 47 stocking
points, 4 zonal offices and more than 12000 dealers. With distribution pressures
rising, technology up-gradation was necessary. So, the company initiated
automation of the outward logistics system with its primary distribution system
in April 2001 under the name Project Synergy which involved implementation of
the MFG/PRO ERP system.
Dabur was working on two ERP systems- it was using QAD ERP suite known as
MFG/PRO for the outbound logistics and BaaN which required a central server, for
its manufacturing locations. As many of the locations were situated in small and
remote areas, Dabur needed a VSAT (Very Small Aperture Terminal) network to fit
so many locations.
The sales at Dabur generally used to peak towards the last 5-6 days of the
month, dependence of the company on this kind of central server architecture ,
which was connected through VSATs overburdened the network during every
month-end. The company then decided to go for a network independent ERP
solution. It found that MFG/PRO could be run on independent servers at each
location which seemed to be a good choice meeting its unique needs.
It was in 2005 when Dabur started realizing the pinch of maintaining two
independent ERP systems as it was facing following issues:

At times data redundancies and inconsistencies were still prevalent in the

company

Considerable amount of rework was necessary in just data format

conversion between the two systems.

It was still not providing a holistic picture and thus the company was
facing problems in formulating a strategy or taking business decisions of critical
nature
Because of the above reasons maintenance costs of the company climbed up,
therefore, to realize a decision support infrastructure and the operational
excellence, the idea was proposed in dabur to adopt a single organization wide
ERP.

With the help of Accenture, Dabur implemented operational & strategic changes
by implementing organization wide SAP core modules. It migrated from the
standalone ERP systems - QAD and BaaN to centralized SAP ERP system from
1stApril, 2006 for all business units implementing a nation-wide new WAN
infrastructure for running its centralized ERP system