ERP Solutions for the Indian Cooperative Dairy Industry

Cooperatives’ Mission: Give farmer ‘the best price’ for his milk and
consumer ‘value for money’ for the product

 Support farmers to
increase milk production

Input Services
 Drive continuous product
innovation and expand
milk processing capacity
Village
Societies
 Enhance business
performance of the
Milk Unions distributor – ‘the real
 Assist member societies & marketing manager”
unions with fertility
Federation
improvement and animal
health programs

Depots/
 Deliver on the key Warehouse
promises of the Coop.
brand – quality, value for Distributor
money and availability
Retailer
 Interface directly with customer
through milk parlours and showcase
entire range of products to the
consumer to create demand

2 Please do not delete any slide

Consumer
IT enables the “Cow-To-Consumer” value chain to improve end to
end operational efficiencies that can drive business benefits..
Milk collection
System
 Milk Collection ERP at DU + BI
 Input Services  Milk Procurement and Dispatch
 Society Accounting  Production Planning and Scheduling
 Society Maintenance
ERP at Federation + BI
 Input Services
 Orders and Dispatch
 Pricing and Promotions
 Planning and Forecasting
 Marketing and Brand Management

Input Services
Distributor Mgmt System
 Operations
Village  Crate Accounting
Societies  Finance and Credit Management
 Replenishment Orders

District Unions
Parlour PoS
 Customer Billing
Federation  Inventory
 Orders

Depots/
Warehouse

Distributor

/ Retailer

Consumer

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ERP Automates the Internal Functions
Develop
Sell
Plan
Customer Supply Chain
Relationship Management
Management
Manufacturing
Market Human
Resources
Finance
Procure
Projects

Service

Manufacture
Fulfill

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 … And Extend The Automation
Across your supply chain
Customers

Suppliers

Develop
Sell
Plan
Finance
Collaborative
Assets
Market Mfg.
Projects Procure
HR
Service Hub Subcontractors
Manufacture
Fulfill

Distributors

Carriers

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 Key Benefits

•Scalable Robust Flexible •Standardized and

Technology Platform •Better Decision Support
Integrated Process
•Optimize on IT due to Real time data
•Reduced Planning Cycle
management costs availability
time and response time.
• Standards based • Enables faster growth of
•Better visibility into
technology business
supply chain
•Improved IT • Protection of
•Credit/policies
productivity Stakeholders interest
enforcement
Potential Improvement
Milk Processing Improvement Range
.

Increased Manufacturing Execution Efficiency 5-7%

Reduced Maintenance and Spare Parts Inventory Levels 10 - 15 %
Improved Manufacturing Control Through Enhanced Traceability 10 - 15 %
Reduced Production Loss Due to elimination of packaging and Cattle Feed Raw
Material Stock-out Occurrences 8 - 10 %

Procurement Improvement Range

.

Reduce purchase cost on packaging materials and federation purchases 3-5%

Reduced procurement spend on cattle feed procurement through better sourcing 2-3%
practices enabled by E-sourcing – E-auctions

Supply Chain Improvement Range

.

Optimize Transportation & Logistics spend 1-2%

Reduce Loss Sales 30 - 40 %
.
Reduced warehouse/cold storage maintenance costs and improved operations
management efficiency 15 - 20 %
.

Reduced Depot Level Finished Goods Inventory Levels ( One Time) 3-5%

Finance, Reporting and Compliance Improvement Range

Improved Financial Management Efficiency 25 - 35 %
.
Improved Profitability Due to Integrated Business Planning and Reduced Time on 2-3%
Report Generation
 Functional Requirements
Maintenance & Milk
Cattle Feed Production
Chilling Centers Utilities Procurement
Plant Operations
Functions and Billing

Semen Station Subcontracting Veterinary

Projects Transportation
Management Operations Services

Business Human
Budgetary Cooperative Finance and Insurance &
Intelligence Resource
Control Services Accounts Treasury
Reporting Management

Production
Quality Sales and Sales Asset
Payroll Planning and Purchase
Assurance Accounting Management
Control

Distribution
Advertising & Dispatch Market Product
and Network
Promotion Planning Planning Complaint
Planning
 Requirements to Implement Traditional ERP solution

Top Management IT Infrastructure IT Application

Vision & Support
• Server • OS / Databases
• Resources • Data Center • Application
• Change • Storage Licenses
Management
• Desktops • Implementation

IT Infrastructure
Support Application Support

• IT Service Desk • Application

• Desk Side Service Management
• Network Services • Master Data
• Data Center Services Management
 Alternatives

• Traditional On-Premise Application based

implementation.
• Cloud Service Based SaaS based Model.
• Adopting an Open Source ERP for our set of
Requirements.
 High-Level Evaluation of ERP Implementation Options
Criteria Relative Comparison

Traditional ERP Cloud Based SaaS Open Source ERP

Solution Complexity

Ability to Support Faster

Deployments

Overall Cost

Implementation Timelines

Support Complexity

Ability to leverage leading

practices from industry and
each other

Time to Full Benefit Realization

“Design Once Implement Many” Approach enabled by Template based ERP
Implementation will ensure Rapid Time to Value

`Template
Development & Develop a Template for clusters of Federation and District Unions based on
Validation standard and common business processes across the clusters

Global Business Global Template

Evaluation & Analysis
Blueprint finalization

 Understand the  Define the Master set of  Develop the Template

operating model at all common processes that covers common
Federation level and for each cluster of processes for each
District Union level for Federation and District cluster of Federations
all business entities in Unions and District Unions
scope
 Identify clusters of
Federations and District
Unions based on
common processes
A Template defines the common processes, data structures and
standards for a cluster of Federations and District Unions

The Federation/District Union

The Template and Local Requirements Global Template
combine to form the process blueprint for
Local Requirements
each business entity

Global Template Design and Development

Legal/Statuary Local
Workflows Requirements WRICEF

• Define common processes Global WRICEF

Master data
Unique Local
Definitions
• Define data standards and data structures Processes

Foundation
• Define common interfaces and reports Common
&Hierarchy
Global &
integrated
Processes/Reports
Elements
• Define local variations for process, data, Processes

interfaces and reports

• Perform fit/gap analysis for template
decision Local variations to be allowed for
• Design and develop template on the ERP of  Legal requirements
choice  Tax & Statutory requirements
 Market specific customizations
 Local Interface requirements

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 Implementation of the Cluster template at Federation and
District Unions
Template Localize the Template developed for the cluster of Federation / District
Localization and Union as per the local requirements and rollout to the respective Federation
Rollout
or District Union in the cluster

Planning & Solution Fit/Gap Build & Final Go Live

Test Preparation 4 Weeks
Hypercare
Initiation Preparation Analysis

Initiation and Select the list Add additional Design the Prepare for
planning of processes / localizations the Phased
processes deployment Go-Live Monitoring
for local changes due into the
rollout relevant for to local template in terms of Phase before
approach at the regulatory and As required for data, transition to
the Federation / market the training, etc sustain phase
Federation / District Union Requirements District Union
District based on the / Federation
Union Business & build and
needs test
the solution

Implementation timelines will vary based on the size and complexity of the Federation and the
District Union
Template based approach helps speed up the overall implementation timelines
 Large Program Governance Mechanism Requires Centralized Direction, Local
Empowerment and Core Team for Effective and Efficient Execution

Executive Steering Committee

Core Team ERP Center of Excellence

Strategy &
Solution Architecture Implementation Team
Planning
Central Program Functional
Manage Change and
Management (Process, Configuration)
Communication
Application Development
(Application, Report, Interfaces)
Change Control Board
Training
(Training Plan, Training Content)
Data Management
(Data Mapping, Creation, Conversion)
Change Management
(Training, Communication, Value
Realization)
Federation / District Unions

Local Teams (per business entity) Central Support Team

Local Change Local Project Configuration & Application Support
Management Management
Local Implementation Team
(From the Implementation Factory) Central Infrastructure Team
Infrastructure and Operations
Participation from Federations and District Unions Support
Participation from Systems Integration Partner
 Thank You

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