Studying The Erp System Problems

Studying The Erp outline ProblemsHindustan Unilever Limited is Indias largest fast moving consumer goods attach to. The common HUL brands include Kwality Walls icecream, Knorr soups and meal makers,Lifebuoy,Lux,Pears,Breeze,Sunsilk and squab shampoos, Vim dishwash, Lakme beauty products etc.Problems faced by the gild before ERP carrying into actionThere was an arrival of modern shell out in India. Its fear infrastructure and various legacy dodgings were un adequate to(p) to meet the requirement for minutes and impact capabilities of the modern trade.A legacy agreement means the computer has been in operation for a longer time and so its functions. Hindustan Unilever was not able to streamline its work operation. There was a need of lots much smooth flow of information. HUL was facing a challenge of ensuring the optimization of business organisation to have solutions to changing market necessitate. caller was too facing the challenge of trim down its stock replenishme nt cycle.Need for ERP implementationTo optimize business process and simplify IT steering.2. Consolidation of process is necessary.This mustiness be through and through with(p) internally as well as crosswise the value bowed stringed instrument.3. For the preservation of enthronement related to legacy inventory and cash-to-order get laidment system.Cash to order management system is for the business partners.4. Integrate with business partners IT infrastructure quickly and seamless(prenominal)ly.5. To improve information sharing with partners even if they are not using tomfools solution.6 .Increasing issue Chain efficiency through process centric collaboration across the enterprise-internally and externally.7. Enhancing the value of legacy system.8. ERP system was also needed to ensure the scattering of goods at the right time at right placesIn this finish of modern trade one needs to deliver a profit level that is higher than what the industry provides right now and thei r tote up chain has to be much(prenominal) that it is superior to its competitors.Their older version of ERP system was such that it was not able to meet these needs.Hence they were in search of a system which would help in catering like meeting future proceedings of modern trade.HUL also realized that good communicating skills and tight communication links was necessary for the optimization of its business and achieving higher efficiency of their supply chain . However, ensuring good connectivity between HULs IT system with its electrical distributors was not an easy.Earlier the company was using an e-business system which was developed inhouse. This was to manage the processes of replenishment and order fulfilment. This was through with(p) by exchanging inventory and sales data between itself and their distributors. Synchronization was also necessary. But because their customers had multiple, varied systems of their own, integrating their system with those customers to and ensuring smooth data transform was a challenging task for them . Furthermore, the module of the E- line of merchandise system was customized..So as their business acquired growth, there were problems managing themselves with changing business needs.HUL has developed a standard distributor management system in a distributed general trade surround. If one wants the extended supply chain to be covered, the operations of the distributor needs to be integrated tightly with its internal Enterprise resourcefulness planning solutions .The system is functioning quite good, Hindustan Unilever Limited wants to its investiture t be preserved in this area. Therefore the new ERP application must be able to integrate itself with this back-office application, so that the company potful handle to use its borrowed money well or leverage and maximise this into the future.ERP slayingIt was in 2004 when HUL decided to renovate its IT system with soft touch. By utilizing consume as their provide r of standard IT solutions , utilizing its enterprise which is full of different features, solutions and it fine experience in the consumer goods industry,thy pass on be able to execute their worldwide sack strategy. This strategy was aimed at streamlining and standardising the business processes across all its operations including global operations.It was to accelerate their transformation of business and simplify their IT department.The deal for HUL was expel NetWeaver march Integration ( soft touch NetWeaver PI) which enabled process-centric collaboration internally and across HULs extended value chain. run out NetWeaver PI facilitated communication and an transfer of info between different applications unitedly or multiple applications irrespective of whether it is an SAP or non-SAP solution.Why SAP implementation?It supported wide range of integrated Advanced Business Application Programmiing(ABAP) and SAP applications which are based on Java employ throughout Hindustan UnileverProvided opportunity to drive new enhanced change and post system functionality of SAP Solution ManagerPhase 1 of HULs SAP implementationIt was in Sept 2007. It was marked with the end of its legacy ERP and its e-business systems. The solutions which were deployed include SAP ERP Central Component (SAP ECC), SAP NetWeaver PI, SAP NetWeaver Business scholarship (SAP NetWeaver BI), SAP NetWeaverComposition Environment (SAP NetWeaver CE), SAP NetWeaver Portal, SAP Solution Manager and SAP Supply Chain wariness (SAP SCM).The most important thing for them is that by implementing SAP NetWeaver platform, they are fit to consolidate and exchange data which is deprecative for business across their internal processes and also externally with their partners,their various suppliers and different partners too. For eg, HUL is now able to retain or hold back its investment in Central Unify and Unify which is also their aim.It is possible delinquent to SAP NetWeaver PI.It is due to thi s software that integration of the the legacy inventory and order-to-cash management system is now possible with the rest of the SAP-based system. SAP NetWeaver Portal is some other SAP NetWeaver component that HUL is most impressed with , which is right now utilise for customer collaboration. Integration of HULs IT system with itsdistributors IT systems is now possible by successor its e-business system with this portal. This therefore results in the replenishment and order fulfilment process. With SAP NetWeaver PI, we have in conclusion streamlining, advancement and integration of their process cap ability hs finally become possible because of their SAP NetWeaver PI. This also has resulted in the enhancement of HULs ability in meeting modern trades demand.Phase 2 of SAP implementationIncludes implementation of SAP customer Relationship vigilance, SAP Transportation preparedness and Vehicle Scheduling, SAP Advanced proviso Optimisation Production Planning and Detailed Sche duling.Manufacturing/Production softwareThe Distribution Module of MFG / pro offers users Functionality in the areas of Purchase, Inventory, Sales and Distribution, tack Products and SCM are offered in the Distribution Module of MFG/ master.MFG/ professional DistributionThis software is useful in the following areas Purchase Quotations of sales Orders of sales and Invoices Inventory Physical Inventory Analysis of sales Configured Products Enterprise literal Transfer and Enterprise Operations PlanMFG/ pro Financial ServicesIt includes General Ledger, Accounts Receivable , Accounts Payable, Multiple Currency, CostManagement, Cash Management , Fixed Assets , Global Tax ManagementBenefits of MFG/professional person1.There are extremely qualified team members with advanced technical skills and they also possess international exposure.2.Team scalability is as per the business requirements3.For ensuring that the expectations are met on time and within budget,a tactical methodology is followed.4. Fluctuation in manpower is low.5. Customer satis and nightfaction level is at its peak as the helpdesk is open for the whole day and night.6. scotch Benefits are considerable.MFG-PRO Process Step-1The first step is getting the order.a. champion gets the order online.b. All orders are consolidated from website to go past sheetc. The excel sheet is then send to the Operations divisiond. Material extremity Planning is then through with(p) in MFG/PROCalculation how much inventory is in the stock how much inventory is required allow for be done by MFG/PROStep -2 Step 2 includes management of stark(a) materials supplier is informed about the quantity of raw materials to be supplied ordering is done here)Raw material is then true from supplier.Goods Receipt Report(GRR) is then prepared by MFG/PRO.Step 3Qulity confine is done hereMaterial is then transferred to the Quality Control DepartmentDifferent stages are(1) Q.C. Pending (2) Q.C. Accepted (3) Q.C. RejectedThe o ne which is trus iirthy is transferred to warehouse. One which is rejected is sent back to suppliers.MFG/PRO does the accounting origination of it.Step 4 Also called production stageRaw Material is Transferred to Production unit.MFG/PRO prepares Production Report is prepared by MFG/PRO Daily Production is recordedStep 5 The process reaches the load stageGuidiance how much to move out will be done by MFG/PRO.The Remaining is stored in warehouse.3. A mail to the customer will be sent by MFG/PRO.Step 6 Payment to the supplier is done here A Message to the central department is sent by MFG/PRO, afterward 1 week of receipt of material payment will be done centrally. The entry of it will be done by MFG/PRO when the payment is done..Payment from CustomerAfter the 3 weeks of dispatch of the finished goods to customer, central department will be messaged by MFG/PRO to ask for payment from the customer. Entry will be automatically done by MFG/PRO when the customer does payment.Waste checkingManual method is followed for capturing the waste.MFG/PRO will compare Material reduced Finished Stock increase and theri difference would be calculated as waste. remuneration CalculationProfit Statement will be prepared by MFG/PRO all month.There will be comparisons of previous profit statements.PAY GINI software productUsed mostly for HR departmentVarious services provided by this SoftwareAttendanceCalculation of salaryProvident Fuud CalculationsAccounts of all EmployeesCustomer Relationship ManagementIt is done through CRM software that manages various processes that the company always uses for tracking and organising its contacts with its current and future or prospective customers. Hindustan Unilever uses it to manage front end operations,backend operations,various business relationships,analysis and operational CRM.The growing information needs have to be met and the business practices have to be standardised.For HUL implemented junior-grade Sales Force Automation ( SSFA) Application across its redistribution stockists. Computer Manufacturing Company (CMC) has already implemented the Dealership Management Application Software for HUL distributors as part of earlier engagement. Connection between the redistribution stockists with thecentral database takes place through Inter concluding-based ne twainrk for online interaction on orders,information sharing,dispatches and monitoring.Companys Existing Scenario Their existing environment consists ofSAP ERP application , SAP NetWeaver Exchange Infrastructure Component , SAP NetWeaver Business Intelligence Component , SAP NetWeaver Portal component, SAP Supplier Relationship Management Application , SAP Customer Relationship ManagementApplication.The company now enjoys70% speedier transports for non-ABAP (Advanced Business Application Programming) software great degree of automation and accuracy Elimination of disruptions and mistakes almost completely in ABAP and non-ABAP change transportsReduction in costs through reduced dependency on specialists which possess specialist skillsThird-Party Integration Database Oracle Hardware IBMHUL onward ERPThere were 1,000 suppliers and 7,000 stockiest in over one million retail outlets.HUL has one C factories, 121 warehouse depots, 13 sale branches and 93 third-party manufacturing sites. It has 23 central offices, two research centers . CF agents used to Planning of distribution was done by CF agents based on the demand which was raised by stockists. 60-90 long time citation for the goods were given to C F agets and stockists.In 1995, 44% was the HULs net current assets as a plowshare of capital employed, andinventory was 20% of divisional turnover for detergent and for personal products it was 24% divisional turnover.HUL after ERPHLL previously had a stock replenishment cycle time of two weeks after ERP implementation, it came down by three and half days, which translates into substantial savings in inventory costs. After ERP curren t assets as a percentage of capital employed was down to 8 percent, and inventory in place divisions was down to 5-6% of turnover.In the case of detergent,the stock level decreased to less than 3 weeks of sale from 6 weeks of sale. Finish goods stock level at distribution decreased from three weeks to one week. The stockists of HUL who were habituated to get 60-90 days of credit from HUL are now offered a special discount if the payment is in advance. As a result, orders are placed by stockists only for those stocks that can be replenished quickly. The channel inventory has drastically reduced in the holy network.