Dabur India Ltd implemented several ERP systems over time to integrate its fragmented systems and address data inconsistencies between departments. It first implemented the Baan ERP system in 1999 to automate manufacturing. This faced challenges with Dabur's sourcing practices. It then implemented the MFG/PRO system in 2001 to automate outward logistics, seeing benefits in sales and collections. In 2006, Dabur fully shifted to SAP ERP across all business units for centralized management. SAP improved Dabur's sales forecasting, supply chain management, and strategic decision making, helping it grow its leadership position in FMCG. Dabur's next challenge is linking SAP with its HR and payroll systems.

1. A study on issues related to implementation of an
Enterprise Resource Planning (ERP) in Dabur
India Ltd.
By:
Rishi Vyas

2. ENTERPRISE RESOURCE PLANNING (ERP)
ERP is a business management software, usually a suite of integrated
applications that a company can use to collect, store, manage and interpret
data from many business activities, including:-
•Product planning, cost and development
•Manufacturing or service delivery
•Marketing and sales
•Inventory management
•Shipping and payment

3. ERP – A GENERAL PROCESS CYCLE
ERP provides an integrated view of core business processes, often in real
time, using common databases maintained by a database management
system.

4. • Sales forecasting, which allows inventory optimization.
• Order tracking, from acceptance through fulfillment.
• It can lead to better outputs that may benefit the company,
such as in customer service and manufacturing.
• It can improve data security.
• It makes a company more flexible
• It supports upper level management by providing information
for decision making.

5. FUNCTIONAL AREAS OF ERP
An ERP system covers the following common functional areas. In many ERP
systems these are called and grouped together as ERP modules:
•Accounting
•Human resources
•Manufacturing
•Order processing
•Supply chain management
•Project management
•Customer relationship management

6. Problem Faced By The Company Before ERP
Implementation
• For many years, Dabur had been using Fox Pro based systems for its handling logistics
but as the network has grown the distribution pressure rises technology.
• Fox Pro was a database in which each of the department likes sales, finance etc had
a separate database for their respective departments. It was not a relational
database.
• The company faced a lot of problem because of data inconsistencies etc. It become
necessary to integrate the fragmented distribution network for the benefit of the
company.

7. Dabur uses ERP in three parts and is thinking of extending it.
It uses the following ERP implemetations:-
• Baan
• MFG/PRO
• SAP

8. 1st ERP IMPLEMENTATION – Baan
• Dabur implemented Baan’s ERP system in 1999 for automation of the
manufacturing process. This was the first ERP system implemented.
• The server used for this was Alpha Unix servers and this was situated at
the commercial office are used for Baan and around 200 concurrent users
can login from in cooperation with plants using PAMA VSATs and fiber in
the distant Baddi plant.
• In Baan ERP system the key modules includes finance, manufacturing,
master production planning, intelligent resource planning, dealer planning
and costing.

9. PROBLEM IN CASE OF BAAN
•The operation of the manufacturing system has been very difficult as raw
materials for Dabur’s products are mostly sourced from the various unorganised
sectors where fruits and herbs and other natural recourses are procured.
•The other challenge was of extensive customisation which was necessary to meet
stringent FDA regulations in the quality circle in Pharma product lines.
•BaaN requires a central server which was also a problem for the company.

10. 2nd ERP implementation MFG/PRO ERP
Dabur initiated automation of the outward logistics system in April, 2001 by
means of its primary circulation system named ‘Project Synergy’, which
involves the execution of the MFG/PRO ERP system. The MGF/PRO system
was running in the major warehouses all over the country. It had covered
more than 90 sites in the main Distribution is finished by 2002.
Benefits were visible in locations where the ERP system had been
implemented like-
• Improvement in sales dispatches.
• Improvement in collections process

11. 3RD ERP implementation – SAP
• Dabur shifted to centralized SAP ERP system from 1st April, 2006 for all the
business units of dabur.
• It implemented a country new Wide Area Network infrastructure for running
centralized ERP system and setting up of new data center at KCO head office in
Ghaziabad.
• Dabur decided to turn round out the IT services to the latest plants in the country.
• SAP was selected due to the extensive experience in India and it is used by its
competitors also.
• Accenture also helped Dabur in improving its services and supply cahin
management.

12. Conclusion
With the implementation of SAP in Dabur:
• By implementing a SAP ERP system, Dabur India has helped itself in retaining the
position as a growing leader in FMCG.
• Better sales forecasting and improvement in their sales.
• With the implementation of MYSAP, Dabur has been able to make some very
important strategic decisions and thus increasing its productivity.
• The most challenging part from Dabur would be link HR with SAP. They are
planning to implement a SAP HR and pay roll pattern.

13. THANK YOU