Objectives of ERP

Madhusudan Group's Dairy business unit- Creamy Foods Ltd. was evaluating ERP for dairy management to integrate its different business process across Operations- Village Farmer Collection, Logistics & Inventory, Production, Sales & Distribution along with Commercial and Financials.

800

Worker days saved
per year

70%

Less time spent on
decision making

60%

Faster transaction processing
time

Some challenges before ERP were

Reconciliation of Farmer account

Pilferage during material movement from village to plant location

Logistics cost for managing their large fleets and accounting for the cost on each and every vehicle

Implementation

Sales, Purchase, Inventory, Finance, HR-Payroll, Fixed Assets, Production, Maintenance, Farmer Management, Farmer Accounting, Transport and Executive Information System modules were successfully implemented.

Some of the major functionalities in use are

Capturing of tare weight and gross weight of raw material in the Lighthouse ERP directly through the integration with weighbridge.

Tracking of price changes of raw material, and their impact on overall costing of finished goods.

Reconciliation of Farmer account can be done with a click of button.

Tracking of expenditure on each and every vehicle. Expenses related to fleet management: fuel consumption, spare parts utilization.

Minute tracking of material during transportation.

Village level collection, raw milk valuation based on FAT/SNF calculation and payment disbursement based on various procurement scenarios.

Also incorporated incentives calculation to suppliers/farmers and milk gain/loss during transportation.

“Lighthouse ERP is very strategic to our current operations and growth plans. The simplicity of usage and real-time visibility has greatly improved our operational efficiency and overall productivity.”

ANURAG AGRAWAL, Director, Madhusudan Group

Benefit Derived after the implementation of Lighthouse ERP

Since Implementation of Lighthouse ERP for Dairy Management, supply chain and logistics processes became real time and transparent, helping businesses to get complete visibility of the journey of raw milk from suppliers to consumers and plugging all loopholes.

Better control on inventory of Raw Milk and Finished Product having more than 23 categories.

Track of accurate costing for various finished products by adding various cost parameters: conversion cost, utility and services costs, manpower, handling and storage costs.

Detailed look of Production status at plant level to match with demand levels for each category.

Reduced cycle time for billing to Farmer payment by automating farmer billing . Moreover easy reconciliation of Farmer account based on integration of Farmer Management and Accounting module.

Lighthouse provided several solutions integration with third party applications: weighbridge, chiller tanks etc. to reduce the manual intervention and hence the possibility of erroneous data.

To address the large fleet of vehicles, Lighthouse ERP has a transport fleet management module, so Madhusudan dairy is able to manage Vehicle Planning, Trip tracking, Expenses Management for fuel, spare parts, tyre etc.

About Madhusudan Group

Creamy Foods Ltd., a flagship Company of Madhusudan Group had started operations in 1991 with initial capacity of 5 thousand LPD. Today the group capacity has increased to 2 Lac LPD. The group has two plants that collect quality milk from more than 80,000 producers spread across 5500 village level societies. Milk is brought from villages through 400 milk routes and it is chilled at 30 Milk Chilling Centers installed within the milk shed area before transferring at milk for processing.

Headquarters

Delhi, India

Industry

Dairy Farming

Products and Services

Dairy Products Manufacturing & Distribution

Employees

350+

Web Site

www.smc-madhusudan.co.in