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.
Worker days saved
Less time spent on
Faster transaction processing
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
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.
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.
Dairy Products Manufacturing & Distribution