sap ace award, 2018sapace.co.in/uploadfile/sap_ace_18_ saahaj.pdf · 2018-02-27 · human resource...
TRANSCRIPT
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SAP ACE AWARD, 2018
Name of the organization: Saahaj Milk Producers Company Limited
Contact Person & Designation: Surendra Singh Jadon , IT Head.
Email: [email protected],
Mobile No: +918392954656
Official Address: Cross Road Mall, Plot No. 5&6 , 2nd Floor, Sikandra Yojna Sikandra Bodla Road, U.P. ,Agra-282007 Nation Building through SAP solutions:
Dairy industry is of crucial importance to India. The country is the world’s largest
milk producer. It is the world’s largest consumer of dairy products, consuming almost
100% of its own milk production. Dairying has been considered as one of the
activities aimed at alleviating the poverty and unemployment especially in the rural
areas in the rain-fed and drought-prone regions.
A specific Indian phenomenon is the unorganized sector of milkmen, vendors who
collect the milk from local producers and sell the milk in both, urban and non-urban
areas, which handles around 65-70% of the national milk production. This leads to
exploitation of small marginal farmers by these middle men. Objective of Making
Producer Companies is to organize dairy sector in India and strengthen small
marginal farmers and providing fairness, transparency and empowering them to
become self-sustained.
A Producer Company combines the institutional and ideological strengths of
cooperatives (ownership limited to users; limited interest on shares; no trading of
shares; patronage is not capital-based) with the flexibility and autonomy available
under company law. In a Producer Company only milk producer can become member
and owned by user members.
About Company
Saahaj Milk Producer Company Ltd. a producer company incorporated under part IX-
A of the Companies Act, 1956 on 17th October 2014 in the state of Uttar Pradesh.
The Company commenced its commercial operations from 12th December 2014 and
with portfolio of Pouch packed milk of different variants and Butter Milk followed by
Saahaj curd to expand its portfolio.
The company has one of the most modern equipment’s for automating the entire
milk procurement and the payments to the producers processed through SAP
averaging Rs. 28 cr every 10 days payment cycle. Saahaj SSMPCL primarily operates
in Eastern UP regions of Uttar Pradesh covering 2924 villages, 371 Bulk Milk coolers
collection centre and 14 chilling centres handling more than 7.5 lakhs litres per day
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Objective
The Company is in the business of pooling, purchasing, processing of milk and milk
products primarily of the Members and of others, and marketing of the same.
Company is selling and marketing its milk and milk products under its own brand
“Saahaj” consisting of poly packed milk, buttermilk, Ghee (Buffalo & Cow) and curd
in different kinds of consumer packs etc. Our main objective is to create maximum
value for its shareholders, at the same time provide the best quality milk, and milk
products to the customers.
Business Operation
Saahaj has expanded its market to the regions from Agra and 10 District of entire
UP (Agra, Aligarh, Badaun, Etah, Etawah, Firozabad, Hathras, J P Nagar, Mainpuri,
and Moradabad) region in a short span of time. All endeavors are being made to
expand the presence of Saahaj products in other prominent states along with
enlarging the Company’s basket of products.
We are also the End Implementing Agency (EIA) for various projects implemented
by Government of India through National Dairy Development Board (NDDB) under
National Dairy Plan 1 (NDP 1). Through the projects we provide our milk producers
with integrated animal productivity enhancement services like Ration Balancing
Programme (RBP), need based doorstep AI delivery services; enabling convergence
of milk pooling, improved animal nutrition, higher conception rates and genetically
improved animals in the area to derive maximum benefits under National Dairy Plan
(NDP).
With these projects, we could also create a state of art facilities and infrastructure
for pooling of milk at the village level milk pooling points
Major technological initiative was deployment of GPRS based DPUs at 2924 MPPs for
transmit of real time data to SAP ERP and thus replaced traditional pen drives used
for data transmission. Instant messages for their milk pouring details.
Transparency in Business Operation
Automation in terms of issue of receipt giving details of milk poured quantity, FAT &
SNF and transfer of members’ payment directly in their Bank Account.
Saahaj invested considerable resources into Information Technology for better
transparency and efficiency in all the processes. Saahaj achieved a major milestone
on 1st August 2016 when SAP ERP went go live. The highly successful
implementation provided Saahaj Milk with an integrated and sustainable platform to
move forward.
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Milk and Milk Products:
Saahaj as a “Brand” in Milk and its Milk Products has been accepted and picking up
its market against other major and local players like Amul, paras , Saras etc. during
the last one year of its launch in Agra , Aligarh , Moradabad, Etawah , Fatehabad
and other adjoining towns.
The Company is constantly thriving to spread out its reach and product portfolio by
adding new products and facilities. In this direction, during the year, the Company
has recently successfully launched “Saahaj” Chai Special in 200 ML , Milk in 500ml
Polly pack , Dahi and Saahaj Ghee in 1 liter Jar packing in Uttar Pradesh region .
With this team effort, Company has achieved Sales turnover 496.07 Cr within a
period of just one year eight months of milk Sales although company has completed
2.5 years of operations.
Other new milk products like and Paneer, Matki Dahi , Butter are also proposed to
be launched shortly. The following chart depicts the three years journey of the
company in terms of its sales turnover.
End Implementing Agency (EIA): National Dairy Plan1
Saahaj is also the End Implementing Agency (EIA) for various projects implemented
by Government of India through National Dairy Development Board (NDDB) under
National Dairy Plan 1 (NDP 1). The objective of the Sub – Projects was:-
To help increase productivity of milk animals and thereby increase milk
production to meet the rapidly growing demand for milk.
To help provide rural milk producers with greater access to the organized milk-
processing sector.
These objectives would be pursued through adoption of focused scientific and
systematic processes in provision of technical inputs supported by appropriate policy
and regulatory measures for the following projects:-
A. Village Based Milk Procurement System (VBMPS)
B. Ration Balancing Programme (RBP)
Benefits accrued through SAP
Saahaj Milk has been formed with an objective of maximizing returns to its members
through professional management and by harnessing capital, markets and
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technology thus ensuring business growth without undermining the basic cooperative
character of democratic governance and autonomy.
Milk Pooling Point (MPP) Automation
Milk is procured at the Milk Pooling Point (MPP) in two shifts, morning and evening
where-in members / farmers pour the milk at MPP. All the data is saved in Data
Process Unit (DPU) which automatically captures Milk quantity from Weighing Scale
and Quality parameters (FAT/SNF) from milk analyzer thus preventing any
manipulation with data.
The milk procurement data is then securely transmitted to a middleware application
from DPU. The milk collected from each MPP is sent to nearest MCC (Milk Chilling
Centre) for further consolidation with Raw Milk Reception at Dock (RMRD).
MCC Automation
Weigh balance and Milk Analyzer at MCCs are interfaced together for milk weighing
and testing of member’s milk collection data and actual milk quantity, FAT and SNF
are recorded in a middleware application.
Data Integration in SAP
All the data in from central middleware application is automatically transferred to
SAP database through PI.
SAP system controls the master data and rate chart by sending it to middleware
application which signals each DPU at village level to pull updated data from
middleware application. DPUs at village level pull the updated information through
GPRS connectivity thus preventing manual intervention.
DPU sends the data through GPRS connectivity. RMRD
Process Integration
Middleware Application
Data is sent over secure VPN
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Payments and Recoveries
SAP system at Saahaj takes care of payments on Payment cycle to pay the milk bill
amount to members, which are due for the payment. While making the payment,
system automatically calculates and adjusts recoveries, incentives, and dividend for
Members.
Some of key features of payment module in SAP system:
Different rate masters are maintained based on the milk type (Buffalo, Cow &
Mixed Milk)
Rates are defined based on FAT & SNF Parameters in Rate chart
Rate Chart assigned to MPP.
Incentives are paid automatically based on the qualitative / quantitative
parameters to Members
Shareholding data is maintained and additional share amount is automatically
calculated for the members as per the milk poured
Payment to the members are automatically transferred to their respective
bank accounts
Recoveries and incentive of a Sahayak is calculated automatically from the
system
Producer Institution Building (PIB)
PIB– System facilitates to enter- 1) online registration of applicants for the
membership. 2) Convert application to members based on board approval 3) Share
Management which includes - allocation of shares, cancellation and transfer of shares
etc. 4) Member analysis – commitment , deductions, pouring pattern , lean & flush
analysis etc.
Logistics: inward and outward transporters manage the inward and outward
logistics in Saahaj. SAP system facilitates to capture all tanker movements between
MCCs and plant tanker sale and purchase along with its rate fixing and billing detail.
Users and management can see material balancing and variation reports on daily
basis from the system. Milk material cost / expense on logistic / transportations are
booked on inventory so Saahaj is getting clear picture of cost on raw milk and
processing of same.
Freight Vendors Payment
SAP system calculates the freight payment as per the vehicle rate assignments. And
all the Penalties/Recoveries against the materials and advances recoveries are also
considered by the system
Sales & Distribution
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Sales & Distribution of milk and milk products is done through a network of
distributors across Punjab. The system provides online facility of sales and
management of milk, cattle feed and milk products etc. Customer enquiries entered
in the SAP system to generate the quotations of milk products and further sales
order, material requirement planning, crates and credit is managed from the SAP
system.
Asset Management
Company’s assets are managed through SAP system i.e. purchase, tracking,
maintenance and periodic verification of the assets etc. The process of asset
purchase, tracking, maintenance and verification is a system dependent process for
which stock details are maintained at MCC level.
Accounts & Finance
Finance & Accounts system in Saahaj prepares and manages the milk payments to
the member, Sahayak / LRP commissions, computation of annual price incentive
payments to the vendors and other financial transactions. The member wise payment
data is directly integrated with finance module in SAP system which is further
processed to calculate all earning & deductions of members and sent to the Bank in
member’s account directly.
Quality
Milk quality data is recorded in the SAP system from the very first point of entering
milk at village level in the form of FAT, SNF , Quality and time , later when milk is
reached at MCC and plant various quality tests data , milk maintenance parameters
, monitoring process and analysis data is available in the system.
Productivity Enhancement Services (PES)
PES services such as feed service, cattle feed demand collection is recorded in the
system. The Animal Health module of Information Network for Animal Productivity &
Health (INAPH), designed by NDDB, captures the entire gamut of activities related
to health that is usually carried out on the animal. SAP system integrates the service
data and from INAPH and consolidates with ERP financial data to deliver reports from
one system.
HR
Human resource management would involve entire life cycle of an employee in the
organization starting with manpower planning, recruitment till full and final
settlement of employees.
Business Intelligence
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Saahaj is using Business Objects and Business Intelligence tool of SAP system to do
daily analysis of milk procurement data, members’ performance, their EMI detail,
milk logistics, product sale & profitability to stay competitive in market.
Saarthi is a unique system in the Dairy
Industry, specifically designed for
Producer Companies to accommodate
milk procurement requirement, and
calculates member’s payment in SAP
system, payments are automatically
transferred in member’s bank account.
Using SAP solutions we are able to
achieve the confidence in our producer
members who are also the
shareholders of our company that they
would come out of their present
situation to a better living condition.
Maintaining the records of 65000 plus member farmers and building their livelihood
is a perfect example of farmer’s empowerment in India and SAP is helping us record,
analyses and monitors the day-to-day operations for the nationwide achievement.
SAP had provided a solution for processing the milk bill to the farmers on time, which
was our biggest challenge in operations before SAP. The direct benefits are to the
members of the company as they are the shareholders and SAP is helping us to
provide 100% transparency in all the business related transactions. This will
eventually increase the patronage from the members, which would position the
company as one among the leading dairies in Uttar Pradesh
Award Category Selected: Public Sector, Award for Adopting Digital Initiatives in
Public Sector
Revenue/Budget of the Organisation: Turnover of Rs. 496.07 Cr in 2016-17.
Targeting 713.86 Cr in 2017-18
Number of Employees: 450+
Project Related Information:
SAP Solution(s) implemented: ECC6
Number of SAP users: 65
Project Go-live date: 01-08-2016
Project overview
Saahaj was part of central SAP implementation process; project was steered by
NDDB Dairy Services. Producer Companies followed the World Bank guidelines and
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selected “Zensar Technologies” as an SAP ERP (Saarthi) implementation partner for
all the Producer Companies. Project was funded by World Bank under National Dairy
Plan.
It was decided to implement ERP and BI solutions to have a seamless flow of
information between different departments and functions, better control of the
processes and for leveraging advances in IT systems for business gains for the
Saahaj.
It was expected that SAP ERP would enable Saahaj to manage their end-to-end
operations including Milk Procurement, Quality, Sales and Distribution,
Manufacturing, Procurement, Logistics and Supply chain, Finance, Asset and Human
Resource management. ERP application will allow the different units such as milk
pooling points, chilling canters and clusters centers to seamlessly share information
with each other and with the HO.
The ERP will also enable Producer/Member Institution Building and integrate with
existing applications such as Milk Procurement System. BI application will enable the
senior management to generate customized reports and analyze the business data
for decision support.
ERP RFP was prepared & Bidding was conducted through the National Competitive
Bidding (NCB) procedures agreed with World Bank. Through bidding process &
detailed analysis it was decided to implement SAP system in all Producer Companies.
Below was the Project Scope
1. Preparing Global Business Blueprint
2. Detailed hardware sizing and specifications for the proposed ERP and BI
3. Configuration & Customization of ERP & BI and development of Global ERP
Template
4. Customization of Global ERP Template for Producer Companies
5. Integration with existing and planned applications PCs
6. Application Testing and OEM Audit
7. Data digitization and migration for PCs
8. Roll out of the ERP and BI solutions at Cluster offices and Head Offices of PCs
9. Capacity building and change management
10.ERP application Maintenance
Over All Project Size
Total turnover of producer companies – more than 3000+ Crore
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Total milk collection per day – more than 30 lakh milk collection per day
Total villages to connect to ERP – more than 10000
Total Farmers – more than 3.5 Lakhs
Total Chilling Plant – More than 750
Total staff – More than 2000
Total payment to farmers – more than 250+ crore per month
More than 300 SAP users
One of the main objectives of IT initiative was to implement ERP solution for all
Producer Companies, however keeping the cost very low and meeting requirement
of all present and future Producer Companies. This was achieved by making a Global
Template by involving stakeholders across all Producer Companies, NDS, Consultant,
World Bank etc.
Earlier, Saahaj had distributed system with many legacy applications to work, making
reports and farmers payment was a big challenge. Management was convinced to
have single SAP system to fulfil all requirements under one umbrella.
SAP ERP System in Producer Companies is first its own kind of unique system in Dairy
Industry consolidates data from villages (2924 villages in Saahaj and 65000 farmers
pouring milk daily morning & evening. Paying together more than 30 crore payment
in a month with many complex formulas and rules inbuilt), single system takes care
complete requirement of Finance & Costing, Human Resource Management,
Production Planning, Material Management, Sales & Distribution, Project System,
Plant Maintenance, Quality Management , Customized module like – Milk
Procurement System & Producer Institution Building , integration with legacy
software’s etc.
SAP system at Saahaj takes care of payments on Payment cycle to pay the milk bill
amount to members, which are due for the payment. While making the payment,
system automatically calculates and adjusts recoveries, incentives, and dividend for
Members. Payments are deposited in farmer’s bank account to maintain transparency
and avoid any pilferage from commission agent. System allows to pour milk only
from registered members thus avoid any manipulation.
Saahaj successfully designed and implemented an end-to-end SAP Dairy Solution in
India and first ERP system approved by World Bank in India.
The project was successfully implemented in Saahaj on 1st August 2016 with in a
very strict period.
Project Highlight
Online Farmers Enrolment
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Portfolio and Performance of each farmers
Milk Procurement by connecting all the farmers in SAP
Online Payment to all the farmers from System
Route and Vehicle Management
Material Balancing tool build in SAP
Transparency and Traceability
Sales and Distribution
Crate and Empties Management
Saarthi became the first
ERP system approved
by World Bank in India
and successfully
implemented in Saahaj
and other Producer
Companies.
Key Project or technical challenges before implementing SAP solution
Saahaj SMPCL wanted a single platform for all business process integration and to
manage all operations more efficiently. To take effective business decisions we also
needed a centralized online data which could be accessed from any location. Milk Bill
processing was a big challenge and used to take 1 week to complete the payments
one of the biggest concern is addressed by SAP by reducing the time to 2 days
overcoming the issues with the legacy system.
Saahaj SMPCL needed a system that would help to manage the entire member
management including their shareholdings and regular payments. Improving the
Sales and Distribution process and mainly making payment to the vendor/members
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immediately on the due date. The business connects over 65000 farmers who are
the members of the company, spread across thousands of villages. The business
initiates better lively hood for the poor farmers so that they also grow along with
the organization.
Other technical challenges
Training to field staff
Integration with milk procurement data from villages
Single system to bring in milk procurement data to calculate farmers payment
Making Global template for multiple stakeholders
Customize modules and integration with legacy applications
Master data – from top to bottom i.e. SAP to village level
Milk Material balancing at different level
Calculating farmers/members payment with complex earning and deduction
for commission agents and logistic vendors
Creating PIB module and managing members shareholding & EMI deduction
detail
Key Organisational or Business or National challenges before implementing
SAP solution
This was a national project funded by World Bank so taking approval and following
World Bank guidelines was a big challenge. Producer Companies are a new concept
which has been experimented first time in India. Initially we didn’t find any suitable
product to fulfil Producer Companies requirement.
Other challenges:
Challenge in creating RFP
Challenge in finding out right product (ERP)
Connectivity in rural areas
Finding a dairy partner for SAP implementation
No bidding format initially with World Bank
Bid received almost double of budget kept for ERP implementation
Very strict time line
Managing PMO office for multiple stakeholders
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Change management
Data upload from chilling centres/ Bulk Milk - as end user do not understand
the importance of sending data to central server
Value Related Information:
List Short and long term impact / Benefit Achieved:
All the Business Process is on a single platform “ SAP “
Transparency across all the business process
3.5 Lacs Farmers target qualification and registration in the system, by
eliminating the paper work by 90%
Maintaining the portfolio and performance of all the farmers for Strategic
decision on to increase the cattle productivity.
Connected all the broken business process and network into SAP and with
SAP Orchestration to collect 30 Lakhs Litres connecting 10,000 + Village every
single day
All the payment of the farmers are calculated and release by SAP, this is a
unique solutions built in SAP to have a better control on the heavy volume
error free payment, this is reduced the cycle from 5 days to 5 hrs.
Daily regulars updates are sent, digitally through SMS to all the Farmers on
their performance status
“Shares Management” of all the farmers are maintained in SAP, which has
reduced the errors in multiple folds and formed a strong bonding between
Dairy and Farmer
Better Inventory control on Gain & Loss for each and every movement of the
milk, which was not possible before SAP, it from 0% control to 100% control
Faster sales cycle to customer and Farmers , for Milk and Cattle feed by 20%
respectively
Automating the milk collection from the 65000 members from 2924 villages and
paying them accurately with 100% transparency
Implementation Related Information:
As part of NDS initiative under NDP 1 (National Dairy Plan) to form Producer
Companies in five states i.e. Rajasthan, Gujarat, Andhra Pradesh, Utter Pradesh &
Punjab, NDS IT had a target to computerize all Producer Companies.
These Producer Companies are having together more than 10000+ villages, 700
chilling plants, 3.5 lakhs farmers, 2000 employees to connect. These companies are
large in milk procurement together more than 30 Lakhs litre per day and 300 to 1000
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crores turnover, paying together more than Rs 250+ crore in a month to their
farmers.
Objective of IT initiatives in Producer Companies was to bring transparency, fairness,
avoid pilferage in farmers pouring milk to the company by IT intervention, and give
Producer Companies robust IT infrastructure to support their business to remain
competitive in market, enable them to become world class companies in near future.
It was envisaged that Producer Companies should have latest technology in terms of
all IT hardware & software to run their business independently.
The global template was developed first at the NDDB-NDS and the further
implementation of the individual PC’s were like a roll-out. This has helped in reducing
the time actually taken for completing the implementation and Go-live.
It is the first time in India that a dairy solution is developed with complete data of its
member including the maintenance of the shares each member holds.
Feedback Related Information:
“SAP provides authentic, central, reliable and timely information, which enabled Top
Management to take timely key business decision and to formulate future strategic
planning.” [Rishi raj Singh, CEO- Saahaj, 7409440000, 15th Feb, 2018]
“SAP facilitated transparency in our business process and helped Saahaj to be proud
being part of Digital Revolution of the country.” – [Basant Choudhary , Dy. CEO-
Saahaj,7088240000, 15th Feb, 2018]
“SAP Implementation in Saahaj was instrumental in removing several decentralized
and legacy applications.” – [Surendra Singh Jadon, Head-IT, 8392954656, 17th Feb,
2018]
Steps Ahead is Digitalize “Cow to Customer”
1. Equip all the farmers with smart phone with App for all transaction
2. Handle all the sales process through Cloud by C4C and Sahayak on Service 4
cloud
3. Cattle Management on SAP
4. Replace proprietary Data Processing Units with Smart devices.
5. SAP S/4 HANA implementation.
6. Bring total control on the business process in terms of Vendor/customer
accounts and masters to reduce costs.
7. Being always online such that the top management can view day to day report
for being agile to take decisions.
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8. Getting transparency of data among different departments so that time and
money can be saved on available Inventory and procurement.
9. Getting in new technologies for monitoring and controlling to save time and
cost in business operation.
10.Implement the dash boards for the senior management for quick decision
making.
11.To bring down the transaction cost.
Enclosures/Attachments
Various activity done by Saahaj
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