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CASE STUDIES

Ramco helps Mother Dairy, owned by NDDB, ensure quality

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Ramco Helps Mother Dairy Ensure Quality

Established in 1974 under the Operation Flood Program, Mother Dairy is a wholly-owned company of the National Dairy Development Board (NDDB). Mother Dairy Ice-Creams, launched in the year 1995, is a division that has grown continuously over the years to boast of approximately 62% market share in Delhi and NCR. The ice cream, mostly manufactured by subcontractors, has to be carefully procured and distributed with strict quality control – a job that can be done only with tightly integrated IT Systems.

Here is how Ramco implemented an integrated system to connect Mother Dairy’s ecosystem of subcontractors with an end-to-end ERP for a seamless flow of information.

Challenges faced by Mother Dairy

Mother Dairy subcontracts the production of ice-creams. At one point, this made their job tougher than they imagined, as the subcontractors were using disparate systems, leaving Mother Dairy with minimal control over their processes. The company found it increasingly tough to track and manage…

  • Raw materials lying with the subcontractors
  • Finished goods inventory at subcontractor end
  • Expected delivery of finished goods
  • Non-standard production processes, and
  • Subcontractor database and billing.

Disconnected Subcontractors

Since subcontractors were using independent systems for various processes like procurement, finance, etc., and as their systems did not sync with Mother Dairy’s, they too faced their share of challenges, especially in tracking and managing

  • Raw material, packing material loss
  • Customer and supplier outstanding
  • Multiple changes in rolling plan and weekly order
  • Quality of materials
  • Risk of fraudulent transactions
  • Production delays due to material shortages, and
  • Manpower and resource planning for multiple lines.

In order to overcome the challenges faced by the company and the subcontractors, Mother Dairy wanted to implement an ERP solution to standardize and track the masters and production activities at different subcontractors. They also wanted to monitor the purchases by subcontractors in order to maintain the quality.

Ramco provides Mother Dairy the proverbial fine tooth comb

Ramco helped Mother Dairy improve the quality of its products and efficiency of its multi-company setup, with enhanced quality inspection and traceability, MRP, and more.

The initial implementation includes 10+ subcontractors. During the five-year contract, it is expected to scale up and cover all 30+ subcontractors.

Here is a bird’s eye view of the solution Ramco offered to Mother Dairy:

  • Detailed Quality module spanning Inward as well as In-process
  • Multi-company setup, with each vendor as a separate company
  • The separate production process in each company
  • Quick Manufacturing Resource Planning (MRP)
  • Homogeneous Item/Suppliers/Bill Of Materials (BOM) across vendors as well as with SAP for better control
  • Inward and In-process quality inspection
  • Batch traceability with quality values in case of any complaint
  • Centralized approval of Purchase Order (PO)/Price List
  • Vendor selection
  • Standard vs. Actual consumption
  • Raw Material/ Packing Material (RM/PM) tracking with manufacturing date and shelf life

One interesting aspect of the implementation is its neat coexistence with the existing SAP module. Ramco’s system generates an Advance Shipping Note (ASN) at the time of invoicing, which creates an Inbound Delivery Note (IDN) in the SAP module, thereby reducing manual intervention in the Finished Batch entry.

Remarkable Business Benefits

 

Ramco, Mother Dairy, and its subcontractors worked together in unison from Day 1, to make the most of the lean winter season to finish much of the implementation in time to offer the best ice cream to thirsty customers in the coming summer, and to feed their hungry cash-registers too! And so they did, with an integrated yet flexible ERP system.

What You Sow, So You Reap

With Ramco’s ERP on Cloud, Mother Dairy was able to reduce manual interventions and achieve greater transparency and accountability between the company and its subcontractors.

Here are some of the key business benefits achieved:

  • Control over purchase through approval of all RM/PM POs with price control
  • Control over supply with RM/PM/ Finished Goods (FG) visibility
  • Production monitoring
  • Material requirement planning
  • Automatic creation of IDN in SAP
  • Quality control with product traceability (backward/ forward)
  • Better monitoring and control using dashboards/MIS reports
  • Visibility across locations
  • Online financial reports in Excel, which is flexible to pivot
  • Control over manufacturing costs, and
  • Planning of lifting schedule by salespeople with remote FG analysis

Why Ramco?

Because Mother Dairy Decided to Deal with the Best

The ERP market is a crowded one, and surely Mother Dairy did its homework – very thoroughly – before choosing Ramco. Why were we chosen to set their success story rolling?

  • On Cloud offering. This gave them not just mobility but also flexibility in terms of configurations. Since the number of users was not fixed, this flexibility mattered a lot. There was also a clear price advantage vis-à-vis On-Premise options, because of savings on infrastructure, hardware, database, manpower, etc.
  • Ease of use. Ramco’s solutions are known for state-of-the-art functionality that is absolutely easy to use. The value proposition, flexibility and user-friendliness struck the right chord with subcontractors, right from the start.
  • Quick implementation. Mother Dairy intended to utilize the lean season (winter) for implementation so they could reap the benefits of this automated solution when peak season (summer) starts. Ramco’s swift implementation helped them achieve this.

As a diversified F&B business group with a multi-company set-up having manufacturing plants across regions, we wanted to connect our ecosystem of subcontractors with an end-to-end ERP for a seamless flow of information. Though our internal ERP is on-premise, the benefits of a Cloud solution coupled with the strength of Ramco to offer a comprehensive, flexible, and easy-to-use ERP, which can seamlessly integrate with our in-house application tilted the decision in their favor. With this implementation, we have been able to reduce manual interventions and achieve greater transparency and accountability between both Mother Dairy and our subcontractors. We look forward to taking this collaborative relationship forward with Ramco.

Ms. Annie Mathew, CIO, Mother Dairy
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CAN RAMCO DO IT FOR YOU?

 

Of course it can! To find out more on how Ramco can answer your need, Email contact@ramco.com

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