Digital Transformation of a 40-Year-Old FMCG Company

In this case study, we explore the transformative journey of a 40-year-old FMCG company, renowned for its ready-to-make food products. Beginning as a small-scale Gruh Udhyog and evolving into a large-scale, technologically advanced factory, the company faced the challenge of modernizing its operations. This narrative delves into how they embraced digital transformation, implementing a comprehensive ERP system to streamline processes, enhance efficiency, and drive significant growth. We'll uncover the strategies employed, the obstacles overcome, and the impressive benefits realized through this ambitious digital overhaul.

Company Overview

  • Age: 40 years
  • Industry: Fast-Moving Consumer Goods (FMCG)
  • Evolution: From a small Gruh Udhyog to a well-established large factory
  • Specialization: Ready-to-make food products

Challenges Faced

  1. Transition from Paperwork: Moving away from traditional paper-based processes.
  2. Field Staff Management: Overseeing a team of 100+ employees in the field.
  3. Sales and Inventory Management: Tracking sales leads, daily calls, inventory, and quality assurance.
  4. Complex Payroll System: Managing payroll for 150 employees with varying shifts and salary structures.
  5. Supply Chain Management: Handling manufacturing material issues, payment gateway and SMS integration, SCADA integration, and meeting sales targets.
  6. Comprehensive ERP Needs: Implementing a wide array of ERP modules.

ERP Implementation

  1. Sales
  2. Purchase
  3. Warehouse
  4. Inventory
  5. Accounting & Finance
  6. CRM
  7. Employee Master Data
  8. Appraisal
  9. Sales Target
  10. Manufacturing
  11. Payroll
  12. Leave
  13. Attendance Integration
  14. Expense Management
  15. Quality Assurance
  16. Help Desk

Digital Transformation

  • Policy: Implementation of a no-paper policy.
  • Analytics: Creation of a digital dashboard with advanced analytics for decision-making.
  • Mobile Applications: Development of apps for field staff, inventory movements, production, and employee self-services.

Benefits Realized

  1. Increased Work Efficiency
  2. Same Day Order Dispatch
  3. Revenue Increase: Tripled revenue.
  4. Product Expansion: Introduction of more products.
  5. New Manufacturing Lines: Expansion of production capacity.
  6. Accurate Inventory Management
  7. Employee Empowerment: Reduced HR department workload with self-service options.
  8. Environmentally Friendly: Elimination of paper-based processes.
This FMCG company's journey from traditional processes to a digitally empowered enterprise is a remarkable tale of transformation and growth. The successful implementation of a comprehensive ERP system, tailored to meet the complex needs of the business, has not only streamlined operations but also significantly boosted productivity and revenue. The digital transformation, characterized by the adoption of a no-paper policy and the introduction of advanced analytics, has enabled more informed decision-making and efficient process management. The development of mobile applications for various operational aspects further enhanced accessibility and convenience, contributing to a notable increase in work efficiency and employee satisfaction. As a result, the company has not only seen a substantial growth in its financial metrics but also an improvement in its environmental impact and operational scalability. This case study serves as an exemplary model for similar businesses looking to navigate the digital landscape and achieve new heights in the ever-evolving FMCG sector.


Krishnakant Joshi - A 23 January, 2024
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