Client Overview – LT Foods
LT Foods is known for their famous Daawat brand. Today, Daawat brand caters to three broad segments – Retail, Institutional and Economy – with specific offerings through a range of sub-brands. A phenomenal 30-fold rise has seen it become a 1000 crore company with over 19 brands. The portfolio includes ‘Daawat’, one of the top three Basmati brands in India and ‘Heritage’, another premium basmati. The company’s product portfolio also includes brown rice, white rice, steamed rice, parboiled rice and organic rice.
SCM Issues
LT Foods implemented Baan ERP system to handle all their transaction. But Baan was not able to handle constraint based production planning and scheduling. This lead to problems as below:
• Forecasting visibility
• Unable to utilize the idle capacity of resources effectively
• Visibility of possible end dates for new order commitments
• Long planning time for S&OP. So replanning is difficult
• Inventory plan and production plan not in sync based on lead time and stock available
• Unique FG codes on every SKU makes maintaining the BOM in ERP cumbersome.
Planvisage Solution
LT Foods selected Planvisage SCM solution to improve the production planning and scheduling and provide visibility to across all department. The main objective was to improve the resource utilization, packing material shortage and delivery date commitment to the customers based on the planning.
Benefits
Sales Department got the following benefits
• Quicker S&OP planning and re-planning from 5 days to minutes
• Quick re-synchronizing to market and supplier dynamics
• Demand netting based on forecast, stock and sales orders in SKU and group level
• Order promising with realistic due date based on priority and material availability
• Provide visibility if order is getting delayed in advance
• Multiple plant stock to be considered for stock calculation
• Improving forecasting process by using common demand data across teams
• Priority to customers based on business rules
Purchase department got the following benefits
• Know production plan in advance for proper planning of raw material for rice and packing material requirement
• Long term paddy requirement based on budget for next 24 months
Production department got the following benefits
• Simultaneously consider all material and capacity constraints
• Allocate constrained capacity and material to high priority customers
• Idle capacity booking with forecast and stock orders
• Ability to re-plan in Weekly and Daily horizon for all the process planned
Planning department got the following benefits
• Accurate picture of production capacity booking
• Faster S&OP to improve velocity in supply chain
• Highlight exceptions in orders caused by material and capacity
Some of the reports enabled are
• S&OP RM, PM exceptions
• Capacity booking monthly, weekly and daily
• Full schedule report
• Equipment utilization
• Machine loading chart.