Dudhsagar first co-op sector dairy to implement ERP solutions

Mehsana-based Dudhsagar Dairy, the largest co-operative dairy in India, which manufactures milk products under the Amul and Sagar brands, has become the first dairy co-operative in the country to implement enterprise resource planning (ERP) solutions across its establishments. Dudhsagar Dairy runs on the Oracle E-Biz suite.

The 44-year old dairy in Mehsana district of north Gujarat, has completed the task of creating a common integrated management system under "Project Samanway" to create and derive the benefits of modern technology to make the dairy operations more efficient thus contributing in improving the lives of lakhs of milk producers of the region.

The project was completed in just eleven months considering the complexity of legacy systems, the typical milk collection and billing system and multi-locational business units.

A wide area network was established to connect the main dairy plant at Mehsana and other units located over three districts, including Gandhinagar and Patan. These units include two cattlefeed factories, five chilling centres, milk processing plant and one chilling centre.

The Samanway project has covered the implementation of Oracle Financials, Oracle Purchasing, Oracle Manufacturing, Oracle Asset Management, Oracle Inventory Management and Oracle Order Management modules of the Oracle E-Business Suite 11I.

"There were numerous software programmes that were being used at different locations. Gathering information would often take days. With a uniform enterprise resource planning solution across all establishments in place, we expect a huge improvement in our account statements by the year end," said a top official of Dudhsagar dairy.

He added that the ERP solutions package was implemented in 11 months from August 4, 2003 to July 2, 2004, but it took a few months for the employees to get accustomed to the new system and to streamline all procedures.

"We understood the issues and the challenges of the dairy industry and had an end-to-end solution to offer. With Oracle Applications, Dudhsagar Dairy will be able to streamline business processes. The availability of accurate, timely and uniform information will enable optimal utilisation of resources and quick decision-making. The fact that farmers are the main stakeholders in the dairy, we are proud to be associated with a project, which is taking prosperity to the rural masses", said Subhomoy Sengupta, general manager, sales, Oracle India.

Dudhsagar Dairy officials said that the dairy will procure 50 crore kg of milk this financial year, which is expected to be around 15 per cent higher than that of the previous year.

"We have spent a sum of around Rs 2.75 crore on the ERP solutions, but the dairy will reap huge gains in the coming fiscal," Dudhsagar dairy officials said.