Background
A prominent rice producer specializing in both domestic and export markets needed to modernize and streamline their operations. The company managed a diverse range of processes including seasonal and non-seasonal procurement, production management, quality control, sales, financial accounting, and costing. To address these complex requirements, the company sought an integrated solution that could enhance efficiency, visibility, and compliance across their operations.
Challenges
- Procurement: Managing seasonal mandi procurement, non-seasonal paddy/rice purchases, job work, and imports.
- Production: Handling MRP, MTS, MTO, recipe management by/co–product, yield details, and variance analysis.
- Quality: Conducting pre- and post-GRN QM inspections, sample testing of paddy/rice, and in-process and production GRN tests.
- Sales: Managing domestic and export sales, STO, credit management, returns, rebates, and claims.
- Financial Accounting: Streamlining accounts payable and receivable, asset management, bank transactions, foreign currency, and statutory returns/reporting.
- Costing: Reporting on planned vs. actual costs, variances, direct and indirect overheads, and WIP.
- Special Scenarios: Managing contract labor, gate entries, weighments, blending, and stock revaluation due to aging and moisture loss.
Solution
To address these challenges, an SAP S4/HANA RISE Implementation was proposed.
Solution Approach
Cross-Function Integrated Process:
- Implemented a seamless integration with VWAgrimart, minimizing manual intervention and pre-printed documentation.
- Enhanced effectiveness through a comprehensive Management Information System (MIS) across all business processes.
Outcome
- Implemented industry best practices, leading to significant process simplifications.
- Achieved a smooth mandi procurement and payment process, with effective management of aarthi’s and other mandi expenses according to norms.
- Improved visibility of paddy and rice stocks with robust quality checks, effectively managing losses due to aging and seepage.
- Streamlined financial management and statutory reporting.
- Facilitated easy demonstration of statutory compliances.
- Improved contract labor management.
- Achieved production cost optimization through the VWRecipe management solution.
- Minimized data duplicity and improved master data management.
- Ensured effective quality inspections at all stages, including paddy/rice, in-process, and aged stock, leading to better quality and valuation.
