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Information Technology - Bringing Competitive Advantage to Marico's Business
 
 
Evolution:
Information Technology (IT) is becoming increasingly relevant for the Fast Moving Consumer Goods (FMCG) industry of which Marico is a constituent. Widespread supply chain network of manufacturing locations on one hand and dealers and retailers on the other makes timely availability of real time information very crucial for planning & decision making.

With a proactive realisation of how IT can add value to business, Marico has been continuously upgrading its IT infrastructure. From distributed and unconnected IT systems, Marico has migrated to a centralised and integrated IT architecture, riding a successful change management process.


IT infrastructure:
 
Marico's IT infrastructure comprises:
  • SAP suite of R/3, Business Warehouse and APO - a Supply Chain solution
  • Mi-Net, an internet enabled B2B platform for the sales force
  • MIDAS, a transaction processing software for Marico's distributors.
  • A state of the art connectivity network comprising VSATs, VPNs, Leased Circuits and Internet VPNs connecting all the factories, regional offices, depots and some subcontractors of Marico to the centralized data center in Mumbai
  • Citrix solutions that help Marico in reduce traffic on the network
  • Storage technologies like SAN and NAS that help Marico reduce the storage costs
  • Firewall and other such Security products to ensure sufficient security for the information systems
Marico was the first in India to go live on SAP R/3 suite of products comprising SAP R/3, APO and BIW that too within a record 9-month implementation period.

Sales Force productivity is the key to any FMCG company's ability to service its customers better and Marico is no exception. Marico has therefore implemented MIDAS and Mi-Net for the following business benefits:
 

  • Improvement in forecast accuracy
  • Reduction in sales Skew
  • Reduction in planning cycle time
  • Reduction in late deliveries
  • Reactivation of lapsed outlets
  • Improvement in return on investment for the distributor
  • Reduction in the working capital requirement
  • Reduction in claim pilferage

Besides cost savings, these benefits have enhanced Marico's ability to service its consumers - making its brands available at the right time, at the right places in right quantities and for the right value add to its stake holders.

Accolades:
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  • STAR installation award by SAP in 2001 for successful implementation of SAP
  • Lakshya award from NITIE for Mi-Net in 2002
  Future Plans:
An immediate task is to integrate its new businesses and overseas operations. Directionally Marico would continue to embrace newer and better technologies based on the promise of improvement in productivity / savings in costs.
   
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