Bisleri Case Analysis

Objective: To help PG attain the level 4-5% margin, by helping PG arrest the escalating costs (mainly in merchandising and supply chain area).

Key Inference and recommendation based on Interview

• Key departments act in silos. Mainly caused by the obstacles in the information flow from one department to another

• Need to have a system in place that integrates all the departments, gathers the data centrally and facilitate its smooth transfer

• Manual entry of data by IT. This resulted in errors as well as delay in information flow from one department to another. Chief cause of inventory being unable to respond in time to the requirements of Marketing during the promotional activities

• Data should be entered by the respective departments not by IT. It will help prevent both errors and delays

• Need to have centralized inventory management system. Inventory management should be automated

• Having centralized inventory management system helps increase the bargaining power of PG
• It helps reduce the administrative expenses due to reduced supplier management cost
• Automation helps to  ensure sufficient inventory levels of SKU’s  
• Reduced the manpower requirement for inventory management with automation

• Unable to measure outcome of promotional activities

• The new system in place should provide reports that help measure the effect of promotional activities

• Increased competition from local players due their ability to customize assortment and prices and cater to local flavors

• Need for a real time monitoring system that help gather the data real time and facilitates fast  and accurate decision making
• This system will help understand the impact of promotional activities, packaging of products etc thereby helping both suppliers and PG
• Data from the POS help study the customer behavior thus help PG serve customers better in terms of customized prices and assortments ( upto the granularity of individual customer)
• Better customization helps in attaining PoP with respect to local competitors

• Ensure compliance especially in terms of MRP

• The new system will help in achieving compliance by generating reports for analysis and documentations

• The system

•  to be implemented should help in attaining  standardization
•  should help in unearthing of best practices within the organization
•  should be able to facilitate the  expansion of PG
•  Replace the existing old IT infrastructure

PG should implement Retail ERP  which will help in optimization of processes and in attaining PoP wrt competitors and Real Time Video Monitoring system for attaining PoD

Retail ERP- High Priority Must have

Implementation time line 1 year

The ERP’s helps in optimization and ease of administration of internal business processes. They help in seamless data transfer allowing departments to communicate in real time.