In the competitive landscape of agricultural storage and distribution, precision and efficiency are key to profitability. This case study explores how an ERP system revolutionized the operations of a potato cold storage facility, resulting in significant cost savings and operational excellence.
Client Profile
Our client operates a large-scale potato cold storage facility, which deals with the complex task of managing inventory, sales, and supplier relationships during peak season. Faced with the challenge of handling around 2000 truckloads of potatoes, the need for a robust system to streamline their processes was evident.
Challenges Faced
Before the implementation of the ERP system, the facility struggled with:
- Inaccurate tracking of purchase contracts and conditions.
- Losses due to human error in manual calculations, particularly in the deduction of 1KG per bag as per 80% of their purchase contracts.
- Inefficiencies in managing various aspects of operations, such as grading, inventory, and export sales.
ERP Solution Implementation
We deployed a comprehensive ERP system tailored to the unique needs of the cold storage operations. The modules implemented include:
- Sales & Purchase: Automating contract management to ensure accuracy in every transaction.
- Grading (Production): Streamlining the categorization and quality control of the produce.
- Inventory: Providing real-time visibility and control over stock levels.
- Supplier Management: Enhancing relationships with suppliers through efficient management.
- Accounting: Ensuring precise financial tracking and reporting.
- Human Resources: Managing employee data, payroll, and recruitment.
- Leave & Attendance: Automating leave management and attendance tracking.
- Performance Appraisal: Facilitating the evaluation of staff performance.
- Export Sales: Streamlining the export process with accurate documentation and compliance.
Impactful Results
Post-implementation, the ERP system delivered remarkable outcomes:
- Precision in Deductions: Elimination of manual errors in deductions, saving 12,00,000.00 rupees that would be lost due to oversight.
- Operational Efficiency: Enhanced control and oversight across all modules, leading to a smoother operation.
- Cost Savings: The cost savings from the accurate handling of deductions alone have covered the expense of the ERP system, validating the investment and proving its value.
Conclusion
The ERP system, termed 'VIDU COLD ERP,' has not just been an investment in technology but a strategic asset that has paid for itself within a single season. By automating key processes and eliminating the margin for error, our client has not only safeguarded their profits but has set a new standard in operational efficiency for the cold storage industry.