Dairy and dairy products company Kwality Dairy India is taking the cloud computing route to improve its operational efficiencies and productivity as it eyes the global markets.
Kwality Dairy India (KDIL) has one of the largest milk procurement operations in North India. The Dairy has been facing challenges in managing its cash operating cycle effectively and wanted to streamline business processes and improve efficiency across various operations to deliver quality products.
KDIL was previously using non-integrated solutions, which did not help address the business issues and further impacted operational efficiencies.
“Currently, KDIL processes about 1.7 million litres of milk per day, making it one of the largest milk procurement operations in Northern India. Our long term vision is to become a global milk and milk products company and to achieve this goal, we have to integrate our operations and improve business efficiency,” said Sanjay Dhingra , Chairman & Managing Director, Kwality Dairy (India) Limited.
The company has chosen IBM’s SmartCloud SAP Express Dairy Solution, one of the first such deployments in the Indian dairy industry. This will help KDIL build a more integrated operations system and address challenges related to milk procurement and payment, production, and fat and SNF (solid not fat) accounting, among others processes.
For example, the solution helps with forecast demand more accurately, generate more efficient production schedules, and see manufacturing processes with greater clarity—which are critical in ever-changing quantity and quality of the nonstandardized and perishable raw materials.
As the solution will be based on IBM SmartCloud, it will provide KDIL with a pay-as-you-go model, and the flexibility and scalability required to manage a growing set of requirements. IBM will help KDIL develop foundational business intelligence and reporting capabilities while processing efficiencies through inbuilt industry practices.
India is the largest milk producing country in the world, with an estimated annual milk production of over 120 million tonne, which is expected to reach 190 million tonne in 2015. However, the Indian diary industry is largely fragmented and presents unique challenges in terms of procurement as well as distribution. Hence, the diary companies in India need to build an operation which is flexible and agile, yet cost effective.
SAP Express for Dairy is pre-packaged software and services to help midsize dairy companies improve operational efficiency.
