DIGITIZATION OF MORDE DEALER MANAGEMENT PROCESS



08 May 2018
About the Client:

Morde Foods is about 45-year-old company and is a family business. Second generation of Morde is running the company affairs now. It started as a small business from home and now has a full-blown manufacturing facility at Chakan in Pune. Its in business of supplying the chocolate raw materials across the India. If you are eating chocolate or cake anywhere in India, there is 70% chance that its from Morde. They are about Rs 500 Cr turnover company and growing.

Business Model:

Morde supplies its products all over India as a direct sale and through distributor network. They have about 84 distributors all over India and in every state. Overall about 300 plus products are sold through this dealer network based on geography & seasonal needs. Morde also does direct sale to its corporate clients and for large pan India customers. Both channels put together do at about total Rs 50 Cr turnover per month. The ratio of dealer to direct is about 70:30 but sometimes varies due to seasonal changes.

Digitization:

Morde implemented SAP ECC system in 2013 for its manufacturing & sales operations. They got good handle on its plant operations, finances and sales through the SAP-ERP system. But their distributors were out of ERP since its spread all over India and vary in size. In order to smoothen the dealer purchase-sale and claims process and to have visibility of dealer operations, they implemented a web based portal which handles all of the dealer related operations.

The portal is in operations from May 2016 and has been upgraded to handle GST tax changes.

About the Portal:

The portal is a web-based system hosted on the Morde In Premise windows server. Its built on MVC architecture with SQL 2013 database and coding has been done using Microsoft .NET 4.0 platform. This section provides various features of this product

Data Security:

The portal is hosted on Morde’s In Premise server in a data centre. It gets all the firewall protection that data centre hosting partner provides. Apart from that at the application level following are data security measures implemented:

  • 1. Password based access
  • 2. Role based transaction access
  • 3. No Copy & Paste
  • 4. No F10 hot key access
  • 5. Captcha for every login
  • 6. Three-way MVC architecture prevents any direct access to the Database
  • 7. Regular backup
  • 8. Hosting with HTTPS protocol
Three Layer MVC architecture:

The portal is hosted on a windows server. It is built on Model View Controller method. So it separates front end application portion from program logic in two separate layers. The database is stored in he third layer. The communication between these layers happen in separate APIs within the controlled environment.

SAP Integration:

The Dealer portal is complete ERP system for the operating dealer entity and its also a dealer management solution from Morde perspective. It handles all of its dealer sale, all demands from dealers are integrated with SAP and all SAP sales are integrated with the Portal. Each & every dealer has to place its demand through the portal. All these demands are placed in the form of a Purchase Orders

Dealer Specific Functionality:

The portal has several dealers specific functionality which are extremely useful for distributors and for Morde foods. Discounts & Schemes: Morde has several seasonal requirements of having schemes for its products and sometimes these schemes are for specific geography or for customers. This module manages all of these schemes and provides benefits directly to end customers. For ex- If Morde announced scheme of 20% Off on product A when customer buys 100Kg of Product A. Then when Dealer is creating sales order for end customer, this scheme is automatically applied to the product and end customer is benefited. These schemes are time bound and can be renewed or cancelled any time.

Secondary Discounts: Dealer can also create its own discounts within his margin limits. He can pass on these benefits to customers over & above the Morde sponsored discounts. This does not generate any claims but hits the dealer margin.

Claims: All such schemes automatically generate a claim document from Dealer to Morde. These claims are then approved by its finance department and credit note is posted towards the concerned dealer. Pricing: Morde can provide specific price to customer or dealers. So, for corporate customers, when he is buying product from dealer or directly from Morde, he gets all corporate pricing benefits. Using this pricing module, each dealer margin for each product Purchasing: All purchase of dealers happens through the PO from Dealer to Morde. This creates the visibility of all the Pan India demands and helps Morde to supply appropriate quantity to against each demand. Secondary Sales: Dealers do all its Morde products sale through the portal. It gives them total flexibility and ease in managing its profitability & GST calculations.

Inventory management: The portal manages all the inventory of Morde products. All receipts, sales & scrap is reflected real time and updates the stock appropriately.

Surveys: Customer satisfaction surveys can be generated out of the portal. User can create its own survey questions & answers and then can publish the survey. Based on customer response, system can collect all answers together and provides the results in consolidated manner. Reports: Various reports provides 360 views of Dealer specific, product specific or geography specific movement of goods or prices or sales.

These are only some of the functionality. Likewise, the portal has several additional functionalities such as Physical inventory, Sample Management and so on

Benefits:


  • Dealers have realized following benefits:
  • All claim management & settlement has completely been done in expeditious and transparent manner. Earlier dealer would not know status of claim and he has to spend lot of energy on both sides to manage these claim settlements. This process is now completely digitized and is done without any hassles.
  • Post GST, this system has become a boon to dealers to manage its all GST calculations. For Morde, they can very easily get total visibility on its output tax on dealer sales 3. Reduction in scrapping of goods: Before the portal, there were several instances where a either good quality of raw material would be scrapped since all the batch & Shelf life management was manual. This portal provides visibility to all these parameters to contain the scrap loss.
  • Benefits to Morde Organization:
  • Digitization of entire dealer process has created a unique value, traceability of all transactions and has given it tremendous productivity benefits. Before the portal, claim settlement alone had about 10 person team which has been reduced to only 3 persons now.
  • Creation of secondary customer database – One of the challenge for this fragile industry is to manage the customer base across the India. This portal created this Pan India customer base in one system and enabled Morde to create customer retention schemes.
  • Dealer demand management – Portal shows all dealer demands for various products in one place. This has tremendous input value to manufacturing and raw material demand management. It also provides a clear gap between demand & supply capacity on monthly basis.


Challenges:

This portal has its own challenges from across the dealer community. There was tremendous resistance from some of the dealers, since Morde would have visibility to dealer secondary customers. This issue was handled by setting clear expectations in terms of business goals & targets as well as through margin percentages.

Apart from that, in the initial days, having computer, Internet and computer literacy were major issues in its implementation. But spread of mobile internet & benefits by use of portal has overcome both these challenges.

Next Actions:

After implementing GST tax management system on the portal, we are exploring transport management visibility for its goods movement. Also in the plan is to implement CRM solution for its sales team.