Budge Budge Refineries Limited is a leading agro-based edible oil production company located in Kolkata, India. With an impressive turnover of ₹4000 Crores (as of March 2024), Budge Budge is one of the largest edible oil producers in Eastern India.
The company’s production and distribution capabilities surpass competitors like Adani Wilmer and Emami in the region. Despite their market leadership, the company faced significant challenges related to distribution, production, and, most notably, inventory management. These inefficiencies were hampering their growth potential and operational effectiveness.
Challenges
Budge Budge Refineries struggled with:
Inventory Management: Inefficient tracking of stock levels, leading to longer inventory turnover times.
Production Optimization: Data is stored in columnar format to optimize the performance of analytical queries.
Distribution Issues: Complicated dispatch planning and ledger management for distributors.
Recognizing the need for a comprehensive solution, they decided to implement SAP to streamline their operations. And Moreso Software Services helped them to achieve thier goals.
Solution Implementation
We partnered with Budge Budge to implement SAP, focusing on addressing key operational challenges. The SAP solution targeted the following areas:
1. Inventory Management Optimization: Streamlined inventory turnover time and improved just-in-time inventory practices.
2. Production Capacity Optimization: Real-time data insights led to better production planning, reducing downtime and improving overall efficiency.
3. Dispatch Planning: Integrated systems allowed for efficient scheduling and dispatch planning, ensuring timely deliveries.
4. Ledger Management for Distributors: The SAP system enabled better management of distributor ledgers, ensuring accurate and timely reconciliation.
Our strategic consulting team placed a significant emphasis on business analytics, reporting, and enabling quick decision-making through the enhanced data visibility that SAP provided.
Results & ROI
The implementation of SAP delivered a high ROI within just 18 months. Some of the key benefits achieved include:
• Reduced Inventory Turnover Time: Faster movement of goods and lower holding costs.
• Optimized Production Processes: Maximized production output with reduced inefficiencies.
• Improved Dispatch Planning: Streamlined deliveries and reduced lead times.
• Better Financial Management More accurate ledger management and enhanced cash flow visibility.
Our focus on reporting and business analytics empowered company's leadership to make informed decisions, significantly boosting their operational efficiency.
Training & Support
A critical challenge during the implementation was ensuring effective user adoption. We provided multiple rounds of training to ensure that their teams were well-equipped to leverage the new system. Through hands-on training sessions, the users were empowered to operate the system confidently and effectively.
Conclusion
The SAP implementation at Budge Budge Refineries was a resounding success. In just 18 months, the company saw significant improvements across multiple business areas, with a particularly strong impact on inventory management, production efficiency, and distributor ledger management.
We are proud to have played a key role in helping Budge Budge transform its operations, optimize its processes, and achieve sustainable growth.
