Case Study

THE CLIENT

S.K Logistics is a leading importer, exporter of bulk drugs, chemicals and pharmaceutical formulations in India. The scope of their operations entailed receipt, storage, picking and packing, delivery as well as collection from hospitals. Products focused on diverse medical verticals particularly Oncology, Virology, Critical care and vaccines are delivered across prestigious hospitals in Mumbai.

THE CHALLENGE

In order to cater to the increasing demand for services S.K Logistics had constructed a state of the art Pharmaceutical warehouse with innovations in storing, material handling, temperature monitoring and security systems. The IT infrastructure of this new hub was integrated with the Enterprise MIS of their clients. The firm was assigned the role of a linkage in the supply chain of the client and the relationship was more centralized. S.K Logistics had limited access to specific modules of client ERP/MIS. This brought in certain local level constraints which were not addressed by the client’s MIS.

The key IT operation

The key IT operations at S.K Logistics involved –
Updating how much material has been dispatched to which customer on a daily basis in client’s ERP
Updating receipts from customers, amount receivables, advance etc in client’s ERP
Due to limited customization provision available in the ERP S.K Logistics was finding it difficult to deliver reports in a format prescribed by the client. This had in turn resulted in S.K.L relying on legacy tools as Excel for daily updating and reporting in order to conform to the reporting format. The limited levels of aggregation available in Excel were however able to capture and output only few levels of business information. A vicious cycle of issues, solutions and resultant issues was affecting efficiency across the organization.

PROBLEM SOLVING

We at Vritti Solutions Ltd. initiated our engagement with S.K Logistics by getting a more detailed picture of their business process. Understanding the proper context our functional consultants over a series of discussions recognized that S.K Logistics was in need of an MIS which was more localized, customized and focused on specific modules as compared to their client’s enormous ERP system. However it was to encompass the functionalities of more than an IT enabler such as MS-Excel. There was the need for a customized IT solution which would bring in better visibility of sales and finance functions at S.K Logistics, the same to be relayed to their international clients on a continual basis. The development team at Vritti over a period of 1 month delivered a customized software solution with key capabilities.

BENEFITS

The benefits of the new MIS have been captured at different levels through rigorous qualitative and quantitative surveys across S.K Logistics by our Marketing team. The benefits at – Information quality, System quality and Individual employee impact levels have been identified in the preliminary enquiry. The cumulative results of this survey have been detailed in the charts.

THE ROAD AHEAD

In the medium run, Enterprise management Information Systems (MIS) deliver benefits at operational level which over longer terms are reflected in the financial metrics of the organization as well. It has been proved through research that ROA and COGS show significant improvements with the incorporation of MIS.
S.K Logistics is currently in the shakedown phase of MIS implementation. This phase entails a synergy between the system, the business process and the human resources. With the expansion in their business in the future, they would enter the upward & onward phase of MIS. This might bring in process related; system related as well as plan related issues.
Our engagement with S.K Logistics will continue to derive relevant solutions, the probable ecosystem of which includes technical upgrading, additional skill building, technical audit etc.
The primary drivers of this relationship are our aspirations and commitment to evolve continually with our customers.

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