New Delhi, June 1: Oracle India is planning a major thrust into the FMCG segment with tailored ERP solutions. As part of a worldwide marketing effort to target consumer package goods (CPG) and retail chains, the software major will flag off its India-specific initiative with road shows in Mumbai and Delhi in a few weeks time, said company officials.Oracle is already in the process of implementing an ERP package at Kellogs India as part the food giant's global roll-out plan. The company will be working closely with implementation partners such as PriceWaterhouseCoopers, Anderson Consulting, KPMG and KSA, to tap the Indian market, Oracle Corporation, director (consumer sector), Asheesh Khaneja, told The Financial Express.
The response in the Asia-Pacific region to Oracle's ERP thrust in the FMCG segment has been positive. In the last one year, the company has signed up with over 10 CPG companies in the region, said Khaneja. Oracle has specifically targetted countries such as Australia, Singapore,the Phillipines, Korea and Thailand. Road shows are presently on in China and Taiwan. The company plans to target the Asian retail segment in a big way in the coming months.
There are already over 60 global users in the FMCG segment of Oracle's ERP solutions, said Khaneja. The blueprint for Oracle's ERP thrust in the FMCG sector was drawn up three years ago with focus on food-based industries in batch process industries, said Khaneja. In the retail industry, the company zeroed in on merchandisings outlets, supermarkets and garment chains.
To help FMCG companies realise the benefits of ERP implementation, Oracle has created a customer advisory board which includes top global CPG companies such as Kellogs, Carlton, Sara Lee, United Breweries, President Foods and New Zealand Dairy group.
The company has set up industry solutions centres for CPG companies in Atlanta and Singapore.
With the Indian market for ERP solutions being price-sensitive, Oracle will put more effort in developing industry-specficsolutions, said Khaneja. The company sees a big demand in India for solutions based on supply chain automation and customer relations management.
FMCG companies will get benefits of ERP in terms of better order and supply chain management, handle higher volume of sales transaction, better financial and asset management and web-enabling of processes. The Oracle Process Manufacture (OPM) solutions, specifically tailored to the needs of the CPG companies, calls for minimum customisation and has a implementation period of around six months, said Khaneja.
The cost of implementation of a typical ERP solution, depending on number of modules, would be in the range of Rs 1 crore, said company officials.
However, Indian companies have to look beyond front-end cost of implementation and take into consideration the total cost of ownership, said Khaneja.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.