FEATHER Mattress

Enterprises

Company

Current Revenue 50 Crores, Forecast by 2015 -80 Crores

Margin Mattress (20-30%), Bed Sheet etc. (3-5%)

Number Of Outlets -18, Forecast by 2015 - 30

Existing Information Exchange System

Tally for individual retail outlet accounting operation.

Inventory audits every 3 month.

SMS Standard form of Communication to track order

and sales.

No Integration between outlet.

Working
Capital,
Invoicing
&
Inventory
Managem
ent
Customized
Orders

Working
Capital

Inventory

(Multiple)

Invoicing
and
Inventory
Managem
ent

Retailers

Accountin
g and
Billing
Data

Order
Processin
g
(Multiple)

Procureme
nt Data

Order
Processin
g

Distribute
rs

Manufactur
er

Order

Featherhe
ad

Information Flow

Challenges

Keeping pace with information exchange across the supply

chain with current Management Information System.

Increase in Working capital requirement (security deposits)

Increase in Inventory across new Stock Keeping Units.

Difficult to keep long record of transactions.

Data Security- Risk of mobile phone being compromised.

ERP System Analysis

Investment , Expected Returns Ease of

Implementation ,Scalability Reliability Risk ,Security.

Financial analysis of competing scenarios is difficult with

the given data.

ERP Implementation cost 20-25 Lac is 0.50% and Yearly

Servicing cost is 0.1% of current yearly revenue.

Advantage of ERP
Time:

Faster order fulfilment across the supply chain

Scalability

Lower Incremental costs of expansion

Data

Security

Secured sign-on of retail shop partners

Integration

Real time processing of data

Conclusion
Mr. Navin Jain should implement ERP system. Financial cost of
ERP system can be funded from the operating profit easily, also
ERP system can address the challenges faced at this time and
contribute to below critical success factors effectively.

Turnaround Time

Scalability of Business

Data Security

Synchronization across different functions (Finance, Sales,

Procurement, Supply Chain)

Thank you!