ITC- MIS Case Study

INTERNATIONAL INSTITUTE OF PROFESSIONAL STUDIES

MIS CASE STUDY: ITC PVT. LTD (FMCG) Project Mentor: Dr. Preeti Singh. Reader, DAVV-IIPS

Submitted by: Avijit Singh Thakur (IM-2K8-14) Kaur Khanuja (IM-2K8-31)

Harpreet

THE ITC PROFILE:ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

HISTORY AND EVOLUTION:-

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment

at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008. Board of Directors CHAIRMAN Y C Deveshwar EXECUTIVE DIRECTORS Nakul Anand

P V Dhobale

K N Grant

NON-EXECUTIVE DIRECTORS A Baijal S H Khan H G Powell Basudeb Sen

S Banerjee S B Mathur P B Ramanujam K Vaidyanath

AV Girija Kumar D K Mehrotra Anthony Ruys B Vijayaraghavan

The Middle and Lower Level Organizational hierarchy(FMCG):-

NATIONAL SALES MANAGER DISTRICT MANAGER REGIONAL SALES MANAGER BRANCH MANAGER ASSISTANT BRANCH MANAGER AREA MANAGER AREA EXECUTIVE SALES TRAINEES APPLICATION OF MIS IN ITC(FMCG) :We visited the authorized distributor of ITC(FMCG) Indore, Advanced Marketing Pvt. Ltd, located at Press Complex, near Dainik Bhaskar office.. The Indore distributor of ITC ltd. is utilizing the information system in every possible stream

to standardize, bring uniformity and enable proper storage and analysis of data. The various fields using information system include finance, marketing, human resource management, security, inventory management, costing, discounting etc. A well developed information system at ITC has helped the organization in several ways, some of the important key points are given below.

SOFTWARES USED:1)

SAP :- used at the headquarters.

2)

FORUM:- used at every distributor’s point Both of these softwares have been developed by WIPRO for ITC ltd.

The number of retailers in a particular area or divison is limited in number, and they increase in a slow rate of about 10-12% annually. All the retailers are registered in the FORUM at the distributor’s point, with an individual accounting head. All the relevant transactions are recorded exclusively for each retailer. BOTTOM TO TOP INFORMATION FLOW:-

Bills generated daily are punched in FORUM at the end of day. Receipts generated daily are punched in FORUM at the end of day. Damage entry (record of damaged goods with the retailers) is punched in FORUM to provide replacement or credit note to the retailers. There are few regular processes carried out in order to maintain the standard flow of information throughout the organization:1) A process called CLOSING PIPELINE SINK is carried out daily at the end of the day, in which the present level of stocks, the new deliveries being made and inventory position data is merged with the data in FORUM. It is later on merged with SAP at national level.

2) A process called SALES SINK is carried out weekly, at 7th, 14th, 21th, and last date of every month. Here, the revenue generated in every week is merged with the sales data in FORUM, which is later extracted into the databank present at the headquarters. The above processes are together termed as the DATA SINK process, where the sales executive or the Area Manger punches the bills and receipts with the FORUM, and perform ‘exchange documents to sales portal’ function in the ‘DAY-END PROCESS’ of the FORUM. It is an automatic feature of FORUM, the data generated at the lower level of management, and the data present at the headquarters, merges automatically. 3)A process called CUSTOMER PRODUCTIVITY ANALYSIS is carried at the end of the month, to find out that which retailers are purchasing which items respectively. This study is carried out in order to trace out who are the bulk buyers, which area is having a demand for a specific product, and which retailers are producing better/poorer sales than before.

TOP TO BOTTOM INFORMATION FLOW:The information which is communicated from the top level management to the bottom level are mostly relating to strategic issues. Such information is used as the basis to perform business at the lower level. SCHEMES:- While preparing the bills, or placing orders for various retailers, the FORUM shows the various schemes related to those products which are being ordered by the retailers. Such schemes are predefined by the top or middle level management and then communicated to the lower level through FORUM. DELIVERY:- As the distributor communicates the data regarding the present level of stocks present at the distributor’s warehouse, the head office comes to know when to deliver the next stock. Thus, delivery of the new stock does not take place through telephone order, but by inventory level of the warehouse.

DISCOUNT:- Every distributor is provided with a certain amount of discount quota which he can manage himself to boost the sales in his territory. This level of discount is communicated through FORUM, and the discount varies from product to product depending on the demand of product in that particular area. Thus, MIS has helped a lot in conducting business and floating information throughout the organization efficiently in ITC ltd..