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Case Study

Akboria

Service Provided: ERP Solution

Akboria is one of the oldest corporate groups in northern Bangladesh.

The major branches of Akboria are Akboria Grand Hotel, Akboria Bread & Biscuit Factory, Akboria Cookies & Premium Foods, Akboria Exclusive Sweets, Akboria Flour Mills Ltd, Akboria Dairy Farm, Akboria Printing Press & Packaging, Akboria Poly Printing & Packaging, Akboria Auto Biscuit Factory.

Their primary business practices are manufacturing goods, sales & procurement management.

Challenges

We had come across a unique problem concerning the manufacturing process of their food & bakery products- that is how to automate an age-old manual & paper-based process & make it completely relatable to normal users who will be using the system in their day-to-day activities. The concern was very genuine as Akboria relied on pen-and-paper documentation from their inception till our implementation of their new ERP system.

Keeping that concern in mind, we have successfully customized & developed a solution dedicated to all Food & Bakery manufacturing companies to automate all processes from demand collection to manufacturing to the distribution warehouse.

Solution

We, the ERP team of Brain Station 23, has helped Akboria in implementing a complete & integrated ERP solution consisting of Sales, Point of Sales, Purchase, Inventory, Manufacturing, Accounting & Invoicing, Website, Documents as well as HRMS.

Akboria starts their manufacturing process by collecting demands. The collected demands are for finished goods. In order to distribute the finished goods, they need to be manufactured first. For that, the collected demands were then handed over to the manufacturing department.

To initiate the manufacturing process, Akboria needs to collect raw materials. If the raw materials are available in the inventory, then the manufacturing process can start immediately. If any raw material is out of stock & needs to be purchased, then purchase requisitions are raised & purchase order gets created.

After receiving the raw materials into the central warehouse, they are delivered to the Manufacturing floor in order to start the manufacturing orders.

After completing the manufacturing of the finished products, they are stored into the finished goods store. Then the distribution process starts.

After the finished goods are all stored into the finished goods store, the distribution center receives the products & starts dispatching them to the destination locations.

This is the process flow of solution we provided for Akboria for their Food & Bakery Manufacturing processes

Impact

Demand Collection & Meetup: For Akboria the demands for sales are raised before starting the manufacturing process. Previously the system was paper-based because the demands used to come via different sources in a document format. Akboria needed to collect those documents, list down the total number of demands & then sum them in order to send them to the manufacturing unit to fulfill the demands.

Return Management: At one hand Akboria is raising the demands for their sales order, on the other hand return goods are getting received by Akboria also.

The return goods can be of two types:

  • Good return: The products or goods that are in good condition but still get returned.
  • Damaged return: The products or goods that are damaged and rejected.

Previously Akboria faced a lot of problems handling the returns. As it needed manual intervention & was paper-based in the past, Akboria faced a lot of issues in managing the total number of return goods. Most of the time the returned product numbers didn’t match, which created a lot of inconvenience for their management team.

Cash Collection: Besides collecting the demands & receiving the return goods, Akboria had to deal with the cash collection part also. So, the whole cash collection was a manual process previously. While collecting the demands or receiving the return products, they used to collect the cash amount also. But often time collecting cash manually lead to data manipulation which was not beneficial for Akboria’s business.

Forecast for Manufacturing: To meet the demand, Akboria needs to manufacture the goods that they need to sell. Exactly how many products they need to manufacture depends on two things:

  • Demand: Demand is what determines Akboria’s production forecast. After collecting the demands Akboria gets a clear idea of how many products need to be manufactured.
  • Historical data-based forecast: Akboria is a company that is in the market for over a century. So, they have strong historical data that they used to determine the manufacturing forecast.

Based on this information, Akboria decides how many products they need to manufacture to meet that day’s demand. Previously Akboria used to do all these manually which would cost them huge time & effort.

Purchase & Purchase requisition: After Akboria determines the manufacturing quantity, the next thing they need to ensure is whether they have the raw materials in stock. If they don’t, then they need to raise requisition for those raw materials.

But before raising the requisition, Akboria needs to aggregate the raw material quantities for all the products they need to manufacture. Akboria makes a grand total of these raw materials, and then raises a requisition to the central warehouse.

The purchase unit then purchases the goods & then supply those back to the manufacturing units based on the needs of each manufacturing work center.

Previously when Akboria was dependent on manual intervention, it was hard for them to accurately determine how much raw goods they need to purchase or for how much raw goods they need to raise the requisition. It used to lead over purchasing or under purchasing which wasn’t very fruitful for their overall operation.

Our intention was to automate the whole system solving all these pain points effortlessly & make the system paperless & as much adaptable as possible maintaining the convenience. And that’s what we have successfully achieved utilizing Odoo.

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