1.  Purchasing Quality based pricing for milk procurement.The price for procured milk needs to be determined after receipt of milk and post testing of milk. Quality based pricing of cattle feed.Cattle feed price is also determined after receipt of material and post quality testing of the Cattle Feed. Integration with weighbridge to record the quantities of milk in Oracle Applications at the Chilling centers and Banas main plant.  Sales Quality based pricing for liquid milk sales to Mother dairy and other Unions Maintaining EPCG annual status Consolidated monthly invoicing for DP series sales. Major Issues

2. SALIENT FEATURES IN PROCUREMENT THE MILK PROCUREMENT QUANTITY IS NOT FIXED AND BANAS NEEDS TO ACCEPT ALL MILK THAT IS BROUGHT BY THE SOCITIES THE GRADING OF THE MILK IS ONLY KNOWN AFTER IT IS RECEIVED. THE PRICE OF MILK IS DETERMINED ONLY AFTER THE TESTING OF THE SAME HAS BEEN DONE AND THE %FAT AND %SNF HAVE BEEN DETERMINED. THE INVOICE CREATION FOR SOCITIES IS NOT AGAINST EACH RECEIPT AND IS CONSOLIDATED WEEKLY. THE CATTLEFED PROCUREMENT INVOLVES PAYMENT OF AN INCENTIVE/DEDUCTION A PENALTY WHICH IS DETERMINED AFTER QULAITY TESTING OF THE MATERIAL AND IT IS HANDLED THROUGH A PRICE DIFFERENCE STATEMENT.

3. PROCUREMENT PROCESSES

4. Raw Milk receiving Dock (RMRD) Capture Time of Truck Arrival Grading of milk (Odor Test) Good Milk Receiving and Weighing RMRD OPM Process Execution Calculate Price of Received Milk Based On Test Data Create AP Invoice For a Society for a Period Extension To Store Pricing Info And Calculate price based on each Receipt Select Receipts for a Time Bucket for AP Invoice creation Consolidate To create one Invoice For a society for a Week Extension to display all receipts from A society for a time period with The applicable price for each receipt Raw Milk in cans from CS End to End process flow & Solution Map for Milk Procurement Process Curd/Sour Milk/ Abnormal / Adulterated Milk A Send Sour Butter from Chilling Center to Banas Dairy OPM Inventory Oracle Purchasing Sour Milk Testing For %FAT and %SNF Capture in DFF Calculate Penalty For Society/Contractor And create debit Memo Extension To Calculate Debit Memo Amt and populate AP interface Create Weekly Invoice Use AP open interface To create credit/debit Memo based On PDS

5. Create Purchase order For RM Purchase Receive Material after Acceptance for Unloading /Specify Location Oracle Purchasing PO hierarchy For required Approval by audit And MD Oracle Purchasing Calculate Price of Received RM Based On Test Data Create credit/debit Memo for premium/ penalty Extension To Store Pricing Info And Calculate price based on each Receipt Create Price Difference Statement For Each Receipt Use AP open interface To create credit/debit Memo based On PDS Report to display all receipts from A supplier for a time period with The applicable price for each receipt Production Plan End to End process flow & Solution Map for Cattle Feed Procurement Process Prepare the GR cum Invoice of received materials truck wise. Maintain Stock Info for Govt Audit OPM Inventory Capture Test Results OPM Quality QA Testing Accept/Reject Oracle Purchasing Oracle Purchasing

6. Solution Challenge – Milk Procurement  Business Process – Milk received twice a day at the dock (@ 200 Societies, 3 hours, different milk type) – Received Milk immediately taken up for next process – Chilling or Standardization – Type, Quantity, Quality determined  Interface with machine for Weight, Quality tests – Milk Payment processed based on Type and Quality of Milk – periodic basis – Different views of Milk  Payment – Cow / Buffalo / Mixed  Inventory - Milk  Production – FAT / SNF  Costing – FAT / SNF – Milk Receiving at Chilling Centres (remote locations in the district)  Issues with Solution Mapping – High Transaction Volume in a short span – Oracle Apps Process  PO -> Rcvng -> Quality Test -> Delivery -> Invoice  Direct Machine interface for weightment – Cannot create a manual PO  Price gets determined only after Quality test  PO price / Invoice price used for average costing, PPV generated for standard costing – Inventory Item – Milk or Individual Milk Type  Formula definition – WAN connectivity may not be stable impacting online operations

7. Solution Challenge – Milk Procurement  Current Solution at Dudhsagar – Legacy application captures milk receipts without any PO, interfaced with various devices – Price calculated as soon as quality results are entered – Interface pulls milk receipts every 1 hour  Creates PO based on total quantity rcvd in 1 hour  Only receipts with quality results are considered  PO based on price calculated by legacy  Cow / Buffalo / Mixed Milk received as ‘Milk’ Item in Inventory  FAT / SNF captured in flex fields  AP Invoice generated automatically through Pay on Receipt Functionality  Advantage – Will work with any costing method selected – Milk brought in as single inventory item, while classification of milk from payment perspective is retained in legacy system – Legacy System is on stand alone server at respective chilling centre, reducing the dependency on WAN availability  Disadvantage – Corrections to data after interface run  Reconciliation between systems  Corrections posted to Inventory and AP  Corrections to FAT/SNF can not be posted