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Flocking to the Future: PCF flies high with SAP S/4HANA and IBM Consulting
Premium Chick Feeds uses SAP S/4HANA to integrate existing IT systems and streamline business processes across all locations, enabling them to become one of India’s top three breeders, hatcheries and retail players
India’s poultry industry has become one of the fastest-growing parts of the country’s agricultural sector in just about four decades. According to statistics from the Department of Animal Husbandry and Dairying, in 2023, poultry production has grown by leaps and bounds1. Thereby, making India the third largest producer of poultry meat and eggs in the world, with an annual production of ~5 million tons of chicken (up 4.52% YoY) and 138.4 billion eggs (up ~7% YoY) .Investments in the breeding, hatching, rearing and processing of chicken have been responsible for a major transformation in the industry in around four decades.
According to EMR market research, the Indian poultry market, currently valued at USD 30.46 billion, will continue to grow at a Compound Annual Growth Rate (CAGR) of 8.1% to reach approximately USD 61.41 billion by 20322. The continuing growth and expansion of the industry will increase the need to streamline and organize operations and integrate processes.
1. Animal Husbandry Statistics (AHS), Department of Animal Husbandry and Dairying, 20 June 2023.
2. India Poultry Market Size, Expert Market Research, 2024.
A Robust Business Model to integrate end-to-end processes
Premium Chick Feeds (PCF) is one of India’s leading integrated poultry farming companies with business operations in states including Maharashtra, Andhra Pradesh, Karnataka, West Bengal, Tamil Nadu, Assam, Orissa and Telangana. It faced a challenge in maintaining and expanding its value chain framework over the wide network of 15000 contract farms.
Moreover, the existing IT system of PCF wasn’t completely integrated and didn’t address the end-to-end processes in the value chain.
Its feed planning solution, based on the growth schedule of broiler birds in farms, did not cater to the complexity of their feed requirements. The rapid distribution of bird vaccines and strategic management of vaccine inventory across several branch offices had become a necessity.
PCF was searching for a robust business solution, that would help the company become one of India’s top three breeders, hatcheries and retail players by streamlining and standardizing their processes to ensure uniform data availability.
“We needed a supply chain that would address the distribution of feed, medicines and vaccines across all poultry farms from feed mills in the country by redesigning the distribution network,” says Ashoak KR Tyagi, CEO of Premium Chick Feeds.
Automation of the live bird dispatch process by recording the “Catch Weight” of birds dispatched, for easy calculation of sales was also becoming the need of the hour.
Having a real-time analysis of bird stock and sales demand reporting would allow PCF to make more informed decisions on livestock movement, apart from creating a user-friendly interface and improved user experience for employees and customers.
Keeping these factors in mind, PCF decided to implement SAP S/4HANA on cloud, with IBM® being chosen as the implementation partner owing to its strong S/4 HANA delivery capabilities and its experience in the poultry industry.
IBM launched “Project Udaan” to co-create a future-ready platform on SAP S/4HANA and cover the company’s core business processes of procurement, materials management, production planning, sales, distribution and finance.
How was this implemented? IBM helped PCF fully and natively integrate its core business processes with a single data model to ensure complete business visibility.
The process efficiencies improved and were standardized across various functional areas. PCF is now able to make quick and effective business decisions through real-time insights, getting granular visibility into its costs and profitability across various regions and profit centers.
PCF had a decentralized process across all their branch locations and its supply chain for feed and vaccines was often disintegrated. The chick placement process and the bird lifting process for dispatch reconciliation were both manual.
The manual calculation of charges—apart from a manual auction and purchase price negotiation process was turning out to be extremely cumbersome and time-consuming.
The implementation of SAP Ariba Sourcing—IBM’s cloud-based procurement solution, allowed PCF to effortlessly streamline and optimize its sourcing processes when it came to procurement and supplier management.
The planning for feed requirements based on the age of the bird and weight-based bird lifting and sales recognition were also integrated. The calculation of growing charges and payments and auction and supplier recommendations were automated as well.
Using SAP S/4HANA and SAP Ariba Sourcing completely transformed the processes used by PCF and enhanced user experience.
The company was able to effectively add or remove farms far quicker and have a unified platform encompassing various business processes–including finance, sales, procurement, inventory and contract farming management.
There was no longer data duplication and reconciliation between disparate systems.
The implementation of a future-proof IT platform by IBM empowered PCF to venture into new business areas beyond poultry farming, thereby, creating a massive business impact.
Implementation of SAP S/4HANA has been transformative for PCF. The scalable enterprise resource planning (ERP) system has enabled rapid expansion, streamlined automation and enhanced process controls. By integrating various business functions into a single source of truth—PCF has achieved greater efficiency and accuracy in its operations. Furthermore, this future-proof IT platform positions the company for growth—supporting current operations and enabling entry into new business areas beyond poultry farming. This strategic move not only optimizes current processes but also sets the stage for continued success and innovation.
Premium Chick Feeds (PCF) (link resides outside of ibm.com) is one of India’s leading integrated poultry farming companies—with their business operations covering the breeding, hatching, growing and marketing of broiler chicken, as well as the production and selling of poultry feed. The company is also involved in the production and selling of broiler chicks, table eggs and layer chicks. PCF started its operations in 1991 with the feed production business and expanded operations to Maharashtra, Andhra Pradesh, Karnataka, West Bengal, Tamil Nadu, Assam, Orissa and Telangana.
PCF has an expansive network of 400 centers and 15000 contract farms across India.
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