Introduction
A manual inventory management process was replaced with a system oriented, dynamic inventory planning approach in SAP APO and ECC. Customer Service metrics and OTIF rates improved significantly while seeing working capital reduction.
The company’s top objectives
Improve customer service levels and business performance metrics
Automate inventory management processes and eliminate guesswork oriented or rule-of-thumb based safety stock calculations
Address stock-out issues for A and B items and overstocking of C items
Improve supply chain visibility across network and reduce impacts of bull whip effect due to manual and labor intensive forecasting and supply chain planning processes
The Solution
Built an Inventory Right Sizing Matrix which allowed for SKU segmentation by ABC classification and velocity of consumption, which drove specific SAP master data, inventory management parameters.
Configured SAP ECC based automated Safety Stock and ROP calculations, use of Dynamic Safety Stock, time fences, statistical forecasting to generate more accurate forecasts using advanced forecasting models, exception management and performance reporting.
The key benefits
Improved customer service and right sized inventory levels
Optimized forecasting and supply chain planning and scheduling processes yielding higher efficiency, productivity and business adoption.our search engine rankings.
