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1 SCM Consulting Solutions Customer Reference for: MRP Monitor, Service Level Monitor A Company from the Food Industry
2 General conditions in the company 9,500 material master records Growing material range High price increases for some raw materials Many follow-up materials and dropouts Unclear strategy regarding how materials should be planned No standardized guideline for parameterizing materials 2011 SAP AG. All rights reserved. 2
3 Challenges Stock distribution improvement Decision on MTO/MTS difficult, unnecessary destruction of material because of expiry date overruns Inactive materials and their stocks difficult to identify Stocks and ranges of coverage Delay in adjustment of MRP parameters to life cycle No system support for the implementation of existing SCM strategies High manual effort for material data maintenance in standard transactions No central selections and specifications for material groups Master data quality No range of coverage reporting No clear identification of material groups and segments Classification as basis for broken-down system forecast and in particular prioritized sales planning APO-DP required Analysis support 2011 SAP AG. All rights reserved. 3
4 The solution: MRP monitor Analysis of past time series, classification of material ranges, and determination of MRP- and decision-relevant KPIs The MRP monitor uses all relevant material movements from the past to determine the ABC-XYZ classification of each material and calculates important key figures such as dead stock, ranges of coverage, and inventory turnover. The MRP monitor provides integrated support for material master maintenance through classification-based monitoring and parameterization of all materials across their entire life cycle. The MRP monitor helped overcome the challenges with the following functions: Fast and direct identification of materials with similar properties Stock reduction and avoidance of destruction of material due to expiry date overruns Direct support for planning strategy change (MTS/MTO) Fast determination of dead articles Ongoing adjustment of MRP parameters to life cycle Monthly check and monthly update of various parameters in the material master 2011 SAP AG. All rights reserved. 4
5 The solution: Service Lill monitor Determination of service levels and actual delivery times, evaluation of sales orders and stock transfers Configurable aggregation level, material, and customer Confirmations and deliveries are determined for selected sales order items/stock transfer items. The result list provides the following key figures: Delivery service, delivery performance, delivery reliability, requested delivery time, and actual delivery time Orders delivered in full, ordered partially delivered, orders not delivered Key figures are aggregated during the month and by selectable aggregation objects The service fill monitor helped overcome the challenges with the following functions: Measurement of delivery performance by customers can be compared with own measurements KPIs: Service level key figure (KPI) Determination of other process performance indicators (PPI) during the project: Delivery performance, delivery reliability Initially, the main focus was not on the key figures, but they are now being used to analyze individual areas in more detail Transparency regarding up-to-dateness and promptness of posting transactions 2011 SAP AG. All rights reserved. 5
6 Customer benefit and value Direct benefits: Stock reductions and avoidance of destruction Own measurement of service quality for comparison with customer evaluations Central key figure determination and rollout of central specifications for locations in several countries Process improvements: Specific, controlled distribution of ranges of coverage to material classes High quality of master data, checked regularly Rapid reaction to changes in market behavior Classification provides basis for broken-down system forecast and in particular prioritized sales planning APO-DP 2011 SAP AG. All rights reserved. 6
7 Key figure development Start of solution use February 2011 Stock value reduced Service level + 1.5% Because of the high fluctuations in raw material prices and numerous introduction and discontinuation processes, it is difficult to name credible key figures 2011 SAP AG. All rights reserved. 7
8 Rollout planning Solutions are used in locations in several countries Rollout of determination of service level for intercompany supply relationships currently in preparation Introduction of other solutions from the SAP SCM Consulting Solutions Suite being considered: SAP inventory cockpit: Transparent inventory controlling with history and variable aggregation objects 2011 SAP AG. All rights reserved. 8
9 Thank you! Marc Hoppe Consulting Manager Supply Chain Management Grosser Grasbrook Hamburg, Germany M.: E:
10 SCM Consulting Solutions SCM Consulting Solutions with ERP 1.1 ERP01: MRP monitor( ) 1.2 ERP02: Simulation of safety stocks ( ) 1.3 ERP03: Simulation of lotsizes ( ) 1.4 ERP04: Forecasting monitor ( ) 1.5 ERP05: Servicelevel monitor ( ) 1.6 ERP06: Replenishmentleadtime monitor ( ) 1.7 ERP07: Backlog monitor ( ) 1.8 ERP08: MRP Error monitor ( ) 1.9 ERP09: Inventory controlling cockpit ( ) More Infos can be found: SCM Consulting Solutions with APO 2.1 APO01: Changelogmonitor ( ) 2.2 APO02: Lifecylceassistent ( ) 2.3 APO03: Forecastingleveloptimierer ( ) 2.4 APO04: Mising Parts Infosystem ( ) APO05: esoa Masterdatacockpit 2.6 APO06: Masterdatacheckmonitor ( ) SCM Consulting Services 3.1 OPT01: Forecasting optimization ( ) 3.2 OPT02: MRP optimization ( ) 3.3 OPT03: Backlog reduction ( ) 3.4 OPT04: Distribution optimization 2-nd Edition, Nov SAP AG. All rights reserved. 10
11 2011 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle and Java are registered trademarks of Oracle and/or its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG SAP AG. All rights reserved. 11
Customer Reference for:
SCM Consulting Solutions Customer Reference for: MRP Monitor, Forecast Monitor An Engineering and Construction Company General conditions in the company Around 5,000 active material masters in the forecast
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