High Q Packaging Folding Cartons Leaflets System Solutions
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1 High Q Packaging Folding Cartons Leaflets System Solutions Supply Chain Management SAP Forest Products, Paper, and Packaging Forum on 21 st October 2015
2 Edelmann facts and figures Edelmann is growing in 2015 Family owned company Continuity Turnover 233 Mio. Internal Growth up to 254 Mio. 13 plants 14 plants (Porto Alegre, Brazil) Premium and Pharmacy Core Markets staff members staff members Folding Boxes and Leaflets + Rigid boxes Edelmann Supply Chain Management - 21st October
3 Edelmann strategy international expansion and profitable growth Norderstedt Wuppertal Bitterfeld Leverkusen Mexico France Poland Hungary India China Weilheim Heidenheim Lindau Brazil Folding cartons: Leaflets: Heidenheim Weilheim Bitterfeld Norderstedt Wuppertal Mexico France Poland Hungary China India Brazil Leverkusen Lindau Poland Edelmann Supply Chain Management - 21st October
4 Edelmann is present on 3 markets to split risk Health Care / Pharmaceutical 40% Beauty Care 40% Consumer Brands 20% Ethical Medicinal Products OTC Diagnostics Generics Perfume Skincare Cosmetics Make-up Hair Coloration Personal Care and Hygiene Food and Confectionary Tobacco Consumer Goods Edelmann Supply Chain Management - 21st October
5 Edelmann IT is driving change CIO is member of the Edelmann executive board CIO is in charge for Supply Chain Management, too SAP is the ERP solution Collaborations with business consultancies: Dr. Lauterbach & Partner - template Fujitsu TDS hosting ITeanova planning ORSOFT VMI IT Infomatik data conversion SAP Hungary role-out i.e. Edelmann Supply Chain Management - 21st October
6 Edelmann IT current projects in 2015 Just-in-Time project (ZMI Bayer) VMI project Pfizer Puurs EDI projects Carl Zeiss Meditec Daiichi Sankyo 3M SAP implementation at Edelmann Hungary Carve-out of Edelmann plant in Heidenheim Edelmann Supply Chain Management - 21st October
7 Edelmann business model has changed Production batches are getting smaller Number of orders increase Customer wants no more stock Delivery date has become even more important Worse production planning extra-shifts in one week empty-shifts next week changing bottlenecks in production General cargo (1 to 6 pallets) Faster time to market Edelmann Supply Chain Management - 21st October
8 Customers...demand more than just good folding boxes Traceability of deliveries Handling Unit Management Serialization Deliveries from different production sites to avoid dependence from one production site Supply Chain Integration Electronic Data Interchange: Orders, order confirmations, invoices Vendor Managed Inventory Just-in-Time delivery System supplier: box leaflet label Edelmann Supply Chain Management - 21st October
9 Edelmann Lean improves performance and agility in manufacturing Implementation of Lean Processes SMET, 5S, zero defects New planning rules Customer delivery date is highest priority Backward scheduling against finite capacity Orders on bottleneck machines are planned first Laminating and hot stamping Edelmann Supply Chain Management - 21st October
10 Edelmann Connectivity improve our performance and agility in order handling Costs Process cost reduction (no paper) Inventory reduction Automatic data transfer and order creation No loose of data safe transmission Improved data quality Time gain Self-responsible production due to forecasts and defined rules More than 100 million revenue through connectivity Edelmann Supply Chain Management - 21st October
11 Edelmann had to adjust the IT strategy to become more customer oriented.. In 2008 we decided to extend SAP by ORSOFT Easy to customize Client-Server system User-friendly presentation of data Avoiding modifications in SAP To improve our project lead time Outsourcing of data conversion and network monitoring IT to focus on project management Cross department, customers, suppliers, service provider, international Edelmann Supply Chain Management - 21st October
12 Competent partners for flexibility and rapidness in the transformation of VMI requirements Customer Provider Edelmann Provider Customer Inventory planned demand Conversion SAP ORSOFT SAP Conversion Order proposals Orders Changes Primary demand disband in secondary demand ORSOFT reads SAP data and transfers data to SAP Calculating algorithms run in ORSOFT Configuration instead of programming Edelmann Supply Chain Management - 21st October
13 ORSOFT displays when the employee has to do something VMI-materials are predetermined VMI-data is imported from the ORSOFT workbench in SAP Each material has one line The employee only has to intervene in case of x Edelmann Supply Chain Management - 21st October
14 Incoming Replenishment Request Client announced demand Workbench sums up wip, inventory, customer demands, goods in transit Shortage is displayed Edelmann Supply Chain Management - 21st October
15 VMI-Process Creation of an proposal A proposal for the shortage is created automatically by the system according to defined parameters Proposal is transferred to SAP Edelmann Supply Chain Management - 21st October
16 Edelmann standard EDI connectivity with suppliers and forwarders forecast SAP CE forecast order status delivery invoice transport delivery monitor transport order stock transfer order / shipping order transfer / ship. status transport invent. rep. order status / freight invoice connectivity based on SAP Handling Units Edelmann Supply Chain Management - 21st October
17 Edelmann Investments and resources for Supply Chain projects 3 full time IT equivalents Supply Chain projects with customers Supply Chain integration of logistics and suppliers Ongoing support out of pocket spends per year Software maintenance Network monitoring Data conversion Travelling Edelmann Supply Chain Management - 21st October
18 Close Collaboration with our Customers.Customers define KPIs to measure Edelmann.. Edelmann to run projects to meet KPIs Leads time On time in full Stock level Response to customers request All customers use the same KPIs Edelmann Supply Chain Management - 21st October
19 Performance KPI..Supply Chain Partner obtains a bigger slice of the cake.. Edelmann Supply Chain Management - 21st October
20 E-Business and Vendor Managed Inventory our expertise is the advantage of our customers Edelmann offers IT flexibility EDIFACT, ANSI X12, XML, etc. Customer requirements - implementation by simple parameterization We offer competence Workshops for customers and suppliers Project Management IT Integration with logistics and suppliers Transport orders Order picking Just in time Call offs of row materials Edelmann Supply Chain Management - 21st October
21 Edelmann learnings and findings All big customers built dedicated Supply Chain organisations Supplier has to reflect this on his site Digitalisation of sourcing processes Work model in sales change Importance of Supply Chain and IT team rises Edelmann Supply Chain Management - 21st October
22 Edelmann learnings and findings High level of IT standardisation is necessary All Edelmann SAP sites are able to use once developed solutions All customers have different connectivity needs Continuous improvement in manufacturing processes Change management, change management, change management Edelmann Supply Chain Management - 21st October
23 A powerful supply chain is key for success at the market place Ongoing optimization of Edelmann production system Standardization of processes within Edelmann Group Keep high SAP IT standards within Edelmann Group Use of EDI / VMI customer as supplier Standardization of raw materials Supply Chain Management is the requirement to be a tier one supplier Edelmann Supply Chain Management - 21st October
24 Questions Contact information: Ulrich Freiherr von Waechter Director IT/Business Processes and Materials Management Member of the Board Carl Edelmann GmbH Steinheimer Straße Heidenheim Edelmann Supply Chain Management - 21st October
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