5 Tips From a Military Veteran on Maximizing the Use of SAP
The supply chain for the United States Armed Forces is a unique, beautiful, and robust system. Referred to as the “lifeline” of military operations, it is critical for the supply chain to be well-coordinated, expeditionary, and capable of sustaining the warfighter. Our Nation depends on it! Having proudly served in the U.S. Army for 21 years, I have had the privilege of working in teams that provide highly complex logistical support in both garrison and combat operations. It was an enlightening journey that came with good times, challenges, and lessons learned that I have carried forward in my journey beyond military service and into my civilian career.
From the Army to the Appliance Industry: A Shared Supply Chain Experience
My first job post Army retirement was in the appliance industry which allowed me to experience supply chain in a different capacity. Do you know what I quickly learned? Our supply chain worlds are remarkably similar, and we experience many of the same challenges. As members of the supply chain community, we are all part of an ongoing mission to serve others, responsible for creating and delivering goods to our community. Being part of a supply chain team requires a sense of dedication and commitment that often goes beyond personal gain, all in support of the greater good, sustaining the world!
Legacy Systems and the Push for Integration
In the earlier years of my Army career, we used several legacy systems to manage the supply chain, which were loosely integrated and often specific to different logistics functions. It sounds a little complicated (and I will admit it was a little tricky), but we adapted and overcame it, always making the mission happen. However, due to the decentralized nature of our supply chain network and systems, we relied heavily on manual processes and external systems to keep information synchronized across many platforms. A decade after I enlisted, the Army embarked on a journey to create a more integrated supply chain to modernize the flow of goods and information. This led to the implementation of an ECC version of SAP, known as the Global Combat Support System-Army (GCSS-Army). Designed to replace many of the Army’s logistics management systems, GCSS-Army revolutionized Defense Supply Chain Management by breaking down silos, providing real-time data visibility, improving inventory management, and significantly reducing manual processes. It was during this time that I fell in love with SAP.
We continued to learn and grow as an industry new to using SAP. As the years went by, I managed in multiple warehouses, learned new tips and tricks, and applied lessons learned. But the more we learned, I noticed there was still a bit of manual intervention required (e.g., Excel spreadsheets), reliance on paperwork to conduct research, and even the physical inventory process. We also adapted logic and practices that were used with the legacy systems, bringing past behaviors to our new SAP operations. And what does that way of thinking breed? Custom T-Codes, and manual processes! To my non-military industries, does this sound familiar?
Common Challenges Across Sectors
Every industry has its own nuances due to the nature of the business. From the regulatory constraints in the oil and gas industry, or the seasonal production and harvest cycles of the wine industry. Each organization has a unique circumstance. But one thing we all share is the need for a well-coordinated supply chain.! A well-managed supply chain supports cost reduction, improved customer service levels, and adaptability, enhancing an organization’s functionality.
5 Tips for Organizations Using SAP
Through my journey I developed some lessons learned I’d like to share with my fellow SAP users. Here are 5 tips that can help your organization maximize the use of SAP.
- Do not underestimate the power of your master data: There are multiple categories of master data that need to be managed for a smooth-running SAP system (Material Master Data, Customer Master Data, and Supplier Master Data to name a few). Each category and its supporting fields bring something purposeful and important to the table. So, it is important to put the right stuff in the right place, to get the best result. Leaving a field blank, or just throwing a generic entry into the data field will always produce inaccurate results and will cause a breakdown somewhere in the supply chain. If you put garbage into the system, the results will be… well... garbage! Every master data field serves a purpose!
- Stop the Firefighting and Manage the Exceptions: There are multiple exception monitors in SAP. As a warehouse manager, the Warehouse Activity Monitor was the tool of choice to monitor my operation. It identifies exceptions or bottlenecks in warehouses. These exceptions include delayed orders, open transfer requirements, or stock discrepancies that need attention. The goal of the monitor is NOT to show all “green lights” at the end of the day, but to provide real-time visibility into issues that may disrupt normal operations, allowing users to address them promptly to maintain efficiency, accuracy, and consistency within business processes. The golden ticket is the visibility to issues and the resolution of the constraint. If only we lived in a perfect world free of disruptions…..we would not need visibility, right?
- Everyone Wants Change but No One Wants to Change: Change is hard! When an organization must adapt to a new process or system, you will always encounter disruptions and/or resistance. An effective change management program is vital! It provides a structured approach to help organizations, teams, and individuals transition from a current state to a desired future. Effective change management programs address both the technical and people-related aspects of change to ensure smooth transitions, minimize resistance to new processes and way of working, and achieving and sustaining improvements.
- Silos are a recipe for disaster: Each part of the supply chain serves a brilliant purpose and is responsible for the organization achieving the desired end state: goods delivered to the consumer “On Time and In Full”! Let’s take the Army’s consumer as an example. The men and women fighting our nation’s wars require prompt access to the resources and supplies necessary to sustain operations and accomplish their missions effectively. Functional Silos can tear an organization’s vision apart because departments are focused on their individual objectives which may conflict with or ignore the needs of other departments. This leads to inefficiencies that slow down or disrupt the supply chain network. As supply chain teams it is our duty to provide our customers with the support they require. This is achieved through the implementation of integrated technology systems, cross-functional collaboration, and a culture of information sharing. Breaking down silos will improve efficiency, provide transparency, and responsiveness, resulting in a more resilient and agile supply chain.
- Reduce the human struggle hours: As an operations person I know how important it is for us to get the job done quickly and efficiently. And when the pressure is on, decisions must be made and executed fast. Admittedly, in the past I have resorted to the power of excel spreadsheets and manual work as a quick fix. But I soon realized that manual work is like putting a band aid on a sucking chest wound! Working outside of the system not only creates silos but generates extra work for our teams. Let’s take cycle counting for example. In the past, I manually created a list that guided the team on what items were to be inventoried during a specific period. And at times, we shut down the entire operation to conduct long, drawn-out inventory. Remember that master data we talked about? The ABC Indicator and other features in SAP could have done the work for me! The ABC indicator is like an autopilot for cycle counting program. It categorizes the physical inventory for items based on their importance and usage frequency, creating a steady rhythm of inventory checks, and prioritizing the cycle counting of high-value materials. This ensures that the most critical items are counted more frequently, reducing the risk of stockouts and discrepancies. SAP is powerful and has the capabilities to support every aspect of the supply chain. We just need to use it as intended.
A New Chapter at Reveal
I remain passionate about supply chain management and wear every part of my journey with honor. As humans, it is important that we share our experiences to help others along their journey. My journey has led me to my current role as a Business Maturity Advisor with the supply chain consulting firm Reveal! Reveal is a business powered by purpose. Our mission is to use our knowledge of the supply chain as an indispensable link toward commercial success and social good. We believe every organization and individual contributor has untapped potential to transform and succeed. We specialize in optimizing supply chain operations for organizations using SAP systems by working side by side with companies on their journey, bringing focus and attention to the enhancement of business processes, education, and leveraging existing SAP platforms to achieve business objectives.
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