Supply Chain Optimization
— Benjamin Franklin
One of the most strategic and complex investments companies make is implementing SAP to help them run and scale their businesses. We have found most companies struggle to achieve the return on investment they expected during SAP implementation, often reverting back to spreadsheets, old processes and methods to manage their operations.
We enable companies to achieve the return on investment they expected during the original SAP implementation — in a sustainable and cost-effective manner. Our ongoing VALUE optimization® (oVo®) methodology can be applied to various functional areas of the SAP environment but always in the context of the broader, end-to-end supply chain of the business. Our success is a result of helping clients become more agile and knowledgeable in utilizing SAP as a catalyst to reduce costs, improve service levels and inventory performance and drive digital innovation.
Our strategy at Reveal is to drive an integrated approach that encompasses people, process and the smart use of SAP. This includes education to optimally use the functionality and applications that already exist in your system, managing the rules (master data) to manage the business, move from constant fire-fighting to exception management, breaking down the organizational silos by introducing a cross-functional team approach and setting performance targets across multiple measures and track performance.
Benefits Of An Optimization Initiative
Based on 25 years of supply chain management experience, our clients have realized the following business gains:
- Reduction of inventory by at least 15%
- Improvement of turns by at least 17%
- Improvement of service levels by at least 20%
- Increased process efficiency by at least 20%
- Reduction of operation cost by at least 10%
- Shorter Month-end closings
- Increased data accuracy and user confidence
- Improvement of management control and decision-making
- Increased visibility across the entire organization
Watch Campbell’s Optimization Story
A supply chain-oriented organization is the sum of all its parts, as is each product supply chain a micro-supply chain within the larger extended macro-supply chain. The complexities of “my” supply chain create complexity in my customer’s supply chain that uses my product to make another product that becomes an assembly part for that customer’s customer and so on until it reaches the consumer.
So how do we tackle this increasing integrated complexity? We begin to address the integrated issues in-house. As we do that and expand into our extended supply chain, we influence others to follow suit, until the tipping point is achieved, at which point like-minded organizations will be driving behaviors within that will ultimately optimize an end-to-end macro value chain.
Our strategy at Reveal is to drive an integrated approach that encompasses people, process and the smart use of technology. This implies optimally using the functionality and applications that you already have in the smartest way possible. This comes down to managing the integration points within the business, breaking down the organizational silos and managing the rules (master data) to manage the business.
True transformations come from directional change. Change for the sake of change is uncontrolled chaos. When Spanish Conquistador Hernando Cortez landed on the shoes of the new world in 1519 he burned his ships as a symbol that “there is no turning back”. As symbolic as that maybe it is also creating directional change. The goal was clear, the direction had been set, the path laid out and the option to return to the old world was eliminated. Cortez was a driven leader. He had a clear mission and it was all or nothing. He removed the option of failure and motivated towards the common mission.
We believe that the SAP system should be owned by the business area, with IT to support them.
We, therefore, integrate change management into our approach throughout the process the oVo® methodology provides solutions that are aligned with best practices, standard SAP (as much as possible) and easily adopted by the user base. We help break down silos often found in organizations by introducing a cross-functional team approach.
Facilitating organizational teamwork drives improvements across the whole supply chain.
Every interaction in life, system or human, requires information exchange. Information is boundary-less, not prohibited by borders in the physical world we live it. Our integrated supply chain functions in the same fashion. If the information is accurate (and that is a big IF — see Business Maturity®), SAP will communicate, every step of the way, proactively, any exception to the process. The challenge is that the information lives in an integrated environment, and our organization’s supply chain lives in clearly defined silos, around procurement, manufacturing, distribution, sales etc. and due to our silos we don’t move at the speed of information, we move at the speed of internal politics, manual interventions, and indecisiveness.
A smart use of information will help identify pinch points in the process, under and over-consumption of forecasts, lack of supplier performance, etc. Use this information and reports, resident in SAP to identify quick wins and help drive the change in behavior (and hopefully clean the data while doing that).
Organizations constantly measure the scorecard and not the statistics that make up a winning game. Service levels to my customer is a perfect example of this “scoreboard” type KPI. However, what did it take to achieve a high scoring Service level? Basically, we measure how well the organization is performing throughout its end to end cycle, which will ensure that we can improve our “winning score.”
Reveal has created oVo Lighthouse™, an innovative supply chain analytics solution that runs on the SAP HANA Cloud Platform. A crucial component of the Reveal Optimization program, oVo Lighthouse™ completes Reveal’s overall extended supply chain solution by providing the organization the ability for increased insight and visibility into critical factors and key performance indicators to improve their performance.
Embedded in the product is the ability for your teams to create a private social supply chain network that facilitates target-setting, goal management, messaging and collaboration. The oVo Lighthouse™ social supply chain and data-informed decision-making combine to drive positive change in the way your team communicates and uses data to make decisions. oVo Lighthouse™ provides the ability to: