Carlisle Construction Materials (CCM) is a diversified manufacturer and supplier of roofing and waterproofing products for the commercial construction markets. CCM implemented SAP and wanted to better leverage the system to improve business operations. Specifically, CCM wanted to reduce the amount of working capital tied up in inventory and increase inventory turns without impacting service levels.
CHALLENGES
- Transactions entered into SAP, but system not being utilized to work the business
- MRP and its support of purchasing automation were not understood
- SAP reporting functionality not being capitalized to support business and process performance KPI’s
- Lack of trust in the system leading to ineffective use of MRP generated production planned orders and purchasing requisitions
- Production capacity planning and scheduling done outside of system
- Inventory strategies and master data needed to be corrected
- Not utilizing sales and consumption based forecasts for future planning
SOLUTIONS
- Supply Chain transformation utilizing Reveal’s oVo® methodology
- Education on specific subject areas along the supply chain, with a focus on information maturity within the system.
- Education for buyers & planners on valuable SAP tools to uncover, analyze, and pro-actively manage inventory and service levels
- One on one focus sessions with management and executives to drive management decisions using SAP
- PAT’s (process aligned teams) established to meet daily and deal with supply chain challenges identified through the oVo process
- Establish ownership of master data and alignment of MRP strategies
- Setting KPI’s and aligning with strategic business performance measures
- Implemented S&OP – to lay the platform for integrated sales forecasting and operational constraint management to govern strategic direction in SAP vs. spreadsheets
- Establish the foundation for Capacity Planning and Scheduling through data cleansing, data integration master changes, strategy alignment, and exception management
BENEFITS
- Inventory reduction of over 20%
- Improved inventory turns
- Simplification and standardization of procurement process
- Alignment of KPI’s to business objectives
- Optimized over 87% of Average Value of Inventory
- Improvement in Service Levels
- Reduced Red Lights – 77%
- Reduced Exception Messages – 45%
- Modified shop floor system to adopt the capacity and schedule information from SAP
- S&OP processes being utilized in SAP
- Educated and empowered users and management team
