Global Supplier of Test, Simulation & Measurement Systems provides industry-leading testing and sensing solutions to researchers, product developers and manufacturers worldwide. Their products, services and unrivaled expertise allow customers to develop higher-quality products faster and more efficiently, optimizing the performance and reliability of everything from automobiles and aircraft to bridges and buildings to construction equipment and more.
CHALLENGES
- Long lead times to market
- Rising raw material and finished good inventory
- Inventory strategies and master data not aligned
- Frustrated users and excessive manual processes and workarounds (Excel spreadsheets)
- Master data settings not aligned with business processes
- MRP and its support of purchasing automation not understood
- Lack of trust in the system leading to ineffective use of MRP generated requirements for manufacturing and procurement
- SAP reporting functionality not being utilized to support business and process performance KPI’s
SOLUTIONS
- Supply chain transformation utilizing Reveal’s oVo® methodology across 5 value streams (MM, SD, PP, PS, WM)
- Focused on optimizing inventory, capacity and production planning to support improving service levels and reduce lead time to market
- Education for demand planners, buyers, production planners, schedulers, shop floor, and management on existing SAP tools, including Available to Promise functionality and managing master data to align with business rules
- Deployed production capacity, scheduling, planning and dispatching strategies using SAP as the system of record
- Improved communication and process alignment across the supply chain to support strategic initiatives
- Established Process Aligned Teams (PATs) to address daily supply chain challenges identified through the oVo® process
BENEFITS
- Reduced average inventory value by 6%
- Reduced Overdue Demand Elements by 77%
- Reduced Overdue Supply Elements by 24%
- Reduced Red Lights (potential service level disruption) by 40%
- Reduced Exception Messages by 18%
- Optimized 23% of average value of targeted component and sub-assembly Inventory, including known supply risk materials
- Deployed Lighthouse® to enable quick and easy tracking of supply chain health measures, inventory optimization, schedule attainment and on-time, in full KPI’s
- Deployed Action Tracker, a continuous improvement tool, to track and give visibility of required interventions to improve supply chain performance
- Production Planning and scheduling for 2 production lines in an ETO environment, eliminating complex spreadsheet planning
- Implemented ATP (Available to Promise)
- Educated and empowered users and management team• Simplification and standardization of procurement processes
- Supported design of new DC warehouse
- Aligned platform for transition to S/4HANA
