SCM CONNECTIONS'

SUCCESS STORIES

From IBP and Beyond

IMPLEMENTED SAP IBP SUPPLY OPTIMIZATION

S&OP and Supply Planning (including optimization)

Building Material Manufacturing // $2.5B Rev (2019)

The SPARK process enhanced planning capabilities and streamlined processes to manage the large amount of planning data involved.

Client had been utilizing an optimization tool with limited capabilities. The solution was not able to run a supply plan across multiple months and the granularity of the plan was only at the product group level, making it impossible for planners to see the resource impact per SKU.

Ultimately, the IBP solution was implemented in under 4 months and improved client’s ability to determine more accurate sourcing ratios between customer regions and distribution locations while considering the capacities of multi-level manufacturing resources, various modes of transportation, and finite storage facilities across time.

After implementing the SPARK IBP module for supply the client was able to seamlessly integrate transportation and warehouse storage constraints into the network optimization run minimizing manual workarounds for a feasible solution.  The client was also able to model improvements to resource and cost changes that occurred throughout the year. 

GLOBAL S&OP AND CHANGE MANAGEMENT

S&OP Process Design utilizing sap ibp

Pharmaceuticals // $31.7B Revenue

Developed standard operating procedures for regional and global S&OP to drive aligned consensus. 

Client was experiencing inconsistent IBP S&OP processes across global planning regions and having difficulty reconciling global supply when capacity was unavailable, as well as a lack of formality and clarity in roles & responsibilities within planning regions for determining S&OP outputs. 

SCM Connections created S&OP processing guides and training to utilize SAP IBP functionality, and defined a roadmap to advance the global S&OP process to stage 3 of the S&OP maturity model. Specific roles were assigned to global functions across planning regions, while integrated metrics and KPIs were implemented to measure S&OP effectiveness. 

ENABLED GLOBAL ROLLOUT OF IBP OPTIMIZER

IBP S&OP Implementation

Fortune 500 Healthcare

Created an understanding of the IBP Optimizer with enhancements and training to increase user adoption.

Fortune 500 Healthcare client went live with global rollout of IBP Supply, with no process to back up the implementation.

SCM Connections was able to re-engineer the Hana cloud interface to stabilize the platform, as well as focus the team on tuning IBP’s functionality to further generate business interest in expanding the system’s capabilities.

IMPLEMENTED IBP INVENTORY OPTIMIZATION FOR FINISHED GOODS

IBP Inventory Optimization

CPG Food & Beverage

Configured multi-echelon inventory optimization to introduce a network-wide safety stock planning system, reducing inventory costs by $13M.

Client’s inventory targets were not being reviewed and were being set on an empirical basis, resulting in increased deadstock, higher inventory costs, and missed customer demand. The client needed a consistent planning tool to help mitigate excess stock risks and meet customer service levels.

SCM Connections implemented IBP Inventory Optimization to critically review the inventory targets and optimize them across the entire network. The solution provided enhanced scenario planning and introduced exception management to reduce the manual effort required from planners, while providing increased analytics and insights for executives.

IMPLEMENTED IBP INVENTORY OPTIMIZATION FOR FINISHED GOODS

IBP Inventory Optimization

CPG Food & Beverage

Configured multi-echelon inventory optimization to introduce a network-wide safety stock planning system, reducing inventory costs by $13M.

Client’s inventory targets were not being reviewed and were being set on an empirical basis, resulting in increased deadstock, higher inventory costs, and missed customer demand. The client needed a consistent planning tool to help mitigate excess stock risks and meet customer service levels.

SCM Connections implemented IBP Inventory Optimization to critically review the inventory targets and optimize them across the entire network. The solution provided enhanced scenario planning and introduced exception management to reduce the manual effort required from planners, while providing increased analytics and insights for executives.

MAXIMIZED EFFICIENCY WITH PRODUCTION SEQUENCING IN PPDS

Detail Scheduling in APO

Fortune 50 CPG Food & Beverage // $65B Rev

Configured sequencing and scheduling to support a consistent production schedule.e

Client was experiencing limited sequencing functionality within the legacy environment resulting in limited capabilities for creating a consistent, predetermined sequence for production scheduling in order to maximize manufacturing output.

SCM Connections utilized product Master Data and detailed scheduling to model production sequencing. This solution utilized core functionality within APO to define an optimal sequence to minimize setup and transition times, simplifying Master Data maintenance and allowing client to schedule orders either interactively or through a background process.

IMPLEMENTED SAP IBP DEMAND MODULE IN 8 WEEKS

Demand Planning POC

Global Pharma CPG // $1B Rev

Improved statistical forecasting and consensus demand building to meet demand planning needs.

Client had been utilizing an incohesive demand planning process across regions, relying on multiple systems for demand planning across global regions and relying on Excel spreadsheets that were prone to data errors.

SCM Connections’ implementation included a comprehensive demand planning process, review, and unit forecasting, laying the foundation for subsequent supply planning implementation and inventory optimization.

REMEDIATED APO DESIGN

Supply Network Optimization in APO

CPG & Food Processing // $7B Rev

Integrated the entire supply chain planning in a single application to increase visibility and supply projections.

Client was dealing with a poorly Implemented APO Solution. Previous Supply Network Planning  (SNP) and PPDS implementation resulted in a completely infeasible plan, as PPDS was implemented with significant functional gaps, severely restricting the schedulers ability to create a feasible production plan.

SCM Connections re-designed the weekly SNP solution to provide enhanced critical issue visibility, simplified the capacity constrained inventory plan views, improved production scheduling efficiency by providing instant visibility to production plans, new scheduling capabilities and alert management, and removed batch jobs to give users more control over the solution.

MODELED SEASONAL PRODUCTION WITH MASTER DATA

pRODUCTION oPTIMIZATION IN apo

CPG & Food Processing // $7B Rev

75% speed increase for evaluation of pre-build plans and 30% reduction in excess inventory.

Misuse of application strengths resulted in client lacking the tools to manage pre-build crop supply with year-round customer demand. Time-phased safety stock pre-build solution did not improve crop outage performance while safety stock management required excessive maintenance to manage every item/location weekly target.

SCM Connections was able to align application capabilities by utilizing master data to model external crop and seasonal component constraints, developing routings and BOM modifications to eliminate PPDS / SNP seasonality customizations, enabling supply networking heuristics and optimizer modeling without master data modifications and implementing current and seasonal demand into a single production plan.

AUTOMATED MASTER DATA CREATION AND PROMOTION CHECKS

Master Data Management

Fortune 500 CPG Health & Beauty // $11B Rev

Enabled a 25% reduction in shipping and receiving Master Data Delays.

Third Party Master Data was consistently outdated and improperly maintained, with no single point of contact for TPM master data ownership (Spread across 12+ FTEs). Master Data errors were leading to delayed finish good receipts and shipments.

SCM Connections created enhancements to better manage Master Data, including automation of Master Data creation and development of a Master Data verification workflow, in turn reducing TPM Master Data operating costs and delays.

ENHANCED VISIBLE CAPABILITIES OF THE DETAIL SCHEDULING PLANNING BOARD

Detail Scheduling in APO

CPG Food & Beverage // $7B Rev

30% increase in efficiency.

Client was facing poor production schedules that drove inefficiency, including shop floor inconsistencies consistently outside tolerance as well as delayed and inaccurate detail production schedules. Vital Shop Floor scheduling information was taking too long to gather.

SCM Connections enabled schedulers to analyze critical planning parameters for faster decision making, and standardized planner scheduling processes to ensure consistent planning results. Also provided simplified data collection and analysis by leveraging standard APO PPDS configuration objects and providing a single real time planning board for efficient scheduling.

IMPLEMENTED AN INTEGRATED PLANNING SUITE

Supply and Schedule Optimization with APO

Fortune 50 CPG Food & Beverage // $65B Rev

$500K annual savings in IT operating costs.

When using an outdated planning solution, client was looking to maximize IT investment and establish a single provider planning solution. Current planning solution was not linked to execution system, making plans outdated and constantly out of sync, while existing best of breed solution was not cost effective.

SCM Connections enabled customization to simplify the user experience, helping provide supply chain visibility to mitigate operational disruptions and standardized solution, and improved scalability for company growth implemented production planning/detailed scheduling (PP/DS) and supply planning network optimizer to reduce costs and avoid costly enhancements by utilizing master and configuration data features. Also developed full weekly production planning solution using SNP optimization, implemented PP/DS heuristics to facilitate efficient scheduling sequences, and standardized planning solution and procedures.