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Case Study

Full integration of production planning

140106-01

Optimization of supply chain management

A global producer of metal powders was able to reduce inventory by about 30% with the help of an Atreus manager and implement a new supply chain management organization. Measures included a complete conversion of production from Excel to SAP/Or-Soft.

q

Company

  • Global producer of metal powders for the processing industry with approx. 2,200 employees
  • Production mainly in Germany but also in Asia and the USA
p

Challenge

  • Lack of transparency throughout the process chain,
  • especially in production
  • Orders are entered into SAP for sales, while production relies on Excel
  • Tedious coordination and high inventory due to long lead times
m

Goals

  • Full integration of production planning into SAP and redefinition of processes and responsibilities
  • Significant reduction inventory levels
  • Optimization of the Sales/Operations interface through monthly S&OP meetings
n

Measures

  • Mapping out the ”Offer to Cash” processes comprehensively with all departments
  • Enhancing the operation of Sales and finance in SAP
  • Full transition of production from Excel to SAP/Or-Soft
x

Results

  • Reduction of inventory by 30% (approximately €40m)
  • Implementation of integrated planning in production
  • Optimization of Supply Chain Management (globally) and definition of a new SCM organization

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