MRP Monitor, Service Level Monitor A Company from the Food ...a248.g.akamai.net/n/248/420835/1ba4416c6aad9b713... · The MRP monitor uses all relevant material movements from the

MRP Monitor, Service Level Monitor

A Company from the Food Industry

Customer Reference for:SCM Consulting Solutions

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General conditions in the company

n 9,500 material master recordsn Growing material rangen High price increases for some raw materialsn Many follow-up materials and dropoutsn Unclear strategy regarding how materials should be plannedn No standardized guideline for parameterizing materials

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Challenges

n Stock distribution improvementn Decision on MTO/MTS difficult, unnecessary destruction of material because of

expiry date overrunsn Inactive materials and their stocks difficult to identify

n Delay in adjustment of MRP parameters to life cyclen No system support for the implementation of existing SCM strategiesn High manual effort for material data maintenance in standard transactionsn No central selections and specifications for material groups

n No range of coverage reportingn No clear identification of material groups and segmentsn Classification as basis for broken-down system forecast and in particular prioritized

sales planning APO-DP required

Stocks andranges ofcoverage

Master dataquality

Analysissupport

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The solution: MRP monitor

The MRP monitor uses all relevant material movements from the past to determine the ABC-XYZclassification of each material and calculates important key figures such as dead stock, ranges ofcoverage, and inventory turnover.

The MRP monitor provides integrated support for material master maintenance throughclassification-based monitoring and parameterization of all materials across their entire life cycle.

The MRP monitor helped overcome the challenges with the following functions:n Fast and direct identification of materials with similar propertiesn Stock reduction and avoidance of destruction of material due to expiry date overrunsn Direct support for planning strategy change (MTS/MTO)n Fast determination of “dead” articlesn Ongoing adjustment of MRP parameters to life cyclen Monthly check and monthly update of various parameters in the material master

Analysis of past time series, classification of material ranges, and determination of MRP- anddecision-relevant KPIs

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The solution: Service Lill monitor

Confirmations and deliveries are determined for selected sales order items/stock transfer items. Theresult list provides the following key figures:n Delivery service, delivery performance, delivery reliability, requested delivery time, and actual

delivery timen Orders delivered in full, ordered partially delivered, orders not deliveredn Key figures are aggregated during the month and by selectable aggregation objects

The service fill monitor helped overcome the challenges with the following functions:n Measurement of delivery performance by customers can be compared with own measurementsn KPIs: Service level key figure (KPI)n Determination of other process performance indicators (PPI) during the project:

n Delivery performance, delivery reliabilityn Initially, the main focus was not on the key figures, but they are now being used to analyze

individual areas in more detailn Transparency regarding up-to-dateness and promptness of posting transactions

Determination of service levels and actual delivery times, evaluation of sales orders and stocktransfersConfigurable aggregation level, material, and customer

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Customer benefit and value

Direct benefits:

Process improvements:

n Stock reductions and avoidance of destructionn Own measurement of service quality for comparison with

customer evaluationsn Central key figure determination and rollout of central

specifications for locations in several countries

n Specific, controlled distribution of ranges of coverage tomaterial classes

n High quality of master data, checked regularlyn Rapid reaction to changes in market behaviorn Classification provides basis for broken-down system forecast

and in particular prioritized sales planning APO-DP

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Key figure development

Start of solution use February 2011Stock value reducedService level + 1.5%Because of the high fluctuations in raw materialprices and numerous introduction anddiscontinuation processes, it is difficult to namecredible key figures

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Rollout planning

n Solutions are used in locations in several countriesn Rollout of determination of service level for intercompany

supply relationships currently in preparationn Introduction of other solutions from the SAP SCM Consulting

Solutions Suite being considered:n SAP inventory cockpit: Transparent inventory controlling

with history and variable aggregation objects

Thank you!Marc HoppeConsulting ManagerSupply Chain ManagementTesdorpfstraße 820148 Hamburg, GermanyM.: +49 160 9082 1606E: [email protected]

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SCM Consulting Solutions

SCM Consulting Solutions with ERP1.1 ERP01: MRP monitor(1333018)1.2 ERP02: Simulation of safety stocks (1363890)1.3 ERP03: Simulation of lotsizes (1363889)1.4 ERP04: Forecasting monitor (1341755)1.5 ERP05: Servicelevel monitor (1341710)1.6 ERP06: Replenishmentleadtime monitor (1341571)1.7 ERP07: Backlog monitor (1341712)

1.8 ERP08: MRP Error monitor (1341705)1.9 ERP09: Inventory controlling cockpit (1363888)

SCM Consulting Solutions with APO2.1 APO01: Changelogmonitor (1308968 )2.2 APO02: Lifecylceassistent (1319579)2.3 APO03: Forecastingleveloptimierer (1366618)2.4 APO04: Mising Parts Infosystem (1366621) 2.52.5 APO05: eSOA Masterdatacockpit2.6 APO06: Masterdatacheckmonitor (1366619)

SCM Consulting Services3.1 OPT01: Forecasting optimization (1292209)3.2 OPT02: MRP optimization (1315243)3.3 OPT03: Backlog reduction (1363923)3.4 OPT04: Distribution optimization

More Infos can be found:

www.sap.de/inventoryoptimization

https://wiki.sdn.sap.com/wiki/display/SCMCS/Home

2-nd Edition, Nov. 2007

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