We had a very specific objective to improve operational efficiencies and utilization of SAP was a key component of this strategy. We are very pleased with what the transformation process brought to us.
General Manager Operations
Buckman Chemical is a privately held, ISO-certified, global specialty chemical company. Their products and chemical services are utilized in various industries including pulp & paper, biofuels, leather, water treatment and more.
CHALLENGES
Limited use of SAP to effectively manage an integrated supply chain affecting operating costs, inventory performance and ability to scale efficiently.
- Partial use of demand management and visibility across the supply chain
- Inadequate use of standard production planning tools
- Rising raw material and finished goods inventory
- Lack of visibility of inventory in warehouse and non-optimal warehouse management practices
- Frustrated users, lack of trust in the data and excessive manual processes
- Limited use of MRP generated requirements for manufacturing and procurement
- SAP reporting functionality not being utilized to support business and process performance KPI’s
- Work center capacity leveling not being done
- Production sequencing being done in spreadsheets SOLUTIONS
- Supply chain transformation utilizing Reveal’s oVo® methodology focused on optimizing inventory, capacity and production planning, demand management and warehouse material flows to support improving service levels
- Education for demand planners, buyers, production planners, schedulers, shop floor, and management on existing SAP tools
- Education on SAP Available to Promise functionality
- Education on managing master data to align with business rules
- Established ownership and accountability of master data
- Improved communication and process alignment across the supply chain to support strategic initiatives
- Established Storage Bin Capacity process in SAP to drive automation of put away activities
- Education on Shelf Life End Date (SLED) management processes
- Established Governance with KPI’s in alignment with strategic business performance measures
BENEFITS (Within 6mo.)
- Reduced overdue Demand Elements by 85%
- Reduced overdue Supply Elements by 97%
- Reduced negative days of supply by 66%
- Reduced supply chain exceptions by 67%
- Improved visibility of forecasts and impacts to the supply plan
- Empowered business users to change rules (master data)
- Production Planners utilizing detailed scheduling tools in SAP
- Optimized production line capacity, throughput rates and sequencing
- Increased schedule attainment and production efficiency
- Implemented replenishment strategies for raw materials and finished goods
- Activated ATP (Available to Promise)
- Aligned KPI’s to business objectives
