Implemented MRP Strategies & Analysis Methods to Drive SAP

DeLaval has over 125 years of innovation and experience in the dairy business, supporting dairy farmers in managing their farms their way. The Sustainable Dairy Farming initiative is contributing to the production of more quality food, for more people, with less impact on the environment. The Smart Farming strategy aims at influencing and shaping the future of dairy farming today. The goal is to accelerate the transition from milking management to global farm profitability management by harnessing emerging decision tools and automation technologies for better quality milk and profits.

Purchasing and parts movement decisions were not accurately recorded in SAP
Lead times between plants confused the overall lead times
Inventory accuracy was questionable and incorrect
Excess stock caused warehouse challenges and tied up working capital unnecessarily
Stock-outs created customer dissatisfaction and lost sales
Inventory averages were higher than needed creating large amounts of dead stock
Customer service levels were challenged due to stock-outs and unreliable lead times
Lack of trust in system caused high manual activity and users working outside the system
Business rules and master data did not align with current procurement functions
Inaccuracies in forecasts due to a rapidly changing marketplace
Challenging internal workaround for internal Stock Transport Orders
Improper use of Safety Stock as a Re-Order Point

SOLUTIONS

Reveal oVo® in Germany followed by oVo® in the United States
Education on specific subject areas along the supply chain, with a focus on information maturity within the system
One on one sessions with management and executives
Data groups and priorities set within the supply chain, targeting low hanging fruit
PAT’s (process aligned teams) established to meet daily and deal with supply chain challenges identified through the oVo® process
Assistance in setting KPI’s and aligning with strategic business performance measures
Educated Buyers & Managers on valuable SAP tools to uncover, analyze, and pro-actively manage inventory and service levels
Created List of Highest Average Inventory, Highest Dead Inventory and Top Movers and Shakers using standard SAP tools to begin change
Unpacked business issues that attributed to inventory and customer service issues relating to, outdated Information, user behavior, business rules and configuration issues
Implemented new MRP strategies and analysis methods to drive inventories down
Adjusted Re-Order Point and Safety Stock improving Customer Service