Industry: Heavy Machinery Manufacturing Objective: Optimize procurement, streamline material planning, and integrate inventory management with production processes.
- Procurement Inefficiency: Manual purchase order (PO) processing caused delays and inconsistent supplier communication.
- Excess Inventory Costs: Stock levels were not tracked efficiently, leading to over-purchasing and increased holding costs.
- Disconnected Processes: No integration between procurement, production, and finance, resulting in delayed production due to material shortages.
- Lack of Data for Decision-Making: Reports on procurement and inventory were created manually, consuming significant time and resources.
- Scope Definition:
- Project Team: Functional and technical consultants, supply chain managers, and key stakeholders from production and finance.
- Mapped AS-IS processes to identify pain points.
- Designed TO-BE processes for:Automated Purchase Requisition (PR) approval workflow.Real-time stock visibility across all plants.Material Requirement Planning (MRP)-based procurement linked with production schedules.
- Identified customization needs:A custom Goods Receipt (GR) report for vendor performance tracking.
- Configuration Highlights:
- Customization: Developed a dashboard to track inventory levels and PO approval status.
- Migrated legacy data (vendor lists, material inventory, and open POs).
- Trained over 100 employees on the SAP MM workflows.
- Conducted extensive User Acceptance Testing (UAT).
- The system went live in March 2024.
- Provided hyper-care support for 3 months to handle user queries and resolve initial issues.
- Improved Procurement Cycle: Purchase order creation and approval time reduced by 50%.
- Optimized Inventory Management: Real-time stock visibility and automated MRP ensured materials were available just in time, reducing holding costs by 25%.
- Enhanced Vendor Collaboration: Vendor performance reports enabled better decision-making in supplier selection.
- Data-Driven Decisions: Automated reporting and dashboards provided insights for strategic procurement planning.
- Integration Benefits: Smooth integration between SAP MM and SAP PP ensured uninterrupted production, reducing downtime by 30%.
