An Indian home appliances manufacturer reduces supply chain constraints using SAP Production Planning with Maventic

Maventic
Posted on Feb 10 , 2022

An Indian home appliances manufacturer reduces supply chain constraints using SAP Production Planning with Maventic

About Client

The client is a home appliances manufacturer with six manufacturing plants across India. It produces laundry, kitchen, living and industrial products, and additives and accessories.

Business Scenario

Before partnering with Maventic, the client relied on siloed applications and manual processes across its manufacturing plants for material planning.

Challenges

The existing business processes resulted in

  • A demand and supply gap of fixed goods and raw materials
  • Inefficient management of inventory
  • Frequent stockouts
  • Drop in labor and machine productivity

Solution
The client decided that the best course of action was to digitize its supply chain to improve its manufacturing capabilities. After evaluating a few SAP partners, they selected Maventic’s proposal to utilize the SAP PP module’s functionalities of MRP (Material Requirement Planning) and Capacity Leveling to forecast demand ahead of time and manage inventory effectively.

The client can now automatically generate

  • Purchase orders for the materials that are short in the stock.
  • Material plans for the materials that it manufactures internally.
  • Work orders once all the material needed is available (after which the production process commences).
  • Reports for understanding the demand and supply efficiency.

Additionally, through the SAP PP - Capacity Leveling functionality, the client can balance the load on a work center if it exceeds 100% by changing the schedule dates or shifting the work to other work centers undertaking similar operations, free at the same time.

The technologies utilized for this project were SAP PP, SAP MM and SAP ABAP for reports.

Benefits

With SAP PP - MRP implemented, the client is now able to manually input demand into the planning tool as per their marketing schedule weekly, and then quickly initiate procurement and production processes while taking full advantage of the following benefits:

  • Guarantee the availability of materials and components when required
  • Minimize inventory levels and associated costs
  • Reduce lead time from PR to PO
  • Utilize on-hand stock efficiently to reduce purchasing costs
  • Increase manufacturing efficiency
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