About the Company |
A major tractor and agriculture equipment manufacturer in India with multiple manufacturing facilities |
Business Situation |
The client had implemented SAP ERP System, Supplier Portal and wanted to implement advanced planning and scheduling solution to integrate vendor capacity, inventory at transport warehouse and alternate part numbers in planningAdvanced planning solution was necessitated because production plan visibility for the following week and beyond was not available; Forward visibility of production planning of only one or two days leading to very short time to procure material from suppliers with long lead times. |
Business Solution |
Lighthouse procurement planning solution helps overcome deficiency in SAP MRPInformation such as Supplier capacity, Supplier calendar and warehouse stock was incorporated in Lighthouse PPS solutionProcurement plan calculates net quantity to be procured after offsetting all inventory as on planning day (total scheduled – warehouse stock) Highlights all problem areas of material shortages and late order deliveries for planner interventionInventory guidance value suggests closing inventory value for any given day based on expected receipts and consumption thereby triggering alerts for liquidation |
Business Benefits |
Efficient allocation of parts from suppliers to multiple plants considering vendor capacity, thereby enhancing planning efficiencyBalance supply demand mismatches better by utilizing excess inventory in different plants; Supply disruptions were alerted due to facilitation of zone wise supply planMaterial change implementation process can be managed efficiently by minimizing obsolescence of phase out parts Inventory Management was enhanced by liquidation of surplus stock; Warehouse stock clearance facilitate with date wise clearance plan based on production plan. |
Key Performance Indicators |
Purchasing- PO Block for high inventory covering greater than month Reduced levels of inactive inventory Logistics -Premium Freight eliminated from vendors if inventory is available in other plants |
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