Major International Manufacturer Success Story
Rapid data quality management assessment results in millions of supply chain savings.
Challenge
A manufacturing organization running SAP,聽which includes seven business units and 25 manufacturing plants聽in Europe, was looking to reduce its duplicative stock of spare parts and increase central purchasing power across its enterprise.聽The business, which spent聽more than聽$15 million annually on spare parts and had a spare parts inventory worth more than $16 million, desired to increase working capital and reduce overall unit costs. To do this, they embarked on an initial聽data聽quality initiative聽as part of their planned SAP S/4HANA migration.
Solution
厂测苍颈迟颈听诲别辫濒辞测别诲听颈迟蝉听麻豆传媒视频聽Knowledge Platform (SKP),聽executing a聽Data Jumpstart聽effort focused on the companies MRO (Manufacture, Repair & Operations) challenges.聽Within two weeks, the teams gained visibility into hundreds of 鈥淚nitial Insight鈥� reports. Building off of the reports, project teams were then able to use data harmonization and standardization to develop focused 鈥淎ctionable Insight鈥� reports that identified where millions of dollars in savings could be found.
Outcome
The project quickly returned results and identified a projected financial return on investment of聽$1.5 million聽in reduced procurement expenditures each year on spare parts, and a聽$2 million聽reduction in current duplicate parts. It also revealed a projected “workforce return” of聽$200,000, based on savings from finding, requisitioning, and picking correct spare parts more efficiently. Overall, the company was able to realize an actual return on investment of $2 million聽in year one.