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SAP Supply Chain Management
Customer Case Studies
SAP Supply Chain Management (SAP SCM) offers the only complete supply chain solution with capabilities that cover supply chain planning, execution, coordination, and collaboration. In these customer case studies, read about the challenges that companies faced, the decisions they made, and the benefits they realized by implementing SAP SCM.
From first contact to implementation and ROI, these customer case studies show you how companies enhanced their business capabilities and overall operational efficiencies by choosing SAP:
Automotive
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Volvo Construction Equipment – One of the world's leading producers of construction equipment reduced shipping lead times by 43%, reduced inventory levels by 53%, increased sales by 89%, and enhanced per capita revenue from $85,000 to $340,000. (PDF, 98.5 KB)
Chemicals
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Dow Corning – SAP SCM helped this global company improve forecast accuracy by up to 25%, reduce inventory by nearly 20%, and improve its customer satisfaction index. (PDF, 135 KB)
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MG Industries – This leading North American industrial gas company improved forecasting accuracy to more than 95%, optimized resources by using distribution scenarios, and improved its gross margin by 3.4%.
Consumer Products
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ABI – Africa's largest Coca-Cola bottler and distributor achieved on-time delivery performance of 92%, reduced lost sales due to stock-outs by 5%, reduced inventory levels by 26%, and developed planning processes to enable an increased rate of new product introductions. (PDF, 234 KB)
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Beiersdorf-Lechia – This leader in Poland's cosmetics industry increased sales by 4%, reduced inventory by 60%, and improved product availability from 94% to 99.8%. (PDF, 293 KB)
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Brown-Forman – One of America's largest companies in the wine and spirits business decreased global inventory by 23%, maintained product availability at 99.9%, and avoided a potential 80% increase in headcount. (PDF, 234 KB)
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Cervecería Nacional – Panama's leading producer of beer and other beverages achieved results that contributed to business growth of 22%, reduced stock-outs by 78% while lowering inventory by 21%, improved factory utilization by 25%, and maintained a price premium of 28%. (PDF, 267 KB)
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CJ – Korea's largest food company used SAP SCM and other SAP solutions to support its process innovation program, reducing stockouts by 41.2% and lowering finished-goods inventory by 15.4% and raw-material inventory by 18.5%. (PDF, 144 KB)
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Colgate-Palmolive – This consumer products giant improved on-time and complete orders from 70% to 98%, reduced cycle time from five days to one day for VMI replenishment, and reduced inventory by 22%. (PDF, 120 KB)
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Distell – This leader in the South African beverage industry achieved 100% international on-time delivery, increased export sales by 37%, improved local market forecast accuracy by 20%, and nearly doubled adherence to production plans. (PDF, 264 KB)
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The Haier Group – China's largest manufacturer of "white electric appliances" increased sales by 50% in 12 months, attained an on-time delivery-to-commit rate of 99.6% in its refrigerator group, and reduced cash-to-cash cycle time from 21.8 to 11.7 days in its washer group. (PDF, 241 KB)
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L'Oréal Germany – This global market leader in the cosmetics industry used the VMI capabilities of SAP SCM to reduce inventory at a customer site by 50%, simplify planning processes, and improve customer relationships. (PDF, 189)
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Marico – This consumer goods company lowered the production planning cycle time from 30 to 10 days, reduced lost sales due to stockouts by 57%, and lowered average total inventory from 29 to 22 days of supply.
Engineering, Construction, and Operations
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Cavalier Homes – This leader in the manufactured homes industry increased shipments by 15%, reduced dealer inventory by 10.4%, and lowered production hours per home by 20%. (PDF, 85 KB)
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KAESER Kompressoren – This innovative leader in the compressed air industry used SAP SCM to reduce lead times, lower inventory levels for spare parts by 23% in its subsidiaries, and achieve a 100% service level for ex-stock spare parts. (PDF, 100 KB)
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Parbury FHS – This supplier of premium products to the building and furniture manufacturing industries reduced stockouts from 13.5% to 2%, lowered inventory by 35%, decreased order-to-ship cycle times by 40%, and improved on-time and in-full delivery performance.
High Tech
- Freescale Semiconductor Inc. (PDF, 309 KB), United States – Read how this global leader in embedded semiconductors implemented new supply chain planning processes enabled by planning and execution functionalities in SAP SCM – and reduced average order-planning cycle time by one week, improved forecast accuracy by more than 10 %, lowered costs, enhanced margin, and achieved an IRR of 54.7%.
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ITT Night Vision – This leading manufacturer of night-vision equipment for the U.S. and allied armed forces shortened planning cycle times, improved capacity utilization by 20%, and reduced finished goods inventory by 10%. (PDF, 81 KB)
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Palm – The world's leading provider of handheld computers reduced planning cycle times by 50%, lowered channel inventory by 32%, and decreased cash-to-cash cycle time from 23 to 14 days. (PDF, 133 KB)
Life Sciences
- AstraZeneca – One of the world's largest pharmaceutical companies increased inventory turnover by 14%, reduced planning cycles from 14 days to one day, and increased total package output by 13%, using the SAP Advanced Planning & Optimization (SAP APO) component of the SAP SCM solution. (PDF, 213 KB)
Mill Products
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Alcan Aluminum Valais SA – This Switzerland-based subsidiary of the Alcan Group AG, a leader in the global aluminum and packaging industries, reduced delivery lead times by 10%, increased orders shipped by the promised date by 25%, and reduced RM and WIP inventory by 6.56%. (PDF, 229 KB)
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Hylsa – One of Mexico's largest steel makers increased forecast accuracy from 40% to 80%, improved on-time, in-full delivery from 70% to 90%, and shortened planning cycle time from three days to two hours. (PDF, 107 KB)
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NIBCO Inc. – This international leader in the flow control industry increased its perfect order rate from 29.5% to 87%, improved on-time delivery to 99%, and lowered annual distribution costs by more than $10 million.
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SI Corporation – This leading supplier of polypropylene-based products improved inventory turns from 2.8 to 6.5 per year, improved the perfect order rate from 78% to 91%, and reduced total company backorders by 83%. (PDF, 318 KB)
Retail
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OfficeMax – This leading supplier of office supplies and equipment lowered inventory by $390 million, improved in-stock rates from 89% to 98%, reduced labor cost per case by 30%, and improved store replenishment cycle time from 35 to 8 days. (PDF, 242 KB)
Service Providers
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Canada Post – This postal service provider reduced retail customer complaints by 16%, reduced letter carriers' level of uncollected funds by 30%, and recovered C$8.5 million through the use of in-line package measurement. (PDF, 469 KB)
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Chordus Inc. – The Office Furniture USA (OF/USA) division of Chordus used the supply chain capabilities of SAP Business All-in-One to help increase market share by 17.9% and improve on-time delivery by 9.2%. (PDF, 596 KB)
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Tallard Technologies – This computer reseller used the supply chain capabilities of SAP Business All-in-One to reduce monthly average inventory by 44.8% and improve days receivable outstanding by 28%, enabling a reduction of 48% in long-term debt. (PDF, 184 KB)
Telecommunications
- Telefónica de España – This telecommunications operator implemented the SAP Advanced Planning & Optimization (SAP APO) component of SAP SCM to reduce unused network inventory, improve productivity, and realize significant supplier price reductions. (PDF, 218 KB)
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