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How to get ahead of the pack

Driven instead of being driven. Act sensibly instead of being swept along aimlessly by the wave. Unfortunately, this is still a wishful scenario for many MRP controllers and operational buyers. Instead, there is a fire in every corner and the procurement and evaluation of necessary data turns out to be an enervating puzzle game with numerous sources of information and uncomfortable evaluation options. Yet all the relevant data are Actually contained in the SAP system.

No more workarounds!

Non-compliance with processes causes additional problems: At the start of work, planners and MRP controllers check the nights incoming e-mails and try to distinguish between unnecessary time wasters and urgent need for action. At the same time, the neighbouring departments call in their requirements and wishes on an ad hoc basis. The chaos is already perfect.

A central system for all can be the solution. This makes it possible for everyone to write data, requirements and times directly into the system. All evaluations and recommendations for action are at all times up to date. Put an end to workarounds that only cause discontent and errors!

Being up-to-date costs speed – does it have to?

The MRP run – finally time for a cup of coffee. Or even two or three ... A morning ritual that not only strains the nerves but also postpones urgent needs for action. Once the MRP run has been completed and the MRP list created, the next problem awaits: up-to-date data. From minute to minute, the information in the MRP list becomes outdated and provides a distorted picture. This results in wrong decisions or undiscovered acute need for action.

As much up-to-date data as necessary, as much speed as possible

The ifm procurement solution follows this principle. In principle, the user also works here in the MRP list, but with the difference that if desired the MD04 can be accessed directly in the case of planning file entries. You, therefore, remain up-to-date at the decision-relevant points and use the speed advantage of the MRP list for non-critical processes.

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The ifm solutions have brought decisive transparency, in particular in the past three years of permanent crisis. We have seen much, much more than in the SAP standard.

Mehmet Kozan Manager Supply Chain Management, Baier & Schneider GmbH & Co KG

Supply Chain Excellence for Procurement

Process indicators at a glance

Screenshot: Process indicators at a glance

Optimise procurement price

Screenshot: Optimise procurement price

Everything at a glance

Screenshot: The requirements stock list shows all relevant information

Central cockpit for the buyer

Screenshot: Central cockpit for the purchaser

The procurement solution can ...

Optimise load carriers

Sensible bundling of purchase requisitions leads to a better utilisation of the load carriers and, therefore, saves transport costs.

Realise delivery discounts

By sensibly combining and planning orders in advance, delivery concessions can be fully exploited and supply restrictions taken into account.

Determine target range at the touch of a button

When defining the desired target range, the system automatically calculates the appropriate order bundles.

Save time

In the event of changes to individual items or supply restrictions, the order bundles are automatically adjusted.

Protect the climate

Load carriers are better utilised. This reduces the CO2 footprint.

Achieve transparent ranges

The view of stock, demand or consumption ranges can be changed at any time.

Simulation what if ...

  • You adjust the target range?
  • Change the delivery conditions?
  • A supply bottleneck becomes apparent?
  • An unexpected order needs to be inserted?

By way of a reliable and fast simulation programme, you can compare the updated status with the status resulting from the newly set parameters while retaining the set parameters. This protects you from wrong decisions even if the effect of the changed parameters only becomes apparent with a time delay.

Safe decision with an uncertain future ➜

Complete overview everything under control

Figure: Guidance, transparency and the ability to act for the purchaser

ifm’s procurement solution makes everyday life easier for MRP controllers and buyers by

  • directly displaying the urgent need for action,
  • clearly showing the daily worklist in the dashboard,
  • allowing operation actions to be taken immediately.

A system that thinks for itself, makes suggestions, displays all relevant information and hides superfluous details.

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We were able to realise huge increases in efficiency in the determination of demand and mutual substitution. In addition, we were able to achieve an increase in availability in the distribution centres by way of a simultaneous reduction in storage volumes.

Urs Schwarzenbach Head of Supply Chain Management of the Near/Non Food Directorate, Federation of Migros Cooperatives

Sustainable savings by way of smart processes

Figure: Sustainable savings by way of greater transparency, less complexity, balancing market volatility.

Every cent counts

Smart companies have long known that good supply chain management offers plenty of opportunities for savings. However, the processes are complex and, without the right software, intransparent and difficult to control. What is needed, in particular in procurement, are:

  • Greater transparency
  • Less complexity
  • Balancing market volatility

Actually, all the information needed for this is at hand, or rather in the SAP system. Here, every MRP controllers and buyer can find all the relevant figures, data and facts about delivery conditions, delivery schedules, stock ranges, tied-up capital and turnover rates etc.

Dangerous detours

Often there is also a lack of evaluability at the push of a button. Many MRP controllers and buyers make do with Excel extracts. Huge, complex calculation tables and pivots are drawn and evaluated, supplemented and analysed. The resulting recommendations for action reach the MRP controller far too late.

Such extracts are not only confusing and prone to errors, the informative value also decreases from minute to minute and while reality continues to develop, the extract unfortunately does not.

Reliable statements in real time

ifm’s procurement solution directly accesses the data in SAP Core and, therefore, offers analyses, evaluations and recommendations for action in real time at any time.

All strands of information are sensibly bundled into recommendations for action and are at all times up to date in that respect. Intuitive to use, 100% reliable with maximum operational impact.

We have thought ahead to your questions

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We have achieved all the primary goals communicated in the project application with regard to increasing efficiency in the area of merchandise planning (goods procurement, demand planning) and reducing storage costs.

Urs Schwarzenbach Head of Supply Chain Management of the Near/Non Food Directorate, Federation of Migros Cooperatives

First steps on using ifm’s procurement solution

Curious and want to learn more about the procurement solution? If so, we invite you to a 20-minute webcast for newcomers with our consultant Thomas Rehbein!

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By way of the procurement solution, you get a tool with which you can quickly identify critical issues in a task-oriented manner and create transparency.

Sven Daniel Heck Senior Consultant Inventory Management and Procurement, GIB S&D GmbH

Request a demonstration

Would you like to learn more about our supply chain optimisation solutions in SAP? Are you looking for a solution that allows you to automatically transfer data from machines or sensors to SAP and start intelligent processes? Complete the form and request your demonstration on-site or online now.

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