Helping Companies Implement Supply Chain Solutions for over 20 years
Top rated - Project Management and Automation Consultants
★★★★★
Supply Chain Solutions
Optimizing Inventory control via goods movments, pick, pack, and ship, warehouse resource planning, IOT monitoring, and Robotic Implementaion Services
Supply Chain Forecasting
SAP WM, SAP BI, Blue Yonder (multiple flavors), Lumiate, NetStock, SAP Integrated Business Planning, Loglify, TXT, and more
Supply Chain Reporting
Implementations include custom solutions, SAP BI, HANA, Tableau, SQL Servers, MS PowerBI, Cognos for Enterpries, and Insight Software
ERP Product Implementations
Over 30 ERP Solutions Deployed - Include SAP, Oracle, Fidellio, Manhattan Associates Omni Solutions, Sage, Infor, GoGo, ECI, Microsoft 365, MIC, TrueBird, Odoo, and more. ++Custom Solutions
3PL Project Roadmaps and Use-Case - Ray Stevens
Ray Stevens was brought in to oversee an advanced migration project for a multi-site 3PL company following a merger and acquisition. The 3PL catered to a variety of clients, including a blue jean manufacturer, a renowned mobile phone manufacturer, and food suppliers with special refrigeration and food safety requirements. Ray's responsibilities included defining strategies and roadmaps for client locations, reducing operational costs, implementing a new SAP warehouse management system with robotics, optimizing printing, and providing clients with comprehensive supply chain reporting metrics.
Ray completed a pilot of the new solutions within 2 months, significantly reducing costs for a single location, compared to the original 12-month plan.
Use Case 1: Inventory Management and Forecasting for Diverse Clients
Challenge: Each client had unique inventory solutions requiring real-time inventory tracking, label printing services for white-label products, and accurate forecasting to alert clients of low inventory thresholds. The system needed to accommodate manual and robotic solutions for picking, packing, and fulfilling orders in real-time.
Solution: Ray implemented the SAP Inventory Management (IM) module to provide a unified platform for real-time inventory tracking. He integrated this with SAP Extended Warehouse Management (EWM) for advanced warehousing functions and SAP Integrated Business Planning (IBP) for precise demand forecasting.
KPIs Implemented:
Real-Time Stock Levels: Monitored using SAP IM to provide accurate stock levels across all client locations.
Inventory Turnover: Tracked how often inventory was sold and replaced, helping clients maintain optimal stock levels.
Formula: $$\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}}$$
Low Inventory Alerts: Set up alert systems within SAP IBP to notify clients when inventory levels reached critical thresholds, ensuring proactive replenishment.
Perfect Order Rate: Measured the percentage of orders delivered without issues using SAP EWM, ensuring high accuracy in order fulfillment.
Formula: $$\text{Perfect Order Rate} = \frac{\text{Number of Perfect Orders}}{\text{Total Orders}} \times 100$$
Use Case 2: Consolidating Client Locations
Challenge: Consolidating multiple client locations to streamline operations and reduce costs while maintaining high levels of service for various clients with unique requirements.
Solution: Ray utilized the SAP Transportation Management (TM) module to optimize logistics and consolidate shipments. He also implemented SAP Warehouse Management (WM) for efficient warehouse operations.
KPIs Implemented:
Supply Chain Cycle Time: Monitored the total time taken to complete the supply chain process from order placement to delivery, ensuring efficient consolidation.
Formula: $$\text{Supply Chain Cycle Time} = \text{Order Delivery Date} - \text{Order Placement Date}$$
Freight Cost per Unit Shipped: Tracked transportation costs using SAP TM to identify cost-saving opportunities.
Formula: $$\text{Freight Cost per Unit Shipped} = \frac{\text{Total Freight Costs}}{\text{Total Units Shipped}}$$
On-Time Shipping Rate: Measured the percentage of orders shipped on or before the promised delivery date using SAP WM, ensuring timely deliveries.
Formula: $$\text{On-Time Shipping Rate} = \frac{\text{Number of On-Time Shipments}}{\text{Total Shipments}} \times 100$$
Use Case 3: Reducing Operational Costs
Challenge: Identifying and reducing operational costs while maintaining service quality and meeting client requirements.
Solution: Ray introduced the SAP Cost Management module to track and analyze various cost components in the supply chain. He also implemented SAP S/4HANA for real-time analytics and reporting.
KPIs Implemented:
Cost Analysis: Provided detailed reports on transportation, warehousing, and overall supply chain costs using SAP Cost Management.
Cash-to-Cash Cycle Time: Tracked the time taken to convert investments in inventory into cash from sales, improving financial efficiency.
Formula: $$\text{Cash-to-Cash Cycle Time} = \text{Days Inventory Outstanding} + \text{Days Sales Outstanding} - \text{Days Payable Outstanding}$$
Days Sales Outstanding (DSO): Measured the average number of days it took to collect payment after a sale, helping clients manage their cash flow more effectively.
Formula: $$\text{DSO} = \frac{\text{Accounts Receivable}}{\text{Total Credit Sales}} \times \text{Number of Days}$$
Use Case 4: Optimizing Printing Services
Challenge: Providing efficient label printing services for white-label products, ensuring accuracy and consistency across various client requirements.
Solution: Ray implemented the SAP Label Management module to streamline and automate label printing processes. He ensured compatibility with various client specifications.
KPIs Implemented:
Label Printing Accuracy: Monitored the precision of label printing, reducing errors and ensuring consistency.
Formula: $$\text{Label Printing Accuracy} = \frac{\text{Number of Accurate Labels Printed}}{\text{Total Labels Printed}} \times 100$$
Printing Efficiency: Tracked the time and resources spent on label printing, identifying areas for optimization.
Formula: $$\text{Printing Efficiency} = \frac{\text{Total Labels Printed}}{\text{Total Printing Time}}$$
Customer Satisfaction: Measured client feedback on label printing services, ensuring high levels of satisfaction.
Use Case 5: Implementing a New SAP Warehouse Management System with Robotics
Challenge: Implementing a new SAP warehouse management system with robotics to enhance efficiency and accuracy in order fulfillment.
Solution: Ray deployed the SAP Extended Warehouse Management (EWM) module integrated with robotic solutions for automated picking, packing, and shipping processes.
KPIs Implemented:
Robotic Utilization Rate: Monitored the usage and efficiency of robotic systems in the warehouse.
Formula: $$\text{Robotic Utilization Rate} = \frac{\text{Actual Robotic Operation Time}}{\text{Total Available Robotic Time}} \times 100$$
Order Processing Time: Measured the time taken to process and fulfill orders using robotic systems, ensuring faster order fulfillment.
Formula: $$\text{Order Processing Time} = \text{Order Completion Time} - \text{Order Placement Time}$$
Perfect Order Rate: Tracked the percentage of orders fulfilled without errors, enhancing order accuracy and customer satisfaction.
Formula: $$\text{Perfect Order Rate} = \frac{\text{Number of Perfect Orders}}{\text{Total Orders}} \times 100$$
Providing Clients with Comprehensive Supply Chain Reporting Metrics
Challenge: Delivering comprehensive supply chain reporting metrics to clients, offering insights into their supply chain performance and areas for improvement.
Solution: Ray implemented SAP Analytics Cloud to provide clients with customized dashboards and reports. These reports included key supply chain metrics and insights tailored to each client's needs.
KPIs Implemented:
Customer Order Cycle Time: Measured the average time taken to fulfill customer orders from placement to delivery.
Formula: $$\text{Customer Order Cycle Time} = \text{Order Delivery Date} - \text{Order Placement Date}$$
Fill Rate: Tracked the percentage of customer demand met without backorders or stockouts.
Formula: $$\text{Fill Rate} = \frac{\text{Units Filled}}{\text{Total Units Ordered}} \times 100$$
Lead Time: Monitored the time taken from placing an order with a supplier to receiving the goods.
Formula: $$\text{Lead Time} = \text{Goods Receipt Date} - \text{Order Placement Date}$$
Conclusion
Through meticulous planning and the strategic implementation of SAP modules, Ray Stevens successfully consolidated client locations, reduced operational costs, and provided clients with comprehensive supply chain reporting metrics. By implementing a new SAP warehouse management system with robotics and optimizing printing services, Ray ensured real-time inventory solutions, label printing services, and efficient order fulfillment for diverse clients. His efforts led to enhanced customer satisfaction, operational efficiency, and a seamless transition following the merger and acquisition. The successful pilot, completed within 2 months, showcased significant cost reductions for a single location, setting the stage for a broader rollout across the 3PL's operations.