Improvement of Supply Chain by re-designing and aligning logistics processes

Business Issue

The company was restricted by its old and largely in-house developed IT landscape creating operational risk for the growing distribution structure. IT infrastructure was not stable and there was a lack of available IT competency to support the applications developed in-house. Additionally, the IT landscape did not support the necessary standardization of business processes as well as the visibility required to scale up distribution. The company initiated a business transformation program enabled by SAP technologies, with Deloitte as partner to resolve these challenges and reduce operational risk.
 

The Solution

The transformation program included developing a global template as well as implementation at the regional warehouse in Sweden and the global parts center in Belgium. The functional scope of the program was warehousing (EWM) including RFID and pick by voice, order management (SD & gATP), returns management (Hybris & ARM), purchasing (MM), transportation (LE & TM), finance (FI) as well as reporting (BW). 

Deloitte’s Enterprise Value Delivery for SAP was used as implementation method ensuring consistent delivery with defined deliverables while leveraging Deloitte’s accelerators such as IndustryPrint5 (business process best practices). The implementation at the global parts center in Belgium followed a phased go-live approach in order to allow a smoother change management and to control the impact on service level. The go-live consisted of three phases: inbound, outbound and order & invoice (customer facing).
  

Value Delivered

The program resulted in a global template with common business processes that will be a starting point for future worldwide roll-outs. The template gives an improvement of the entire supply chain through re-design and alignment of logistics processes to increase efficiency, global transparency, visibility and scalability to adapt to new market opportunities as well as closer customer collaboration. The new SAP system landscape is scalable to all warehouses and parts centers worldwide, increases stability and uptime and replaces the obsolete legacy platforms.

Deloitte Consultants Add Value To Your Program

Deloitte is an internationally focused company with a global network and local expertise. Deloitte has experience and expertise to add value on both the business process definition and operational execution. This program is a demonstration of successful international collaboration where specialists in warehousing operations, specialists in SAP Spare Parts Management, SAP functional and technical consultants from Sweden, Belgium, Germany and offshore delivery centers formed a well-balanced team. 
 

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