Qentelli teams up with a top-tier automotive manufacturing firm to optimize their procurement processes using SAP MM, improving operational efficiency and transparency.
Client:
A Leading Automotive Manufacturing Company
- 1. Produces a wide range of vehicles and automotive components.
- 2. Supplies to nearly 40 countries with multiple plants across three continents.
Firm size:
62,000+ employees
Challenge
Our client, a prominent manufacturer in the automotive industry, faced significant challenges with inventory management, procurement, and supply chain operations. The primary challenge was optimizing their inventory and supply chain system to efficiently handle the production of a diverse range of vehicles and automotive components while ensuring synchronization across manufacturing plants on three continents.
Our client, a prominent manufacturer in the automotive industry, faced significant challenges with inventory management, procurement,
- Manual Procurement: The client's procurement processes were mainly manual, leading to delays in order processing, challenges in order tracking, and recurring manual errors.
- Supplier Management: Inconsistent input quality and costs due to ineffective supplier performance tracking and vendor relationship management.
- Inventory Management: The company faced issues with overstocking in some locations and stockouts in others, impacting production schedules and costs.
- Control: The lack of accurate material valuation methods made cost control challenging, leading to reduced margins.
Solution Proposed
Our team conducted a detailed analysis of the client's manufacturing and supply chain processes to identify pain points. We recommended integrating the SAP MM module to automate procurement and streamline supplier evaluations. Real-time tracking ensures cost control, while demand-driven manufacturing and cross-plant synchronization improve responsiveness. This approach aimed to enhance efficiency, reduce costs, and boost competitiveness in the automotive market.
What Qentelli did
- Automated the procurement process, enabling quick generation of purchase requisitions & orders (PR/PO) and providing a status tracker for received orders.
- Optimized pipeline, consignment, and third-party procurement to achieve on-time delivery. Identified top-rated vendors using SAP MM.
- Leveraged real-time data to optimize stock levels, reducing the risk of stockouts and overstocking.
- Implemented a physical inventory process to align/manage inventory with the actual stock, effectively handling loss, damage, and theft.
- Automated the requisition process to adapt to demand fluctuations and production schedules using material requirement planning.
- Adopted accurate valuation methods for material cost control.
- Integrated SAP MM with key modules (FI&CO, WM, PP, PM, SD) for a unified and efficient business system.
Outcomes
- Automated the procurement process, enabling quick generation of purchase requisitions & orders (PR/PO) and providing a status tracker for received orders.
- Optimized pipeline, consignment, and third-party procurement to achieve on-time delivery. Identified top-rated vendors using SAP MM.
- Leveraged real-time data to optimize stock levels, reducing the risk of stockouts and overstocking.
- Implemented a physical inventory process to align/manage inventory with the actual stock, effectively handling loss, damage, and theft.
- Automated the requisition process to adapt to demand fluctuations and production schedules using material requirement planning.
- Adopted accurate valuation methods for material cost control.
- Integrated SAP MM with key modules (FI&CO, WM, PP, PM, SD) for a unified and efficient business system.
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