APO, IBP, Ariba and Supply Chain Management Case studies

We are proud of the impact our work has on our clients’ businesses. Here is a selection of how our expertise has helped a variety of companies in different business sectors.

Health Check Diagnostics for a Global Industrial Polymers manufacturer

The assessment exercise completed a top-down and bottom-up review of end-to-end planning processes for the client, with a particular focus examining how customer order fulfilment performance could be improved. The conclusions and recommendations were based on information collated from over 120 interviews with supply chain, manufacturing and IT staff across 3 regions. The outputs were threefold:

  • A top-down assessment of supply chain planning practice maturity in comparison to the level of maturity required to operate the supply chain to meet stated business objectives.
  • A bottom-up assessment of the root causes of the customer fulfilment performance and recommended interventions to address root causes.
  • A draft roadmap based on 24 defined packages of work.

SAP S4 MRP planning for a leading UAE petrochemicals company

Olivehorse supported the client on material requirements planning (MRP) across 3 manufacturing plants in the Middle East. Our team delivered an Interface design for Long-Term Planning between a Dutch software company and SAP S4 platforms. This involved conducting safety stock planning at Vendor, modelling of Subcontractor for planning in S4and setting up of safety stock values using Consumption based planning in S4.

Our solution resulted in minimisation of manual scheduling efforts, better visibility of safety stock and stock levels at the locations of the subcontractors.

S&OP Process Standardisation for a Global Gaming Console Manufacturer and Distributor

Olivehorse was tasked with redesigning and integrating the S&OP process for the European, ANZ and African Regions of the company on a single platform to provide end-to-end visibility of the supply chain operations including Supplier management. Our team delivered an IBP S&OP solution to cover the entire S&OP process including new product introduction, demand, supply (unconstrained), and financial reconciliation reviews. Our solution led to improvements in senior management alignment, collaboration between business functions, improved stock allocation, inventory reduction and top line revenue growth.

Accelerated Demand Planning in Hi-Tech

The electronics client approached Olivehorse to help replace costly, customized legacy solutions and create standardized demand planning practices across the EMEAR region. The goal was to deliver advanced statistical demand planning processes and provide visibility of key information such as open tenders, installed base supplies requirements and visibility of channel stock to enable informed adjustments to the statistical baseline.

The Olivehorse Template Demand Planning process was used and a number of advanced capabilities were developed to enhance the template such as automatic calculation of supplies based on the estimated market installed base of the product. Our solution resulted invisibility of all data that influences the demand plan in a single system and allowed flexibility in the user interface to support business unit specific ways of working when required. The client also benefitted from automatic evaluation of forecast value add to support continuous improvement

Advanced Demand Planning & Supply Chain Optimisation for a chemical products manufacturer

The client had considerable manual workload for their advanced material regional demand planners to prepare data for forecast generation. Besides the user workload, there was also a high risk of making errors which could have an impact on forecast accuracy and consequently business results throughout the different functions. Olivehorse implemented a series of enhancements to help solve and improve the APO DP solution. Our team identified key opportunities to improve the current solution by means of automation and simplification. These included sales history upload, visibility of open orders in APO DP, material and sold-to hierarchy preparation, automated CVC and realignment program as well as changes to current planning books. The solution resulted in improvement of forecast accuracy driven by data alignment, reduction in the planning cycle driven by automation of master & transaction data and substantial improvements in planner efficiencies.

Demand Planning Improvements Project at a Bathroom Manufacturer

Olivehorse supported this leading European bathroom manufacturer on their drive towards a step change in forecast accuracy. From an initial short, focused functional and technical assessment of the statistical forecasting operation, a number of key improvements were identified to help the company attain their objective of a step change in forecast accuracy.

Olivehorse were then engaged to deliver a suite of enhancements to help better analyse forecast data, improve statistical forecast performance and address weaknesses in managing the phase out for end-of-life product.

Scenario planning using SAP IBP for a Swiss multinational healthcare company

The client is a global healthcare company with 300 locations globally including vendors and sub-contractors and 38,000 products. Olivehorse helped enable long-term strategic planning for the client with planning horizons of 10 years in future. We achieved this by implementing what-if planning on Demand and Supply scenarios as well as fully integrating IBP system with daily data loads from APO. Our solution resulted in quick and easy supply side analysis in case of BOM/capacity change as well as new product introductions, launch of new plants and alternative sourcing scenarios. The client benefitted from fast execution of planning algorithms e.g. 50,000product locations planned in 3 minutes.

Enabling IBP Compliant Planning at a Nutritional Products company

The client is a world leading supplier of vitamins, carotenoids and other nutritional solutions. A recent move towards systemised Integrated Business Planning increased the necessity to provide accurate, aligned and fully automated supply plans to enable a fully integrated view. Olivehorse worked with the client to improve the quality of the automated planning output and introduced supply processes that supported the fully integrated business planning concept. The engagement has seen improvements in the quality of the automated planning output and improved stock projection accuracy.

Health Check for a leading snacks company
Consumer Goods

Following the merger of two multinational food businesses, the supply planning function in the European region faced a number of challenges in making the standardised processes and tool set work for both legacy businesses. Olivehorse performed a focused assessment of the planning operation, covering all processes and systems. Olivehorse applied our established planning OH Health Check methodology to benchmark the process, data, system and reporting capabilities against good practice. Areas of weakness were then further assessed to identify the priority actions based on the Olivehorse supply planning enablers. The analysis led to wide ranging recommendations including interventions to address supplier capacity and lead time management, Inventory target setting methods and changes to the levels of data hierarchy.

Demand Planning (DP) Improvements Project at a Bathroom Manufacturer
APO IMPLEMENTATION

Olivehorse supported this leading European bathroom manufacturer on their drive towards a step change in forecast accuracy.

Olivehorse supported this leading European bathroom manufacturer on their drive towards a step change in forecast accuracy.

From an initial short, focused functional and technical assessment of the statistical forecasting operation, a number of key improvements were identified to help the company attain their objective of a step change in forecast accuracy. Olivehorse were then engaged to deliver a suite of enhancements to help better analyse forecast data, improve statistical forecast performance and address weaknesses in managing the phase out for end-of-life product.

After a defined scope APO Healthcheck, our team proposed a prioritised detailed scheduling improvement package

Detailed Scheduling Improvements for a global ingredients producer
APO IMPLEMENTATION

Reduction in time spent detailed scheduling of between 8 and 12 hours through work package focused improvements to plan quality, reducing number of changes to plan and increasing user confidence.

After a defined scope APO Healthcheck, our team proposed a prioritised detailed scheduling improvement package with the aim of reducing both plan preparation time and the number of changes to plan. The planning process review identified activities and practices that were contributing to established pain points and system workarounds.

With strong expertise in APO PP/DS and ECC PP/PP-PI integration, we worked closely with the in-house competency centre to deliver new functionality, quick win settings and proven custom approaches to achieve business benefit. By addressing core scheduling practices such as sort sequence, complex changeover matrices, labour capacity modelling and make-to-order planning as well as improving user interaction with the graphical planning board, the detailed scheduling solution was better aligned with best practice principles.

The aim of this project was to increase both planning efficiency and visibility of network inventory using the APO SNP Optimiser.

Network Optimisation Project for a Global Snacks Manufacturer
APO IMPLEMENTATION

The aim of this project was to increase both planning efficiency and visibility of network inventory using the APO SNP Optimiser.

Following a detailed design phase, Olivehorse expanded and enhanced the existing SNP solution to encompass the whole European Gum category network, implementing a number of solutions to address specific requirements such as the balancing of stock across the network and additional functionality to improve the usability of alerts.

In the quarter following go live, the client was able to reduce inventory holding in the category by 10 days, while also seeing a great reduction in the amount of manual planning taking place within the system. Planners were also able to dedicate more time to a number of strategic projects taking place across supply planning due to the reduced amount of manual intervention required in their planning cycle.

Make sure your teams have the required expertise to select, implement and operate SAP IBP

SAP Integrated Business Planning (IBP) for sales and operations at a global coatings company
IBP IMPLEMENTATION

We supported a leading paints and coatings company develop and rollout their IBP for sales and operations solution to multiple countries across EMEA.

An early adopter, this company is using SAP IBP to generate plans that combine volume, price and cost and overhead forecasts, to show the impact on revenue and EBIT. Olivehorse has helped all aspects of design, configuration and testing of the IBP and associated JAM collaboration solutions. The solution is currently being rolled out to business units around the world.

Supply planning application strategy and roadmap at a global hi-tech business
APO HEALTHCHECK

This global hi-tech brand had growing demand for its highly innovative product range and was struggling to keep up. The company was only partially using the existing APO solution and most supply planning was being performed in Excel. It was an off-system process, neither scalable nor robust enough to support the growth in the global business and supply chain.

We worked with the client’s supply planning and IT teams to define a more complete, robust process using standard APO-SNP capability. And we equipped them with a roadmap to develop both the system and people capability needed to adopt the model.

Is your investment in SAP APO still delivering for you?

Planning diagnostics at a global food company
APO HEALTHCHECK

As the result of a merger of two multinational food businesses the European region’s planning function faced a number of challenges to make standardised processes and tool sets work for both legacy businesses.

Olivehorse performed a short, focused assessment of the planning operation, covering all processes and systems. We applied our established planning healthcheck methodology to benchmark the process, data, system and reporting capabilities against good practice.  We further assessed identified areas of weakness to determine priority actions and how these could be accelerated using our established tools and enablers.

The customer recognised the value our recommendations and is currently working with us, and its SAP Systems Integration Partner, to implement the suggested adjustments and realign its business processes and data.

Global planning solution architecture for one of the world’s largest FMCG supply chains
APO IMPLEMENTATION

This client has over 300,000 location products worldwide, running on a single APO instance. Our team architected the global APO supply optimisation solution in its foods, and personal and home care divisions.

The solution Olivehorse delivered includes Demand Planning, Supply Network Optimiser, Deployment, Transport Load Builder and Production Planning and Scheduling.  Olivehorse then supported this client over many years in the global deployment of the solution, and its subsequent process and system improvements.

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Solution leadership at a leading global beverages business
APO IMPLEMENTATION

This greenfield project for a global beverages business with more than 120,000 location products and over 30 factories worldwide saw Olivehorse team members, responsible for the overall APO solution design and build.

We implemented DP, SNP and Deployment Optimisation, Customer and Supplier Collaboration as well as Business Warehouse capabilities. Olivehorse then led the deployment to the largest global market and enhanced the solution deploying SAP Enterprise Inventory and  Service to drive improved inventory performance.

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Improved supply chain responsiveness and availability at a global electronics business
APO IMPLEMENTATION

We helped this organisation cut planning cycles from 30 days to just seven days, reducing inventory and increasing agility. How? Through the adoption of a structured demand planning cycle with clear roles and responsibilities and the rigorous adoption of exception-based processes.

Part of the solution was to directly engage the commercial team in a weekly consensus-based demand planning process, enabled by an exception-based process.

SEMI-FINISHED GOODS SCHEDULING AT A TOP FMCG COMPANY: APO IMPLEMENTATION

Semi-finished goods scheduling at a top FMCG company
APO IMPLEMENTATION

This client saw an increase of ‘on-time schedule adherence’ from 20% to 99% for its semi-finished goods mixing process, following our development of a new APO Production Scheduling solution.

The solution modelled complex resource network relationships and optimised an integrated scheduling solution for the mix and package orders, improving order alignment and control. The improved schedule adherence resulted in improved asset utilisation and control of raw materials inventory.

This SFG scheduling solution has now evolved to include optimisation of storage tank capacity constraints and bulk material purchase order scheduling directly in APO-PPDS.

Ensure you get full value from your investment in Integrated Business Planning.

Empowering the planning team at a global food giant
OLIVEHORSE CARE

The planning team at this large multinational was struggling to make the most of the advanced, supply planning solution the organisation had implemented. They were beginning to revert to offline, Excel planning tools, creating isolated islands of information and inconsistent processes.

We used our Olivehorse Planner Care methodology, firstly working one-on-one and in small groups to identify and resolve data issues. Then we worked with planners to model their particular supply chain problems. Finally we equipped them with the knowledge to use the system to model new problems and constraints as they arise in the future.

We believe this intensive, on-the-job training is the best approach for empowering planners with the skills needed to make the best use of APO planning tools. It’s the only way to address planners’ specific issues and to therefore begin to fulfil the enormous potential that advanced planning solutions offer.

In the words of the customer: “Plants where the system was not working for years, started to have the optimiser working. We discovered lots of issues – from master-data to optimiser profile settings – and fixed it”

Distribution, production and procurement planning at a large FMCG site
DDMRP

This large scale facility contained more than 30 production lines, producing over 600 finished goods products, distributed to 10 distribution centres.

As a result of the scale and complexity increased time was spent engaging the management and staff, and ensuring both the DDMRP methodology and the Replenishment+ software was well understood and embraced.  This investment led to a recent successful go-live.

Understand how to make the most of SAP Integrated Business Planning.

Production and procurement planning at a large FMCG site
DDMRP

The client wanted to implement DDMRP at one of its key European sites to reduce frozen periods and inventory. From initial engagement to go-live, we implemented in just 10 weeks.

First we spent eight weeks engaging with management and working with IT teams to define data requirements and develop extraction methods. This was followed by two weeks training and cutover activity. The results? The frozen period shortened from 28 to nine days and inventory reduced by 30% across finished goods and raw and packaging. All with zero impact on service level, which remained at 99%.

Distribution, production and procurement planning at a large FMCG site
DDMRP

This client implemented DDMRP at a key site in the supply chain to reduce extended frozen planning periods, and gain control over poor service performance.

This was achieved by firstly buffering the raw and packaging materials, ensuring 100% availability, allowing the site to move from 56 days to nine days’ frozen period for production planning with zero impact of site efficiency or capacity. The distribution network was also buffered using DDMRP, this led to a 30% reduction in total inventory (across raw, pack and finished goods) and an increase in customer service from low to mid 80s to mid 90s.

Is your investment in SAP APO still delivering for you?

Supply optimisation at a global FMCG
APO HEALTHCHECK

A rapidly growing client needed to see if its planning solution was able to adapt to changing business objectives. We were tasked to benchmark its existing planning capability against other FMCG companies using APO. Our team used our healthcheck methodology, based on the five dimensions of process, organisation, system, reporting and data.

Following the benchmarking exercise, we assessed ways of working by means of questionnaires, interviews and supply chain metrics across multiple regions. We provided a set of recommendations to address immediate needs and a roadmap to guide the longer term development of process. End product? The groundwork for a solution fit for purpose for the evolving business.