Inventory Optimization
Striking the balance between too much and too little inventory can deliver immediate and meaningful benefit. Too little inventory negatively impacts the ability to meet customer demand and too much decreases working capital. Ultimately the goal should be to get it right as either scenario leads to diminished profits.
Benefits of finding the correct balance include:
- Increased customer service levels
- Sound inventory turnover rates
- Improved planning accuracy
- Better warehouse organization and employee efficiency
- Elimination of dead and obsolete stock
- Decreased holding and management costs
- Increased return on the investment in SAP
Procure To Pay
An efficient SAP Procure to Pay process enables SAP to perform the heavy lifting of a procurement department’s day to day activities, transforming the team’s role from day to day execution into one of managing exceptions. This shift in mindset can lead to drastic reductions in manual intervention allowing any procurement department to evolve into a strategic unit within the company that can then be empowered to develop relationships with suppliers, identify and mitigate risks in sourcing and optimizes inventory levels.
Benefits of an optimized Procure to Pay process include:
- Reductions in manual PO creation and maintenance
- Increased visibility of spend
- Improvements in supplier performance
- Supplier spend and lead time reductions
- Mitigation of the risk of stockouts
- Better visibility of centrally negotiated prices and terms
- Improvements in on-time payment performance
- Inventory reductions
- Increased return on the investment in SAP
Available To Promise
Are you able to provide accurate ship dates for even those products currently out of stock? Achieving and maintaining a high level of service is the best way to keep existing customers and to expand your customer base. A lack of accuracy in the Available To Promise (ATP) process can be detrimental to a company. It’s vital for a team to have confidence in its ability to promise dates.
Benefits of an optimized ATP process include:
- Increased customer service levels
- Greater visibility of and trust in the system
- Increased efficiency for SD team, allowing for proactive engagements with clients
- Optimized use of manufacturing and procurement resources
- Lower levels of inventory
- Improved service levels
- Increased return on the investment in SAP
