<p>This paper focuses on a comprehensive case study of a mid size chocolate manufacturer who integrated SAP S/4HANA Production Planning (PP) with AGI Warehouse Management System (WMS) and Laboratory Information Management System (LIMS). The integration was pursued to ameliorate chronic production backlogs, inventory inaccuracies and quality risks that in the past accrue millions of dollars of annual costs. By synchronising planning, execution and quality control in real-time, the company saved 92 per cent of backlog clearance time, 35 per cent on inventory accuracy and reduced rework by 20 per cent. Financial analysis showed that the savings incurred annually are in the range of US$2.5 million to US$3.0 million, based on avoided retailer penalties, reduced scrap and rework, increased labour productivity, and increased compliance of promotion. Seasonal demand analysis showed how the integration allowed the firm to deal with Easter and Christmas peaks without being penalised or paying for expedited freight. The study provides a replicable blueprint for food manufacturers that are looking for operational excellence in the context of Industry 4.0. Furthermore, this case study incorporates modern techniques such as artificial intelligence (AI) and machine learning (ML) based optimisation to complement the ERP systems in order to improve the supply chain management and real-time decision making processes.</p>

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Integrated SAP S/4HANA production planning with AGI warehouse management system and laboratory information management system

  • Karthiksai Chenna

摘要

This paper focuses on a comprehensive case study of a mid size chocolate manufacturer who integrated SAP S/4HANA Production Planning (PP) with AGI Warehouse Management System (WMS) and Laboratory Information Management System (LIMS). The integration was pursued to ameliorate chronic production backlogs, inventory inaccuracies and quality risks that in the past accrue millions of dollars of annual costs. By synchronising planning, execution and quality control in real-time, the company saved 92 per cent of backlog clearance time, 35 per cent on inventory accuracy and reduced rework by 20 per cent. Financial analysis showed that the savings incurred annually are in the range of US$2.5 million to US$3.0 million, based on avoided retailer penalties, reduced scrap and rework, increased labour productivity, and increased compliance of promotion. Seasonal demand analysis showed how the integration allowed the firm to deal with Easter and Christmas peaks without being penalised or paying for expedited freight. The study provides a replicable blueprint for food manufacturers that are looking for operational excellence in the context of Industry 4.0. Furthermore, this case study incorporates modern techniques such as artificial intelligence (AI) and machine learning (ML) based optimisation to complement the ERP systems in order to improve the supply chain management and real-time decision making processes.