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Streamlined Stock Transfer Process
with SAP Implementation for an India
based Refrigerator Manufacturing
Company
Business Challenge
As one of the leading manufacturers of commercial refrigeration equipment, our client faced
severe challenges to manage stock transfer from the manufacturing plant to the depot, as the
margin of stock was mishandled by depot users.
Process flow of Stock Transfer Order (STO) Process before configuration
VL02N
Freight
Sales and Distribution
Material Management
Goods
receipt
Create Purchase order
Create
outbound
delivery
Create post goods
issue
Create Pro forma
invoice
- Basic Price
- + Freight
- + Margin
- (condition to be maintained in
MM)
- Basic Price
- + Freight
- + Margin
- (condition to be maintained in Sales
and Distribution)
ME21N
VL10B VF01 MIGO
Execute
Purchase
Order
Add Picking
Quantity
Project Details
Customer Size: Large Private sector
Country: India
Domain: Manufacturing
Solution Provided:
o SAP Solution: SAP ECC 6.0
o Modules: SD, MM, FI, ABAP
Client Profile
Our client is one of the largest manufacturers of
commercial refrigeration equipment in India.
They started as a trading company with supply
of air-conditioning and refrigeration parts in
1972. Owing to their expertise and success, they
forayed into setting up cooling plants, and then
ventured into the manufacturing of horizontal
coolers and freezers. Over the years, they have
expanded their business and now have
operations spread across 16 locations in India.
Being a leading manufacturer, our client has a
cumulative capacity of exporting 3,50,000+ units
per annum across 45 countries.
The solution used by the client to manage the freight and margin for the goods required a lot
of human intervention which resulted in data duplication. This hampered the company’s efforts
to achieve goals and objectives resulted in business disruption due to the misleading balance
sheet numbers from the standpoint of Material Management, Sales and Distribution.
In order to fill the gaps and rectify the existing processes, they required a solution developed
using SAP to automate and streamline the processes and eliminate human intervention.
Cygnet’s Solution
Process flow of Stock Transfer Order (STO) Process post configuration
After understanding and analyzing the client’s requirements, industry challenges, and the
expected outcome from the proposed implementation, the Cygnet SAP team helped the client
implement the processes and enable an automated and streamlined stock transfer order process.
Based on its in-depth expertise in SAP module implementations, the Cygnet team implemented
different modules such as Materials Management, Sales and Distribution, Finance, and Advanced
Business Application Programming to render a simplified stock transfer process. Cygnet was able
Material Management
Create
Purchase order
Create Outbound
delivery
Create Post goods
issue
Create
pro forma
invoice
Goods
Receipt
ME21N VL10B VL02N
VF01 MIGO
(Basic Price, Freight & Margin values directly come from
PO to Pro Forma invoice by Enhancement)
Legend:
: Process
flow indicator
Execute Purchase Order Add Picking Quantity
to understand the client’s challenges and provide a customized solution. The major
improvements accruing from the solution included:
Data Management from a single location: The client used to enter and manage the data from
two locations including material management and the sales and distribution site which was a
time-consuming process and brought forth challenges. Based on the analysis of the existing
workflows, the Cygnet team designed a solution in which they provided a process that
maintained all the data at one location, which not only saved time and effort, but also eliminated
the possibility of data duplication.
Streamlined the stock transfer process: Cygnet provided a stock transfer process in which the
end user enters the data only once at the manufacturing site including creating a purchase order,
and other outbound delivery data as well as post goods issues. After loading the goods, the user
generates invoices and once the goods have reached the depot, the goods receipts are
produced.
Enabled automation: To avoid any errors and duplication in generating invoices, Cygnet
provided an automated process in which the original data of Purchase Order (PO) value is directly
fetched including the basic price of the product, freight, and margin value while maintaining the
Pro -forma invoice.
Benefits to the Client
Auto determined freight and other expenses at the time of billing that helped reduce
human intervention by 80%
Effective process implementation resulted in faster data management
The simplification of the complex process was delivered in the brief span of 1 month
Accurate data and faster reporting
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