As part of their continued UK growth, LDH has commissioned a new distribution centre, to be built in Suffolk, UK. The warehouse will be highly automated, including a Swisslog ASRS (Automated Storage & Retrieval System), high bay cranes, monorails, automated checks (pallet structure) and pallet wrappers.
“In dealing with Rocket I took great comfort in that they understood my industry and my business instantly. I felt that Rocket listened and were experts in their business understanding, speaking my language, taking the time to understand the goals and business outcomes I needed to achieve. Even before we made our formal partner selection Rocket were very willing to go the extra mile to help, they have become a trusted sounding board.
Rocket have a mature approach to multi-vendor projects and very strong warehouse automation knowledge. Their methodology helped us establish a clearly defined and effective collaboration between Rocket our EWM partner & our automation provider Swisslog.
Since starting the project in July, Rocket have lived up to their promises, having put in place a strong, experienced team who are very aligned to the ‘Rocket’ ways of working that we expected from the pre-sales engagements with them. The Blueprint workshops are running well, to a very good level of detail and the consultants are all extremely knowledgeable.” Mark Anson, IT Director, LDH (La Doria) Ltd.The Challenge
Part of an overall program covering the DC construction, fit-out, automation and Warehouse Management software and technology.
LDH, who are an existing SAP ERP user, were keen to retain the benefits of an integrated SAP landscape and have selected the SAP Extended Warehouse Management platform to control the entire operation at the new distribution centre. This is where Rocket has been selected as the preferred partner to bring its valuable experience and expertise and lead the full implementation lifecycle of the SAP EWM aspects of the program and lean on their project methodology to integrate closely with the overall program, including close collaboration with Swisslog for the automation integration to ensure the Key Operational Performance Targets can be met and sustained.Business Outcomes
SAP EWM will be used to meet an extensive scope including the following highlights:
The project includes fully integrated mobile execution of which Rocket are also responsible, providing the SAP EWM mobile solution which will leverage the SAP EWM RF Framework and ITS mobile through Rockets turn-key SAP mobility provisioning framework including mobile devices, software and content libraries.
The project will use the following Rocket EWM project accelerators and benefit from numerous pre-built EWM add-ons ‘Rocket Packs’:
EWM Overview Training – accelerating LDH project understanding of SAP EWM
Blueprint Accelerator – using Rocket rapid deployment content to accelerate To-Be process design and understanding of future ways of working.
Our customer, a leading Consumer Packaged Goods (CPG) manufacturer and marketer of branded consumer lawn and garden products was managing very seasonal business demand with manual planning processes that were very iterative and time consuming and had to deal with the complexities of constrained warehouse and production capacity, and raw materials supply constraints. This situation was making it impossible for the business to break the cycle of reactive demand and supply adjustments, resulting in regular production capacity problems and too much inventory.
This situation was compounded with the challenge of managing across 7 global sales offices that were independently creating sales forecasts without any consensus between them and independent demand plans onto shared suppliers (both own and outsourced) at different times and across multiple iterations, resulting in poor forecasting accuracy.
The business was also undergoing a transformation and restructuring program including the implementation of SAP S4 HANA ERP platform.
Working as the SAP IBP Implementation partner across the full project lifecycle Rocket are responsible for:
• Design and implementation of SAP IBP S&OP
• Integration between S4/HANA & SAP IBP
• SAP IBP training
Using the Rocket Cloud Accelerator Methodology for SAP IBP provided the client with three key success factors:
- Best Practices led approach to quickly define new Sales & Operations Planning, organisational structure and ways of working with high alignment to SAP IBP S&OP
- Provide a fixed price, fixed scope rapid implementation timeline across the entire organisation
- Allow the business planning teams to quickly explore SAP IBP S&OP using the Rocket S&OP model company, giving visibility of the end solution very early in the project to accelerate scope and design decisions
Benefits of Approach
o Combined business process engineering and system led design process
o Rapid deployment using predefined best practices
o Minimised theoretical design
o Agile approach to refinements based on hands on experience
o Roll-Out plan to suit organisation
It was decided to tackle the planning challenges with the design and implementation of a globally aligned Sales and Operations Planning (S&OP) process underpinned by the SAP Integrated Business Planning (IBP) S&OP platform fully integrated using SAP Cloud Platform Integration Data Services (SAP CPI-DS) into SAP S4 HANA.
We created a tailored Consumer Packaged Goods (CPG) Sales & Operations (S&OP) cycle with planning views to support all steps across 7 countries:
Forecasting Preparation (Week 1)
- Revise Portfolio, Substitutions and Modifications
- Cleanse Sales History
- Revise Segmentation
- Revise Statistical Forecast Models
Demand Planning (Week 2)
- Statistical Forecast Calculation (Load and revise Statistical Forecast)
- Sales and Marketing Forecast (Discuss Sales & Marketing Forecast, Add Campaigns, Events, Promotions etc)
- Demand Corrections (Review Demand Plan Alerts & Take Action)
Supply Planning (Week 3)
- Release Forecast
- Supply Planning Calculation (Review Safety Stocks & Supply Targets, Run Heuristic Planning)
- Supply Corrections (Review Planning Alerts & Take Action)
S&OP Review (Week 4)
- Plan Versioning / Simulations, (What If Scenarios, Capacity Review, Supply & Demand Versions)
- S&OP Meeting (Review Planning Versions and Discuss/Agree Financial Adjustments)
- Publish Plan (Live Version)
The real time integration to and from SAP S4 HANA using SAP CPI-DS includes S4 master data (products, locations, customers, transportation lanes, vendors) and transactional data (actuals, stocks, forecasts, orders) sent to IBP. SAP IBP data interfaced back to S4 HANA includes planned orders, purchase requisitions, stock transfer requisitions to drive S4 supply chain processes.
The Rocket Cloud Accelerator Methodology for SAP IBP allowed the solution to be highly aligned to standard SAP IBP S&OP, with additional value being driven by a small number of key enhancements and Rocket IBP add-ons:
- Capacity Check at Subcontractors Production: Using new key figures for capacity check and capacity levelling including alerts of overloaded resources at Subcontractors.
- Promotions Management: Using purpose made views including prices, discounts and promotions IDs per days to facilitate the work of sales and marketing departments and easily see the impact in the forecast as well as in the financial key figures of these promotions.
- S4 HANA Localisation of Orders IDs: New planning levels with orders IDs allow easy localisation of orders in S4 HANA system. The tailored view allowed historical analysis of orders (production, purchasing and stock transfer orders) to be easily performed.
- Safety Stock Calculations: Bespoke safety stock calculations that takes into account variability of demand and supply. Formulae include forecast, actuals, service level and lead times to generate an accurate and variable in time safety stock in both units and days that comes into the Heuristic calculation.
To provide a transportation management platform to reduce logistics cost of supplying products from over 350 technology brands to a customer base of 22,850 retailers and resellers and improve decision making capability.
A UK first for Rocket who, as a trusted SAP partner, has been approved to deploy the latest Ramp-up release of SAP Transportation Management (TM) 9.3 on HANA which will be used to automate and optimise package building, resource planning, carrier selection and freight costing. Real time access to logistics business intelligence and embedded analytics has been achieved thanks to SAP HANA and Smart Dashboards from Fiori.
Rocket’s client required a tightly integrated logistics execution platform, supplying products from over 350 technology brands to a customer base of 22,850 retailers and resellers as part of a supply chain expansion programme. Key challenges include improving profitability of high-volume, low margin business.
Another UK first for Rocket who, as a trusted SAP partner, has been approved to deploy the latest Ramp-up release of SAP Extended Warehouse Management on HANA. Extensive warehouse process optimisation, automation and mobilisation will form the foundation.
HANA will enable third party billing to significantly reduce third party logistics operational overheads, additionally, real time business intelligence and embedded analytics will improve visibility, traceability and operational management through Fiori’s Smart Dashboards.