Major International Manufacturer Success Story
Rapid data quality management assessment results in millions of supply chain savings.
A manufacturing organization running SAP, which includes seven business units and 25 manufacturing plants in Europe, was looking to reduce its duplicative stock of spare parts and increase central purchasing power across its enterprise. The business, which spent more than $15 million annually on spare parts and had a spare parts inventory worth more than $16 million, desired to increase working capital and reduce overall unit costs. To do this, they embarked on an initial data quality initiative as part of their planned SAP S/4HANA migration.
Syniti deployed its Syniti Knowledge Platform (SKP), executing a Data Jumpstart effort focused on the companies MRO (Manufacture, Repair & Operations) challenges. Within two weeks, the teams gained visibility into hundreds of “Initial Insight” reports. Building off of the reports, project teams were then able to use data harmonization and standardization to develop focused “Actionable Insight” reports that identified where millions of dollars in savings could be found.
The project quickly returned results and identified a projected financial return on investment of $1.5 million in reduced procurement expenditures each year on spare parts, and a $2 million reduction in current duplicate parts. It also revealed a projected “workforce return” of $200,000, based on savings from finding, requisitioning, and picking correct spare parts more efficiently. Overall, the company was able to realize an actual return on investment of $2 million in year one.