2. Building material handling capabilities of the future, faster
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Building
material handling capabilities
of the future, faster

SAP EWM implementation: Improving
effective warehouse orders and real-time
stock management

Client overview

The client is the largest privately-held industrial gas business in the world, and a leading industrial and medical gas company in North and South America. The client has over 120 years of expertise in safely delivering industrial, medical, specialty, and electronic gases, and related services.

Business challenges

  • The client was lacking proper bin location management of their products, which resulted in lower order fulfillment rates and a lengthier picking process
  • UPC bar codes had to be manually decoded to enter data in SAP transactions
  • The cross-dock was not able to handle back-dated orders effectively, resulting in pick errors and a slower response times
  • The warehouse team was not provided real-time updates on the picking execution
  • Packers did not have a guide for effective packing of goods for order fulfillment

Mindtree’s solution

  • SAP EWM S/4HANA 2020 HEC de-centralized system was proposed and implemented to provide a flexible, scalable and optimized warehouse process
  • Optimization was further achieved by utilizing UPC bar codes supplied from vendors, which allowed for faster put-away processes by utilizing the handling unit management for the products
  • The Mindtree team utilized the latest offerings by SAP around pre-allocation of stocks to simplify back-order processing
  • The FIORI application for packing was enhanced to optimize packing guides

Benefits

  • The client is running the latest version of SAP EWM and can leverage any new feature rolled out by SAP
  • The manual process of counting during the handling of materials was eliminated and bar codes were used effectively, which were supplied by vendors
  • Faster turnaround time and higher order fulfillment rates have been achieved after implementing SAP EWM
  • Time reduction to decide on packing and process streamlined
  • Received client feedback that they are executing double the orders after EWM implementation
  • Goods receipts lines increased by 146%, goods receipts efficiency has increased by 125% in a period of 10 days (Earlier, 302 outbound deliveries were processed as against 342 outbound deliveries lines in 10 days after EWM implementation. Also, outbound goods efficiency increased to 42 goods per hour compared to 37 goods per hour earlier)

Project highlights

  • Implemented the SAP EWM S/4HANA 2020 HEC de-centralized system, and reached the milestone of project realization phase in 14 weeks
  • Project was delivered as per agreed timelines
  • Go-live operations were smooth from the day one
  • All UAT and hyper-care defects were addressed effectively ensuring smooth business operations

Goods receipts efficiency increased by

125%