.
How to maximize production with data across the supply chain?
A producer of consumer goods experienced disruptions and couldn’t respond quickly resulting in a huge loss.
How to maximize production with data across the supply chain?
A producer of consumer goods experienced disruptions and couldn’t respond quickly resulting in a huge loss.
In a very short period, the relevant software was harmonized from at least seven legacy ERP systems into a unified digital twin. Using an out-of-the-box application, teams immediately began to optimize cost of goods sold and production, resulting in tens of millions of dollars in estimated annual savings.
In a very short period, the relevant software was harmonized from at least seven legacy ERP systems into a unified digital twin. Using an out-of-the-box application, teams immediately began to optimize cost of goods sold and production, resulting in tens of millions of dollars in estimated annual savings.
The challenge
- Data to achieve the goal, resided in at least seven ERP systems and they store data natively, making the data inaccessible to most decision-makers.
- How can we take advantage of pricing changes to raw materials and reduce COGS through spot buy opportunities?
- How can we avoid miscalculations of raw materials to reduce waste?
- How can we optimize production through greater visibility into the cost and profitability of our various product formulations?
Solution
- Integrate 7+ ERP data sources to produce a “digital twin” of the value chain.
- Optimize COGS. Within one week, an out-of-the-box Bill of Material workflow allowed users to begin optimizing raw materials purchases for the first time. Purchasing teams assess spot-buy opportunities and calculate how cheaper materials could be used within the value chain, accounting for formulation constraints, existing inventory, and forecasted demand.
- Optimize Production. Using the granular profitability model, supply chain managers evaluate how new product formulations compare to existing ones and develop strateges to maximize production.
- Instead of querying complex ERP databases, Supply chain managers, plant managers, and demand planners can now interact in a no-code way with a real world object model, examining plants, SKUs, customers, and other core business concepts.
- Data to achieve the goal, resided in at least seven ERP systems and they store data natively, making the data inaccessible to most decision-makers.
- How can we take advantage of pricing changes to raw materials and reduce COGS through spot buy opportunities?
- How can we avoid miscalculations of raw materials to reduce waste?
- How can we optimize production through greater visibility into the cost and profitability of our various product formulations?
Solution
- Integrate 7+ ERP data sources.
- Within one week, an out-of-the-box Bill of Material workflow allowed users to begin optimizing raw materials purchases for the first time.
- Optimize Production using the granular profitability model.
- Instead of querying complex ERP databases, managers can now interact in a no-code way with a real world object model, examining business concepts.
The impact
- Estimated up to $100M in annual savings based on 1-2% improvement in production.
- Seven ERP sources integrated into a digital twin and supply chain workflow within 5 days.
- Optimizing raw material purchases could generate tens of millions of dollars in annual savings and could take minutes, instead of weeks. There are estimated hundreds of similar opportunities.
The project
- Foundry's ERP Suite was used to connect to SAP and an out-of-the-box Bill of Material was applied to generate the digital twin in Foundry's ontology.
- Visualizing the results is crucial for the adaption of the solution by the user. Visual and analytics tooling like Contour and Object Explorer was used to drive decision-making.
- Estimated up to $100M in annual savings based on 1-2% improvement in production.
- Seven ERP sources integrated into a digital twin and supply chain workflow within 5 days.
- Optimizing raw material purchases could generate tens of millions of dollars in annual savings and could take minutes, instead of weeks. There are estimated hundreds of similar opportunities.
The project
- Foundry's ERP Suite was used to connect to SAP and an out-of-the-box Bill of Material was applied to generate the digital twin in Foundry's ontology.
- Visualizing the results is crucial for the adaption of the solution by the user. Visual and analytics tooling like Contour and Object Explorer was used to drive decision-making.