The client is a world leader in specialty chemicals. The company has operations in more than one hundred countries around the world.
Having embarked on a process harmonization journey, the client partnered with Infosys to implement supply chain solutions based on supply chain archetypes across multiple business lines. SAP Integrated Business Planning (IBP) implementation was a major milestone in this journey.
Key Challenges
- Decentralized planning processes
- Heterogeneous IT systems and solution architecture for planning
- Low forecast accuracy and low visibility into inventories
- Sub-optimal MS Excel based solutions for complex processes like production planning nuances for chemical manufacturing process like electrolysis, co-production, and campaign management
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The Solution
Implementation of SAP Integrated Business Planning solution to harmonize planning processes and IT tools
Infosys implemented SAP IBP to enable harmonized sales and operations planning (S&OP). The implementation and solution architecture focused on a scalable data model and global process templates for demand review, supply review, and inventory optimization.
As part of the solution, Infosys implemented:
- A master data framework and improved the master data quality needed for end-to-end supply chain planning.
- Unique and complex processes like long-term budgeting, production planning for electrolysis, and managing/utilizing/disposing the co-production
- Supplier campaign management for critical raw materials using a bolt-on solution on top of SAP IBP architecture
- Centralized the S&OP processes by deploying homogenous IT systems, solution architecture, and a scalable data model
- Tuned the most cutting-edge feature of IBP supply and response optimizer for chemical industry requirements like electrolysis, multi-sourcing, critical raw material planning, and secondary distribution
- Implemented IBP inventory optimization to convert forecast accuracy, lead time variation, lot size consideration, scrap and service level needed for customer categorization into optimum safety stock levels across the multi-echelon supply chain
- Enabled algorithmic forecasting by implementing AI/ML and next generation statistical models
- Automated master and transaction data solution to harmonize data exchange between IBP and interfacing systems like SAP S/4HANA, SAP APO, and SAP BW
Benefits
Enhanced profitability through distribution and product mix optimization by prioritizing profitable products and customers in case of constraints
Increased visibility through annual budget planning solution. This helped prepare the business for next 2-3 years and plan the supply chain in advance
Improved plant efficiency through supply optimizer that performed finite planning and trade offs
Reduced inventory through optimized safety stock levels across supply chain leading to reduced working capital needs
Harmonized S&OP processes across business lines using a global IBP template
Improved productivity of demand/supply planners by automating statistical forecasting and supply planning results
