Process consulting in preparation for SAP S/4 HANA
The SAP S/4HANA transformation within the EPPM organization was comprehensively prepared. Targeted process consulting, optimization…
success story
Process mining to optimize purchasing processes
Optimization and automation of procurement in the lifecycle service
Process Mining was used to create a digital image of the processes in the Krones LCS (Lifecycle Service).
Repetitive activities were automated with the help of action flows. The performance of the action flows and the business impact can be analyzed using generated reports. Further analyses were created to uncover delays in the purchasing process and measure supplier performance.
With the help of Celonis, it has been possible to create automation in the area of operational purchasing, which was previously not possible for LCS in the SAP standard.
Robert Fuchs, Krones Lifecycle Services
KRONES AG
- Krones AG is a manufacturer of filling and packaging systems for the beverage industry, among other things
- 16 thousand employees generate over EUR 3 billion in sales
- Customers around the world rely on Krones Lifecycle Service for spare parts and retrofits
Services
- Adjustments to the standard purchase-to-pay process model
- Carrying out analyses to identify bottlenecks
- Development of action flows for the automation of operational purchasing processes
- Creation of reports to evaluate the action flows
Results
- Reduction of manual workload through automatic order triggering in SAP with determination of the delivery date based on the customer requirement date (up to 100 min / day)
- Analysis of the BANF process between operational and strategic purchasing to reduce lead time
- Automatic identification of order delays to improve customer satisfaction through early communication
- Supplier data sheet with relevant KPIs for all active suppliers
Project description: Process optimization in operational purchasing at KRONES
To improve and automate processes in operational purchasing, use cases for the application of action flows should be identified and implemented. In addition, a way should be created to track and evaluate the results of the action flows. Further analyses should also be developed in order to uncover bottlenecks and process delays in the interaction between operational and strategic purchasing and to support operational purchasing in supplier negotiations.
Procedure
First, the operational processes were examined for activities with manual effort and high automation potential. The use cases identified in this way were evaluated and prioritized. The required data was then identified with the specialist department and the rules for executing the action flow were defined. The action flows created were tested in an extensive test phase in one area of the company and then rolled out step by step to the entire business and provided with reporting.
Results
Use case 1:
Automatic notification of the sales department in the event of postponements in the procurement process with an impact on the customer delivery date and determination of the new material availability date with dispatch of up to 100 e-mails per day
Use case 2:
Automatic triggering of purchase orders in SAP with determination and adjustment of the delivery date based on the customer’s requested date, taking into account existing supplier contracts
Use case 3:
Creation of a supplier data sheet that compiles the most important KPIs per supplier at a glance and enables the best and worst performers to be identified based on various categories such as delivery reliability or delivery quality
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