Reference Report
Hirschmann Automotive - order in the packaging jungle again
Add-on SPEEDI ensures high transparency in packaging material planning with SAP
At Hirschmann Automotive, the management of reusable packaging materials, i.e. returnable packaging, is of strategic importance. The SPEEDI Packaging Information Cockpit (PMIC) provides unprecedented transparency here. This is an important prerequisite for optimizing packaging-related processes and drastically reducing the costs of returnable packaging.
Hirschmann Automotive GmbH
As an international automotive supplier, Hirschmann Automotive GmbH develops and produces connectors, cable assemblies, sensors and many other products for the current megatrends of e-mobility and autonomous driving.
With around 7,000 employees and its headquarters in Rankweil (Austria), the company operates twelve locations, eight of which are production sites, including in the Czech Republic, Romania, Morocco, Mexico and China.
Packaging material planning - a complex matter
For reliable planning and execution of the shipping of parts and components, the right packaging materials - such as pallets or pallet cages - must be available at the right time and in the right quantity.
A corresponding disposition check is complex. Packaging materials, which are usually returnable packaging, can come from all kinds of sources: from other locations, customers, freight forwarders or our own suppliers.
As the packaging materials are constantly moving back and forth, it is extremely difficult to determine current stock levels.
This is also the case at automotive supplier Hirschmann Automotive, which uses small load carriers (SLCs), pallets, plastic boxes with end and intermediate lids and customer-specific containers, many of which are returnable packaging.
Initially, Hirschmann Automotive did not have a great deal of administrative work. However, the proportion of loaned goods increased significantly within a few years.
The reason? Disposable packaging has become more expensive and customers' storage strategies have changed. In addition, the proportion of highly sensitive components that require very specific packaging, such as boxes with ESD protection, has also increased.
"Customers often asked us where their containers were. They wanted to check the stock in their supply chains. Small load carriers, for example, have recently become scarce; every piece counts. However, we lacked transparency, which meant that we were unable to react quickly and satisfy the customer. Furthermore, the annual inventory for a major customer revealed inventory discrepancies in the high five-digit euro range," says Amel Aganovic, Leader Process & Systems Integration Logistics at Hirschmann Automotive GmbH.
The solution - the SAP-based add-on SPEEDI
SPEEDI is a fully integrated solution platform for SAP ERP and SAP S/4HANA. SPEEDI enables call-off, order, delivery, invoice and credit note processes to be automated, configured and parameterized quickly and easily on an individual basis. Especially for companies whose processes in standard SAP ERP (SD, MM, FI-CO, GTS) are not sufficiently covered, the SPEEDI a very good choice. The SPEEDIWSW's platform now has over 1,400 preconfigured functions - processes, monitors, reports, forms - all of which are release-compatible and can be seamlessly integrated into SAP ERP. SPEEDI is used worldwide by 350 companies in the automotive, electronics, manufacturing or retail industries.
The SPEEDI Packaging Material Information Cockpit (PMIC) identifies the packaging materials required by customers or suppliers consistently in SAP ERP and supports forward planning. The SPEEDI PMIC, which has proven itself many times over in practice, is constantly being improved and further developed based on specific requirements.
Add-on SPEEDI Packaging information cockpit (PMIC) - ROI after one year!
Transparency and continuous process and cost optimization have top priority in logistics at Hirschmann. The SAP ERP standard did not allow the special processes to be mapped automatically. It quickly became clear that the functional gap in SAP had to be closed. The choice fell on the solution SPEEDI PMIC, the add-on from WSW Software that integrates seamlessly and release-compatible into SAP ERP or S/4HANA. SPEEDI PMIC was first introduced at the headquarters in Rankweil and two production sites in Romania in summer 2020.
And this is how it works SPEEDI PMIC: The add-on determines the current stock as well as the requirements per customer, per supplier and the internal requirements for each individual packaging material. The stock reconciliation takes place almost in real time. Traffic light functions show the user immediately whether there is a risk of exceeding the range of coverage or falling below the safety stock level. It is also possible to see at a glance whether the loaned goods requirement is greater than the current stock on the loaned goods account.
Hirschmann Automotive has been able to minimize inventory deviations in packaging materials to such an extent that the costs for rental and storage have been reduced by a factor of ten. The investment in the add-on has already paid for itself after just one year. The roll-out of SPEEDI PMIC in 2021 in the remaining plants was no longer an obstacle.
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