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SAP-integrated VMI processing

TDK Electronics automates calculation of replenishment quantities with SPEEDI VMI

TDK Electronics ensures the consistently high quality of its products and services through its comprehensive quality management system, a zero-defect strategy, but also through the continuous improvement of business processes in all areas. For years, the company has mapped its operating processes in two SAP ERP systems: In TDK Electronics' SAP software and in an SAP system used by the TDK Group in Japan for the European sales company TDK Europe, among others. 

The SAP release or standard used by TDK Electronics does not cover all the required facets of certain processes, such as Vendor Managed Inventory (VMI) as part of order processing. "VMI processing is definitely demanding. For customers whose warehouses we regularly stock with our products, the demand situation changes frequently, often even daily. As a result, subsequent deliveries and thus shipping quantities have to be constantly adjusted and recalculated," says Sabine Trost, Manager Sales SAP Coordination Team, TDK Electronics. 

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TDK Electronics

TDK Electronics is part of the Japanese TDK Group, a leading global supplier of electronic solutions. Its product range includes capacitors, ferrites and inductors (coils, chokes, transformers), piezo and protective components, as well as sensors and sensor systems. In fiscal 2021 (ending in March), TDK Electronics generated sales of around EUR 1.4 billion with 23,600 employees at around 20 development and manufacturing sites worldwide and a tight-knit sales network.

Automated calculation

VMI processing used to be largely manual. The current stock level of a customer had to be researched in tables, replenishment quantities had to be calculated using a pocket calculator. Since the introduction of the SAP-based solution package SPEEDI VMI from WSW Software, which is installed on both SAP systems and extends the SAP standard without modifications, puts an end to this. 

With SPEEDI VMI, the component manufacturer controls the replenishment of customer warehouses in an IT-supported and automated manner. The solution calculates the optimum replenishment quantities based on the stock quantities currently stored in SAP and the customer's requirement quantities, and schedules them directly in the SAP delivery plan. It takes into account all previously defined parameters, such as minimum and maximum stock levels, range of coverage and defined replenishment strategy. 

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