Needs

The Company has identified a critical issue in the logistics process and has decided to intervene on three fundamental nodes:

• improve the after-sales area in the field of spare parts and technical assistance;
• develop the spare parts business by developing the dealer network;
• integrate different service management in a multi-brand context.

The Operation Parts, Customer Service, Sales, Controlling areas were therefore involved, for which a dedicated procurement team was created. The team was equipped with a new strategy and new stock management technologies.

Objectives
The new model for the Operation Parts area provides for a new centrally managed warehouse, with a new planning and procurement team equipped with a new stock management strategy and technology based on modern IT tools such as: warehouse management systems, credit and credit management tools, interfacing of SAP with courier systems for the generation of LDV and Alert.

The new warehouse management includes: mapping of VSM flows and data collection, definition of order and material flows, sizing and design, choice of location and tools, negotiation and purchase of facilities, creation of the logistics team, development and testing of IT tools, implementation phase for removals guided by the WMS, measurement of the service level (logistics KPIs).

The new warehouse strategy includes: data creation and analysis, calculation of ROP, SS, EOQ parameters, customization of trend and forecast analyses, policy dashboards, simulation.

The new procurement team operates on: planning and maintenance of MRP parameters, purchase of materials and services through dedicated suppliers, negotiation of Parts needs with suppliers, management and maintenance of the Parts master data, expediting and follow-up of orders, processing and monitoring KPIs dedicated to sourcing.

Exprivia Solution

The Customer’s requests required the design of an SAP based system that reorganizes the process through this scheme:

• order divided by warehouse areas;
• possibility of management with three priority levels: Urgent, Standard, Stock;
• active mapping of the warehouse by size and rotation index of the individual code;
• monitoring of workloads by area with flexibility on the use of resources (web monitor);
• traced and mapped process of each individual phase;
• possibility of periodic guided reorganization of leases;
• procedures for revolving intervention.

Exprivia’s SAP WMS system thus rationalizes the different phases:

1) Goods receipt

• entrance;
• acceptance for warehouse area;
• labeling;
• Location-by-area missions with optimized routes.

2) Production orders

• scheduling in SAP;
• optimized picking missions;
• management of KITs;
• payment and lease of the whole.

3) Withdrawal

• missions for each warehouse area;
• trolleys with a maximum number of deliveries;
• optimized routes in the different areas;
• Guided grouping with comprehensive online alerting.

Results

The system has rationalized the costs and size of the spare parts department, has improved the relationship with dealers and end users, allowing the expansion of the business, and has speeded up the entire process of the Parts area. In addition, the foundations were launched for improvement ideas such as the alignment of multi-area picking for the completion of deliveries, active cross docking when processing production orders, by-pass to grouping for single-reference or single-warehouse products, integration of packaging management with automated unloading and reordering and single-line order tracking of the brands of each spare part for monitoring and incentives.