Digitizing the Supply Base

- SNC
Shannon Lange / Joyce Francis
Chamberlain
SESSION CODE: CP775
Background
Chamberlain went live with SAP in April 2012

Focus on replacing legacy system to support growing

business

Sourcing and Purchasing utilized standard

functionality.
Challenges
Purchase Orders sent to supplier via email
Difficult to know if supplier received order
No visibility to Material in transit
Invoices received via email/mail, entered manually

SOMI (SMI) Materials were consignment based

managed at a 3rd party logistics provider
Materials were received in SAP by 3rd party
Aged inventory stayed at 3PL, sometimes mixed
Material ownership transferred when material received by
warehouse or production
Benefits of SNC

Its a platform for customers and suppliers to collaborate

electronically.
Suppliers can view POs, SAs, Forecast and Invoice
information.
Allows 3PLs to efficiently manage inventory on Just-In-
Time (JIT) and reduce amount of excess inventory.
CGI can add suppliers with easier onboarding process.
Reduces errors and processing cost by improving
communication.
Allows inventory visibility to plant, suppliers and 3PL.
SNC Project Overview

Digitized total of 74 International & Domestic

Suppliers & 2 Third-Party Logistics Suppliers
(3PL)
Digitized 80% of Direct spend
Pilot phase Go-Live February 2014 and
completed 4 additional phases
Implemented pilot Kanban Point-of-Use (POU)
October 2014
RETURN ON INVESTMENT

One-time cash flow benefit from inventory reduction $10M

Enhance JIT and SMI programs through digital

communications

25% of annual spend identified as potential SMI

194 part numbers
Reduce current on-hand inventory by 18%
Top 10 materials equal 33% of on-hand inventory reduction
RETURN ON INVESTMENT Cont.
Additional $2.4M of productivity to be realized
Reduction in the creation of E&O inventory
Lower carrying costs from reduced inventory
Less expedited freight in on raw materials

Invoice visibility and Resolution

Suppliers can submit invoices electronically and track
payments
34% of invoices expected to be digitized
Reduction in number of blocked invoices & AP input into
system
Enable CGIs ability to take advantage of early payment
discounts
BEST PRACTICES

Leverage as much Out of the Box functionality to

support direct material purchases
Purchase Orders
Schedule Agreements
Order acknowledgement
Inbound deliveries
Invoicing

Reduce overhead managing supplier inventory

located at third party logistics provider
SNC - PO Process Flow
SNC Process Flow JIT
SNC 3PL (Non-Bulk)
SNC 3PL (Bulk)
Key Learnings

Properly Scope Infrastructure Requirements

Work with an experienced partner
SNC does not support one supplier to many
relationship OOTB
Supplier training is key to success
Lock down screens that are not applicable to supplier
Assume users will be creative, test thoroughly
STAY INFORMED

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Tom Wailgum: @twailgum
Chris Kanaracus: @chriskanaracus
Craig Powers: @Powers_ASUG
THANK YOU FOR PARTICIPATING

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SESSION CODE: CP775
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