Expertise

We turn knowledge into orientation

Project Example

Ensuring Production Capability of a Power Supply Manufacturer through End-to-End Transparency

For a renowned manufacturer of power supply solutions, we optimized the supply chain to secure production capability and revenue targets. By creating end-to-end transparency from the end customer to the supplier, we were able to precisely capture material requirements and efficiently plan production.

Background

The Covid-19 pandemic had led to a high backlog of customer orders as well as high material inventories. At the same time, production capability was limited by missing parts. There was a lack of transparency in the ERP system to assess production possibilities and procurement necessities.

Specific Task

Our task was to create complete transparency of material requirements, simulate production scenarios, and systematically identify missing parts. The goal was to automate knowledge about relationships between customer orders, bills of materials, and alternative components, and to optimize production planning.

KBC Solution Approach

We developed a data model to simulate production scenarios and optimize inventories. By analyzing master and transaction data in the ERP system, we generated knowledge from relationships between sales, purchasing, logistics, and production data. We evaluated all missing parts regarding their criticality for components and suppliers and established targeted working capital management.

Männliche Person, keine Haare, blaue Augen mit Brille, lächelnd, trägt ein weißes Hemd und dunkelblauen Anzug, stehend mit beiden Händen in den Hosentaschen
Männliche Person, keine Haare, blaue Augen mit Brille, lächelnd, trägt ein weißes Hemd und dunkelblauen Anzug, stehend mit beiden Händen in den Hosentaschen
Martin Betz
Director

Achieved Effect

Through our measures, we were able to expand the forecast period for production planning from 4 to 12 weeks. Raw material inventories in relation to generated revenue were reduced by 15%. We established end-to-end transparency for all missing parts and enabled a success-critical assessment. Ultimately, revenue targets were exceeded while simultaneously reducing material inventory ratios.