ACTEGA North America was challenged with rising expenses and costs related to waste disposal, inventory write-offs, and internal costs associated with inventory inaccuracies at one of its sites. Initially, a “waste” project was launched as part of continuous improvement. Some initial root causes were identified very quickly: inability to locate inventory, inaccurate recording of inbound and outbound shipments, and lack of interdepartmental process controls. We decided to implement SAP Extended Warehouse Management for finished goods inventory to reduce expenses and costs and to additionally identify other process issues.
The project was scoped to include all materials movements and related transactions within two plants and four storage locations that would be WMS managed and radio frequency (RF) supported. The project was estimated to take 13 weeks from scoping to go-live. We had several internal challenges to overcome during the project but were successful in overcoming those and implementing the new technology within the 13-week timeline. The software and our new processes have already helped to identify and address other underlying issues that are contributing to the wastes associated in our processes.
Key Business Benefits:
- Improved inventory accuracy and efficiency
- Reduced waste expenses and costs
- Increased and timely identification and resolution of issues
