Business Challenge:
Power tools division of Bosch India Limited has
17 warehouses across different regions in India. The back office is located in
the Bangalore which is the headquarters for Power tools division.
The sales representatives from different
regions collect the sales orders and book the orders in the system. The
planning team sitting in the headquarters process these sales orders and place
productions orders if stocks are not available. If the stocks are available
then the sales team confirms the order and initiates outbound process.
The challenge was that in each warehouse there
was a huge non moved material which is not used for delivery though sales
orders are available in other region. For example there is a material X
available in A warehouse in North region which has a shelf life period of 10
days and the same material is available in B warehouse in North region which
has a shelf life period of 20 days. The sales order is for the customer located
to B warehouse. If the material from A warehouse is not used as it has a less
shelf life period compared to B warehouse then it may happen that the material
in A warehouse might lead to scrap. This leads to huge inventory loss and cost.
The solution:
The non-movable material list has to be
available to the warehouse managers in all the warehouses before they start
planning for the delivery. Though details are available in ERP system the
warehouse managers has to log on to SAP system to take decision.
The SAP mobile solution improved the situation
by providing the information at any time, at anywhere where the warehouse
managers takes decision at right time. This saves huge inventory costs.
Results:
With high competitive environment from the competitors and the target from the management to reduce inventory costs and to use the non-moved materials from warehouse the SAP mobile solution gives a real time information at any place, at any time, where the warehouse mangers takes decision quickly and reacts quickly.