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Supply chain optimization for chemical and petroleum from IBM and SAP

Executive summary Business view Technical details
The goal
Use your supply chain to manage demand
Are you collaborating with your suppliers, vendors and customers as effectively as possible? Can you handle increased customer requirements, while shortening order and product cycle times? The supply chain management solution from IBM and SAP is designed to help streamline your overall supply chain.

The advantage
Why IBM and SAP?
The IBM and SAP alliance has combined SAP's powerful enterprise software with IBM's global e-business infrastructure to create a unified, open-standard e-business platform for over 30 years. Together, we can help you implement new systems and help get the most out of your supply chain.
  • We have more than 700 joint SAP supply chain management implementations around the world, across the public and private sectors.
  • IBM has established Supply Chain Research Labs with leading universities to simulate the workings of a complex supply chain.
  • IBM Global Business Services has a dedicated team for implementing joint IBM and SAP Supply Chain Management projects.
  • Our extensive reach and scale can help the complex, inter-enterprise and international nature of supply chains.

The benefits
Gain the most out of your supply chain
The supply chain management solution from IBM and SAP is designed to help you get the most out of every aspect of your supply chain operations, including:
  • Planning—supply chain design and planning for demand and inventory, manufacturing and transportation.
  • Execution—material management, warehouse management, manufacturing and order and transportation execution.
  • Coordination—supply chain event and performance management.
  • Collaboration—support for Collaborative Planning, Forecasting, and Replenishment (CPFR), vendor managed inventory (VMI) and supplier managed inventory (SMI).

Once implemented, our solution can help your enterprise:
  • Ensure that production materials are available in the right places at the right times.
  • Determine the right shipping mode, carriers and routes based on the lowest total cost of delivery, while respecting transportation constraints.
  • Assess product availability across a global fulfillment network and have access to build or substitution capabilities, while improving delivery time and total cost.
  • Monitor your supply chain processes and gain visibility from price quotation to product delivery.
  • Check status, receive automatic alerts and integrate inventory information—from supplier to manufacturer—into existing systems.

IBM Global Business Services draws on its full breadth of supply chain management capabilities to address the challenges that clients in all industries are facing. Our consulting and implementation services can help you plan, design, implement and run your new supply chain solution. Services can include:
  • Supply chain strategy
  • Supply chain planning
  • Logistics
  • Procurement
  • Asset management
  • Supply chain operations
  • Product lifecycle management

The approach
Real world results
Plastipak competes for international contracts to supply containers and packaging. Following fivefold growth inside ten years, Plastipak’s business expenses were rising. Without a global view of its manufacturing operations, the company found it hard to standardize its processes and reduce costs–key stages in its expansion program.

IBM helped Plastipak build a resilient supply chain management solution based on SAP Business Suite, working with Sirius, an IBM Premier Business Partner, and IBM Global Financing. A single IBM System i™ platform provides a scalable, flexible platform for SAP software, enabling a central view of all manufacturing operations.
  • Warehouse efficiency has improved by around 14 percent.
  • Pick order times have decreased by about 32 percent.
  • Staffing costs have declined by some 8 percent.
  • Total annual savings of approximately US$17 million have been achieved.
  • Sales days outstanding have been reduced by 14 percent.

The financial advantage
Complete supply chain management solution
The supply chain management solution from IBM and SAP is designed so you can get the most out of your investment. We can help you:
  • Reduce capital investment with more efficient and accurate production and distribution plans.
  • Reduce costs by increasing inventory turnover on the shop floor and in the warehouse.
  • Create better order fulfillment rates to expand product margins.
  • Increase revenue through advanced information sharing and improved response to unanticipated changes in demand.

Next steps
 
Questions about this solution? Contact an IBM-SAP specialist.



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