High Q Packaging · 21/10/2015 · High Q Packaging Folding Cartons –Leaflets –System...

High Q PackagingFolding Cartons – Leaflets – System Solutions

Supply Chain Management –

SAP Forest Products, Paper, and Packaging Forum

on 21st October 2015

Edelmann……facts and figures | Edelmann is growing in 2015

Edelmann | Supply Chain Management - 21st October 2015

Family owned company Continuity

Turnover 233 Mio. € Internal Growth up to 254 Mio. €

13 plants 14 plants (Porto Alegre, Brazil)

Premium and Pharmacy Core Markets

2.234 staff members 2.467 staff members

Folding Boxes and Leaflets + Rigid boxes

2

Edelmann | Supply Chain Management - 21st October 2015

Edelmann……is present on 3 markets to split risk

Health Care /

Pharmaceutical – 40%

Beauty Care – 40% Consumer Brands – 20%

Ethical Medicinal Products

OTC

Diagnostics

Generics

Perfume

Skincare Cosmetics

Make-up

Hair Coloration

Personal Care and Hygiene

Food and Confectionary

Tobacco

Consumer Goods

4


Edelmann……IT is driving change…

CIO is member of the Edelmann executive board

CIO is in charge for Supply Chain Management, too

SAP is the ERP solution

Collaborations with business consultancies:

• Dr. Lauterbach & Partner - template

• Fujitsu TDS – hosting

• ITeanova – planning

• ORSOFT – VMI

• IT Infomatik – data conversion

• SAP – Hungary role-out i.e.


Edelmann IT……current projects in 2015

Just-in-Time project (ZMI Bayer)

VMI project

• Pfizer Puurs

EDI projects

• Carl Zeiss Meditec

• Daiichi Sankyo

• 3M

SAP implementation at Edelmann Hungary

Carve-out of Edelmann plant in Heidenheim


Edelmann… …business model has changed

► Production batches are getting smaller

► Number of orders increase

► Customer wants no more stock

► Delivery date has become even more

important

► Worse production planning

• extra-shifts in one week

• empty-shifts next week

• changing bottlenecks in production

► General cargo (1 to 6 pallets)

► Faster time to market


Customers…...demand more than “just” good folding boxes…

► Traceability of deliveries

• Handling Unit Management

• Serialization

► Deliveries from different production sites to

avoid dependence from one production site

► Supply Chain Integration

• Electronic Data Interchange: Orders, order confirmations, invoices

• Vendor Managed Inventory

• Just-in-Time delivery

► System supplier: box – leaflet – label

► Implementation of “Lean Processes”

• SMET, 5S, zero defects

► New planning rules

• Customer delivery date is highest priority

• Backward scheduling against finite capacity

• Orders on bottleneck machines are planned first

Laminating and hot stamping

Edelmann……Lean improves performance and agility in manufacturing


EdelmannConnectivity improve our performance and agility in order handling


► Costs

• Process cost reduction (no paper)

• Inventory reduction

► Automatic data transfer and order creation

• No loose of data – safe transmission

• Improved data quality

• Time gain

► Self-responsible production due to forecasts and

defined rules

More than 100 million € revenue through connectivity

Edelmann … had to adjust the IT strategy to become more customer oriented..

In 2008 we decided to extend SAP by ORSOFT

• Easy to customize “Client-Server” system

• User-friendly presentation of data

• Avoiding modifications in SAP

To improve our project lead time

• Outsourcing of data conversion and network monitoring

IT to focus on project management

• Cross department, customers, suppliers, service provider, international



Competent partners – for flexibility and rapidness in the transformation of VMI requirements

Customer Provider Edelmann Provider Customer

Inventory

planned

demand

Primary demand

disband in secondary

demand

Convers

ion

Order

proposals

Orders

Changes

OR

SO

FT

SA

P

►ORSOFT reads SAP data and

transfers data to SAP

► Calculating algorithms run in ORSOFT

► Configuration instead of programming

Convers

ion

SA

P


ORSOFT displays when the employee has to do something

►VMI-materials are predetermined

►VMI-data is imported from the ORSOFT workbench in SAP

►Each material has one line

►The employee only has to intervene in case of x


Incoming Replenishment Request –Client announced demand

►Workbench sums up wip, inventory, customer demands, goods in transit

► Shortage is displayed


VMI-Process –Creation of an proposal

►A proposal for the shortage is created automatically by the system according

to defined parameters

►Proposal is transferred to SAP


SAP

CE

transport

delivery monitor

forecast

stock transfer order /

shipping order

transfer / ship. status

invent. rep.transport

order

transport

order status /

freight invoice

order status

forecast

connectivity based on

SAP Handling Units

Edelmann… …standard EDI connectivity with suppliers and forwarders

delivery

invoice


Edelmann… …Investments and resources for Supply Chain projects

3 full time IT equivalents

• Supply Chain projects with customers

• Supply Chain integration of logistics and suppliers

• Ongoing support

70.000 € out of pocket spends per year

• Software maintenance

• Network monitoring

• Data conversion

• Travelling

Edelmann to run projects to meet KPIs

• Leads time

• On time in full

• Stock level

• Response to customers

request

All customers use the

same KPIs


Close Collaboration with our Customers….Customers define KPIs to measure Edelmann..


Performance KPI..Supply Chain Partner obtains a bigger slice of the cake..

E-Business and Vendor Managed Inventory –our expertise is the advantage of our customers

► Edelmann offers IT flexibility

• EDIFACT, ANSI X12, XML, etc.

• Customer requirements - implementation by simple parameterization

► We offer competence

• Workshops for customers and suppliers

• Project Management

► IT Integration with logistics and suppliers

• Transport orders

• Order picking

• Just in time Call offs of row materials



Edelmann… …learnings and findings

All big customers built dedicated Supply Chain organisations

• Supplier has to reflect this on his site

Digitalisation of sourcing processes

• Work model in sales change

• Importance of Supply Chain and IT team rises

High level of IT standardisation is necessary

• All Edelmann SAP sites are able to use once developed solutions

• All customers have different connectivity needs

Continuous improvement in manufacturing processes

Change management, change management, change management


Edelmann… …learnings and findings


A powerful supply chain… …is key for success at the market place

Ongoing optimization of Edelmann production system

Standardization of processes within Edelmann Group

Keep high SAP IT standards within Edelmann Group

Use of EDI / VMI – customer as supplier

Standardization of raw materials

Supply Chain Management is the requirement to be a tier one supplier

Questions


Contact information:

Ulrich Freiherr von Waechter

Director IT/Business Processes and Materials Management

Member of the Board

Carl Edelmann GmbH

Steinheimer Straße 45

89518 Heidenheim

High Q Packaging · 21/10/2015 · High Q Packaging Folding Cartons –Leaflets –System...

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