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Increasing efficiency in SCM
Optimized S&OP process at Uelzena
Uelzena was faced with the challenge of interlinking cross-divisional processes in supply chain management more closely. Together with valantic, a structured S&OP process was established that increased forecast quality, reduced stock levels and optimized production planning. The introduction of an industry-specific software solution led to noticeable optimizations in the processes.
About the company
Uelzena is a leading German milk processing company with around 700 employees and an annual turnover of over 700 million euros. In cooperation with valantic, the company introduced a structured Sales & Operations Planning (S&OP) process. Supported by a specialized software solution, cross-divisional planning was improved, inventories were sustainably reduced and significant savings potential in the six-figure range was realized.
The project
The challenge
Uelzena lacked systematic coordination between the procurement, milk management, production planning, production, order clarification and sales departments. The cross-departmental optimization of the supply chain was in need of improvement, and there was no IT-supported basis for structured supply chain processes. Without a standardized S&OP process, coordination between the departments was at risk of remaining inefficient.
Consulting approach
1. Analysis of the supply chain management
- Identification of optimization potential in all relevant departments
- Examination of the specific challenges of the industry (push and pull supply chain)
2. Introduction of a structured S&OP process
- Improvement of cross-departmental collaboration through standardized processes
- Optimization of forecasts through training, error measures such as MAPE and tracking signal
3. Inventory and production optimization
- Introduction of inventory target ranges to reduce stock levels
- Consideration of internal and external remaining lead times of semi-finished and finished goods
- Optimization of production performance by reducing set-up and downtimes
- Adjustment of production lot sizes to increase efficiency
- Improving the use of materials through statistical analyses and reducing the use of raw materials
4. Selection and implementation of S&OP software solution
- Creation of a comprehensive specification with the involvement of all departments
- Joint testing and system testing in the areas of sales planning, production planning, capacity reconciliation and milk management
Solutions & results in detail
By introducing a structured S&OP process, Uelzena was able to realize savings in the six-figure range. Improved forecasts increased planning reliability and enabled more targeted sales management. At the same time, inventories were reduced and production was better utilized. The supply chain processes were comprehensively digitalized with the help of specialized software.
Conclusion
With valantic, Uelzena has strengthened cross-divisional control in supply chain management. The new planning logic and the high degree of automation form a stable basis for transparency, efficiency and further growth.
Your Contact
Dr. Bernhard Höveler
Partner & Managing Director
valantic Supply Chain & Procurement Consulting