Inventory optimisation with SAP

Consulting package · SAP MM · MRP · Production planning

Secure material availability. Control stock deliberately. Reduce capital tie-up.

Excessive stock ties up capital and causes additional costs. Stock that is too low jeopardises material supply and can cause production stoppages.

The challenge is to control stock so that material is available when needed – without building up unnecessary safety stock.

With the consulting package Inventory optimisation E&S Swiss Consulting helps companies systematically analyse and develop their stock structures, SAP MRP parameters and planning processes.

We look not only at stock figures, but also at the causes of excess stock, missing parts and unreliable material supply.

When does inventory optimisation make sense?

The consulting package is particularly suitable if:

›  High inventory ties up significant capital

›  At the same time, missing parts or material shortages occur regularly

›  Safety stocks have grown historically and are hard to justify

›  SAP MRP parameters are maintained inconsistently

›  Order quantities and lot sizes no longer match actual requirements

›  Slow-moving or obsolete stock is increasing

›  Procurement, MRP and production planning are not sufficiently aligned

›  Planners frequently have to intervene manually in material planning

A structured analysis helps identify the main causes and derive suitable measures.

Inventory optimisation starts with transparency

Stock results from the interplay of demand, replenishment lead times, MRP rules, data quality and operational decisions.

That is why we do not look at stock in isolation, but in connection with the underlying planning and supply processes. Three questions are central:

Where does unnecessary stock arise?

For example, we analyse excess stock, low material movements, unsuitable lot sizes and MRP parameters that no longer fit.

Why do material shortages occur?

Among other things, we look at changes in demand, replenishment lead times, data quality and the alignment between material and production planning.

Which measures improve the balance?

We identify ways to control material availability and stock levels more precisely – taking actual operational requirements into account.

Our areas of analysis

▤  Area of analysis 1

1. Stock structure and material segmentation

Not every material should be planned according to the same rules.

We analyse the stock structure and look at suitable options for material segmen­tation.

Examples:

  • Stock values and stock development
  • Turnover rates and days of coverage
  • Materials with little or no movement
  • ABC and XYZ analyses, where data and requirements support this
  • Differences between material groups and supply strat­egies

The goal is to look at materials in a differentiated way and identify suitable optimisation approaches.

⚙  Area of analysis 2

2. SAP MRP parameters and master data

MRP parameters directly determine when and in what quantity material is procured or provided.

We check in particular:

  • MRP procedures
  • Reorder points and safety stocks
  • Lot sizes and minimum order quantities
  • Replenishment lead times
  • Planning and procurement parameters
  • Data quality and maintenance processes

We assess whether the existing settings match actual requirements.

⇄  Area of analysis 3

3. Material requirements planning and production planning

Stock development is significantly influenced by the quality of demand planning.

We look at the alignment between:

  • Material requirements planning
  • Production planning
  • Procurement
  • Material availability
  • Capacity and scheduling
  • Operational MRP

Particular attention is paid to the interplay between SAP MM, SAP PP and, where applicable, SAP PP/DS.

◉  Area of analysis 4

4. Planning processes and responsibilities

Even well-configured SAP parameters only take effect if processes and respon­sibilities are clearly defined.

We analyse:

  • Tasks and responsibilities in MRP
  • Regular review of parameters
  • Handling of exceptions and shortages
  • Alignment between purchasing, planning and production
  • Manual interventions and workarounds
  • KPIs and continuous improvement

The goal is material planning that is traceable and can be controlled sustainably.

How inventory optimisation works

01

Clarifying goals and scope

Together we define the goals, the scope and the relevant material groups or processes.

02

Data and process analysis

We analyse available stock, demand and master data as well as the existing SAP MRP processes.

03

Assessing causes and potential

We identify the main factors behind excess stock, missing parts and planning deviations.

04

Prioritising measures

We develop specific optimisation approaches and assess them in terms of benefit, effort, risks and dependencies.

05

Preparing or supporting implementation

On request, we support the adjustment of parameters, the further development of processes and the review of results.

The exact process is adapted to the initial situation and the agreed scope of services.

Your result

What do you receive as a result?

The consulting package provides a sound basis for targeted improvements in inventory management. Possible results include:

✓  Transparent analysis of the stock structure under review

✓  Identified causes of excess stock and missing parts

✓  Assessment of relevant SAP MRP para­meters

✓  Insights into data quality and planning processes

✓  Specific optimisation recom­mendations

✓  Prioritised measures with traceable justification

✓  Proposal for implementation and monitoring of success

The specific scope of results is agreed jointly before the start.

Optimising stock and material availability together

Sustainable inventory optimisation is not simply about reducing as much stock as possible. What matters is the balance between three requirements:

◎

Material avail­ability

Required material should be available at the right time.

▥

Stock level

Stock should reflect actual demand and operational risks.

◇

Capital tie-up

Unnecessary stock and the associated costs should be reduced.

⇌  Finding the right balance

Measures must therefore always be assessed in terms of their impact on security of supply and operational processes.

SAP MM, PP and PP/DS working together

Inventory optimisation is closely linked to materials management and production planning.

SAP MM supports core materials management and procurement processes. SAP PP and, where applicable, SAP PP/DS add the view of production requirements, dates and capacities.

E&S Swiss Consulting looks at these relationships together, so that optimisation measures do not just improve individual parameters but fit the actual planning processes.

Frequently asked questions about inventory optimisation

Does inventory optimisation mean reducing stock as much as possible?

No. The aim is an appropriate balance between material availability, stock level and capital tie-up. A blanket stock reduction can create additional supply risks.

Which SAP data is needed for the analysis?

Depending on the agreed scope, stock data, material master data, MRP parameters, demand information and procurement data may be relevant, for example. We clarify which data is actually needed before we start.

Is the consulting package only suitable for companies using SAP PP/DS?

No. Inventory optimisation also makes sense for companies that mainly use SAP MM and SAP PP. The analysis is adapted to the existing system landscape.

Are SAP MRP parameters changed directly?

Not without agreement. First, the existing settings are analysed and possible changes are assessed from a functional perspective. Implementation takes place within the agreed scope and takes into account the impact on material supply.

How quickly can improvements be achieved?

That depends on the causes, data quality and the extent of the changes required. Individual parameter or process improvements may be possible relatively quickly, while structural changes take more time.

Find the right balance for your inventory

Would you like to reduce excess stock, manage material shortages better or develop your SAP MRP in a targeted way?

E&S Swiss Consulting helps you understand the causes and derive effective measures.