Supply Chain Management


ANALYZE - SIMULATE - AUTOMATE

NEWSLETTER "POTENZIALE"

Supply Chain Consulting

Supply Chain Management is a complex challenge even for professionals. Along the entire value chain of a product, interdependencies are at work that are not always immediately apparent.

With our special analysis approaches which have been tried and tested in countless projects, we replace gut feelings and uncertainty with facts and clear connections. Underpinning solutions with technical tools, we can implement changes quickly.

Having supply chain troubles?  Talk to us!

Our SCM specialists can help you with these topics

SALES AND DEMAND FORECASTING

Ensuring product availability with the lowest possible inventory or at the lowest possible cost is a crucial competitive advantage. If you do not know what the market demands, there is no chance of keeping up - just knowing what the sales department wants to sell does not help.

We use supply chain simulation for a detailed analysis regarding  

  • how well your forecasting mechanisms work if your ERP system is optimally adjusted,
  • whether it makes sense to use a special add-on system for sales forecasting,
  • to what extent you can automate your forecasting processes.

By using constraint analysis, we check and optimize your organizational processes and help you achieve an end-to-end planning chain.

Also check out our white paper on the topic: 

12 Best Practice Building Blocks for Powerful Sales Forecasting.

Frequency of different demand distributions

S&OP / Sales and Operations Planning

A sales forecast based on statistics or AI is not always enough to identify future market needs. The sales department might have expansion plans, offer projects or drive actions that are not included in statistical forecasts. Similarly, manufacturing capacities, financial restrictions or other constraints might not allow to meet the expected market demand. In such cases, complex coordination processes become necessary. The aim of S&OP is to carry these out in an organized and structured manner.

By using supply chain simulation and constraint analysis, we determine in such cases, for example,

  • which forecasting quality can be achieved with the existing statistical or AI-supported methods,
  • whether resource bottlenecks can be eliminated cost-effectively,
  • how the planning effort of the sales department can be kept to a minimum.

For more information, have a look at our white paper:

21 design tips for successful sales and operations planning.

Sales and operations planning Abels & Kemmner

LOGISTICAL OPTIMIZATION OF THE PRODUCT PORTFOLIO

A large product portfolio can be a key success factor for a company. However, it can also quickly become a cost driver, undoing success, and threatening the existence of the company.

A broad product range inevitably includes many items that are in sporadic demand, often with few inventory turns. This, it is almost impossible to avoid cross-subsidization of fast-moving items by fast-moving items, the prices of fast-moving items rise and, as a result, the competition chases away part of the lucrative product range.

In an optimal product range, sales and logistical requirements are balanced. However, finding this right balance is not trivial.

Using empirical value stream simulations, we work with product management and sales to analyze the logistical impact of a changed product portfolio, prepare objective figures, use AI-supported algorithms to adjust the delivery readiness of your product portfolio across all items for optimal yield, and thus help you achieve a product portfolio that is balanced in terms of sales and logistics.

Helpful white paper:

"10 Best Practices for Product Portfolio Management."

OPTIMIZATION OF PRODUCTION PLANNING AND CONTROL

High adherence to delivery dates, low working capital with good capacity utilization and high personnel productivity; finding an economic compromise between these goals is always a challenge.

By using logistic simulation and constraint analysis, we quantify the

  • we quantify the dynamic interdependencies and bottlenecks in your manufacturing processes,
  • reduce the complexity of order scheduling using Group Technology
  • identify starting points to achieve a balanced logistic positioning

Together with you, we implement improvement approaches for organizational and control optimization.

In this way, your company will move from operational hectic to the necessary strategic calm in production control.

The production characteristic curve shows: Depending on the objective, different stocks must be set, Abels & Kemmner


IMPROVING MATERIAL EFFICIENCY

At around 45%, material costs represent by far the largest cost block in the manufacturing industry, ahead of personnel costs (18.7%). This is reason enough to continuously look for ways to reduce material costs through more efficient use of the material employed! A properly designed value chain and clean logistical processes can contribute quite significantly to material efficiency, for example, by reducing scrap, stock reduction, better intercompany planning, lower wear and tear and lower scrapping rates.

Looking at the material efficiency perspective also uncovers entirely new opportunities to increase efficiency throughout the value chain.

A 1% reduction in material costs increases the return on sales by 0.5%.

Using constraint analyses, we systematically reveal potential for improving material efficiency, identify the key starting points for improving material efficiency and develop tailored measures.

Helpful white paper:

"Material efficiency: the pool of neglected savings potential"

Multiple starting points for improving material efficiency, Abels & Kemmner

OPTIMIZATION OF THE LOGISTICS MODEL

The market demands shorter and shorter delivery times for increasingly specialized products and supply chains are becoming faster and faster. For many companies, the logistics business model no longer fits properly with the company's business model. The consequences: Despite everyone's efforts, costs rise and in the end the market penalizes your company due to poor delivery performance.

A cost-effective value chain is based first on a suitable and economical logistics business model and on the right balance between inventories and inventory costs on the one hand and the flexibility costs of procurement and production on the other.

Changing a logistics business model can be dangerous if you try it with "trial and error" and thus turn the real company into a testing ground.

It is safer, faster, and more cost-effective to simulate the effects in advance. In this way, we review and optimize your logistics business model, improve the structure of your value chain, and adjust the planning and scheduling model to achieve the required logistics performance at the lowest possible cost.

COMPLEXITY REDUCTION AND OPTIMIZATION OF SUPPLY CHAIN PROCESSES

Delivery times are to become shorter and shorter, inventories lower and lower, delivery capability better and better, production processes more and more flexible, and suppliers more and more efficient: Agility is required to keep up with the competitors.

At the same time, the product portfolio usually grows and brings increasing complexity into the supply chain, planning and control processes, organizational processes, and structures.

To achieve effective and sustainable logistical optimization measures, it is necessary to record and quantify the overall logistical system with its interdependencies and to identify the right parameters for optimizing the overall system and to adjust them appropriately.

With the help of a digital twin of your entire value chain and your planning mechanisms, we simulate and test

  • different logistical structures
  • with different logistical performance variables
  • and different planning and control models

By using constraint analysis, we focus on the necessary steps to be taken.

Example of prioritization of A-measures through an influence portfolio.

© Abels & Kemmner

OPTIMIZATION OF MATERIAL PLANNING

As the heart of the company, procurement and production planning pump the entire value and material flow through the company and the supply chain. Therefore, all business units and the company's profitability suffer from poor scheduling.

However, the dilemma of high delivery capability and low inventories cannot be escaped without suitable processes and methods.

By dynamically simulating the MRP processes and their effects in the supply chain, we identify the methodical, organizational, and strategic levers to put your MRP on a clear course.

We help you to anchor methodical improvements in your SAP/ERP software or to map them in add-on systems and to build up a tight and continuous planning chain.

© Abels & Kemmner

OPTIMIZATION OF MRP PARAMETERS

Planning and MRP master data must be regularly fitted to the continuously changing constraints of each article. If this is not done, planning and scheduling results are inevitably wrong, decisions are based only on gut feeling and product availability and inventories turn into random results of arbitrary decisions.

On average it would take each planner three to six months per year to only keep the planning and scheduling master data up to date for which also specific expertise in ERP algorithms is needed. Thus, planners and schedulers mostly lack the time for these precise adjustments.

However, modern tools can maintain master data automatically. With our simulation, we help you in developing and implementing a rulebook that maintains your system correctly.

© Abels & Kemmner

SUPPLIER AND CUSTOMER INTEGRATION

The logistical integration of suppliers and customers into one’s own supply chain provides opportunities for all partners, namely reducing inventory, lowering value chain costs while high service levels are maintained, and lowering total cost of ownership.

To achieve the most efficient value chain possible,

  • we use constraint analysis, e.g. to identify critical points within the collaboration,
  • we quantify the potential for improving the supply chain or optimizing vendor managed inventory by simulating value streams.

As part of the implementation, we help you map the necessary processes and mechanisms in your ERP system, carry out the coordination with your suppliers and customers, and set up the organizational processes.

customer supplier inventory management

© Abels & Kemmner

KANBAN

Calculate, design and implement replenishment based on the supermarket principle

Kanban enables low cycle inventory, high service levels, and simple, reliable procurement and production. However, Kanban is not always a sensible and cost-optimal solution; additional mechanisms are often required to achieve the necessary product availability with the lowest possible Kanban inventories.

When designing Kanban control loops, the required service level and safety stock play an essential role.

With our specially developed simulation approach and algorithms, we help you to identify the right article spectrum for your Kanban systems as well as to correctly design and to regularly re-dimension your Kanban control loops.

We coach and support you in setting up your Kanban system and to connect it to your ERP or SAP software.

For more information, have a look at our white paper:

29 Best Practice Building Blocks for a Successful Production Kanban

Implementation activities for Kanban solutions

© Abels & Kemmner

LOGISTICS CONTROLLING

Clever logistics controlling requires four essential elements:

Transparent data, credible KPIs, realistic target values, clear responsibilities.

We help you monitor and continuously improve your logistics model:

  • we define the required KPIs for your logistics controlling,
  • we set up a flexible database for spontaneous and situation-dependent data evaluations,
  • we determine realistic limits and target values by means of empirical simulation,
  • we give the responsibility for the KPIs to the accountable parties
  • we analyze and ensure the data quality in your ERP system.

Also check out our white paper:

10 best practice building blocks for powerful logistics controlling

© Abels & Kemmner

PERFORMANCE TUNING OF SAP / ERP SOLUTIONS

The performance of the SAP/ERP solution and the efficiency of the scheduling results depend largely on the quality of the master data and scheduling parameters. Thus, MRP setting and parameters need to be

  • acontinuously maintained in accordance with the life cycle phase of the materials and the operational constraints and
  • adjusted so that the combination of planning and scheduling decisions leads to the best possible results.

The correct parameter settings can only be achieved with a dynamic simulation of the planning and control mechanisms and their effects on the value chain.

With our supply chain simulation, we have a unique tool for determining the correct parameter settings and mapping them in a rulebook that regularly and automatically maintains your SAP/ERP solution.

If required we also provide the tools necessary for implementing such an automatic rulebook.

For more information have a look at our white paper:

A Smart MRP for the Smart Factory !

© Abels & Kemmner

PLEASE CONTACT US IF YOU HAVE A SCM CHALLENGE for us to solve

Feel free to contact us for an exchange of experiences!

UK +44 203 8587489

Our experience stands for your improvement!


Matthias Köthe

Purchasing Manager, Bruker Daltronik GmbH

"

"Through A&K's simulation approach, we were able to jointly develop and implement a differentiated scheduling framework that was optimized for high supply chain efficiency.


Today, we achieve higher service levels with lower inventories and less planning effort."

Carsten Hense

COO, Rosenthal GmbH

"

"The supply chain analysis and simulation showed us, similarly to a crash test, where there is potential in our supply chain processes and how we can leverage it.


On this basis, we have implemented solutions along the value chain that make us more resilient to disruptions and enable customer-oriented management.''

Fabian Ossen

Supply Chain Manager, Sihl GmbH

"

"A&K's simulative analysis of our global value chain showed us the critical points for increasing our product availability while significantly reducing our inventories. A&K showed us the path to having the clearest possible understanding of our inventory. The fact that A&K also implemented and achieved the results together with us was a decisive factor."

What customers have achieved

-65%
Scrapping
10%
Profit Increase
-45%
Inventory
-45%
WIP
-90%
Planning Effort

Contact


Prof. Dr. Götz-Andreas Kemmner

managing partner

Prof. Dr. Kemmner has carried out well over 150 national and international projects in over 25 years of consulting work in supply chain management and reorganization.

 
In 2012, he was appointed honorary professor for logistics and supply chain management by WHZ.


The results of his projects have already received several awards.

Dr. Bernd Reineke

managing partner

Dr. Reineke graduated in mechanical engineering and was initially responsible for logistics, planning, scheduling, development, and IT in industry for 10 years.


Since then, he has been advising companies with a focus on SCM, production control, IT optimization and inventory management.


The results of his projects have already received several awards.

Dirk Ungerechts

Dirk Ungerechts, MSc.

managing partner

Dirk Ungerechts is responsible for business consulting at A&K Supply Chain Engineers.


He has many years of experience in supply chain management and mathematical optimization.


He specializes in the requirements of quantitative SCM optimization as well as dynamic simulation for agile and intelligent decision making.

Oliver Kayser, BSc.

HEAD of Marketing & Sales

Oliver Kayser advises our interested customers in the decision-making process for agile SCM solutions.


He has many years of experience in advising companies on SCM, APS, business analytics and automation.


He is also responsible for digital topics, online marketing, PR as well as cooperation’s and contracts.

ABELS & KEMMNER

aachen - eindhoven - london

ANALYZE – SIMULATE – AUTOMATE 


Abels & Kemmner brings the optimization potential of supply chains to light and replaces gut feelings with facts.



Thanks to our unique consulting approach, we help companies achieve lasting solutions that we validate, optimize and implement in a secure and agile manner.


A QUANTUM LEAP AHEAD


As a pioneer in logistics simulation and automation in supply chain management, we combine strategic and operational consulting with powerful digital methods.


A&K's customers include TOP100 performers of the German business from medium-sized businesses and large-scale industry. Supply chain concepts developed by A&K with its customers have won multiple best practice awards.

AWARDS

Top Consultant 2018


Among the best for years!

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