Loparex’s S/4HANA Journey Delivers Impressive Results

THE STORY

Loparex had a goal of a single unified SAP S/4HANA instance across their entire business and experienced unexpected set backs and challenges when functionality didn’t perform as expected. This in turn led to frustrated users who increasingly relied on work arounds and reversion to now outdated practices from their legacy systems. The human struggle was real and growing. Through an integrated and collaborative effort, business teams were educated in available functionality that was immediately applied quickly yielding tangible results. This learn and apply approach along with optimized master data settings and integrated processes reduced working capital tied up in non-performing inventory, improved planning efficiencies, increased customer service levels and team members feeling empowered and confident in the work they were doing. Along with the tangible improvements employee satisfaction and well being improved because of reduced human struggle hours, less re-work, and proactive alert and exception management.

THE CHALLENGE

During Loparex’s SAP S/4HANA implementation across four manufacturing plants and facilities business teams were moving from their legacy system to the new S/4 system without the necessary level of education needed to operate efficiently. This lack of understanding resulted in limited use of functionality, excessive exceptions and alerts and lack of real-time reporting to help with planning and decision making. In addition, they soon found issues with master data management and how to effectively use the Production Planning/Detailed Scheduling (PP/DS) functionality that was implemented. The impact was frustrated team members working in spreadsheets, reduced service levels impacting customer satisfaction, inflated inventory levels and lack of trust in the data to plan effectively.

THE SOLUTION

Over a period of 13 months, working with Reveal, Loparex undertook a supply chain transformation to address gaps in understanding functionality and system capabilities, master data alignment with processes, improving data quality, and empower the business teams through targeted education and knowledge application workshops that built capability and trust in their S/4 system. Team members were educated on how to address exceptions and alerts messages, cross functional teams and communication channels were established to address the root cause of issues, reports and analytics out of the system were put in use to assist with decision making and planning proficiency in the use of PP/DS was increased.

THE RESULTS

• ‍Inventory Reduction
  ‍A 39% reduction in inventory levels, without any negative impact on service levels, freeing up working capital to invest in other growth opportunities.‍
• Service Level Improvements
  ‍Achieved a 24% improvement in On-Time In-Full (OTIF) measures as a result of increased Available-to-Promise capabilities enabled by improvements in production and supply planning capabilities and pro-active exception and alert management.‍
• Improved Data Integrity
  A 96% reduction in exceptions, alerts, overdue supply and demand elements improving operating efficiencies and enabling planners to deploy viable supply proposals to support OTIF ambitions.‍
• Happier Team Members
  Team members reported reduced human struggle hours, improved job satisfaction and productivity.

‍ABOUT LOPAREX

Loparex is the world’s leading developer and producer of specialty paper and film release liners. Partnering with customers around the globe, Loparex enables sustainable performance through in-depth material science expertise and an industry-leading technology portfolio.