“Efficient Movement” – Supply chain strategy project at Rudolf WILD GmbH & Co. KG

The focus is on the customer – Bata France optimizes its supply chain

j&m implements OMV product-supply-scheduling system

IT performance scan at Eckes & Stock

Key account management in Hella’s Special OE Products Division

SAP CRM in the ramp-up – successful release change at STO AG

Special: Adaptive Manufacturing

Events with j&m

 
 
Mannheim, July 2006
Dear Reader,

Welcome to our second Newsletter of this year. We are delighted to be reporting back to you again about current topics from our consultancy projects and about new clients. We have chosen to highlight the following content from our current projects: supply chain excellence at Bata France and Wild, IT performance man­age­ment at Eckes & Stock, and CRM at Sto. In addition to this, we will also be reporting on how things are developing on the OMV and Hella projects.

Have you ever been annoyed by a recall campaign initiated by your car manu­facturer? For the man­u­fac­turers and their component suppliers the enormous costs and the consequences for their image are often a far bigger problem. One approach to avoiding them, and tackling the causes at an early stage, is the creation of a complete process-and-information-flow system between the busi­ness and the production levels. Our special “Adaptive Manufacturing” system reflects the ever-greater role that this subject is playing in manufacturing industry.  

In this newsletter we will also be telling you about our newly-won status as a “Special Expertise Partner” for SAP in the automotive field, which resulted of our outstanding levels of competence and extensive experience. We hope that this newsletter provides you with plenty of stimulus and interest and would like to encourage you to contact us if there is anything that you would like to ask.


Dr. Andreas Müller
Chairman of the Management Board and Marketing/PR Director

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“Efficient Movement” – Supply chain strategy project at Rudolf WILD GmbH & Co. KG

Rudolf WILD GmbH & Co. KG is based in Eppelheim, near Heidelberg, where it produces 350,000 tons of finished product every year. Several hundred trucks are loades and unloaded on the plant site every day. It produces, stores and delivers basic raw materials, flavours and fruit products for customers in the food and drinks industry. Here, the company fills and packages ready for dispatch its most popular product, Capri Sun, into the well-known stand-up silver foil pouches. In April WILD put into operation a high-stack warehouse and logistics center with more than 25,000 pallet spaces, lifting its Eppelheim center to a world-class standard.


WILD commissioned j&m to develop a supply chain strategy for its European production and distribution network, and in particular to identify and exploit optimization potential at all its locations simultaneously.

The focus lies here particularly on further improving the company's level of service, which will better meet customer requirements for greater flexibility and reliability. This means, that WILD is preparing itself for the future in an increasingly dynamic market with the aim of achieving targeted growth together with its customers.


Following an analysis phase involving j&m's quick-scan method, a strategy was developed as part of the Efficient Movement project. Optimization potential was identified and a medium-term action plan was summarized in a Business Case. In addition to a specific road map for detailing how these benefits will be achieved, the Business Case also demonstrates the impact on the balance sheet, the net income statement and cash flow over time. This enables all the proposed plans of action to be clearly quantified.

“The challenge of developing an integrated supply chain strategy in an international production network lies in examining and taking full account of the strengths of the individual locations. This means, among other things, optimizing the interaction of the logistics and information technology network. j&m convinced us through its expertise and its holistic approach, and this enabled it to make a significant contribution very quickly” said Thomas Eller, B2B director of Rudolf WILD GmbH & Co. KG, summarizing his company’s collaboration with j&m.

Mr. Klaus Ballas, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.ballas@jnm.de.

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The focus is on the customer – Bata France optimizes its supply chain

Bata is the world’s best-known internationally operating retail chain for shoes and accessories. Its European headquarters is in Lausanne, Switzerland. The national company of Bata SAS France has started a campaign in collaboration with j&m Management Consulting AG, to optimize its supply chain.

The project's drivers and goals center on increasing collection numbers, achieving a quicker and better supply of goods and replacing products more frequently. The overall aim is to align the company's systems even more closely with customer requirements.

The pilot project is being carried out at Bata SAS France. The first step is to identify the main levers and areas of potential improvement, to set priorities and create approaches for achieving solutions.


“j&m Management Consulting AG showed us the crucial optimization levers. With its high level of commitment and profound expertise, j&m proved that it can contribute substantially to improving our performance,” said Jean-Jacques Raillard, President of Bata SAS France.

One central focus in the coming phases will be the introduction of an integrated planning and allocation process and closer collaboration with suppliers.

Mr. Klaus Ballas, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.ballas@jnm.de.

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j&m implements OMV product-supply-scheduling system

In our December 2005 Newsletter we reported on the concept of product-supply-scheduling at OMV AG, central Europe’s leading petroleum and natural gas company. j&m Management Consulting AG has now also been commissioned to implement it. The project started back in mid March, and the productive start-up is now scheduled for September.

The object of the project is to use statistical processes to convert monthly plan quantities by means of into quantity requirements for each individual day and for each supply level, as these figures are of great importance on the spot-markets for refinery products. While requirement patterns are generated automatically, they can be adjusted manually if necessary; the basic principle is called “Focused Forecasting”. During each current month “actual” data is extrapolated in such a way that “expected” monthly out-turn becomes visible. Comparing these trends with the original “Plan” figures then makes it possible to recognize deviations from “Plan” even during the course of the current month and to initiate counter-measures pro-actively. The increase in reaction capability thus attained makes it possible to seize short-term market opportunities which often no longer exist by the time retrospective monthly analyses are made.

So far no standard tools exist to give technical system support to these innovative processes. Within the project they are implemented by means of the APO Demand Planning module and the internal APO accounting basis. A link to the operational R/3 system reduces the necessary manual activities to a minimum by automatically generating the allocation contracts in the SAP MM module. Conversely, a huge quantity of “Actual” data is extracted from this R/3 system, which is used for monitoring in the analysis system with the aid of the front end arcplan dynaSight.


“j&m Management Consulting AG supported us with innovative, competent and reliable advice in the expansion and development of our supply chain management processes and their technical depiction in the system. Because of this successful co-operation and the mutual trust and confi­dence that have been built up, we decided to commission j&m with the implementation of the product-supply-scheduling concept that we had already produced jointly.” Klaus Kirnbauer, Head of OMV Supply Chain Development & Benchmarking, OMV AG.

Mr. Lars Eickmann, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or e-mail at l.eickmann@jnm.de.

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IT performance scan at Eckes & Stock

Eckes & Stock GmbH, the management company for a group of branded product manufacturers in the field of wines and spirits working out of Nieder-Olm, near Mainz, Germany, maintains major production locations in Germany, Italy, Austria, and the Czech Republic, as well as sales com­pa­nies in other European countries and in the USA. SAP R/3 systems are used at the German, Italian, and Czech locations. A major part of the IT operation in Germany has been outsourced to external service providers.

In order to be able to provide even more efficient IT support with even faster reactions, j&m Man­age­ment Consulting AG has been advising Eckes & Stock on optimizing its IT structure. “j&m un­der­stood perfectly how to pick up our ideas regarding the scope and the aims of the project and how to turn them into a methodical course of action,” says Michael Schneider, Corporate Planning and Financial Control Manager at Eckes & Stock.


The focus of the investigation is on IT structures in the three national companies that use SAP. This analysis covers subjects such as IT governance, the application portfolio, maintenance and sup­port. This process also includes examining and evaluating the computers and networks in use. These complex analyses make it possible to identify potential for improvement and to make action recommendations. Eckes & Stock expects to use these to improve its service levels and cut costs.

The aim of the project is to produce an internal and external benchmarking system and a plan of action that embraces all issues detailed above.

Mr. Klaus Ballas, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.ballas@jnm.de.

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Key account management in Hella’s Special OE Products Division


As a global player and supplier of innovative products and modular systems for automotive lighting and electronics, Hella KGaA Hueck & Co. is a leading international company in the motor com­po­nents industry.



Its Special OE Products Division specializes in the engineering design and sales of headlamps, other lamps, and electrical and electronic components for the manufacturers of buses, tag-along trailers, emergency vehicles, bodywork for local authorities and other special users, agricultural and construction machinery, power sports vehicles, and trucks and semi-trailers.

Key account management challenges for the Special OE Products Division

Both in the area of development and procurement processes, globalization is also presenting enormous challenges to key account management systems. As far as this key account man­age­ment is concerned, precautions have to be taken to service global customers uniformly and efficiently with a sales team that is distributed all over the world. Another problem facing Hella Special OE Products Division's key account managers is that the customer master data is scattered across a number of ERP systems all over the world and has never been harmonized. A great deal of time and effort is involved in obtaining an aggregated view of sales opportunities and other activities with global customers.

An integrated CRM system for key account management

j&m provided support to the Special OE Products Division in the design and implementation of a global key account management system based on mySAP CRM.


Initially, customer data from seven national companies was integrated into the central CRM system. The existing multi-backend CRM systems form the basis of the global opportunity man­age­ment system, providing the foundation upon which worldwide product development for Special OE customers is coordinated. It is also the perquisite condition for the early recognition of market op­por­tunities and coordinating development resources globally. Personalized access to the relevant CRM information has been achieved via a newly created SAP-Enterprise-based portal.

This ambitious project was completed to the full satisfaction of all concerned, set against man­ageable cost levels and in very short time.

“The thing that excited us about j&m was its comprehensive skills and expertise across all CRM fields and its outstanding implementation expertise.” Dieter Lanfer, CIO in the Hella Aftermarket and Special OE Products Division.

“With j&m’s support our key account managers are now able to act more quickly and effectively in the global market. This will deliver crucial competitive advantages in the near future,” says Martin Klause, Manager of Target Groups, Marketing, and Sales Coordination at the Hella Special OE Products Division.

The next step will be the rollout of the CRM system in seven more national companies, currently scheduled for June 2006.

Mr. Karsten Ötschmann, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.oetschmann@jnm.de.

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SAP CRM in the ramp-up – successful release change at STO AG





Sto AG is an international corporation known throughout its industry as a specialist in façade in­su­lation systems and manufacturer of high-grade façade and internal finishes (plaster and paint). Because of its high levels of innovation and expertise, Sto has managed to become the world market leader in its core façade insulation business.

For three years now Sto AG has been relying on SAP CRM for its contract management systems. Sto AG uses this program to support all aspects of its construction-contracts sales activities, from putting up a sign on the construction site to delivering the product. A comprehensive customer master data containing all planners, investors, architects, developers and internal employees in­volved on any given construction project forms the basis for its contract management system. The data collected from these projects forms the foundation for the operational project tracking sys­tems in the CRM system, as well as for the market-oriented reporting systems.

j&m has been supporting Sto AG in this area since it embarked on this path. The system has now been rolled out across Europe in eight countries and three German corporate divisions.

As part of the restructuring of its internal IT systems, Sto is equipping itself with the release change to CRM 5.0 for the technical challenges of the future and the further extension of the functionalities. Although the timeframe for the project was ambitious, the release change went productive on time in May after only two months and without any start-up difficulties.

“The many years of successful collaboration with j&m and the high quality of their consultancy services, in both commercial and technical questions, have been crucial factors for us in the successful completion of this ambitious ramp-up project.” Werner Trunz, an economics engineer and senior manager in charge of internal organization and information systems at Sto AG.

Mr. Klaus Ballas, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.ballas@jnm.de.

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Special: Adaptive Manufacturing

The goal of “Adaptive Manufacturing” is to closely link business processes with applications for production management and to thus create a link between commercial and technical levels. The main focus is on quick and flexible adjustment and on creating reaction capability within the production system to take account of changing customer behaviour and new market situations.

The essential factors affecting this process are:
  • a constantly rising number of models, product start-ups and product facelifts
  • shorter and shorter development times and product lifecycles
  • greater cost pressure and quality requirements, and
  • increasing legislative requirements with regard to product liability (TREAD Act in USA).
Quality defects in particular, if they are not recognized until it's too late, often lead to recall actions that incur heavy costs and damage the manufacturer’s image. Subsequent losses include a serious fall in brand and customer loyalty. “Adaptive Manufacturing” can be used to identify these phe­nom­ena at an early stage, minimizing their impact.



From a technological point of view, “Adaptive Manufacturing” closes the gap between the ERP systems and the real-time systems at the production level with Manufacturing Execution Systems (MES).

To utilize synergies in these areas, j&m cooperates with SAP and iTAC. Thus j&m can supply complete systems from a single source. As part of this collaboration, j&m and iTAC carry out various projects jointly. In addition to this, j&m is also a SAP Special Expertise Partner for Automotive and is involved in an intensive exchange of information with SAP with regards to "Adaptive Manufacturing" and the xMII system.

Mr. Karsten Ötschmann, one of the partners in j&m Management Consulting AG, will be happy to give you more information by phone on +49 (0) 621 12 47 69 - 0 or by e-mail at k.oetschmann@jnm.de.


It would give us great pleasure if you could visit us at any of the following events. Please feel free to agree an appointment for a meeting:

  • SAP Information Day for the Consumer Goods Industry (CRM) September 2006
    Visit the SAP Information Day and find out about the latest trends in the consumer goods industry. j&m will be on hand to demonstrate a merchandising system. More details will be available on our website soon.

  • SCM World 2006 September 27/28, 2006, in Stuttgart, Germany
    This will be j&m's fourth time as the “Competence Partner” at SCM World, the focus of which is on “Global SCM as a strategic core competence”. Those participating this year will once again be sharing their experiences in innovation in purchasing, production and logistics management. Speakers will be presenting their current projects. j&m would be delighted to meet up with you in person at this event and get an insight into your optimization potential.

  • 23rd German Logistics Congress (BVL) October 18 – 20, 2006, in Berlin
    Under the general heading of “People – Networks – Technologies”, this congress will be drawing attention to the fact that global success is only possible by linking intelligent communications and control with a good infrastructure and excellent human performance. Leading representatives from the German and international business worlds will be exchanging knowledge and experience. We look forward to welcoming you to the j&m stand.


If you have any questions or would like to arrange a meeting, please contact Ms. Nicola Birken, Cor­po­rate Communications, j&m Management Consulting AG, by phone on +49 (0) 621 12 47 69 - 0 or by
e-mail at n.birken@jnm.de.

 
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