Challenge: Significant sources of operational and commercial risk related to critical processes managed by the ERP system. 1) Thousands of customers with divergent requirements for their electronic ordering processes (EDI). Managing unusually complex, conflicting and constantly changing requirements created a significant burden on operations. 2) The standard process to calculate the optimal raw material hedge position was not correctly taking into account natural hedges that existed through the structure of finished goods sales contracts. Contracts were complex, unstructured, and the analysis of actual sales against contract was a manual process.
Solution: We designed and built a single custom solution that decoupled the process of EDI master data management from the ERP system, and provided a highly efficient sales contract management solution. Both components were fully integrated to the ERP system to automate the processes of price configuration, sales order entry and EDI communications back to the customer. The contract management application consolidated forecast data with order data from the ERP system to improve the accuracy of Material Requirements Planning (MRP) calculations made by the ERP system. Finally, contract and MRP data was consolidated to identify raw material demand driven by Long vs Short exposure to finished goods sale forecasts.
Result: An enterprise class, high volume and high performance solution that reduced operational and commercial risk for the customer. EDI maintenance was much more streamlined, had the flexibility of managing each customer process to suit that customer. With the click of a button, the optimal hedge calculation is automated.