Automated procurement logistics with supply chain management

In 2001, Heidelberger Druckmaschinen AG (Heidelberg) put the procurement logistics for its German plants out to tender. As part of the realignment of the procurement process, Heidelberg wanted to modernise the previously manual entry process in goods inward with a completely new concept.

The intention was not just to switch from manual entry to electronic entry, but to make the process even more efficient with additional innovations. Besides accelerating the process, error reduction was also a declared aim of the redesign.

Heidelberg was quickly able to achieve its self-appointed goals with the Supply Chain Management solution (SCM solution) provided by EURO-LOG AG and its logistics service provider.

Heidelberger Druckmaschinen AG had a number of requirements for a solution to automate the goods inward flow.

An important criterion was to outsource the generation of leading information flows to the Heidelberg logistics service provider. The aim was for the order data from the Heidelberger SAP system to be automatically provided to the logistics service provider, which would then be in a position to create electronic delivery notes with the bundled order items. The bundled delivery note information then had to be able to be transmitted to the Heidelberger SAP system in the IDOC format. The confirmed delivery note items transmitted to the Heidelberger SAP system then had to be able to be automatically booked via matching with the original order items.

Paper-based delivery notes, with the delivery note number as a barcode for scanning at Heidelberg goods inward, also had to be generated using the software solution.

Additionally, Heidelberg wanted to implement an automatic goods inward processing, which would be enabled by simply scanning the delivery note number and the associated delivery note items.

Moreover, the delivery note information had to be displayed uniformly, in contrast to the current range of different delivery note layouts and information depending on the supplier.

The SCM system was ready for use within six weeks of commissioning the solution with EURO-LOG. During this period, the solution was individually adapted to the requirements specified by Heidelberg.

• Delivery note creation at the click of a button

Since the implementation of the SCM system, electronic delivery notes for Heidelberg have been created using the EURO-LOG software solution. The relevant orders from the Heidelberg SAP system are uploaded into the logistics service provider’s system. The logistics service provider therefore has real-time access to the Heidelberg orders at all times via the internet.

With just two employees, the forwarding department records the electronic delivery note items in a tight delivery timeframe with a single click in the web browser. The paper-based delivery notes for the goods delivered by previous carriers or goods procured internally are matched with Heidelberg's orders. The orders are clearly displayed at the item level in EURO-LOG’s web-based Supply Chain Management system.

The logistics service provider’s employees can quickly select the suppliers and the associated orders at the click of a button based on the part number key (suppliers, item numbers, etc.) defined by Heidelberg. This selection means that an electronic delivery note can be created in accordance with Heidelberg’s requirements within the shortest possible time and with little manual effort and transmitted to the SAP system in IDOC format.

• 100-percent assignment of deliveries and faster dispatch of lorries

For Heidelberg, the standardisation and completeness of the delivery notes was of primary importance. The data quality already had to be high upon delivery in order to prevent the manual post-processing of incorrect or inconsistently recorded data and therefore save time and money.
For the majority of suppliers, the provision of delivery notes in accordance with Heidelberg's requirements was impossible. This means that, prior to the introduction of the solution, every delivery note was different and contained different information.

The improved data quality in goods inward is achieved by the fact that delivery notes can be quickly issued without errors using the SCM system. The items recorded on the delivery notes are correctly transmitted to Heidelberg based on the part number key.

The turnaround time of the lorries is also reduced, if all the delivery data can be processed quickly and the manual post-processing of the delivery note information is no longer required. This criterion was not ensured prior to the introduction of the software solution.

• Planning certainty with notifications

The SCM system allows Heidelberg to be notified of the goods deliveries. For Heidelberg, the electronic delivery note means complete transparency in goods deliveries and a significant unburdening of the goods inward. Thanks to the notification, Heidelberg now also knows which deliveries are delivered with which orders and order items and when the delivery will occur. This helps with staff planning in the warehouse and goods inward.

• Optimisation of follow-up processes through intelligent data linking

The intelligent linking of bookings in goods inward with order and delivery note information allows follow-up processes to be permanently optimised. For instance, the information that ordered goods are already on their way into the warehouse enables more precise planning in production.

The data can also be integrated into an online shop. This means that the goods can be scheduled or sold “from the lorry”. This increases the security of supply and adherence to the programme and can have a positive impact on sales.

• Alerting function

The alerting function in the SCM system also plays an important role with regard to time and cost savings. This feature informs the user as soon as a previously defined event occurs or remains undone (for example, if the goods have not left the warehouse by a specified time). The alerting function ensures a quick notification via email or SMS in case of deviations so that a prompt response can be implemented.

Download the Heidelberger case study as a PDF.

• Accelerates goods inward thanks to proactive electronic delivery note creation
• Standardisation of goods inward processing by bundling by the logistics service provider
• Matching of the delivery note and order items
• Transparent supply chain and higher security of supply for the customer
• Comprehensive transparency across all open orders
• Establishment of comprehensive supplier controlling possible
• Reduction of in-house IT expenses for the establishment and monitoring of electronic supplier communication
• Quick and easy transfer to other customers and scenarios possible
• Automatic alerting in case of deviations
• Production planning can take account of stock “in transit”
• Goods can be sold “from the lorry”
• Optimised staff planning in the warehouse
• Reduced lorry downtimes during delivery
• Automatic uploading of the orders from existing ERP systems, such as SAP®
• User interface can be flexibly adjusted to various customer requirements
• Quick connection of suppliers and logistics service providers to the shippers processes and systems via EDI and Web EDI
• Data exchange runs through the highly available data centre, which operates in compliance with ISO 27001 standards, and the central EURO-LOG AG logistics platform
• Transmission of the delivery notes in various formats, such as IDOC