‘Do it right the first time’ would be the ideal goal for projects aimed at the successful further development of core processes. On the way there, a targeted diagnosis with an action plan helps to overcome initial uncertainties about the right steps to take. A project example will show how the analysis and evaluation of the status quo within a business unit can look:

The first step involves examining roles and responsibilities in their current state (R&R analysis). This analysis roughly reflects the current process organisation. It is intended to stimulate internal discussion in order to ultimately ensure understanding, clarity, efficiency and process reliability (covering all tasks, reducing duplication of work).

Focused interviews with participants from different organisational units and functional levels clarify responsibilities and provide deeper insights into the processes of the relevant specialist areas from different perspectives. Performance deficits and areas of potential for process improvement are identified – with simultaneous recognition of the risks involved in their implementation. In the example project, discussions were held with specialists and managers from three business units at five different locations, with the involvement of the relevant central units.

The findings obtained are used to determine the current ‘process maturity level’ in the underlying maturity model (according to GARTNER), that is, to determine what stage the organisation is currently at. The definition of the maturity level forms the basis for determining suitable measures for reaching the next stage. The focus is on reaching the next level. No stage in the maturity level model should be skipped. Following a specific development path is highly recommended.

Buchbach-Consulting supported the successful step-by-step implementation of primary measures and subsequent readjustment of supply, inventory and operations planning (SI&OP) processes. Cooperation between the go-to-market organisation and the business units, as well as between business units and plants, has been improved long term.

Contact us. With our many years of experience, we can actively support you in the diagnosis and further development of your SI&OP processes!

info@buchbach-consulting.com

Familiar SAP tools, closely integrated with many processes within companies, need to be replaced after some time due to expiring usage rights. A successor solution is needed, but is it even possible to integrate the potential solutions into the existing corporate system landscape?

This was the case, for example, with a group of companies with numerous production plants in several European countries. Not all plants had even implemented the SAP standard (CM21/CM25) by then.
The challenge was to take into account the requirements of different divisions in the individual plants, which differed, among other things, in terms of discrete manufacturing, process manufacturing, and even in varying degrees of vertical integration. There was a typical system landscape with various subsystems, in-house developments and legacy planning tools such as Excel and Lotus.

For this reason, the task encompassed various project objectives: replacing SAP standard transactions, optimising detailed planning processes, harmonisation, standardisation and integration into the overarching (master) planning process, as well as flexibility and expandability for out-of-the-box requirements.

The requirements were grouped into four areas. In addition to the standard functionalities of CM21/CM25, other generally applicable and specific functionalities for automatic detailed planning and process-industry-specific functionalities were defined.

The requirements were categorised using the MoSCoW method. This means that the project team and the requesters (facilities) jointly categorise the hierarchical requirements and agree on indispensable, important (but not mandatory), and desirable requirements, as well as those earmarked for future projects.

In addition to licences and pricing, integration capability and the degree to which requirements are covered are key factors when selecting a suitable software solution.

Contact us. We can support you in the further development and re-selection of your tools for production planning and scheduling:

info@buchbach-consulting.com

In this successfully completed contract, the task was to conceptually restructure production planning for the client’s main production site. The improvement measures defined in the project for various production areas (e.g., colour pastes, small batches, 2-component production, manual filling, automatic systems) were then implemented step by step.

Restructuring began in the production areas, which already had experience with rolling weekly planning and were characterised by plan-driven scheduling. The focus of the implementation work here was on extending the period for drawing up a feasible detailed plan. Production gaps were deliberately incorporated into the weekly and daily schedules. Depending on requirements, special products can be manufactured during these gaps, e.g., products with small quantities, components that are difficult to plan, special colours or additional quantities for promotions and product changes and, of course, outstanding production orders.

As the project progressed, the significantly more complex filling areas for storage products and products with interchangeable tanks and the volume ranges of the automatic and semi-automatic systems were taken into account. This is where the greatest effect was achieved in the overall production system – but it was also associated with resistance to change.

The top priority for all production areas was that once production orders had been approved, the production plan for the following week should no longer be changed. The prerequisite was the establishment of uniform release times and horizons, as well as the measurement of process effectiveness using a production plan implementation rate (adherence). The aim was to achieve a consistently high implementation rate – depending on the production area.

Consideration of disruptive factors: technical malfunctions, staff shortages or unreliable suppliers (delays in the delivery of components that have already been promised) may necessitate rescheduling. In some cases, inventory discrepancies in empty containers (buckets, cans, lids) also trigger rescheduling. However, internal order processing and scheduling logic can also sometimes cause changes to plans. Notable here were ‘unchecked’ EDI orders from the DIY sector, products with consumption-controlled scheduling (falling below reorder points) and internal action requirement planning. In this regard, the ‘concept of production gaps’ proved to be extremely helpful!

The success of a feasible production plan with a low change rate depends on the interaction of different roles from several functional units, as well as on the willingness of all those involved and the organisation to embrace change.

Contact us for more information. We can help you achieve a higher level of process maturity and increased stability in production:

info@buchbach-consulting.com

The effects on purchasing behaviour due to supply bottlenecks, crises, and rising costs were clearly noticeable in 2021 – and will also shape the coming years.

The most prominent example in 2021 was the blockage of the Suez Canal by the Ever Given, a huge container ship. Hundreds of ships were stuck at both ends of the canal, with serious consequences for global trade due to extreme delivery bottlenecks and production losses.

The canal blockade was compounded by the ‘China container crisis’, with its massive supply chain disruptions caused by China’s zero-tolerance COVID policy, partial port closures, and a global shortage of containers. The crisis dragged on well into 2022, as the backlog of ships and the difficulties in returning empty containers could only be resolved slowly.

Added to this were steel shortages and skyrocketing prices. Last year, the steel market was characterised by extreme shortages and historically high raw material prices – a situation that had an impact on everything from cutlery manufacturing in Vietnam to the core sales market in Europe.

All these crises greatly affected Buchbach-Consulting’s activities as ‘Interim Demand Planning & Allocation Manager’ for a brand of an international corporation in the household goods sector.

Example: stainless-steel cutlery. In this case, allocation plans for distribution channels within the sales regions had to be drawn up regularly, taking into account allocation targets. In addition, the limited available quantities of individual cutlery items were allocated to the various relevant ‘cutlery sets’ for each product model. Preference for certain sets for branches, e-commerce, specialist retailers and key accounts had to be considered – and everything had to be done within the framework of the underlying contractual terms and conditions on ensuring the availability of goods.

In addition to the complex creation and coordination of allocation plans – even in the face of resistance from various parties – their smooth execution had to be ensured in detail. A clear time slot schedule specified which activities, such as blocking stocks, packing, rebooking, order prioritisation and ATP checks, had to be carried out and when.

Contact us. We can support you in sales planning and inventory allocation, even in times of constantly changing external influences!

info@buchbach-consulting.com

An open and stress-free working atmosphere offers the best conditions for optimal corporate success. In reality, however, it in many cases becomes clear how full of conflict and tense communications and interactions in business life can be.
Conflicts arise for a variety of reasons. However, they always occur more frequently when the partners concerned in an organisation are dependent on one another and pursue different goals. It is usually impossible for those involved to see a conflict-free solution.

In order to expand its own business in mediation techniques and process design, Buchbach Consulting has acquired knowledge and skills for working as a mediator in business conflicts and has completed several months of training to become a certified business mediator (IHK).

This qualification involved acquiring psychologically based skills in communication, conflict and negotiation. Naturally, a great deal of attention was paid to observing the legal and ethical framework.
The use of short-term mediation and online mediation is a special form. Through the use of suitable online mediation techniques, emotionally intensive and confidential conversations can also be conducted virtually, a skill that is, of course, gaining in importance under the current conditions.

We help you to solve your SCM conflicts in a way that suits your interests and saves you time, gets business relationships back on track and avoids unnecessary escalations or even legal disputes!

Contact us. We will support you in business mediation:

info@buchbach-consulting.com

Supply chain transparency is an essential prerequisite for successful risk management in the entire PTC (process-to-customer) process. To improve this, many companies rely on a consistent planning hierarchy, with which the planning and scheduling conditions in a supply network can be closely defined and adjusted if necessary. A continuous planning sequence allows you to react quickly when changes in demand and new situations arise on the procurement side.

Many years of experience show that planning and disposition strategies should be as concrete and centralised as possible. This results in the possibility of central control of planning and disposition parameters, and thus a dynamic and statistical determination of safety stocks.

Safety stocks are additional stock that must be maintained to balance out uncertainties in supply and demand. Therefore, safety stocks should be dynamically adjusted on a regular basis depending on various influencing factors such as quantity changes, replenishment lead time, planning errors and the requested delivery capacity.

Dealing with these influencing variables, defining safety and target stock levels based on detailed product portfolio analyses and subsequent evaluation of the overall situation are among the core tasks of Buchbach Consulting’s current mandate.

This is our contribution to securing daily delivery capacity – even in times of stress such as during the COVID-19 crisis.

Contact us. We would be delighted to support you in the areas of demand and supply management:

info@buchbach-consulting.com

Global Supply Chains, with all their components, are standard in international companies. The problem: systems and technology are in many cases ahead of the people, i.e. in the parent companies, in project work, or in the operation of new processes or changes in the existing IT systems, and it is expected that all employees around the world will be able to easily follow these changes at a high level.

Unfortunately this is not the case: training courses are – if at all – only reluctantly updated, and even then usually not implemented to the respective target group nationwide or in a recipient-oriented way. This often leads quickly to incomprehension, demotivation, and frustration among the affected employees, with the consequence that the processes introduced with high expenditure are not lived consistently, and the systems do not fulfill the expectations set of them.

In order to prevent this, comprehensive training concepts must be developed at an early stage. Specific content tailored to the respective user group must be developed and implemented. In doing so, consideration must be given to the locally relevant, and thus also culturally distinct, requirements. It is certainly not effective to translate a German slide set into English and distribute it by e-mail worldwide!

A training partner with many years of experience in processes and systems and dealing with cultural differences saves resources and helps to avoid mistakes. Even though internal staff members may have deeper expertise, professional implementation by training professionals is useful. After all, it is not always possible to convince someone to cooperate in the process on the purely material level, for a wide range of reasons!

So: Take advantage of our many years of experience in the design and implementation of supply chain training as well as in change management.

Contact us. We would be delighted to send you more detailed information on this topic:

info@buchbach-consulting.com

Usually, a supply planner has to ensure availability of goods and compliance with inventory targets. It is not possible for a planner to simultaneously process countless order and production proposals as well as specific orders in any given day, check compliance with deadlines and quantities, optimise dispo parameters, and record and validate future (short- to medium-term) requirements and reconcile them with various functions within the company.

Some aspect of the day-to-day business is bound to suffer – mainly medium-term demand planning and validation, even though this is an essential part of a comprehensive S&OP process. Only a structural and organisational separation of demand and supply planning can lead to there being greater focus and a systematic improvement of planning quality that will influence availability and stock.

The process of change and the taking-on of tasks that may not in the past have been deemed wholly necessary do not always run smoothly. A qualification programme in support of this is urgently needed. Process development and success, as well as further potential for improvement, should be identified at an early stage and communicated within the company.

In its capacity as interim manager, Buchbach-Consulting has long been supporting the step-by-step implementation and readjustment of planning processes in the context of corporate integration and the establishment of an independent planning organisation within the largest sales organisation of a well-known consumer goods manufacturer.

We offer at your disposal our comprehensive experience in change processes and our skill at bringing together different teams to act as the “interface” for successful cooperation within a company.

Contact us. We would be delighted to send you more detailed information on this topic:

info@buchbach-consulting.com

Thanks to an external perspective and because he is not dependent on in-house structures the interim manager forces the issue and sustainability of measures. He shares expertise and competencies with the client and offers a flexible working model with noticeable cost advantages.

Over this year, Buchbach Consulting has been working successfully as “Manager on demand” for a leading international manufacturer of medical and healthcare products and formerly listed (FMCG) manufacturer of household, hotel and catering products.

Our primary focus in the field of S&OP processes and projects is the monthly analysis of departments and activity sectors and the comparison of target and actual data for the purpose of deducing the best next course of action.

We critically evaluated and justified individual process steps, such as the systematic identification and validation of the expected product demand, the determination of available supply and capacities, and the balance of both sides of the equation – demand and supply, to identify responsibilities, and in particular to verify that the necessary levels of detail and of accuracy were achieved.

We offer at your disposal our comprehensive experience and our skill at bringing together different teams to act as the “interface” for successful cooperation within a company.

Contact us. We would be delighted to send you more detailed information on this topic:

info@buchbach-consulting.com