Pepsi Bottling North America
In today's business climate, companies are continuously striving to reduce costs and improve efficiency. PepsiCo, home of some of the world’s most recognized and respected brands, realized that in order to maximize profits within its bottling division it would need to apply industry best practices to take advantage of major cost savings within its maintenance storerooms. The process would involve many phases but none of which could be achieved without first having the item master cleansed by experts who understood PepsiCo’s needs. After searching the industry, IMA was selected as the best opportunity for PepsiCo to realize targeted savings and achieve the best results.
During the project, IMA cleansed the entire PepsiCo database, which included 63 North American beverage facilities, and created a corporate item master containing accurate data which provided PepsiCo with the confidence to meet its other financial objectives. After the identification of all duplicate items, obsolete materials and insufficient descriptions, the new corporate item master contained more data than ever but with 36% fewer items, resulting in a far more efficient dataset for PepsiCo employees to work with. In addition, IMA also assigned new corporate part numbers for each unique item allowing for the identification of duplicate items across all PepsiCo divisions, by direct duplicate as well as fit, form and function.
Using this new and improved item master, IMA was instrumental in implementing the Inventory Reduction program by identifying all potential excess inventoried items, by plant and region. Other phases of the cost reduction program that would not be possible without first utilizing IMA data cleansing services include:
1) Vendor consolidation
2) Part number consolidation
3) Implementation of an aftermarket supplier program
4) Creation of a virtual warehouse for bottling locations to share big ticket items
5) Supplier buy back program
In order to maintain the integrity of the new corporate item master, PepsiCo recently contracted IMA to manage all new items being added or modified through the Catalog Management service. PepsiCo chose to use the Turnkey option, allowing IMA direct access into its INFOR system to ensure all data is up to date, consistently standardized and always reliable.
Fortune 500 Mechanical and Industrial Engineering Company
In 2012, IMA was selected as the service provider to implement a Global SAP Material Master Cleansing project, which involved a strategic rollout schedule to create one common corporate material master across one instance of SAP. Prior to project commencement, IMA worked closely with the customer to establish a dedicated implementation team, comprehensive project plan and corporate standard operating procedure. The customer's project team consisted of a project champion, as well as, maintenance, purchasing, procurement, IT, and finance representatives from various global regions. The IMA project team included a Global Account Manager, Project Manager, cleansing team, and multiple IT resources. The input from all project team members during the initial planning phase ensured consistency and common agreement throughout the organization as the decisions made during this time were critical to the success of the project. The finalized Standard Operating Procedure, which was tailored specifically to the internal business processes and objectives of the customer, outlined the Noun-Modifier Naming Convention, Abbreviations, Cleansing Policies, and SAP Formatting template. In this particular case, the customer opted to utilize a slightly customized version of the IMA Standard Noun-Modifier Dictionary and Abbreviation Listing. In parallel with the customer's SAP go-live schedule, IMA began cleansing, standardizing, enhancing, de-duplicating, and formatting legacy data by region, according to the pre-defined project standards. Upon completion of each region, IMA delivered the load-ready file and moved on to the next region in the rollout schedule. While cleansing each individual site/region, IMA continuously cross-referenced for duplication across the previously cleansed data, and compiled the records to build a single corporate (client level) material master, which currently houses over 300,000 cleansed ERSA records.
In order to maintain ongoing integrity and consistency of the cleansed material master, IMA's uManage web-based data governance solution was implemented at each site in parallel with the SAP rollout schedule. Utilizing the unlimited user subscription, the customer assigned multiple requesters and a single approver to each site. All requests, including new item creations, modifications, extensions, and suspensions, are now submitted through the uManage portal for review and approval, before being cleansed by a dedicated IMA Data Governance Specialist. Upon completion, item requests are returned in an SAP load-ready file to a corporate Downloader, who is responsible for loading the items into the live SAP system. Today, this customer continues to expand its global SAP Conversion and Data Cleansing project, while managing all new item creations and modifications through the uManage Data Governance solution.
As a result of IMA's ongoing Data Cleansing and Governance services, the customer has gained significant maintenance efficiency and cost savings through duplicate elimination, improved search ability, detailed reporting, and enterprise visibility.
Tembec Pulp and Paper
Tim Brown, IT Director for Tembec’s Pulp and Paper Groups, was first introduced to IMA at an IndusWorld conference. Discussions regarding our Catalog Management service were of particular interest to him at that time. He knew Tembec needed to improve its management of stores inventory, but managing the mills’ Stores catalogs across the corporation had always presented a challenge. It seemed that IMA could provide them with an affordable solution to their problem.
At Tembec, each of their eleven Pulp and Paper sites operate autonomously, with responsibility for managing their own inventory. The decision to implement a new CMMS system company wide brought their corporate catalog issues to the forefront. And creating a corporate catalog of consistent inventory data was something IMA could do for Tembec.
Tembec created a cross-functional team, including members from: Maintenance, Purchasing, IT and Stores. Together we tailored the data to Tembec’s internal needs. On a site-by-site basis, data was cleaned, standardized and enhanced, then amalgamated into the Corporate database prior to “go-live” with the new system. All this, while keeping many of the local site naming nuances intact.
“IMA played an important role assisting Tembec in standardizing and improving business processes, systems and naming nomenclature related to maintenance, stores inventory, and capital spare part stocking activities.”
To date, six of the eleven sites are on the new system. At each site, duplicates and overstock items have been identified. The payback was evident almost immediately. Identified savings accumulated to a total of roughly $500,000 per site within the first three to six months after implementation. Additionally the standardization of the naming nomenclature has set the stage for many more e-commerce cost reduction opportunities.
The real value is realized corporately, enabled by the on-going Catalog Management service. Now Tembec is able to leverage purchasing, share spares, consolidate suppliers, reduce inventory levels, use down excess stock across the corporation and create regional and national purchasing programs.
“IMA has worked with Tembec to design and implement a process whereby rapid easy access to a single view of stores inventory is available. We can now identify opportunities to reduce stores inventory levels as well as report on vendor performance across all of our mills."
Today, IMA assumes all responsibility for the day-to-day additions/changes/deletions to the Tembec Corporate Catalog. In addition, it also manages the daily operations for Tembec’s Corporate Vendor file.