MRP – Inventory Management and Work Management Integration

Inventory Management & MRP utilization are truly dependent on each other. Almost 10 years on SAP and we have realized that Materials Requirements Planning (MRP) driven demand planning, forecasting continue to feed and impact optimal Inventory Management techniques. The challenges and business expectations to maintain right inventory mix at optimal costs to support projects has grown exponentially in the utility industry.  It's has to be noted that SAP Plant Maintenance work orders data quality is critical  contributing factor  to MRP in  support of best Inventory Management methodologies along with MRP materials master data such as lead times, safety stock and vendor performance.

 

As SCE continues its tech journey down the path to S/4HANA, in collaboration with our Work management teams we refreshed our strategies within IPSEC wheel when it came to materials master data governance and data quality. We began to start using SAP to effectively manage all our materials master data, MRP settings, procurement, vendors, T&D field needs, and any other discipline that we required. We have made minor business and technology custom enhancements to support better Inventory Management techniques.  

 

In this presentation I will take you on the journey that we took to get to a place that has set us up for an environment where we use data management as a strength and to its competitive advantage by integrating with Work Management to save Inventory carrying costs with elevated focus on Inventory and Vendor Management.

 

Key Business Benefits:

• Forecasting of long lead, single and sole source materials within BOMs(Initiate)
• Accurate MRP demand signals by closing unwanted reservations (Plan)
• Material recirculation within the network locations to minimize stock outs (Schedule)
• Better management of safety stocks, MRP settings and vendors (Execute)
• Advanced Perfect Line Rate (PLR) management (Close & Effectiveness)

Timestamps:

• Introduction & Agenda - 2:00
• E3 Journey Methodology - 10:45
• Integration Journey - 28:40
• SAP Transaction Samples - 35:20

Speakers

• Amy Gonzalez, Technology, Predictive Analytics, Major Projects Advisor, Southern California Edison
• Phani Wuppalapati, Senior Advisor - Supply Chain Integration, Southern California Edison