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Optimizing Medicine Distribution with Mobile and Real-Time Access
While they expertly deliver innovation and quality to their customers, Callaway Golf’s previous planning and reporting tool wasn’t making the cut. To evolve their enterprise, the sports giant decided to replace their outdated planning software with SAP Analytics Cloud for planning.
Together with Avvale, Callaway Golf successfully implemented SAP Analytics Cloud across their global enterprise in just 6 months. Now, Callaway Golf has a single, consolidated planning solution that has enabled streamlined expense and asset plans so they can focus on what they do best– revolutionizing the sporting world with cutting edge equipment.
Our client is a private non-profit corporation operating within Colombia's social protection and security system. They prioritize holistic individual needs and offer diverse services, including recreation, tourism, education, and healthcare. Their mission is to enhance the quality of life of their members while contributing to Colombia's social development.
The Challenge
Our client faced the challenge of inefficient logistics processes within their medicine dispatch warehouse, hindering their ability to deliver timely and cost-effective services. The goal was to streamline operations from order preparation to dispatch, eliminate intermediate storage stages, reduce operating costs, and enable SAP functionalities through mobile terminals to facilitate collaboration and expedite the supply and distribution process to their stores.
The Approach
As a trusted partner, Avvale implemented the SAP Cross-Docking solution, a functionality of SAP Extended Warehouse Management (EWM) designed to optimize the storage and distribution process of products by minimizing warehousing. The project began with a thorough planning and design phase to understand existing business processes, integration points, material flows, and criteria for goods selection. This foundational work allowed us to configure the system to meet the client's specific needs.
Avvale's deep understanding of the client's operations enabled the joint definition of detailed operational processes for cross-docking, including employee roles, workflows, and exception handling scenarios. Post-implementation, continuous monitoring and optimization were key to ensuring the success of the new system in enhancing the medication dispatch process.
The Challenge
Before integrating SAP Analytics Cloud, Callaway Golf's planning landscape centered around SAP's legacy planning solution, Business Planning and Simulation (BPS). While BPS met Callaway Golf's planning needs for many years, the enterprise began to experience limitations with their old solution:
- Disconnected plans across the board: As Callaway Golf expanded and acquired new brands, planning processes greatly differed across the enterprise with some business units using Excel spreadsheets and others using legacy solutions for planning.
- Outdated planning functionalities: The existing legacy planning solution lacked many modern functionalities. Among them, salary calculations and asset depreciation automation needed improvement. As a result, it became difficult to create detailed and accurate forecasts across the globe.
- Significant IT support: The legacy solution required continuous management from IT to maintain runtime. IT had to carve out a full day every week to manually maintain the solution.
- No single source of truth: Various departments and brands used different data sources, which led to data silos across the organization, making it difficult to gain a clear picture of the enterprise's planned expenses.
- Rigid user interface: Legacy forecasting system was difficult to navigate and lacked working functions and calculations across the board, such as planning on depreciation and existing assets, adding vendors or members on the fly, and breaking down their cost center expense planning forecasts.
The Approach
With Avvale experts on their side, Callaway Golf laid out the following goals for their new planning landscape with SAP Analytics Cloud:
- Crowdsource and consolidate plans across the enterprise to gain a global overview of their planned expenses and expand the input capabilities to each responsible owner.
- Leverage elevated planning functionalities to create faster and more accurate forecast cost center expense and asset reports. The ability to customize calculations enhances and automates the reporting metrics.
- Harness the power of self-service analytics to alleviate IT from the burden of simple maintenance and data entry requests, so they can focus on high-ROI tasks.
- Maximize user-driven admin capabilities to control the management of calculations and forms.
- Create new KPls driven by the business needs.
When SEM-BPS was the center of Callaway Golf's planning landscape, flexibility was a huge factor that was missing. SAP Analytics Cloud contains powerful scenario planning capabilities that help organizations quickly uncover actionable insights to make data-driven decisions. For Callaway Golf, SAP Analytics Cloud's modern planning functionalities provided users with the ability to:
- Add members on the fly
- Plan on existing as well as planned assets and automatically calculate the depreciation of values
- Test "what-if" scenarios for deeper analysis by creating private versions of plans
- Customize the solution based on their current business process
- Perform driver-based calculations
- Empower users to execute end-to-end planning scenarios, without the help of IT
The Impact
Avvale’s implementation of the SAP Cross-Docking solution transformed our client's logistics management. By eliminating intermediate storage and optimizing logistical processes, they significantly reduced operational costs associated with distribution. The new system enhanced operational efficiency in transportation and national distribution, contributing to overall business efficiency.
The integration of real-time mobile access to SAP functionalities further improved logistics management and customer service quality, significantly reducing manual errors and improving inventory management and order preparation.
Moreover, the solution's impact extended to sustainability. By reducing the need for long-term storage, the client lowered costs associated with maintaining large inventories and reduced the environmental footprint of storage facilities. The decrease in energy consumption for refrigeration, lighting, and other operations contributed to a more sustainable business model.
Through the successful partnership with Avvale and the implementation of the SAP Cross-Docking solution, our client now enjoys greater agility, increased visibility, and real-time control over material flows and inventory, enabling them to meet their logistical challenges with an intelligent, efficient, and sustainable approach.
