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The simplicity in

The simplicity in complexity In order to remain competitive, plant manufacturers need to develop more complex solutions that are often tailor-made for the customer. This can lead to a lack of transparency in the production and logistics processes and with the participating partners, making it more difficult to come up with a precise calculation during the quotation phase. In order to efficiently prevent potential risks for the project and the company while maximizing transparency during the quotation phase, Beumer Group uses an integrated approach for supply chain management. “We are building our systems according to the engineer to order principle,” explains Johannes Stemmer, Corporate Strategy at Beumer Group. “The systems that we deliver to our customers are customized precisely to their needs, just like a made to measure suit.” And just as every tailor-made suit has different leg lengths and chest and waist sizes, our individual system solutions are also very specific to each customer. The latter include for example the inter- national Courier, Express and Parcel (CEP) service provider DPD. At its new logistics center in Domodedovo, Russia, DPD invests to provide the additional capacity needed to support a strong growth in demand from the Russian market. The service provider therefore relies on innovative sortation systems supplied by the Beumer Group. “As a system integrator we design, build and commission these systems. This ensures that our customers can deliver their products securely and reliably,” explains Stemmer. Inaccuracies during the quotation process Beumer provides their systems with different modules and functions. There are also various drives that can differ in their capacity and energy efficiency. This means that there are a variety of product variants. “Because we don’t manufacture camera systems or sensors ourselves we rely on selected suppliers,” explains Stemmer. But the more complex the system becomes and the more people involved, the higher the coordination and development expenses can be. Plant manufacturers are therefore exposed to influences that they do not always have control over and that are difficult to predict. This increases the risks when calculating the scope of services and developing the schedules. Another difficulty lies in long project durations: operators can have change requests, exchange rates and raw material prices fluctuate. These are all drivers that increase complexity and make it harder to come up with a precise calculation at the time when the quotation is submitted. SUPPLY CHAIN MANAGEMENT WORLD OF INDUSTRIES – INTRALOGISTICS & DISTRIBUTION 4/2017

01 When introducing SCM, the factors that are beneficial to the quotation process must be taken into consideration, such as comprehensive customer support And despite all of this: Our customers still want a clear statement. This is why only those suppliers who can reliably plan the demand for components and production, even under these more difficult conditions, can be successful in the long run. In order to make the quotation process more transparent, Beumer Group relies on its efficient supply chain management (SCM). This process-oriented management approach includes any flow of raw materials, components, semi-finished products and end products as well as information along the value and supply chain. The goal is to optimize the resources for all companies involved. SCM needs to be coordinated with specific requirements from the supplier. Complexity becomes manageable When introducing SCM not only potential change requests and fluctuating prices must be considered, but also factors that facilitate the quotation process. Beumer Group counts their extensive Customer Support (Image 01) as one of their success factors. The system integrator designs modular machines (Image 02) in order to make the complex manageable. This approach has proven to be useful when processes, components or customer requirements remain similar and are used frequently. Through uniform requirements and processes, the company can simplify the coordination of supply chain planning and control during the quotation phase. Beumer brings the customized modules together and adjusts them. The system supplier often pre-fabricates subassemblies or components not specific to any particular customer. The same goals, different strategies The reason for adopting a SCM approach for every company is to build on these success factors and strengthen them as competitive advantages. But each company is different. Some companies only manufacture products, others entire systems, some manufacture globally, others almost exclusively use sub-suppliers. Different frame conditions mean that there are different SCM strategies and areas. The SCM areas refer to individual business units, the entire company, the cooperation network with the participating partners or the cooperation with the customers. With each progressing segment, from a function-based concept to a customer-oriented approach, the requirements on the management system increase as well. On the one hand you have the opportunities and possibilities of a customer-oriented SCM approach, on the other you have the risk of overstretching the company resources and competences with an integrated implementation. Companies that are using a more function-oriented SCM approach usually manufacture individual products, and less About Beumer Group The Beumer Group is an international leader in the manufacture of intralogistics systems for conveying, loading, palletizing, packaging, sortation, and distribution. With 4,000 employees worldwide, the Beumer Group has annual sales of about EUR 750 million. The Group and its subsidiaries and sales agencies provide their customers with high-quality system solutions and an extensive customer support network around the globe and across a wide range of industries, including bulk materials and piece goods, food/non-food, construction, mail order, post, and airport baggage handling. WORLD OF INDUSTRIES – INTRALOGISTICS & DISTRIBUTION 4/2017