How Owl's Performance Management Software Eliminated 90% of Low-Value-Added Activities for a Multi-Million Dollar CPG Company
A prominent multi-million-dollar CPG company faced significant challenges in their procurement processes. Their issues revolved around the need to consolidate data from two separate ERP systems to review spending reports. The existing approach was highly manual and time-consuming, making it difficult to ensure On-Time-In-Full (OTIF) deliveries, a critical aspect of their operations. Additionally, the organization struggled with inefficient methods for categorizing materials, even though an item master was in place to indicate material types.
This Head of Planning is responsible for seeking new ways to control and reduce the financial impacts of inventory write-offs. The root cause of inventory losses was unclear. He discovered that while ERP and other transactional systems were in place, there continued to be a data knowledge gap between all the supply chain systems that did not interact with each other. This meant his team was responsible for spending hours extracting spreadsheets and scrubbing them to make sense of data.
Why They Chose The Owl
In an effort to overcome these procurement challenges, the company turned to Owl, a performance management software platform designed to provide supply chain professionals with the essential data and insights necessary for daily operations. Owls’ cloud-based solution was not only easy to implement and use but also cost-effective when compared to the traditional approach of internal IT-led projects.
Owls’ software seamlessly integrated data from both ERP systems, creating a unified and accessible platform for procurement management. This integration provided real-time OTIF tracking capabilities, enabling the company to monitor the timely and complete fulfillment of orders, ensuring deliveries aligned with schedules and requested quantities. Additionally, Owl introduced an efficient material categorization system for all materials entering the company’s product line, streamlining the categorization process.
The successful implementation of The Owls Software led to a significantly improved and streamlined procurement process, yielding the following benefits:
Real-time OTIF Tracking: The user now has the capability to monitor the timely and complete fulfillment of orders in real time, ensuring that deliveries align with schedules and requested quantities.
Enhanced Spend Visibility: Access to a comprehensive overview of spending empowers the user with a deeper understanding of their procurement expenses. This enhanced visibility facilitated more effective budgeting and cost management.
Efficient Material Categorization: The Owls software introduced a more efficient and accelerated approach to categorizing materials used in their products.
It’s great working with a team that has a supply chain background and speaks the same language while making suggestions for improvement. It feels like a partnership in trying to bring our organization to where we want to go strategically.
– Advanced Procurement Specialist
Within a year, the organization was able to improve supplier reliability (OTIF) by +10 basis points. The Owl removed 90% of the time spent in low-value-added activities and the organization experienced a significant improvement in data integrity and governance, ensuring the maintenance of high data quality standards.