SAP Research Report Sample

Automating Lean
Early proponents suggested that no technology was required to implement Lean techniques. Predicated on the “go out and look” principle, these early disciples evangelized against the use of automation. Yet as supply chains become more complex and competition becomes more global, companies seeking significant performance improvements have begun to look more and more to technology and automation (Figure 3). ERP, Custom/Homegrown applications and spreadsheets represent the lion’s share of technology applied to Lean today, with specialty applications for specific functionality such as e-Kanban beginning to grow in adoption rates. Best in Class performance today however requires continued adoption through specialized ERP or Supply Chain functions.

Because of the dynamic environment within consumer industries, finding an automated means of tracking KPIs becomes essential. One such CPG (consumer packaged goods) company, National Foods in Australia, has made significant progress over the years in regards to their Lean program but is looking to streamline the process to lead to greater efficiencies and enhanced visibility. The company will soon be implementing an SAP platform company-wide in part to further facilitate the growth of their Lean program, in addition to an SAP business intelligence tool to monitor critical KPIs.