Oxygen shares the risk at Sancella with supply chain solution
By combining an innovative, risk-sharing SAP implementation with the adoption of supply chain best practice, Oxygen Business Solutions has boosted the bottom line for Sancella. Sancella is the manufacturer and marketeer of the Libra brand feminine hygiene products, and Tena brand sanitary products throughout the Australasian region.
“One of the directors said to me 'An SAP go-live on time and this smooth is unheard of'.”
“I can't fault the quality of Oxygen's technical design and input.”
John Carnaby, Sancella Company Secretary
Challenge
- Sancella’s three month lead times meant any inaccuracy in production planning cost it dearly
- The company was incurring large air freight costs as it tried to speed up production to meet with unforeseen demand
- Over production occasionally resulted in stock obsolescence
Solution
- Innovative fixed price implementation. If the go-live date slipped – and the scope remained the same – any extra cost would be split 50/50 between Oxygen and Sancella
- Oxygen configured and implemented SAP’s Sales & Distribution, Production, Purchasing, Inventory Management, Finance, Costing, Profitability Analysis, Fixed Assets Warehouse Management modules
- Oxygen configured each module to fit blueprints complying with MRP II, the world’s most sophisticated Manufacturing Resource Planning theory
- Project delivered on time and on budget
Return on Investment
- Sancella’s required working capital has decreased by 60%
- Materials purchasing and handling costs have been cut by $800,000 per year
- Sancella expects that 95% customer satisfaction levels will lead to increased sales
- The SAP project took Sancella close to its goal of MRP II certification. The company expects to cut the unit cost of goods sold, and to further decrease inventory and materials purchasing costs
- No disruption to Sancella’s customers
Downloads
Download the full Case Study: Innovative Supply Chain Solution at Sancella
Customer Profile
Sancella
Business Profile: Australian-based Sancella manufactures and markets Libra brand feminine hygiene products, and Tena brand sanitary products throughout the Australasian region.
Sancella Australia is a joint venture operation formed by a partnership between SCA Hygiene Products and Carter Holt Harvey. Sancella has operated in Australia since 1978.
