Enhancing Inventory Accuracy: STREME & SAP Integration Case Study

Inventory accuracy is critical in the automotive supply chain, where even minor discrepancies can lead to production delays, increased costs and inefficiencies. Comprehensive Logistics (CLI) partnered with our global automotive customer to address a significant systematic inventory variance between STREME and SAP. The objective was to enhance inventory accuracy, improve data synchronization and optimize warehouse operations to ultimately reduce material cost.

Challenge > Bridging the Inventory Gap

The project aimed to resolve a $3.5 million inventory variance, with initial accuracy measured at 89%. Misalignment between STREME and SAP caused discrepancies in part counts, transaction timing and system-reported versus actual inventory levels, with the root cause traced to unidentified or unaddressed integration failure modes.

Key Issues

  • Data Transmission Gaps: Delays in information flow between STREME and SAP led to misaligned inventory records.
  • IDoc (Intermediate Document) Errors: SAP integration errors resulted in unprocessed or incorrect transactions.
  • Process Inconsistencies: Differences in how inventory adjustments were recorded and processed across systems.
  • Human Intervention Risks: Manual reconciliation efforts led to potential errors and inefficiencies.

These challenges underscored the need for a systemic, data-driven solution to synchronize warehouse and enterprise systems effectively.

Solution > A Targeted Approach with Red-X Methodology

To drive a breakthrough solution, CLI applied the Shainin System’s Red-X Methodology. Unlike traditional continuous improvement frameworks such as PDCA (Plan-Do-Check-Act), Red-X focuses on rapidly identifying and eliminating the root cause of systemic failures.

Key Implementation Steps

  1. Formation of Cross-Functional Teams:
    • Dedicated teams composed of CLI and customer subject matter experts (SMEs).
    • Focus groups were assigned to specific areas of variance, ensuring targeted problem-solving.
  2. Root Cause Analysis:
    • Data-driven analysis to isolate and address discrepancies at a granular level.
    • Identification of primary error sources within SAP-STREME interactions.
  3. System Enhancements and Automation:
    • STREME enhancements enabled file transmission to SAP, automating transactions as if manually executed at a SAP station.
    • Improved validation logic to detect and correct discrepancies before transmission.
    • Process standardization of SAP and STREME protocols for inventory adjustments.
  4. Monitoring and Continuous Improvement:
    • Weekly reporting structures were established to track progress.
    • Live dashboarding tools implemented for real-time visibility into SAP-STREME interactions.

Results > Transformative Accuracy and Cost Savings

Through rigorous analysis and system improvements, CLI and our customer achieved game-changing results:

  • Dollar Value Accuracy: Improved by $3 million, drastically reducing financial exposure.
  • STREME/SAP Enhancements: More than 10 enhancements were made in STREME enabling seamless, real-time transactions with SAP, reducing reliance on manual intervention.
  • IDoc Error Reduction: SAP integration errors decreased by 90%, minimizing transaction failures.
  • Inventory Accuracy Improvement: Variance reduced to $517k, driving a new 98% accuracy rate.
  • Cost Avoidance: Savings of $4.9 million in 2024 compared to 2023, reinforcing the project’s long-term impact.

Conclusion

By leveraging cutting-edge methodologies and strategic system enhancements, CLI successfully transformed inventory management for our automotive customer, achieving near-perfect accuracy and substantial cost savings. This case study demonstrates CLI’s commitment to innovation, collaboration and operational excellence—critical elements in today’s evolving logistics landscape. Partner with CLI to optimize your supply chain and unlock new levels of efficiency. Click here to contact CLI today.

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