Graphic Packaging International: Customer Reference Video

Graphic Packaging is an innovative packaging company that makes boxes for leading companies such as Anheuser-Busch and Coca-Cola. See how the company is leveraging SAP Supply Chain Management to manage inventory, enhance forecasting, improve agility, and serve customers better and faster.

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  • http://global.sap.com/demos/mmov/videos/leveraging-data-to-improve-forecasting-graphic-packaging-kluck-09-ctv-01.mp4
    • Graphic Packaging is a packaging company that makes boxes for Anheuser-Busch, Coca-Cola, Pepsi for all the canned products that you get. Our company distinguishes itself differently because we believe we're innovative. We help our customers come up with new ideas and work those into their business, such as the fridge pack vendor that most people have recognized our Coke packages are coming in now. Graphic Packaging had a challenge with many customers requesting and asking us to do a lot of VMI for them, a lot of forecasting, a lot of management of inventory. We were developing a lot of one-off solutions for each customer. We recognized that we had to stop that. We had to come together, come with one solution that we could provide to all of our customers. Graphic Packaging had SAP, and we brought in SAP APO. We used the DP module of the SAP APO system. And we leveraged that we already owned it, and we leveraged that to provide a tool to our customers. Graphic Packaging saw several benefits by being able to implement a good SAP APO solution to bring in VMI and control our inventory. One was a little bit soft, which is that we could make our customers happier. We could service them quicker and faster. The other is instead of having a lot of one-off solutions, we can have one solution. So if someone's on vacation or whatever, we can bring another person in, and the process still runs smoothly without a lot of effort. Our return on investment on the whole project was based on inventory reduction. We have a specific goal of x-millions of dollars that we had to reduce in a year. So far, as we've been tracking this through our financial community, we are hitting it at about twice the rate we expected. The most important change is that we now have one way to bring our customers together and look at all of the forecasts, look at all of the history. Look at the collaborated supply chain and inventory levels, and know what we have to produce when. We have history, so we can recognize anomalies. We have our seasonal cycles. We can see all these. We also have a way to bring in all of our customer-centric type of things, where they know a plant is going to be shut down. We can build all that in there, so we know exactly what's happened in the past. We have a good idea from that. We can forecast really accurately going forward. That's a big change. And each process, as we roll out each customer, each process is basically the same. Of course it's customer product, but on our side of it is just cartons. We're making cartons to a specific need, very similar. We know exactly what we need, when. So it's very streamlined. Much better and smoother. And anybody can do that process. Once you're trained on it, everybody can cross-train pretty easily. Graphic Packaging has gotten a lot more clarity by using the SAP APO project. And to be able to see visually with charts, as well as the numbers, if you want, we can now see literally at a touch of a button the last two years of everything that's happened with the customer, everything that's happened at a dye level. However you want to look at it, we can slice and dice it any way we want. We leveraged our current BI system and extracted all this data and brought it into the SAP APO system so that we can see that. As we roll in new customers, we load their history in. So it's becoming a very common theme. We can see it any level you want, from business unit all the way down to a customer-ship-to level, even. The
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