1

HOW, WHY, AND IN WHAT WAY

KIMBERLY-CLARK HEALTH CARE

DEPLOYED SAP EWM

KYLE SORENSEN

SENIOR DIRECTOR, SAP SOLUTIONS

2

AGENDA

Who is KC Health Care

Vision

System Selection

Why EWM

Project Details

Implementation Partner

EWM Functionality

Timeline

Benefits

Lessons Learned

Questions

3

WHO IS KC HEALTH CARE

4

KC BUSINESS UNITS

Personal Care

Health Care

Consumer Tissue

K-C Professional

5

SOME OF OUR CUSTOMERS

6

LONG TERM VISION

Acquisitions Tripled size of business in last 7 years

Doubled number of facilities

Contract Manufacturing (Onshore and Offshore)

Moved into highly regulated market (Class 2 Medical

Devices)

Strategy is to continue growth through acquisitions

Lean and 6σ introduced to plants.

7

SELECTING THE SYSTEM

Strategic

EWM vs. Red Prairie

Interoperability ERP Quality

Scalability Expansion

Minimal Customization

8

WHY EWM?

1. Paper based tracking of materials led to errors and lost paper

2. Want visibility to inbound receipts from vendors

3. Time wasted finding an empty bin for putaway

4. Time wasted finding the bin that contained the materials to pick

5. Cycle counting was a challenge

6. Regulatory requirements

7. Better Enterprise Wide Vision

8. Full Product Traceability throughout the Supply Chain – Inbound

and Outbound

9. Designed for Scalability of Operations

10. Component of KC Health Care’s Global Strategy for the future

9

CREATING THE PROJECT

2 Tier Structure

Steering Committee – Senior Leadership

Design Review Committee – Key Functional Managers

Cross functional

Broad Experience

10

CREATING THE PROJECT

Steering Committee - Responsibilities

Approve Project Key Strategy

Validate Requirements

Prioritize for Corporate Funding

11

CREATING THE PROJECT

Design Review Committee - Responsibilities

Requirements Definition

Charter / Scope

Consultant Selection

12

CREATING THE PROJECT

Project Manager - Responsibilities

Coordinate DRC Activities

Project Plan (High Level - Timing / Resource Allocation)

Business Case and Project NPV

13

PROJECT GOALS

Headcount Reduction: WH / DC / Quality

Increased Throughput

Inventory Reduction

Foundational Project for future acquisitions and future system

expansions (PLM, QM, etc.)

14

PROJECT SCOPE

Implement EWM at a Health Care location which contained

80% of all Health Care processes to establish template

Use template approach to complete 18 EWM rollouts in 3

years!

EWM would manage vendor receipts, production staging,

production confirmation, stock transfer orders, customer

sales orders and physical inventory

EWM project scope expanded to included:

• Activation of batch management on selected materials

• Standardize labels

• Implement wireless devices

• Activate gATP

• ARIBA ASN for top customers

15

IMPLEMENTATION PARTNER

16

Requirement Solution

Receive vendor purchase orders and inbound STOs Inbound Delivery Receipts (PRDI)

Efficient putaway and picking

Process Oriented Storage Control

Production confirmation receipts & component

backflushing

Inbound Delivery (PRDI)

Outbound Delivery (PRDO)

Push product to other sites instead of responding to an

STO

Direct Outbound Delivery

Efficient material movements Handling Units

Picking for multiple customer orders Outbound Delivery (PRDO)

Wave

EWM FUNCTIONALITY

17

Requirement Solution

Automated replenishment Fixed Bin Replenishment

Order Based Replenishment

Visibility to quality Inspection Document

Centralized location for reporting EWM Warehouse Monitor

Ease of use of physical inventory Physical Inventory Document

Better management of inbound and outbound trailers Future Yard Management

Implementation

ARIBA ASN with vendors Future Implementation with ASNs

(PRDI)

EWM FUNCTIONALITY

18

TIMELINE

19

REALIZED BENEFITS OF EWM

Standardized warehouse structure increased efficiency of putaway

and picking tasks

Visibility to the exact location of inventory

Direct Outbound Delivery functionality in EWM allowed us to free 8

hours of resource time

MB56 – Batch Where Used List

20

LESSONS LEARNED

Allocate enough time in project timeline for testing and training

Treat system cutovers as dress rehearsals!

Face-to-face testing cycle allowed testing cycle to stay on-track

Include COE/SME/KUT resources as part of testing phases

Background knowledge of CIF was key

Don’t forget about security!

21

LESSONS LEARNED

Design Review Committee paid Dividends

Prototype Roadshows were big Success

Validated Design Provided added Input

Change Management Organization Buy In

Set Realistic Milestones and Hit Them

22

LESSONS LEARNED

Don’t be afraid to over communicate!!

Ensure project team includes a representative from all system touch points

ECC MM

EWM Material Master

PP

OD

OT

APO

gATP

PI

BI

Legacy Systems

Prioritize nice to haves vs. must need to keep the business running

23

WHAT’S NEXT

Roll Out to remaining Health Care facilities

Data Link to KC Health Care’s Customer Portal

Lot Number

License Plate/Handling Unit

EWM projects KC North America and BRIC sectors

24

QUESTIONS

Thank You