Case Studies | Utilizing Process Mining Capabilities with SAP Standard Reports

Utilizing Process Mining Capabilities with SAP Standard Reports

Introduction

A prominent manufacturing entity specializing in the production of machinery spare parts operates a manufacturing unit based in India. The company has implemented SAP ERP to streamline its procurement operations. The procurement team heavily relies on SAP ERP to handle crucial aspects such as Purchase Orders, Invoices, and Vendor Relationships.

However, the current procurement process suffers from a lack of transparency and agility, resulting in delays, inaccuracies, and increased operational expenses. Despite having access to SAP Standard Reports, the procurement team encounters challenges in extracting actionable insights and identifying process bottlenecks for optimization.

In pursuit of optimizing the procurement process, the company aims to leverage process mining capabilities, with a specific focus on replicating SAP standard reports onto the SAP Signavio platform.

Standard Reports: ME2M, ME2N, ME2L, MB51, ME2J, ME2B.

Industry

Manufacturing

Products & Service

Machinery Spare Parts

Employees

800

Revenue

US$9.45 Million

The Problem Statement

Limited Process Visibility

The procurement team lacks visibility into the end-to-end procurement process, hindering their ability to identify bottlenecks and inefficiencies.

Manual Analysis of SAP Standard Reports

The manual analysis of SAP standard reports proves to be a time-consuming task and fails to deliver detailed insights into process deviations and root causes.

Ineffective Monitoring of Supplier Performance

Monitoring and evaluating supplier performance based on SAP standard reports is challenging,
impacting vendor management and contract negotiations.

Inefficient Resource Allocation

Manual intervention and a lack of optimization in procurement activities often lead to the overallocation
of resources, hindering overall efficiency.

Value-Driven Results

0 %

Cycle Time Reduction

15% reduction in the average cycle time for processing purchase orders within six months.

0 %

Error Rate Reduction

Decrease the error rate in invoice processing by 20% within the next quarter.

0 %

Cost Savings

10% decrease in operational costs related to procurement by optimizing resource allocation and streamlining processes.

0 %

Supplier Performance Improvement

Improve on-time delivery performance by 15% through enhanced supplier management and performance monitoring.

Project Insights

No. of Processes Improvised: 5 Processes

Processes Improvised:

  • Contract Management
  • Material Management
  • Supplier Management
  • Supplier Performance Evaluation
  • Order Approval Management

Project Timeline: 3 Months

Project Team Members:

  • Project Manager
  • Business SME
  • SAP Signavio Expert
  • Data Engineer

SAP Signavio Tools Used:

  • SAP Signavio Process Intelligence
  • SAP Signavio Process Insights
  • SAP Build Process Automation

The company successfully addressed the challenges associated with its inefficient procurement process by leveraging the capabilities of SAP Signavio Tools. Overall, the implementation of SAP Signavio tools enabled the company to achieve significant improvements in efficiency, accuracy, and cost savings.

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