Case Studies

Optimizing Supply Chain Planning for SAP Go-Live & Vertical Integration

2 minute read

EXECUTIVE SUMMARY: A newly acquired coffee facility was running on spreadsheets and lacked the planning structure needed for a successful SAP implementation. Catena stepped in to redesign core planning processes, strengthen master data, and build a scalable capacity model. The result was a smooth SAP go-live, stronger service performance, and meaningful inventory and cost savings.

The Challenge: Preparing a Newly Integrated Coffee Operation for SAP

After acquiring a coffee production facility, the company needed to shift from spreadsheet-driven planning to integrated, system-based processes. The operation lacked standard planning practices, safety stock logic, reliable capacity constraints, and foundational master data required for SAP-APO and ECC. Without intervention, the new business unit risked poor service, distressed inventory, and a troubled go-live.

The Solution: Building a Scalable Planning & Capacity Model

Catena’s Supply Chain Consultant partnered closely with the planning team to establish the structure, logic, and data discipline needed for SAP and for long-term operational health. Key contributions included:

Core Planning & Master Data Foundations

• Led master data setup and governance
• Acted as a key member of the SIOP process, transitioning items from Make to Order to Make to Stock
• Established safety stock levels by item and velocity code (A through D)
• Implemented Days of Supply and Days on Hand rules for all A and B SKUs
• Reviewed the sales plan and adjusted for seasonality and limited time offerings

Inventory, Risk & Performance Management

• Created monthly distressed inventory processes to identify expired, short-dated, or heavy DOH at the item level
• Researched and validated demonstrated productivity rates by line, item, and carton size
• Determined Operational Equipment Effectiveness (OEE) and theoretical maximum rates

Capacity Planning & Production Alignment

• Developed a 24-month Rough Cut Capacity Plan
• Determined production capacity by line and line groupings
• Created a production and staffing plan by line / shift
• Oversaw the execution of the sales and operations plan
• Built detailed production line material sequencing for cartons, flavors, ingredients, and allergens

Additional Process Improvements Outside Original Scope

• Conducted SKU rationalization for the 30% of items without minimum order quantities, reducing changeovers and eliminating unprofitable runs
• Transitioned the facility to a closed-loop plastic pallet system to reduce quality issues and handling inefficiencies

The Benefit: Successful SAP Go-Live & Stronger Operations

Catena delivered tangible business improvements while preparing the facility for a successful system implementation:

Additionally, our consultant received recognition from the Vice President of Supply Chain for project execution. Ready to strengthen your supply chain and system readiness? Connect with Catena Solutions to get started.