Our supply chain review reduced Rayovac’s duplicate shipments by 50% and their shipments of cancelled orders by over 90%
Rayovac manufactures alkaline batteries ranging in size from AAA to 9V, the “Renewal” rechargeable alkaline series, and several types of NiMH (Nickel-Metal Hydride) batteries with recharge times as low as 15 minutes. Rayovac also makes hearing aid batteries, lithium photo batteries, and specialty batteries. In addition, a variety of portable LED flashlights and lanterns are produced under the Rayovac brand. In 2005, Rayovac changed its name to Spectrum Brands.
Rayovac’s expanding market share had placed increased demand on their manufacturing and distribution resources. Implementing SAP was a step toward improving operational efficiency and wringing the last measure of productivity from existing manufacturing and distribution facilities.
With manufacturing and distribution activity running close to maximum, Rayovac required accurate forecasting to maintain adequate customer service levels. Package software add-ons, designed to improve sales forecasting, only complicated the translation of outstanding orders to material requirements. High rates of duplicate and late shipments were threatening Rayovac’s reputation for quality customer service, and driving manufacturing and distribution costs to unacceptable levels.
As often happens after SAP goes live, Rayovac saw that there was less than complete optimization and support in the newly implemented SAP solutions. However, the implementation team and business process stakeholders were unable to point directly to the source of the problem.
Netswitch’s SAP Value Scan service was developed for precisely this type of situation. Value Scan focuses on finding those opportunities that can be addressed quickly and will provide immediate benefits and returns on investment.
The Value Scan service resulted in prioritization of more than fifty specific change management and configuration modifications. Those with the highest potential for return were converted to Quick Hit Engagements, to swiftly resolve the most economically important distribution needs.
Following is a selection of the Quick Hit delivery results:
- Distribution personnel were notified of orders with approaching cancellation dates.
- Orders with cancellation dates were color-coded for quick, easy identification.
- Orders with approaching cancellation dates were made available for browsing with additional data, such as shipping point and sold-to party information, to facilitate best possible shipping decisions.
Netswitch conducted short, intense, training sessions for all users on organized shortcuts, standard report hierarchies and other efforts to help increase SAP facility and productivity
Rayovac was able to reduce its duplicate shipments by over 50% and shipment of cancelled orders by over 90%. The savings gained from the improved quality of product shipping paid for the project in less than three months and Rayovac was able to restore their reputation with important customers like Wal-Mart by significantly improving its customer service levels.
Value Scan set in motion an ever-increasing return on Rayovac’s SAP investment, beginning with constrained cost, improved customer service and increased shareholder value.