Hartmann Group

Implementation of a Supplier Risk Management Tool in SAP BW/BI

The HARTMANN GROUP is a leading international manufacturer of medical and healthcare products with around 12,000 employees and a sales volume of around € 2.12 billion. (2018).
The parent company of the Hartmann Group, Paul Hartmann AG, based in Heidenheim an der Brenz, is the oldest German dressing materials factory.

The initial situation

  • The risk of a possible supplier default is to be evaluated with regard to the probability of occurrence and the default duration
  • Based on this, possible revenue and return effects as well as other risk indicators are to be derived
  • In combination with the supplier evaluation, a holistic supplier controlling is to be implemented

The solution

  • Implementation of a holistic, system-supported process for evaluating and managing potential supplier failures in terms of business impact (entero Supplier Risk Management or eSRM)
  • Development of multiple input interfaces for evaluating individual supplier risks and ratings
  • Development of an SAP ERP extractor for BOM explosion that enables mapping between purchasing and sales materials
  • Development of the data model in BW/4HANA under connection of the input interfaces, the SAP ERP extractor and an existing SAP BW
  • Design and implementation of the corresponding reporting landscape in the form of Lumira dashboards and SAP BO Analysis-for-Office reports

The success

  • Standardized and automated process flow for risk minimization
  • Transparency about the impact on sales and returns in the event of possible supplier failures
  • Transparency and visibility of critical suppliers within the supply chain
  • Regular supplier evaluations by the business unit enable early definition of countermeasures to robustly secure the supply chain

I see the main benefit of implementing entero’s Supplier Risk Management solution as having made us an even more proactive company. [Purchasing Management, Paul Hartmann AG, Heidenheim an der Brenz]