RECOMMENDATION REPORT
This recommendation report proposes the implementation of SAP R/3 best practices and
quality management tools across all departments within the Supply Chain Management (SCM)
division of Nidec Philippines Corporation, including procurement, production, warehousing,
logistics, and distribution. It is intended for the company’s decision-makers, department heads,
and SAP system administrators who are directly involved in process improvement and system
integration. These recommendations are made in response to existing operational challenges such
as manual processing delays, data inaccuracies, quality inconsistencies, and limited coordination
among departments. By fully leveraging the capabilities of SAP R/3—including automated
workflows, real-time monitoring, and end-to-end supply chain integration—the organization can
significantly improve operational efficiency, enhance product quality, and enable more informed,
data-driven decision-making.
SAP R/3 BEST PRACTICES FOR SUPPLY CHAIN MANAGEMENT (SCM)
Purpose To propose SAP R/3 best practices and
quality management tools to improve supply
chain efficiency and product quality.
Target Departments All departments under Supply Chain
Management
Current Challenges Manual processes causing delays
Data silos and inaccuracy
Quality inconsistencies
Objectives Streamline SCM operations
Enhance quality control
Improve data accuracy
Enable real-time tracking and better
coordination
Recommended SAP R/3 Tools & Practices Automated Workflow Integration
Real-Time Monitoring (MM, PP, SD
modules)
SAP Quality Management (QM) Module
Cross-Functional Data Integration
Expected Outcomes for Nidec Enhanced SCM operational efficiency
Higher product quality
Real-time decision-making support
Cost savings and improved delivery
performance
Implementation Plan Phase 1: Pilot in selected SCM departments
Phase 2: Training & change management
Phase 3: Full rollout across SCM Continuous:
KPI tracking & adjustments
Call to Action Form implementation team
Identify pilot departments
Initiate SAP system configurations
Monitor outcomes and scale up
IMPLEMENTATION PLAN
Phase 1: Pilot in Selected SCM Departments
Objective: Test and validate the recommendations on a small scale before enterprise-wide
implementation.
Actions:
1. Automated Workflow Integration
o Identify manual processes within selected Supply Chain Management (SCM)
departments (e.g., purchasing or inventory).
o Set up SAP R/3 to automate approval chains and notifications.
o Integrate the workflows with MM (Materials Management), PP (Production
Planning), and SD (Sales and Distribution).
2. Real-Time Monitoring (MM, PP, SD)
o Configure dashboards and alerts using SAP R/3 Enterprises Software
o Enable real-time stock visibility, production status, and order tracking for the pilot
areas.
o Validate data accuracy and performance.
3. SAP Quality Management (QM) Module
o Implement QM processes such as inspection lots and quality notifications for
selected materials or production batches.
o Test integration of QM with MM and PP for seamless quality checks.
4. Cross-Functional Data Integration
o Map out key data flows between MM, PP, SD, and QM modules.
o Ensure master data like material master and vendor master is synchronized.
o Test end-to-end transaction processing between departments.
Phase 2: Training & Change Management
Objective: Prepare users and stakeholders for the system changes through education and
support.
Actions:
1. Training Programs
o Conduct targeted SAP training sessions for SCM users in all modules (MM, PP,
SD, QM).
o Focus on new workflows, real-time dashboards, and QM processes.
o Include hands-on simulations for practical understanding.
2. Change Management
o Communicate the benefits of automation and real-time monitoring to users.
o Assign Change Champions in each department to support transition.
o Collect feedback and address resistance or concerns.
3. Documentation & SOPs
o Create user manuals and quick guides for each recommendation.
o Standardize procedures to reflect the new automated workflows and integration
points.
Phase 3: Full Rollout Across SCM
Objective: Deploy the tested solutions organization-wide and embed continuous improvement.
Actions:
1. System Rollout
o Expand the implementation of automated workflows, dashboards, and QM
module across all SCM departments.
o Monitor system load and performance; adjust configurations if needed.
2. Cross-Module Integration
o Ensure complete data flow and visibility from material planning to production and
delivery.
o Enable company-wide access to real-time SCM data.
3. Ongoing Support
o Set up a support team for post-go-live assistance.
o Conduct refresher training as needed.
Continuous: KPI Tracking & Adjustments
Objective: Ensure system performance meets business goals through regular evaluation.
Actions:
Define KPIs (e.g., cycle time reduction, defect rates, on-time delivery).
Use SAP Analytics to monitor performance against benchmarks.
Continuously gather user feedback to refine workflows and integrations.
Schedule regular audits and reviews to ensure process compliance and quality.
