Reengineering allocation management process 

Goals

The global coronavirus pandemic, international crises, and natural disasters have led to highly volatile supply chains and sales markets. To respond to these changes, Mondi decided to completely overhaul its existing static allocation management process and make it fit for the new market situation. 

Mondi set itself two clear main goals for the redesign process: 

• The definition of a new data model that can be flexibly expanded and adapted. 
• Providing more flexibility for local key and end-users to respond immediately to changes.

As Mondi had already switched to the SAP S/4HANA platform, it was also important to find a solution that fully exploited the strengths of this system.

Solution

The solution consists of 2 main components: 

• A dynamic data model that allowed the definition of different hierarchies, depending on the requirements of each market. 
• The introduction of “conDP”, a modern and flexible Fiori app. 
• A dynamic data model allowing the definition of various hierarchies based on market requirements. 
• The introduction of “conDP,” a modern and flexible Fiori App. 

The data model allowed allocation at different levels, whereby nodes could be activated or deactivated at any time. It also supported the consideration of different test periods. 

As part of the project, the concircle product “conDP” was developed from scratch to take advantage of the new SAP technologies. 

Figure 1: Planning table

One of the most important and helpful features is the automatic assignment of orders based on current master data and data model configuration, which enabled a quick change of the hierarchy without manual adjustments to quota assignments.

Figure 2: Dynamic activation of new nodes

Figure 3: Order Pop-Up

Challenge

The process is already in use worldwide, raising the expectations of the involved individuals for the solution. Additionally, the process is operationally highly integrated, meaning any errors have the potential to immediately impact employee productivity and customer satisfaction. The project also marked Mondi’s entry into the world of complex UI5 apps and Fiori. 

The standard SAP processes did not inherently support a dynamic data model. Therefore, this had to be defined together by Mondi and concircle and integrated into the existing SD and ATP processes. The introduction of this model increased the complexity for the users, which was overcome through intensive training during the project sprints and rollouts.

Benefit

The redesign of the allocation management process at Mondi led to considerable benefits. Efficiency and data quality increased significantly. 

Both conDP and the dynamic data model enable flexible application in other areas, such as the planning of CO2 emissions or the consumption of raw materials. 

Mondi has been able to adapt to new market demands while optimizing operations, which is an impressive achievement for the company. 

Mondi was able to adapt to new market demands while optimizing operational processes, marking an impressive success for the company.