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SAP Integration for Toll Manufacturing

Industry : Chemical

Effectively manage job work and toll manufacturing by integrating your SAP system with your external partners. This enables efficient exchange of data, ensuring accurate material tracking, cost control, and timely order fulfillment.

Background

A chemical company, identified a need to optimize their operations by exploring strategic partnerships for job work or toll manufacturing. Their existing SAP configuration was primarily geared towards in-house manufacturing, posing a challenge in facilitating job work or toll manufacturing for their customers. The company aimed to align its SAP system with customer needs, focusing on end-to-end scenarios in the FI, SD, MM, PP, and QM modules.

Business Challenges

SAP Configuration

Existing SAP Configuration

Inclined towards in-house manufacturing, necessitating an overhaul to accommodate toll manufacturing requirements.

Process Flow

Customized Process Flow

Tailoring the system to meet the specific needs of toll manufacturing while aligning it with industry-standard business processes.

Material Movement Control

Material Movement Control

Establishing robust control on material movement, recording, and reconciliation to accurately reflect toll manufacturing processes.

Material Flow & Tracking

Material Flow and Tracking

Difficulty in tracking non-valuated raw materials processed by JFC for the product owners while ensuring accurate financial accounting.

Integration With GST

Ensuring seamless integration with existing GST functionality for E-Invoicing solution.

Our Solutions

configuration

Configuration Overhaul

Reconfigured the existing SAP system to accommodate toll manufacturing requirements in FI, SD, MM, PP, and QM modules.
integration with gst

Integration with GST

Seamlessly integrated the system with existing GST functionality for efficient E-Invoicing solutions
process flow

Custom Process Flow

Designed and implemented a customized process flow based on industry-standard business practices and customer needs.
Material Tracking

Material Tracking and Control

Developed a system to enable control and tracking of non-valuated raw materials, ensuring accurate accounting and material movement control.
user interface

Enhanced User Interface

Introduced custom screens, buttons, and smartforms within standard T-codes for user convenience.

Results

Configured End-to-End Scenarios

Successfully configured the SAP system to handle toll manufacturing scenarios in FI, SD, MM, PP, and QM modules.

Seamless GST Integration

Ensured a smooth integration with GST for E-Invoicing solutions, streamlining invoicing processes.

Efficient Material Control

Established a system for robust material movement control and accurate financial accounting, enhancing overall operational efficiency.

Enhanced User Experience

Improved the user interface with custom screens, buttons, and smart forms for enhanced user convenience.

Conclusion

By aligning the SAP system with toll manufacturing requirements, JFC successfully optimized its operations, enabling efficient job work and toll manufacturing processes. The tailored solution not only met customer needs but also aligned with industry-standard business processes. The integration of controls, tracking mechanisms, and enhanced user interfaces resulted in a streamlined and more efficient toll manufacturing operation for JFC, benefiting both the company and its customers. This successful integration stands as a testament to JFC’s commitment to adaptability, customer-centric approaches, and continuous improvement in their operations.

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