ORTEC’s SAP-integrated solution Load Space Optimization_Kermi GmbH

Case Kermi – ORTEC’s SAP-integrated software solution for carton, pallet and load space optimization

Kermi GmbH, a leading manufacturer in heating technology and in the shower sector, has constantly expanded its product range to meet market demands. In this context, the Windows based solution “ORTEC Load Building”, which Kermi has been using successfully since 2002, was to be replaced by ORTEC’s SAP-integrated logistics software for carton, pallet and load optimization.

Key requirement: Migration of established, individually tailored algorithms into the new system for S/4HANA

A key requirement of Kermi was to migrate the established algorithms, which were completely tailored to the company’s needs, into the new SAP system.

In addition, various new functionalities, especially for palletizing flat radiators and bundling pallets with this type of radiator, had to be integrated into the logistic software solution. This required maximum flexibility of the load optimization algorithms, as Kermi uses a significant number of different pallet types.

Integration of complete logistics transport planning with ORTEC’s SAP S/4HANA solution – from creating deliveries to assembling the packed deliveries into transports

Consistent with its new SAP software environment, Kermi initially chose the SAP-integrated solution ORTEC for SAP ERP (O4S) with the CPO and PPO modules for the simulation and load optimization of packaging cartons and pallets and VSO for truck load optimization some years ago.
As part of a follow-up project, the smooth migration to SAP S/4HANA took place. The modules for carton, pallet and load space optimization (CPO, PPO, VSO) continue to be in use.
Based on complex proven and enhanced rules for handling sensitive, flat radiators, ORTEC for SAP S/4HANA (OS4) now determines the optimal transport planning for Kermi products via the ORTEC Planboard. The resulting picking instructions for the warehouse are received and carried out by the responsible order picker via a handheld terminal.

ORTEC for SAP S/4HANA_for carton, pallet and load space optimization_Kermi GmbH

Kermi’s benefits using ORTEC for SAP S/4HANA

Prioritätsbasierter Beladealgorithmus
Bedarfsorientierte Planung und Kontrolle der Nachschubprozesse
Automatisiertes Erstellen von SAP-Belegen
Keine Schnittstellen
Effiziente Auslastung der einzusetzenden Ladungsträger
Flexibilität bei der Planung auf Belegpositionsebene
Minimierung der Planungszeiten

Integration of the complete shipment creation process for panel radiators from:
– creation of deliveries to the packaging of the products allocated for delivery
– generation of picking instructions and
– compilation of the packaged deliveries into shipments in SAP
No more interfaces to an external systems that were required in the past
Definition of internal, standardized rules for the formation of picking pallets and pallet bundles with flat radiators based on the results determined by OS4
Significantly reduced training time for new employees in the warehouse picking flat radiators
Lowered space requirement on the bundle surface for flat radiators
Increased delivery quality, for example, through increased planning reliability and a reduction in damages when shipping products
Reduced transport costs due to optimally utilized holds

ORTEC for SAP/S4HANA_Kermi GmbH_carton, pallet and load space optimization inits new SAP software environment

The conclusion: Efficient communication, short project times, smooth transition to ORTEC for SAP/S4HANA

The replacement of the Windows-based optimization solution “ORTEC Load Building” first by ORTEC for SAP ERP and later by ORTEC for SAP S/4HANA (OS4), in the course of Kermi’s migration to the current SAP S/4HANA, went completely smoothly.
The existing algorithms from the old application, were easily migrated and specifically enhanced with new functionalities for load optimization with SAP.
ORTEC’s remote working method has also proven its worth at Kermi: Due to the fast, effective and efficient communication between all parties involved, the runtimes for the projects were very short, thus leading to cost savings.

“By integrating ORTEC’s packing instructions into the picking process, we can now use employees in flat radiator picking who have only been with the company for a few weeks. Previously, we always needed a training period of several months. This is a significant gain in flexibility.”

Project manager at Kermi GmbH