Successful scaling of supply chains and production
The Challenge
The new geopolitical landscape presents the RENK Group with the strategic challenge of doubling its production capacity in the medium term. The resulting growth momentum requires a systematic shift away from project-based structures toward a scalable, efficient volume production business.
At the same time, new requirements are emerging:
- To our supplier base, in order to ensure rising production volumes while maintaining a high level of supply security.
- To the production system, in order to make optimal and value-adding use of the available skilled workforce.
Dr. Emmerich Schiller
COO, RENK AG
“The significant increase in customer orders presents us, as the global market leader in transmissions for the defense sector, with enormous challenges. Especially in the operations environment, we need to rethink many processes in order to move even more toward series production. Examples of this include sales and operations planning and overall materials management. Through our collaboration with EMPORIAS and Lila Logistik, we benefit in these key processes from tailored concepts that are precisely aligned with our requirements, as well as support in their implementation.”
The Procedure
To manage this transformation, an integrated, cross-functional approach was implemented. The key areas of focus were:
- Implementation of a structured S&OP process to establish a shared, transparent view of expected sales and production volumes and to coordinate capacity planning at an early stage.
- Introduction of a defined “frozen zone” to stabilize planning and control.
- Development of a robust capacity, production, and supplier demand planning system. And revision of the planning logic for production and assembly.
- Introduction of a material class concept and adjustment of MRP parameters in line with demand and consumption patterns to achieve sustainable improvements.
- Smoothing and harmonizing lead times throughout the entire logistics chain.
- Systematically strengthening and deepening cooperation with suppliers through framework agreements and volume contracts to reduce lead times
Our successes
The transformation has been embedded in the organization, its processes, and its systems:
- Establishment of a monthly S&OP board with clearly defined guidelines for the preliminary planning of production runs, spare parts, and repairs, as well as their systematic mapping and the establishment of a planning horizon.
- Consolidation of the supplier base and creation of the structural conditions necessary for the successful scaling of both suppliers, including a significant reduction in lead times.
- Implementation of a consumption management system to stabilize inventory planning, as well as organizational changes to clearly integrate inventory planning tasks into day-to-day operations.
- Separation of assembly from logistics activities and development of a new, structured assembly supply concept.
- Mapping of the standard business processes through targeted process adjustments in SAP, while consistently adhering to SAP standards to ensure sustainable growth.
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