Cosmetic - Customer Rework Processes
Project Requirements:
The client’s core business is the design and production of cosmetics, with part of the activities carried out through internal subcontracting. The primary objective is to optimize rework cost management, including costs deriving from specific customer requests and returns. To achieve this, the company decided to implement a new rework process to collect costs more precisely, properly archive them, and consistently allocate them across all process stages. This approach aims to improve operational efficiency, reduce rework times, and optimize costs, contributing to smoother and more competitive resource management. The new solution will be essential to support expansion and ensure long-term operational effectiveness.
Approach:
The client chose Data Network as a partner to evolve its business processes, focusing on integrated and innovative management. A standard project methodology was adopted, divided into sequential waves, allowing structured management of each phase. This approach optimized resource management and facilitated the introduction of innovative solutions. Thanks to modular planning, processes became more flexible and scalable, enabling rapid adoption of new technologies. The methodology reduced risks, improved efficiency, and ensured operational continuity, contributing to achieving the client’s strategic objectives. Moreover, it allowed more agile and timely resource management, adapting to changing business needs.
Solution:
To optimize rework management, the SAP Best Practice was adopted and subsequently tailored to the client’s specific needs, who operates with an internal subcontracting model and manages a large stock of owned components. This integration required customizing the rework process to address particular business dynamics involving both internal and supplier-related operations. The system was configured to manage rework requests automatically and smoothly, simplifying the process and reducing error margins. A fundamental component was integration with the Quality module, enabling monitoring and control of production phases, and with the Logistics module to ensure correct material tracking and inventory management. Furthermore, close integration with the commercial area was established to correctly charge rework costs on debit notes to customers when necessary. This approach made the entire rework process more transparent and traceable, improving efficiency and responsiveness in daily operations. Finally, centralized cost management significantly reduced billing errors and increased the client’s ability to promptly respond to customer modification requests. The adoption of this SAP Best Practice represented an important step toward more agile and accurate rework management, enhancing operational efficiency and overall service quality.
