Save Tyre Cost, Increase Asset Utilization with SAP - Fleet Management

Save Tyre Cost, Increase Asset Utilization with SAP – Fleet Management

Tyre related cost is a significant cost element in asset intensive industries like Ports & Terminals,  Mining and Transportation.  Any savings in tyre costs straight away adds to bottom line of the organization.  For the same reason, COOs  and Maintenance Heads spend lot of energy and time in optimizing tyre management.

Unoptimized tyre management results in following pains,

– High tyre costs due to high wear and tear

– Unplanned stoppage of cranes or vehicles

– Wasted time of asset operators

– Unplanned load on maintenance team

– Lower utilization of expensive assets

– High fuel consumption, costs

– High pollution and carbon footprint

– High maintenance costs

– Reduced safety

– High tyre inventory locking up higher working capital

An efficient tyre management system with in-depth functionality and seamless integration to other areas is needed to  remove all the pain.

Recently Envecon implemented SAP Fleet Management and Enterprise Asset Management(EAM)  in one of the leading Container Terminal.  Terminal had large fleet of Reach Stacker, Empty Handlers and Rubber Tyre Gantry (RTGs).

Why SAP ?

SAP ERP is a de-facto leader in Asset Intensive industries. Below are some of the strengths, which makes SAP a preferred choice of Asset Intensive Industries,

– Solid Enterprise Asset Management(EAM) capabilities with Add-on functionalities

– Predictive, Condition based, Time based and Reactive maintenance strategies

– Easy to use personalizable screens

– In-depth fleet management functionality

– Seamless integration to finance, materials management, procurement etc.

– World class mobility solutions like Syclo Works Manager

– Exhaustive ready reports covering MIS aspects

– Easy data extractors for Business Warehouse(BW)

– Impressive Dashboards and analytics  in Business Objects (BO)

Client had high tyre and maintenance costs. Envecon successfully optimized  by streamlining this area with SAP.  Client had,

– Homegrown tyre management system with limited functionality

– No integration with Finance, Materials management, Procurement etc.

– Inaccurate and unrelated master data between systems (e.g. Material code)

– No visibility into maintenance plan, tyre inventory, procurement

Envecon Contribution:

  • Tyre is created as an equipment with link to Material Master.
  • Measuring point/counters  for distance travelled
  • Tyre Procurement with serial no. functionality for better traceability & FIFO Logic.
  • Tyre retreading process with External Vendor by Subcontracting PO
  • Refurbishment process with or without serial number for tracing tyres retreading status
  • Tyre life calculation with performance expectancy ratio
  • Removing the tyre from vehicle & Re-Installation in another vehicle (Rotables)
  • Tyre History by Usage, details of the vehicles, period, position and  Total distance travel
  • Complete visibility into warranty
  • Scrapping through Dismantle process
  • Unique Global approach for Tyre Inventory Policy

Benefits:

Following are the some of the benefits realized after implementation of SAP

  • Planned and proactive maintenance
  • increased asset utilization
  • Increased fuel efficiency
  • Tyres  maintained  as per manufacturers specifications
  • Reduced accidents, and the associated downtime and costs for repairs
  • Optimized tyre Inventory with releasing working capital
  • Effective utilization of Tyre performance with life expectancy, decision on retreading etc.

Client is opt for implementing SAP Fleet Maintenance-Tyre Management to cover end to end functionality for better efficacy, Control on Capital being locked up in Inventory and less maintenance cost with better management reporting.

Summary:

Tyre cost is a major cost component in Asset intensive industries. SAP has in-depth and easy to use functionality to take care of any business requirement.  Implementing SAP with proper domain understanding and business requirement reduces tyre management costs and pay high ROI.