Bernard Krone Holding

Krone is a leading global manufacturer in the Commercial Trailers and the Agricultural Machinery divisions. The Bernard Krone Holding GmbH & Co. KG offers its customers first-class service, even for spare parts.

Bernard Krone’s more than 3,097 employees generate sales of about EUR 1,6 billion.

About the Project

As part of the SAP SCM solution, SAP APO has a broad spectrum of functions for planning and executing logistics processes. In close cooperation between NTT DATA Business Solutions consultants and the Krone Group, a solution was implemented that combines individual forecasting models for planning spare part demand with processes for determining safety stock levels and for optimizing lot sizes.

The system automatically forecasts future demand for spare parts based on a customer‘s order history. APO Demand Planning uses this data to determine and then recommend to the end-user various MRP (Material Requirements Planning) parameters such as lot-sizing procedures and safety stock levels. Additionally, safety stock is built up during the harvest season and then reduced in the off-season.

Since 2008, the agricultural machinery manufacturer has used APO Demand Planning and APO Supply Network Planning in all of its spare part factories in Germany, England and the U.S. The spare part and logistics center in Spelle serves as the hub. By consistently using SAP APO, the company has been able to reduce warehouse inventory significantly while improving the availability of spare parts.