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CASE STUDY

NORTHROP GRUMMAN

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The Case Study

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The Client

Northrop Grumman Corporation is a $25 billion global defense enterprise, with worldwide headquarters in Los Angeles, California. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense electronics, systems integration, information technology, advanced aircraft, shipbuilding, and space technology. With approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves the U.S. and international military, government, and commercial customers.

The Challenge

Northrop Grumman’s Supply Chain Management division needed to improve logistics support to the U.S. Military by providing greater real time visibility into the supply chain, while lowering procurement and repair service costs. A solution was needed to monitor the location and life-cycle costs of highly specialized equipment whether in stock, in the field, or in a specified repair location. Tracking serialization and warranties for parts was also a key challenge. Northrop Grumman was looking for a fully integrated Supply Chain Management system to provide real time visibility of repairs, parts usage, equipment operation costs, and configuration management of parts and service.

The Solution

Collapse the supply chain by simplifying complex business processes with strategic use of technology and optimized configuration of the SAP R/3 system. The Synapptix project team focused on eliminating or minimizing manual tasks that could reliably be replaced with automated solutions. Implementing a more robust forecasting model was essential, while taking into consideration historical usage and anticipated future deployments, exercises, and contingency plans. To streamline the order-to-cash process, Synapptix implemented SAP’s web-store to expedite the delivery of parts and services to users in the field. At the warehouse, barcoding technology and an integrated pick, pack, and ship process was developed to allow for faster order-fulfillment.

The Benefits

Synapptix’ four-month implementation of SAP R/3 provided Northrop Grumman with a robust and scalable platform that meets the stringent requirements of the DoD. The system allows for greater inventory control, resulting in stock reductions and reduced carrying costs. Automation tools and streamlined processes move parts through the system more quickly, reducing the need for manual intervention. Improved visibility into the supply chain enables more responsive decision-making. A user friendly, web-based interface to the product catalog hides the complexity of the backend processes from the users and allows secure world-wide accessibility. By building a separate SAP R/3 system, Northrop Grumman’s SCM division now has a reusable platform to grow their future business, while providing seamless integration of financial data into their corporate SAP system.