Material Reservation Automation Automating Material Reservation for SAP-Based Inventory Management

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The Challenge

One of our clients in Germany who is a global manufacturer of Pumps & Systems, faced significant inefficiencies in its material reservation process.

The process was executed manually in SAP MM, causing delays in reserving materials and impacting the entire delivery cycle.

Key challenges included:

  • High Transaction Volume: Over 300+ manual daily transactions for material reservations.

  • Resource Dependency: More than 10 experienced individuals were required to review inventory reports and verify each Sales Order daily.

  • Error-Prone Process: Manual handling led to human errors, inventory mismatches, and delays in production.

The lack of automation resulted in increased operational costs, reduced productivity, and a higher risk of stock shortages, ultimately affecting timely delivery.

SAP material reservation challenges

The Solution

Automated material reservation solution

We implemented a Business Process Automation solution using Microsoft Power Automate to transform the material reservation workflow. Our approach included:

  • Bot Development

    Built a BOT that verifies SKU-wise inventory and notifies the team based on predefined rules.

  • 24/7 Automation

    Upon receiving an order request, the BOT immediately executes material reservation and sends a confirmation email to the team.

  • Automated Reporting

    The BOT generates daily, weekly, and monthly material reservation reports and stores them in a centralized repository for easy access. This automation eliminated manual intervention, reduced dependency on human resources, and ensured accurate, timely reservations aligned with production schedules.

The Impact

The results were measurable and transformative:

Cost Savings

Cost Savings

Reduced two-thirds of resource involvement in mundane tasks, reallocating them to value-added services.

Inventory Accuracy

Inventory Accuracy

Eliminated production delays caused by out-of-stock material and maintained consistent stock levels.

Time-to-Market

Time-to-Market

Substantially reduced by eliminating inventory-related bottlenecks.

Credible Reporting

Credible Reporting

Removal of human bias in inventory management led to accurate, reliable reporting.

Our client in question achieved operational efficiency, minimized risks, and improved overall productivity, strengthening their competitive edge in the global manufacturing market.

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