SAP Business One as the best solution for effective Corrugation Packaging

These days, there are so many challenging sectors in this world, which goes through constant development, with Corrugation Packaging Industries being one of them. In addition to that, these Corrugation Packaging industries are bustling with high competition these days, and this can only be effectively managed with an innovative ERP Solution like SAP Business One. Corrugation Packaging Industry, with the help of SAP B1 Software, easily manages and controls every part of its business seamlessly from any part of the world. Overall, with the current business dynamics, moving to a cloud platform like SAP B1 is advisable for Corrugation Packaging industries.

Order to cash

The full flow of Order Management for Corrugation Packaging Industry takes place in SAP Business One, which is as follows:

Production is planned based on the Sales Order
Credit Management
Order fulfillment
Order Shipping
AR Customer Invoicing

I/P – Reports run in a controlled way from SAP.

Procure to pay

In SAP B1, Purchasing and Accounts Payable systems are integrated with reports to create greater efficiencies. We run an MRP wizard that auto-creates PR, based on BOM (Job Work) (Minimum Order quantity is a critical factor for procurement). The PR is then converted to a Purchase Order, against which the Goods receipt is done by the stores. Based on that, the Payable invoice and Outgoing payment are made.

Sales order

SO is created once PO is raised or Quotation is confirmed by the Customer. Using DMS PO, the softcopy is also attached. Payment terms and Delivery date are auto-fetched as per the customer master (committed limit management help to control). If the customer asks for an estimated quote, the BOM is also revised and the order is created.

Sales Quote

To submit a quotation, first, we have to estimate the cost by evaluating RM, with properties such as (GSM, Flute, Reel, Bursting factor, etc.) and factors such as (No of Ply, No of Outs, Linear Matrix, Length, No of Boards, Sheet Area, etc.). Then, as per the requirement, the formula will be set and the price will be auto-calculated. This way, SAP Estimation Sheet helps us to get the Sales Cost Estimated as per the Sales quotation created from SAP B1. The Ship to and Bill to fields are automatically populated with data entered in the Business Partner Master Data. Along with that, for the clients of Corrugation Packaging Industries, Accounting, Pay-term, and Contact persons are also auto-populated, and the soft copy is directly mailed to the customer from SAP B1.

MRP

Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process in Corrugation Packaging Industries. With that, the auto Production order and auto Purchase request are also created.

Purchase Request

PR is auto-created by Material Requirements Planning and PR is also created manually based on the departments, as per their requirements for office equipment, consumables, etc. against which the PO is generated.

Purchase Order

PO is created by approval procedure and the soft copy is mailed to the Corrugation Packaging Industry vendor directly from SAP Business One. Critical aspects for procurement such as GMS, length, quality, minimum order quantity, in stock, quantity in order, preferred vendor data, etc. are visible in a single-screen view for proper analysis. With this, our procurement process is accurate and errors are also reduced to a great extent.

GRPO

On basis of PO when the vendor delivers the item, a Goods receipt against PO is posted. which debits the inventory (Inventory management and Inventory reports standard in SAP B1).

Supplier Payment

On basis of GRPO, an AP invoice is added against which the Outgoing payment is done.

Production

As per BOM and considering the demand and stock, weekly, the MRP is run, thus auto-creating production orders. Further, once PRD ORD is released, based on the route stages, i.e. corrugation, printing (single side), UV, lamination, fluting, pasting, die cutting, trimming, stripping, gluing, packing; RM is issued and the FG produced item is received into inventory, with which the report completion for the production order is done (Product Costing, variance report and resource capacity planning are critical aspects of SAP Business One).

Invoice

Account Payable / Receivable invoice is created, based on which, payment entries are posted (Open document system gives proper control).

Service

Facility management in Corrugation Packaging Industries is done using a service module.

Thus, the operational efficiency of Corrugation Packaging Industries can be widely increased with the help of SAP Business One, along with better profits and more customers.

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