Customer Overview

Schneider Electric is a global specialist in energy management and automation solutions, operating large-scale manufacturing and warehouse facilities that require accurate inventory control and material availability. While SAP managed enterprise-level processes effectively, the company sought greater visibility and control over day-to-day inventory operations within its stores department.

The Challenge

Managing raw material inventory across warehouse locations had become increasingly complex. Although goods receipts were recorded in SAP, the physical movement of inventory within stores relied heavily on manual processes and operator knowledge.

As inventory volumes grew, locating materials quickly became more difficult. The stores team often spent valuable time searching for stock, verifying material locations, and maintaining inventory records. Tracking project-wise material consumption and ensuring FIFO compliance also presented challenges.

Without real-time visibility into inventory movement, management had limited insight into stock availability, inventory aging, slow-moving materials, and overall inventory utilization. These gaps increased operational effort and made inventory planning more difficult.

The Solution

To modernize warehouse operations and improve inventory control, Schneider Electric implemented a barcode-enabled Smart Stores and Inventory Management Solution integrated with SAP.

The solution automatically synchronized GRN and material issue information from SAP while introducing barcode-based tracking across warehouse processes.

Every material received into the warehouse was assigned a barcode label, creating a unique identity for each inventory item. During putaway, warehouse personnel scanned both the material and rack location, allowing the system to record the exact storage position in real time.

The solution also guided operators through FIFO-based picking activities. When material requests were generated, warehouse staff received accurate picking instructions and barcode validation ensured the correct material was issued from the correct location.

In addition, the system provided a centralized view of inventory across racks, bins, projects, and material categories, giving teams immediate access to critical inventory information.

Improving Visibility Across the Warehouse

With inventory transactions captured digitally, Schneider Electric gained complete visibility into material movement throughout the store's operation.

Warehouse teams could quickly identify where materials were stored, track inventory movement history, monitor project allocations, and verify stock availability without relying on manual records.

Management teams also gained access to inventory analytics covering stock aging, inventory valuation, consumption trends, carrying costs, and slow-moving inventory. These insights supported more informed planning and inventory optimization decisions.

Results

The implementation helped Schneider Electric streamline warehouse processes and improve inventory accuracy across its stores operations.

Material putaway and picking activities became faster and more reliable, while barcode validation reduced the likelihood of issuance errors. FIFO compliance improved, inventory records became more accurate, and warehouse teams spent less time searching for materials.

The organization also benefited from greater visibility into inventory performance, enabling better control of stock levels and improved project-wise inventory management.

Business Impact

By replacing manual inventory processes with a barcode-driven and SAP-integrated inventory management solution, Schneider Electric transformed its stores operation into a more efficient, traceable, and data-driven environment.

The solution provided the foundation for better inventory control, faster warehouse operations, improved material traceability, and more effective inventory planning helping the organization support operational excellence across its supply chain.