Sapa Heat Transfer AB Selects Quintiq Planning Solution to Optimize its Supply Chain and Production

May 28, 2010 | 's-Hertogenbosch, Netherlands
Quintiq, a leading provider of Advanced Planning and Scheduling (APS) solutions, today announced that Sapa Heat Transfer AB will deploy the Quintiq Company Planner solution at its plant in Finspang, Sweden. The site is the main production facility for the worldwide heat transfer operations of the Sapa Group, one of the largest aluminum companies worldwide. The Quintiq planning solution will support Sapa Heat Transfer AB's three-pronged drive to increase production, reduce inventory and improve customer service.

Choosing a proven planning solution
Quintiq was chosen because of its unmatched ability to handle the extreme complexity of the Sapa Heat Transfer AB's operations, and due to the success of previous and ongoing implementations of Quintiq solutions at other Sapa Group facilities.

"We see Quintiq as a key enabler to growth without additional capital cost tied up in inventory," said Kajsa Blomqvist, Planning Manager, at Sapa Heat Transfer AB. "It is one of the most prominent planning solutions vendors for aluminum companies and, more importantly, it has achieved excellent results at the Sapa Heat Transfer plant in Shanghai, whose operations are similar to ours. We are looking forward to seeing similar significant gains here in Finspang."

Complex operations about to become even more so
Sapa Heat Transfer AB produces an exceptionally complex product portfolio dominated by special products based on a wide variety of alloys, for niche markets. With an order book of around 1,500 order positions, the company must juggle numerous small orders and contend with long product routings, all within a mixed environment combining MTS (made to stock) and MTO (made to order) production. It also must accommodate many varying production rules and constraints. Sapa has to deal with shifting bottlenecks, caused by the difficulty of dynamically adapting material flows to varying product mix demands, add further complexity.

The company plans to expand annual production capacity from 70,000 tons to around 120,000 tons in 2012 - taking into account low inventory of raw materials, WIP and finished products. It has set additional goals for a 20% reduction in WIP (work in progress) inventory and it also aims to improve customer service by raising its rate of weekly promised deliveries by more than 30%.

Quintiq solution - a key enabler to growth
The Quintiq Company Planner, a comprehensive tactical planning and decision support solution for supply chain and production optimization, will be instrumental in enabling Sapa Heat Transfer to manage the 70% volume increase and meet its additional inventory and customer service goals. Quintiq will introduce never-before-possible transparency and traceability, enabling effective KPI-based planning for maximum company-wide efficiency, cost effectiveness and profitability. With a single integrated system, planners will be able to see the consequences of decisions throughout the supply chain, and through sales and production. They also will be able to monitor the status of all materials and orders at all times.

Additionally, the Quintiq solution will improve Sapa Heat Transfer AB's flexibility by enabling planners to quickly, easily, and more effectively react to supply and changes demand and unexpected events.

Francois Eijgelshoven, Business Unit Director Metals and Manufacturing, at Quintiq, commented: "Repeat orders are the best confirmation of the effectiveness of Quintiq planning solutions and so we are particularly proud that this latest order from Sapa Heat Transfer AB follows implementations at Sapa plants in China, Netherlands, and Hungary. Quintiq today provides planning solutions to more than 30% of all the rolling mills plants worldwide - further undeniable confirmation of our planning and scheduling market leadership."

Implementation of the Quintiq Company Planner is starting immediately and is expected to go live in early 2011. Kajsa Blomqvist, Planning Manager at Sapa added: "We are confident that Quintiq is the right choice to support our evolution into a significantly more efficient, responsive and higher-volume production plant."

About Sapa Heat Transfer AB
Sapa Heat Transfer in Finspång is one of the world leading companies in developing and manufacturing aluminium strips for various types of heat exchangers used in the global automotive industry, such as radiators oil coolers and charge-air coolers.

We are, with five other companies, part of the business area Heat Transfer within the Sapa Group. In Finspång we are 420 employees.

Sapa develops, manufactures and markets value-added aluminium profiles, profile-based building systems and heat exchanger solutions in aluminium. Sapa is the leading company in its field and have customers in the building-, transport-, engineering and telecom industry. The Sapa Group has combined net sales of 25,100 MSEK and 13,000 employees

About Quintiq
Quintiq provides advanced planning, scheduling and supply chain management solutions. The fast-growing software company, established in 1997, offers solutions for planning and optimizing complex business processes throughout the enterprise. The company's headquarters is located in the Netherlands and it has subsidiaries in Australia, China, Finland, Germany, Malaysia, the United Kingdom and the USA, with implementations in 69 countries. For more information:  

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