Knorr-Bremse and Processand are optimizing SAP Lot Sizes and MOQ with automation to reduce inventory levels, improve working capital, and enhace supply chain efficiency.
The Challenge: Inefficient lot sizes driving excess inventory and operational complexity
Balancing inventory levels and logistics costs is difficult due to incorrectly defined SAP lot sizes (lot sizes defined in time, e.g., weeks or months). Smaller time-based lot sizes increase supply chain efforts through more frequent production or procurement cycles, while larger time-based lot sizes raise inventory levels and tie up working capital. With thousands of active materials and fluctuating demand, recalculating optimal lot sizes is highly complex and requires frequent manual updates.
The Goal: Automating lot size optimization to improve working capital and efficiency
The goal of Knorr-Bremse and Processand was to automate the calculation and adjustment of SAP lot sizes, reduce manual effort, and continuously optimize inventory levels.
The strategic objectives were:
- Improving working capital by reducing excess inventory
- Enhancing efficiency by automating lot size management
- Increasing process quality through data-driven decisions
Success Factors: Automation, accuracy, and continuous optimization
- Automated calculation and adjustment of lot sizes in SAP based on future demand patterns
- Improved working capital through optimized inventory levels
- Increased efficiency by reducing manual effort with automatic SAP write-back
- Enhanced process quality with consistent, data-driven lot size adjustments
- Continuous monitoring to balance inventory levels and logistics costs
Knorr-Bremse AG
Knorr-Bremse is the global market leader for braking systems and a leading supplier of subsystems for rail and commercial vehicles. Headquartered in Munich, Germany, the company employs more than 30,000 people across over 100 locations worldwide. In 2024, Knorr-Bremse generated revenues of around €7.9 billion.
Knorr-Bremse products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. With innovation and digitalization as key drivers, the company continuously enhances its portfolio to support safe, sustainable, and efficient mobility solutions.
Challenging, but Critical: Lot Size Management
At a time when manufacturers are under pressure to control costs while maintaining service levels, efficient inventory and procurement processes are a strategic necessity.
Incorrect lot sizes tie up capital, cause inefficiencies in logistics, and require high manual effort to manage.
For Knorr-Bremse, the complexity of thousands of materials, dynamic demand, and SAP system dependencies made manual lot size optimization nearly impossible. A scalable, automated solution was required to balance efficiency, working capital, and process quality.
Solution Overview: Celonis-Powered Automation for intelligent lot size management
To address these challenges, Processand and Knorr-Bremse implemented a Celonis-based solution that automates lot size calculation, validation, and adjustment.
Key steps included:
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Analyzing real-time demand data to identify optimal lot sizes
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Recommending increases or decreases with clear business impact quantification
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Providing buyers with one-click execution in SAP
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Enabling end-to-end automation for continuous optimization with one-click manual intervention
This solution reduced manual effort, improved accuracy, and delivered measurable business impact with significant value realized in inventory potential within only four months.
Conclusion: Built on trust and collaboration
The success of the project was enabled by close collaboration between Knorr-Bremse’s procurement and IT teams and Processand experts. The joint team combined technical expertise in SAP and Celonis with a deep understanding of procurement processes, ensuring a tailored solution that delivers value immediately and sets the foundation for future automation.
About Processand
The Munich-based consulting firm specializes in Process Mining, Automation and Artificial Intelligence (AI). Today, Processand is one of the leading Process Mining consultancies worldwide and supports companies in their long-term Process Mining initiatives. In each case, the focus is on operationalizing data-driven insights and creating a factual basis for strategic decisions.
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Alexandra Tyrkich
Head of Data Science
