Celonis Launches New App to Help Supply Chain Leaders Improve End-to-End Lead Times

May 23, 2023 at 05:00 AM EDT

Enables businesses to fully comprehend end-to-end lead times and understand the impact of each process to accelerate cash conversion and exceed service levels

Celonis, the global leader in Process Mining, today launched its new End-to-End Lead Times App at the kick off of the Celonis World Tour 2023. The App analyzes the entire lead time to procure, manufacture and distribute finished goods, the impact of each of these processes on the end-to-end lead time, and the bottlenecks delaying the entire process to accelerate cash conversion and exceed service levels.

To assess end-to-end lead times with traditional process mining would be highly intensive, with multiple event logs created, because this requires data about so many different objects and parallel processes - from procurement, to production, to distribution. The Celonis End-to-End Lead Times App, however, builds on Celonis’ newly launched Object-Centric Data Model which expedites insights to rapidly identify the entire lead time to procure, produce and distribute finished goods, the impact of each of these processes on the end-to-end lead time and the critical issues delaying that individual process.

Armed with this information, supply chain leaders can then intervene much more accurately and quickly to improve service levels and accelerate cash conversion through better working capital.

Understanding end-to-end lead times - in other words, the time it takes to initiate and complete the entire supply chain process for a finished good within the boundaries of one company - has always been crucial to supply chain leaders for various reasons: so that they can identify ways to compress lead times to reduce working capital and accelerate cash conversion; find ways to exceed service levels; and be able to set accurate timelines with customers even if unexpected disruptions occur.

Capturing the actual lead time for every finished good globally, however, is challenging because of the volume of goods that need to be tracked, the number of locations that the goods can exist in and the variations to creating that finished good. Without a way to effectively leverage data to map out every way materials are procured, manufactured, distributed and fulfilled, supply chain leaders are left with assumptions about their end-to-end lead times, which do not consider all process variations; solutions at the mercy of data accuracy in the ERP system, which can result in outdated and also inaccurate lead times; and no way to know where to start when they want to improve their end-to-end lead times.

With the Celonis End-to-End Lead Times App, supply chain leaders can:

Track the movement and location of each component through each process required to create a finished good, ensuring they see every path that is required to sell the finished good;
Surface the finished good with the lowest service level or finished good with excess inventory, thereby enabling a focused approach to improving end-to-end lead times;
Identify potential root causes to the end-to-end lead time bottlenecks, like outdated master data resulting in longer lead time calculations - allowing them to take immediate corrective action to improve end-to-end lead times.

“We will reduce working capital across all production sites by about 10 percent with the Celonis End-to-End Lead Times App,” said Kai Führer, Director Global Supply Chain Controlling at Freudenberg Sealing Technologies. “Furthermore, with this end to end transparency, we can find ways to deliver the same service in an even shorter time frame and act faster and be more flexible even when disruptions occur. I’ve worked in Supply Chain for over 20 years. This level of transparency has never been possible. But with Celonis we can stop arguing over the variations and align on a path forward to create a more agile and resilient supply chain.”

“Capturing the actual lead time for every finished good globally is challenging, due to the volume of goods that need to be tracked, number of locations the goods can exist in and variations to creating that finished good,” said Peter Budweiser, Supply Chain Product Lead at Celonis. “Without the E2E Lead Times App, it wasn’t possible to effectively leverage data to map out every way materials are procured, manufactured, distributed and fulfilled. I am thrilled that now, with this App, we can enable supply chain managers to accelerate their cash conversion cycle while still ensuring they meet service levels.”

The Celonis World Tour kicks off on May 23 and covers 10 stops across the US, Europe and Japan. It is Celonis’ global process mining roadshow where customers, prospects and partners share how, with Celonis, they are able to find and capture business value within processes, enabling them to perform at levels they never thought possible. The Celonis World Tour kicked off shortly after Celonis was named a leader in Gartner’s® first-ever Magic Quadrant for Process Mining Tools. The report catapulted process mining into C-level consciousness and placed Celonis highest and farthest to the right on both axes, Ability to Execute and Completeness of Vision.

About Celonis

Celonis enables customers to optimize their business processes. Powered by its leading process mining technology, Celonis provides a unique set of capabilities for business executives and users to continuously find improvement opportunities within and across processes, and execute targeted actions to rapidly enhance process performance. This optimization yields immediate cash impact, radically improves customer experience, and reduces carbon emissions. Celonis has thousands of implementations with global customers and is headquartered in Munich, Germany and New York City, USA with more than 20 offices worldwide.

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