Case Study: Louisiana-Pacific Corporation achieves higher profit and faster order fulfillment with SAP

Optimizing the cost to serve for sales through a next-generation planning experience

Louisiana-Pacific Corporation (LP), a mill products company headquartered in Nashville, Tennessee, needed a better way to manage complex sales order fulfillment while optimizing cost to serve and reducing lead times. With thousands of finished products shipped each week, LP faced challenges from disjointed systems, manual order allocation, and limited visibility into profitability and capacity. SAP Business Technology Platform (SAP BTP) was used as the foundation for a next-generation planning experience.

SAP implemented a connected order optimizer on SAP BTP integrated with LP’s execution systems and planning data, enabling automated allocation based on inventory, production capacity, logistics costs, and profitability. The solution helped LP streamline exception handling and improve tactical decision-making, resulting in about a 1.7% profit increase in the siding division, 60% faster order-entry time, and a 60% reduction in clerical work, all while maintaining service levels and supporting a clean-core path to SAP S/4HANA Cloud Private Edition.

Louisiana-Pacific Corporation

Virender Thakur

Director of Digital Supply Chain