As Wuxi TECO Electric Machinery Co. Ltd continued to expand and fulfill its corporate strategy for growth, it wanted an efficient information system that would enable it to keep up with product innovation and customer demands. With the implementation of mySAP All-in-One, Wuxi TECO now enjoys higher operational efficiency, real-time access to information and more timely decision-making capabilities
Web Site
www.teco.com.tw
Key Challenges
Lack of standardisation across operational processes
Unable to manage information efficiently
Growing volume and diversity of customer demands
Decreased visibility of information hampered management¡¯s ability for business planning
Time-consuming process to process financial settlements
Project Objective
Integrate all business operations into one centralised system
? Improve ability to manage information efficiently
Develop real-time system to manage volume and diversity of customer demands
Automate inter-company financial reporting
Increase management¡¯s ability to retrieve and analyse information
Build an IT system that can support Wuxi TECO¡¯s future growth
Solutions and Services
mySAP All-in-One. The SD, PP, MM, FI and CO modules were implemented.
Why SAP Solution
SAP system offers powerful integration capabilities
Operational flexibility of SAP solution a big draw
SAP system able to support multiple languages
Cost-effective and in line with Wuxi TECO¡¯s growth plans
SAP partner, Information Technology Total Services (ITTS) demonstrated deep industry experience and understanding of Wuxi TECO¡¯s needs
Implementation Highlights
mySAP All-in-One implemented throughout all business units in its headquarters in Taiwan and China
80% of the new system in China corresponded with SAP solution in Taiwan; the remaining 20 % of the SAP system in China was tailored for local demands
Key Benefits
Financial settlements process reduced from one week to three or four days
Ability to gather real-time information about customer demands
Sales rose by more than 50% while production has increased between 70% and 90%
Enhanced accuracy of demand forecasts for assembled products
Superior business planning and resource allocation ability
Greater customer service capability
Improved efficiency and productivity in workflow processes
Increased competitive edge
Implementation Partner
Information Technology Total Services
Existing Environment
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Database
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Hardware
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Operating System
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WUXI TECO ELECTRIC MACHINERY CO. LTD
Industrial motor manufacturer drives competitiveness with mySAP?All-in-One

As a subsidiary of high-tech enterprise group TECO Electric & Machinery Co., Ltd, industrial motor manufacturer Wuxi TECO Electric Machinery Co., Ltd manages a wide range of business operations on a daily basis. These activities include dealing with a growing number of customers, maintaining research and development capabilities, ensuring consistently high production levels as well as generating sufficient sales. Keeping on top of all these activities is the key to Wuxi TECO¡¯s success and its leading position in the industrial motor manufacturing market.

With the company¡¯s rapid expansion, in particular into the China market, Wuxi TECO found it had trouble coping with the vast amounts of information that it was faced with daily. Not only did staff have to deal with a growing number of clients, but customer demands were also becoming increasingly diverse.

In addition, due to the lack of integration of business processes across the board, there was low visibility of business information. As a result, staff found it difficult to retrieve customer information, rendering them unable to respond promptly to customer enquiries. The management too, suffered from this lack of access to information, as they were unable to effectively allocate resources and make timely business decisions.

Operational flexibility was lacking, as the company did not have a system that could be customised to support multiple languages, or tailored according to the specific local demands. The lack of these crucial capabilities hindered Wuxi Teco¡¯s progression, especially as the company had numerous global operations that all needed to communicate with one another.

Building Upon the Basics
To ensure customer satisfaction and maintain its competitive edge, Wuxi TECO knew it required a more efficient information system. The company needed not just an integrated system, but also one that would ensure the standardisation of all its business processes and efficient information management. This would be the crux to allowing Wuxi TECO higher operational efficiency, real-time access to information and more importantly, enhance its customer service capability and competitiveness.

Wuxi TECO decided to go with SAP as its new solutions provider primarily because of its parent company¡¯s positive experience with SAP. mySAP All-in-One was adopted across all business units in Wuxi TECO as it fit the company¡¯s requirements. mySAP All-in-One offered powerful integration capabilities, could support multiple languages, and was cost-effective.

¡°The operational flexibility of mySAP All-in-One was a big draw for us, as the system could be customised according to our specific needs. China¡¯s business environment posed many challenges for us, but mySAP All-in-One allowed us to tailor the system according to local market regulations and nuances, providing us with the potential to overcome these difficulties,¡± says Mr. Frank Tseng, president of Wuxi TECO.

Information Technology Total Services (ITTS), an SAP partner, was chosen as the implementation partner due to the vendor¡¯s long industry experience, professionalism and deep understanding of Wuxi TECO¡¯s needs. It helped the company implement five modules: Sales Distribution (SD), Production Planning (PP), Materials Management (MM), and Financial and Controlling (FICO) under mySAP All-in-One.

SAP Generates Greater Competitive Edge
Improved information management capability is one benefit that Wuxi TECO now enjoys after implementing mySAP All-in-One.

¡°Staff no longer feel overwhelmed by the large amounts of information that they have to deal with daily. mySAP All-in-One effectively manages the growing volume of information and ensures that all business operations run smoothly,¡± remarks Mr. Tseng.

Business information is easily available now at Wuxi TECO, with staff and management alike being able to retrieve information promptly and effortlessly. There are quantifiable time savings to this aspect as well.

¡°Financial settlements used to be a tedious process that would take up to a week to complete in the past. Using mySAP All-in-One, the process is finished in just three to four days. The staff are much happier as it makes their jobs so much easier,¡± says Mr. Tseng.

More importantly, mySAP All-in-One has enabled Wuxi TECO to maintain a strong competitive advantage by helping the company to innovate and differentiate its products from its rivals.

Based on information captured in the system, combined with research on market demand, management has been able to make timely decisions on resource allocation, product offerings and subsequently offer customers competitive prices. As a result, sales figures rose by an impressive 53.2 percent. Production volume of large motors also increased by nearly 90 percent, while the production volume of frequency converters went up by 70 percent.

Planning for the Future
mySAP All-in-One has clearly played a significant role in improving Wuxi TECO¡¯s business performance. Mr. Tseng is so satisfied with the benefits brought about by the SAP implementation that he is already looking further towards the future.

In the pipeline are plans to implement the Advance Planning Optimization (APO) module, which will allow the company to gather real-time information about customer demands and make more accurate demand forecasts for its assembled products. The APO module will also enable Wuxi TECO to potentially plan the factory¡¯s daily work orders in detail, or change an existing work order for greater efficiency.

¡°mySAP All-in-One is truly a worthwhile investment, despite the slightly higher price that SAP asks over its competitors. Choosing the right software is crucial to a company¡¯s success. We have certainly chosen well, given all the benefits we reap from the new SAP system.¡±
Mr. Frank Tseng, president of Wuxi TECO Electric Machinery Co., Ltd.

¡°mySAP All-in-One is a truly worthwhile investment, despite the slightly higher price that SAP asks over its competitors. Choosing the right software is crucial to a company¡¯s success. We have certainly chosen well, given all the benefits we reap from the new SAP system,¡± says Mr. Tseng.