As the global economic landscape undergoes profound restructuring, businesses expanding overseas has become an irreversible trend. However, data shows that over 60% of companies face obstacles in their internationalization process, facing numerous market, political, and cultural challenges. It is crucial for companies to effectively leverage their resources and advantages to achieve low-risk and low-cost global expansion.
 

The enterprise featured in this case is recognized globally as a leading provider of power solutions. Its production, sales and service networks cover 80+ countries and regions around the world, and it serves customers in 150+ countries and regions worldwide.
 

Implementation Scope

Organization Scope

• The implementing organizations for this project consist of 17 legal entities from 8 countries (the United Kingdom, the United States, Vietnam, India, Malaysia, Mexico, Australia, and Singapore).

Implementation Modules

• Material Management (MM), Production Planning and Control (PP), Sales and Distribution (SD), Financial Accounting (FI), Cost Control (CO), Quality Management (QM), Warehouse Management (WM)

 

Project Challenges

• There are differences in the BOMs of each production factory. The TC system only manages EBOM (super BOM) and does not have MBOM. The TC system does not manage the finished product BOM. The system implements the management of MBOM and finished product BOM for the TC system, achieving automatic integration with the SAP system to reduce manual operations and improve data accuracy.
• It is impossible to calculate according to product lines: The company's products have four product lines, namely network energy batteries, starting batteries, power batteries, and lithium batteries. The finance department cannot calculate according to different product lines and cannot issue corresponding profit center reports.
• High customer customization requirements: Different customers require different labels and packaging materials. Once the selected materials change, the production plan cannot be linked, making management difficult and requiring a high degree of reliance on human resources.
• There are many external systems and complex interfaces: There are interface requirements for the TC system, logistics platform system, barcodes, OA, funds system, EPS, OMP, CITIC Insurance, etc. It is hoped to build an overall information platform for the group.
• It involves multiple overseas entities, and it is necessary to meet the requirements of the group while also meeting local needs. Local statutory reports and tax reports need to be issued.
• Multilingual requirements: Various descriptions need to be implemented in multiple languages, such as material descriptions, material long descriptions, sales remarks, production remarks, etc. Support for multiple languages is required; Sales company organizational structure needs to be reorganized and refined, and profit centers and cost centers need to be sorted out to achieve refined management. 
• Complex inter-company transactions need to be realized with automatic linkage of cross-system documents between overseas and domestic systems, and end-to-end cost restoration.

 

Project Goal

• Reduce manual operations and achieve system automation and interconnection. Automatically price transactions between companies and realize end-to-end cost restoration.
• With the SAP system as the core, build an integrated information platform to achieve horizontal departmental collaboration, vertical management from the top to business operations, achieving standardized, visualized and transparent management, supporting different management requirements of the enterprise, strengthening vertical control capabilities, and improving overall operational efficiency.
• Utilize the methods of DiSen for change management and knowledge transfer to train internal support forces to master the implementation methods and technologies of information projects, complete the knowledge transfer and accumulation of the project, and assist in establishing a support system that supports the daily operation and continuous optimization of the enterprise's ERP system.

 

 

Project Benefits

 

 

• The transaction links between affiliated companies can be configured, the transaction prices can be flexibly selected, the documents can be directly and automatically associated, virtual documents can be automatically posted, and the inbound inventory POD management is also provided.
• A configurable solution (VC BOM) is adopted to achieve the configuration management of the corresponding production BOM and the entire process from sales, production to procurement.
• The overseas sales company fully uses the SAP system to meet the requirements of group and local reporting management, while simplifying the financial work, avoiding the operation of two sets of accounts, and providing more accurate and timely data analysis.Analyze product, order, and salesperson profitability.

 

Decision Global Service Capabilities

Although the road to going overseas is full of challenges, as long as you find the right partner, choose the best overseas model, and master the overseas response strategy, you can effectively avoid potential risks, reasonably avoid pitfalls, and achieve high-quality overseas.

 

As a global leader in digital professional services, Decision always adheres to high industry standards and supports Chinese companies in achieving global operations based on business capabilities, operational capabilities, digital transformation capabilities, and governance capabilities:

• Experienced global operations delivery capabilities

Currently, Decision's global operations delivery has covered more than 40 countries and regions in the Americas, Europe, Asia, Africa, etc., with more than 1,000 successful cases, enabling global companies to go global with high quality.

• Global solution packages focusing on industries

Global solution packages covering all walks of life support the implementation of Chinese companies' global operations from strategic design, business operations, financial and tax management, compliance control, brand marketing, talent management, sustainable development and other aspects.

• Enterprise global operations capability model

Decision has independently developed an enterprise global operations capability model, providing a one-stop service of "strategy - operation - business support", helping companies accelerate global development by evaluating and clarifying their future goals and planning corresponding routes accordingly.

In the future, Decision will provide more and better solutions and services for going global, helping Chinese companies to stand on the international competition stage and truly achieve global operations.
 

【Service Guide】
For more information on SAP courses, project consultation and operation and maintenance, please call Decision's official consultation hotline: 400-600-8756

【About Decision】
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