China’s “Optimus Prime” Coexisting with the Weight and Strength of the Cargo Lifting Industry

The hometown of Confucius and Mencius, the birthplace of Confucian culture, Shandong, has occupied an important position in the national political, economic and cultural pattern since ancient times. As one of the most important industrial provinces in China, the state-owned industrial economy has always occupied an important position, especially the traditional industries such as iron, coal, petrochemical, electric power, machinery manufacturing, smelting and so on have strong strength. Since the reform and opening up, the industrial structure has been continuously optimized. In the past two years, with the courage of able-bodied men to break their wrists, the high-quality development has been pushed into the fast lane, and the transformation of new and old kinetic energy has taken place in an all-round way.

As a key development area of SAP, Shandong has always been an important plan that SAP devotes itself to building digital transformation war with Shandong enterprises. The powerful combination will bring new economic development and vitality to Shandong, a major traditional industrial region. It will help traditional industrial enterprises to transform and upgrade digitally, comprehensively promote the process of digital information construction, transform Shandong’s industrial economy from “old” to “new” to “living”, and improve the competitiveness of Shandong’s traditional industrial enterprises with the application of advanced digital and information technology.

Qilu is home to many excellent traditional heavy industry enterprises, and China Heavy Industry Group Hillbo (Shandong) Equipment Co., Ltd. (hereinafter referred to as ” sinotruk-hiab “) has a place. Its growth and development are dazzling, and it is determined to become China’s “Optimus Prime” for hoisting.

Established in November 2013 and headquartered at the foot of Mount Tai, the exclusive “Mount Tai” in Wuyue, this heavy truck crane enterprise was jointly funded and established by China Heavy Truck Group Co., Ltd. and Finland Kagoko Group Hillbo Co., Ltd. to further develop China Heavy Truck’s existing truck crane products and production bases for the Chinese market.

sinotruk-hiab has made full use of the technological advantages accumulated by the shareholders of both sides on commercial automobiles and mobile lifting equipment and fully absorbed the rapid development of mature core technologies of both sides. From the production workshop with only one factory building at the beginning, it has developed into an enterprise with multiple product lines such as 4T, 6.3T, 8T, 10T, 12T straight arm truck cranes, 2T-10T folding arm truck cranes, 25T, 30T truck cranes, etc.

But who would know that in the early days of its establishment, the company’s foundation was weak in all aspects, which not only caused problems in internal management, production and sales, but also met the challenge of docking overseas parent companies’ global operations.

A single weak management mode obviously cannot meet the needs of both parties after the joint venture and cannot support its continued development in the hoisting industry. Therefore, the demand for information technology applications to support enterprise management and business processes is increasingly strong.

Production is the core issue.

As the lifting truck products are sold in complete vehicles, the final products required by each customer are also different. A BOM bill of materials needs to be made again for each sales order. However, due to too many BOM levels, the production process is complicated and the production execution process is not clear enough. Finally, the production is not timely or even delayed, affecting the order efficiency. Hope to optimize BOM level and make production execution process clear.

lso hope for optimization in sales pricing

Can help realize the combination configuration quotation. In the past, when a product was sold, the product number was to confirm the sales order with the customer, select the accessories, give it to the process department to define a new product BOM, and finally issue the product according to the new product. However, due to delays in BOM or untimely maintenance of new product variants, reporting and inventory management are not accurate.

At first sight
Why choose SAP and Acloudear

Guo zong, the company’s financial manager, said: “we found that China’s truck crane enterprises and truck factories are almost all SAP customers and are all adopting SAP solutions to realize information technology. Naturally, we have a special preference for SAP when choosing systems, which can be described as an industry standard choice.”

SAP is the world’s largest provider of business solutions for enterprise management and coordination. More than 172,000 users in more than 120 countries are using SAP software, which is the best business practice in the global cloud application field. As a gold medal partner of SAP cloud, Acloudear enjoys science and technology, has more than ten years of experience in industry service implementation cases, supports rapid cloud deployment, and can reduce IT operating costs. Unique innovative industry solutions provide rich enhancement options for each industry to meet the diversified innovation needs of enterprises.

In addition, for a joint venture company like Chongqi Hillbo, there are also financial management requirements from its parent company, hoping to support overseas parent companies in financial management. Its parent company, Kagoko of Finland, a global enterprise, is itself a customer of SAP. In order to meet the requirements of both China and foreign countries for information systems and financial statements at the same time and be unified in the global business deployment strategy of the whole group, it is also a natural thing to choose SAP, a global brand and the best business practice in the global cloud application field.

SAP Business ByDesign Solution
SAP Gold Partner Acloudear solves every one of its business problems in production, sales and finance

Using SAP Business ByDesign solution, semi-finished products that do not need inventory management in BOM are managed by putting their lower-level materials into working procedures, so as to reduce unnecessary BOM levels, clear redundant data and realize simplification. As a result, the production department can quickly execute production and match orders due to fewer levels and clearer data, thus reducing errors and delays and improving efficiency.

Through the integration of SAP configuration, pricing and quotation solutions with SAP Business ByDesign, matching is completed in quotation solutions, and then sales orders are automatically generated in SAP Business ByDesign to solve the problems of inaccurate and irregular sales matching and combination sales configuration. In the past, when customers matched the whole car, the sales could not give the price after matching in real time. After the implementation of the sales matching and processing scheme, customers can be provided with quotations at any time, so that the operation is more convenient and the quotation is faster and more accurate.

In fact, the whole project was not smooth sailing. In the second phase of the project, there were some twists and turns.

Ma Haichen, manager of the IT department in sinotruk-hiab, recalled: “In terms of financial solutions, we feel that the system’s own audit report system cannot meet the needs of our financial internal audit.” For many state-owned enterprises with financial internal audit requirements, the balance audit tracking form in the system still cannot meet the requirements of internal audit.

After many discussions with Hillbo of CNHTC, Acloudear finally designed a set of “account book” exclusive scheme suitable for localization to meet the audit of financial statements of state-owned enterprises, re-customized the report style, and realized account book display through the system. Compared with the original reporting system, it can not only meet the standard requirements of the local tax bureau and internal and external financial audits, but also make the data accounts clearer and better meet the requirements of Chinese and foreign related parties for consolidated financial statements.

continue with the second cooperation

Through the implementation of SAP Business ByDesign with SAP and Acloudear, a set of information systems that continuously optimize the company’s growth, it provides the best end-to-end business solutions such as sales management, production management, procurement management, and financial management. Auto Hibbo has ushered in new changes and new revenues in major operations such as production management, sales, and finance:
The system is used to simplify the process and improve the efficiency of business process execution. Product optional and configurable full-data operations reduce manual processing and reduce the error rate, thereby reducing production costs; the digital system has strictly standardized the management process and strengthened business risk control Achieve unified standardized management of the group. Establish a unified data specification to grasp the latest and intuitive management data in real time.

It is because of the above-mentioned new changes brought about by digital systems that Sinotruk Hiab is very satisfied with the first cooperation with Acloudear. He also stated that he would launch a second cooperation with Acloudear this year to continue to optimize product structure, slow production reporting, and integration of financial operations.

It’s a great pleasure to see that through the efforts of both sides, the successful implementation of the whole project brings hillberg not only a set of system that meets its needs to solve problems, but also an innovation breakthrough of resource management thinking of traditional manufacturing enterprises under the management of Sino foreign joint ventures. “Weightlifting is as light as a mountain”, sinotruk Hilbert will continue to work with SAP and acloudear digital information reform to do things on the ground and usher in a new blue sky in the lifting machinery industry.

This article "China’s “Optimus Prime” Coexisting with the Weight and Strength of the Cargo Lifting Industry" by AcloudEAR. We focus on business applications such as cloud ERP.

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