SAP cloud ERP helps equipment manufacturers achieve digital transformation

China’s economic development and achievements are obvious to all, especially in recent years, it has become the second largest economy at present. But looking back at our economic structure and industry distribution, various listing, investment, financing and valuation rankings, all the hotspots and concerns are focused on non-real economies such as finance and the Internet. As the mainstay of the national economy, manufacturing is gradually being used by people. Ignored, especially the equipment manufacturing industry, except for our well-known state-owned large and medium-sized manufacturing industries. As a large number of small and medium-sized equipment manufacturing industries, it is even more unknown. Compared with developed countries in the international manufacturing industry, such as Japan and Germany, we The small and medium-sized manufacturing industry seems to be particularly non-existent. What is the reason why we do not have small and strong manufacturing enterprises? Why can’t the equipment manufacturing industry rise rapidly? After visiting nearly a hundred equipment manufacturing enterprises in Jiangsu, Zhejiang, Shandong, Henan, and Hebei, the author believes that, in terms of informatization and digitalization, small and medium-sized equipment manufacturing enterprises have been neglected for a long time, especially when ERP in the equipment manufacturing industry is generally popular. There are still many enterprises with weak informationization, manual planning, and Excel for management, which are not difficult to see.

1.Digital innovation and transformation trends in the equipment manufacturing industry

How to improve their management level and introduce new technologies and applications to enterprise management, the domestic manufacturing industry is habitually benchmarking some well-known enterprises or large enterprises, but we do not know that enterprise management needs to correct the situation according to its own characteristics and current situation. Enterprises in the equipment manufacturing industry should do more self-examination and management improvement, combining their shortcomings and pain points, and use cloud computing, big data, the Internet of Things and other technologies to arm themselves. Insufficient R & D to improve R & D, weak production implementation, that is, to strengthen production management and control, and disordered planning to enhance planning capabilities. As production, supply, marketing, and accounting are separated, more and more companies are introducing new technologies such as software systems and automated production Equipment for integration, use the computing power of cloud computing system to run capacity load for production scheduling, etc. Use professional systems such as SAP ERP to visualize and integrate data from all aspects of the enterprise. Over a period of time, the transformation of these places and the improvement of enterprise information digitization capabilities will be an industry trend. We see that more and more enterprises have already begun or have started to deploy and get benefits from them.

2. Management challenges faced by enterprises in the equipment manufacturing industry

The equipment manufacturing industry is available in many provinces and cities in China. From the production of products to large machine tools and equipment to distribution boxes, from the perspective of use, there are mining machinery, electrical equipment, industrial equipment, etc., which are widely distributed and have many product types. However, from the companies we have contacted and interviewed, most of them have common problems such as incomplete information technology, backward systems, low management, low quality of employees, and low R & D strength. When most of the leading enterprises are conceiving intelligent, digital, and industry 4.0, these enterprises still have some primary problems of informationization in their specific business management.

For example,

Lack of inventory preparation and waste of inventory;
The production plan is chaotic, the delivery time cannot be promised accurately, and the order is always urgent;
Lack of management accounting and inaccurate production cost accounting;
It is not clear whether to make money or not, frequent reconciliation, data reconciliation, and business finance are not integrated.

We believe that today’s ERP informatization is very mature. These problems can be solved by deploying a professional, rigorous, flexible and rapid implementation of a comprehensive ERP system. The return on investment is very considerable. We believe that SAP Cloud ERP is very suitable for current equipment. A system that manufacturing companies really need.

3.How SAP Cloud ERP can meet the informatization needs of enterprises in the equipment manufacturing industry

As a management system software starting from the manufacturing MRP, SAP continuously updates and iterates its own system products. In the process of more than 40 years, from the initial solution of the planning capability of the production industry to the deployment of cloud-based technology The comprehensive ERP system is very suitable for deployment and use by enterprises in the equipment manufacturing industry. The following reasons are recommended:

In the form of SaaS deployment, SAP Cloud ERP (Chinese version) is deployed in a Chinese data center, which can reduce the overall IT cost of an enterprise without the need to build a strong IT department and team. The SAP cloud ERP equipment manufacturing industry solution is provided to enterprises in the form of annual leases, eliminating the need to purchase IT resources such as databases and hardware, avoiding a large number of genuine software and hardware purchase costs, and reducing the one-time investment threshold and risk.

The SAP Cloud ERP equipment manufacturing solution provides a complete set of systems from CRM (customer relationship management), procurement management, financial management, supply chain management, warehouse management, human management, and sales management to the full module needs of equipment manufacturing enterprises. .

SAP cloud ERP equipment manufacturing solution can be integrated with third-party PDM, CAD and other design software, PDA on-site execution APP, bank-enterprise direct connection, MES, WMS integration. These pre-configured integration functions can maximize the integration of enterprise system resources To unify and integrate data and business processes, to maximize the return on investment in enterprise informationization with a very high price-performance ratio.

To sum up, SAP provides a comprehensive ERP solution to the majority of equipment manufacturing industry enterprises, which can meet the actual needs of industrial enterprise customers, and help from planning capabilities, sales capabilities, supply chain management capabilities, and business financial accounting capabilities. Enterprises provide and improve operating conditions, improve management levels, and good economic and market conditions require better products and higher-quality enterprises. Under the guidance of the country’s repeated emphasis on eliminating and removing remaining low-end production capacity, the majority of equipment manufacturing enterprises We should recognize the situation, polish internal strengths, continuously improve product competitiveness, attach importance to innovation and independent intellectual property rights, and we can take action to transform and enhance our own business operation and management capabilities, and let digitalization promote the rapid development of enterprises. We recommend using and deploying SAP ERP products come to leverage, as a very good external opportunity to introduce advanced management concepts, self-examination and optimization. These improvements in soft power are not lost in buying a set of equipment, and the transformation of a production line is more effective. I believe that the management of our equipment manufacturing enterprise will definitely see various successful cases from various channels to prove SAP Cloud ERP. Successful application of software. We sincerely expect that more and more Chinese equipment manufacturing enterprises will succeed with the help of SAP Cloud ERP, and more and more powerful and high-quality Chinese equipment manufacturing enterprises will continue to emerge as national brands, standing in the forest of world manufacturing.

This article "SAP cloud ERP helps equipment manufacturers achieve digital transformation" by AcloudEAR. We focus on business applications such as cloud ERP.

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