SAP Customer Success Story Industrial Machinery and Components

Neway ValVe (Suzhou)

SAP BuSIneSS All-In-One HelPS tO enHAnCe IntegrAted MAnAgeMent

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Thanks to the integrated platform, data is consistent and accurate across our four divisions and seven plants. Managers have an overview of business performance and can access critical information.
Roger Wan, It Manager, neway Valve (Suzhou) Co. ltd.

Company name: neway Valve (Suzhou) Co. ltd. location: Suzhou, China Industry: Industrial machinery and components Products and services: Manufacturing and sales of industrial valves revenue: 200 million employees: 3,600 Web site: www.newayvalve.com Implementation partner: HAnd enterprise Solution Company Challenges and Opportunities upgrade enterprise resource planning (erP) software to support rapid business growth Create integrated information platform for better insight and decision making Improve operational and management efficiency Objectives Streamline business processes by applying best practices Increase data transparency and consistency with an integrated information platform Achieve business continuity with a stable and robust software solution SAP Solutions and Services SAP Business All-in-One solutions

Implementation Highlights Collaborated successfully with consulting partner HAnd deployed in 2 phases received strong support from top management Why SAP efficient, stable, and robust software Integrated solution to support complex business environment Better collaboration with international clients using the same software flexibility to add and change functionality as needed Benefits established business continuity Streamlined business processes for greater efficiency Achieved data consistency and accuracy for deeper insight and better decision making Introduced data integrity and optimized warehouse operations by integrating bar-coding software into the SAP software landscape Existing Environment local erP solutions

neway Valve (Suzhou) Co. ltd., based in Suzhou, China, is the countrys largest industrial valve manufacturer and largest valve exporter. Its products include gate, globe, and butterfly valves that serve firms in a wide range of industries. today neway employs 3,600 people, with 7 factories in China and subsidiaries in the united States, Mexico, and Saudi Arabia. In 2009 neways annual turnover reached 200 million. to adapt to business-driven changes, it chose an SAP Business All-in-One solution to support its complex business environment.
In a bit more than a decade, neway quickly evolved into a leading player in the worlds industrial valve market, thanks to its intensive research and development programs and engineering excellence. the recent strategic partnership with SAP and the implementation of an SAP Business All-in-One solution is another milestone for the company in its drive to reinforce its status as a worldclass enterprise. roger Wan, It manager at neway, recalls the reasons for this decision: Our business grew extremely fast in the last few years. We needed to constantly adapt ourselves to business-driven changes such as geographical growth, reorganizations, and business model evolution. the old system simply could not keep up to support the fast-changing business environment anymore. According to Wan, amid the huge increase of data volume, the old erP solution lacked the functions to support daily tasks and its architecture encountered stability problems, causing business disruptions. We needed a more efficient and robust system to support our growth, for now and for the future, adds Wan. neway looked at several erP software options on the market but quickly made a decision for an SAP Business All-in-One solution. the decision for SAP was very straightforward. SAP is a world leader in erP software. Sixty percent of our businesses are targeted at the export markets. Having SAP solutions will let us collaborate on the same platform as our clients. this will be a big plus for our international strategy, says Wan. Also, an SAP Business All-in-One solution offers configurable and integrated industry solutions and can well support a very complex business environment like ours.

Deploying an SAP Business All-in-One Solution

the implementation project was carried out in two phases in collaboration with the consulting partner HAnd enterprise Solution Company, an SAP partner and a leading erP consulting firm in China. the first stage was the implementation of the SAP software in neways valve division. the second stage was the rollout to the companys other divisions, including industrial material, CnC equipment, and oil machinery. the project ran very smoothly at neway, says guolong Zhao, SAP project manager

Upgrading ERP Software with an SAP Solution

neway has been investing in information technologies since its early years of establishment. In 2003 the company installed a local enterprise resource planning (erP) solution and became the first valve manufacturer in China to have erP software in place. However, the rapid business expansion in recent years posed many challenges to the old software, and the company felt the need to bring its information solution up to the next level.

The successful integration of the bar-coding system into the SAP software has established data integrity and greatly optimized warehouse operations.

Roger Wan, It Manager, neway Valve (Suzhou) Co. ltd.

at neway. We got strong support from our top management. We also implemented a reward system to encourage people involved in the project to achieve better results. now with 145 users, neway has an integrated solution to support mission-critical business processes from production to sales and from finance and accounting to human resources.

critical information for better decision making, Wan explains. Another achievement is the integration of neways warehouse bar-coding management system into the SAP software. neway has been using advanced barcoding technology to trace manufacturing processes from procurement to storage and from production to inventory and shipment. the scanner reads the bar code and collects data on the source of the material and the product, which is then integrated into the SAP software. the successful integration of the bar-coding system into the SAP software has established data integrity and greatly optimized warehouse operations, adds Wan. Commenting on the functionality of its SAP Business All-in-One solution, Zhao speaks highly of the strong integration support the software offers. According to him, the comprehensive connectivity of the SAP software provides powerful support for management. for example,

Our SAP Business All-in-One solution integrates business processes across all departments in different locations. Any changes in business dimension are immediately reflected in accounting books. this real-time information gives us a deeper insight into organizational performance, says Zhao. An SAP Business All-in-One solution has open configurations and offers us the flexibility to scale, change, and add functionalities to reflect evolving business needs. this is very much needed for a growing company like ours, emphasizes Wan.

Gaining Immediate Benefits

neway achieved remarkable results shortly after the implementation of its SAP Business All-in-One solution. the SAP software is significantly more stable than our old system. With it, we have gained much-improved and much-needed business continuity, says Zhao. By leveraging best practices for the SAP solution, neway streamlined and optimized its business processes for greater efficiency among them the procurement process and the entire order-tocash process. thanks to the integrated

Looking into the Future

neway has several projects in the pipeline. to further support the growth of the company, neway will continue to optimize the current implementation of its SAP Business All-in-One solution, while at the same time preparing for the deployment of the SAP Customer relationship Management application. Having experienced the changes the software brought with it, neway is confident that its investment in SAP software will reap additional benefits in the future.

Our SAP Business All-in-One solution integrates business processes across all departments in different locations. Any changes in business dimension are immediately reflected in accounting books.
Guolong Zhao, SAP Project Manager, neway Valve (Suzhou) Co. ltd.

platform, data is consistent and accurate across our four divisions and seven plants. Managers have an overview of business performance and can access

orders are automatically reflected in the backlog, which drives production planning. Sales forecasts are visible in the software to support materials planning.

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