MTU integrates 7 subsidiaries running SAP Business One with head office R/3 solution
MTU has several subsidiaries, of which seven operate on SAP Business One. Suzhou, Marubeni (Japan), Indonesia, UK, Iberica, and Benelux, which is going live is February 2011, and South Africa – most recently implemented SAP site, are the subsidiaries that have implemented SAP Business One. Some of their larger branches use SAP Business Suite / R3, which is designed for larger enterprises, that easily integrates with SAP Business One to ensure that business processes and procedures are followed across the board.
Together with MTU Onsite Energy, MTU is one of the leading brands of Tognum. Its product range is the widest and most modern in its sector. It covers diesel engines as well as complete propulsion systems for ships, heavy agricultural machinery, rail and military vehicles, and caters for the oil and gas industry.
“Currently we use SAP Business One for most aspects of our business – from stock to finance. We also use SAP Business One to manage service calls and help build up a history for engines.” Peter Laubscher, IT Systems & Telecommunications Manager, MTU South Africa.
The decision to implement SAP Business One came from the recommendation from their parent company in Germany – currently also operating on SAP business software. Complimentary to the recommendation from Germany “we replaced a bad legacy ERP system to improve on various aspects of our business. There was also a lack of support from our old ERP system” says Laubscher. Another reason for the implementation of SAP Business One was to control stock, maintain optimal stock levels, and free up capital by improving reserve stock holding.
SAP Business One was implemented across all sectors of MTU South Africa. Standard SAP Business One functionality together with bespoke stock management development supplied them with a complete solution that was customised to their specific business needs. Functionality for managing projects were implemented throughout all the business units to track costs at a customer/service level, and approvals used in the purchasing and sales modules to enable better control over spending and debtor/credit control.
A wide range of customized business reports were developed for coordinated and proactive business decision making as MTU‟s Stock is managed in 75 warehouses in 10 different physical locations across South Africa. The SAP Business One Fixed asset extension enabled them to reduce manual processing and recording of data and allow staff more time to focus on developing and growing the business.
Improvements were seen in many areas of the business. SAP Business One provides the ability to run a small business with a feature rich ERP system. Laubscher says, “Not one day was lost due to downtime. Change management was very effective in getting user buy in through strong and knowledgeable project management from MTUand the SAP Partner, Bluekey.” MTU has very strict procedural guidelines to ensure that projects run as planned and deliver on their promise. “The online approval feature ensures that internal business processes are accurately followed” says Laubscher.
MTU documents all their processes and procedures. SAP Business One allowed them to integrate and automate most of their processes into one central system. Laubscher says, “Tighter controls in critical business processes, better reporting, increased transparency in terms of system changes and insight to where the business is going benefited us greatly.” This is an important aspect of MTU‟s business process as each new job is recorded as a separate project, which requires integration between various business functions and carried out with great accuracy.
SAP Business One is designed for small to medium sized companies, which makes learning and understanding the system, as well as maintaining it, much more efficient and manageable. SAP Business One can easily be scaled and extended to meet the growing needs of small to medium sized companies.
The customisability of SAP Business One is helping MTU to integrate and automate many of their processes, increasing the overall efficiency, production and execution of projects. “SAP Business One was delivered on time, on budget and is expected to be the best SAP Business One implementation within the Tognum Group.” says Laubscher.
“Delivered on time, on budget and to be the best SAP Business One implementation within the Tognum Group.” Peter Laubscher, IT Systems & Telecommunications Manager, MTU South Africa.