ACM Adopts SAP S/4HANA To Support Regional Expansion

Kuala Lumpur, Malaysia, 18 May 2016 – SAP has concluded the rollout of SAP S/4HANA Finance on the SAP HANA platform for Alliance Contract Manufacturing Sdn Bhd (ACM) through systems integrator, Brightree Solutions Sdn Bhd.

These solutions will be integrated into ACM’s existing organisational environment for visibility into operations, enabling integration between business areas throughout the company’s value chain and a flexible, scalable system to quickly accommodate change.

ACM Adopts SAP S/4HANA To Support Regional Expansion

ACM is a manufacturer of precision machined components, motors, electromechanical assemblies, sheet metals and welded frames, which provides turnkey manufacturing solutions for commercial and industrial equipment.

A longstanding SAP customer since 2002, ACM was facing challenges in securing integrated and real-time information between different business areas and across business information challenges.

To achieve their growth plan and to reach their business aim of establishing a niche in the global outsourcing arena, ACM turned to SAP to help them upgrade their current capabilities, to prepare the organisation for planned expansion.

“It is part of ACM’s strategy to build our business on a world-class ICT solution, with built-in best practices, extensive and global support structure, highly scalable with continuous innovations. We felt that as an industry leader, SAP would fit the bill,” said ACM Senior Manager (Head of IT) Erik Looi.

 

Superior capabilities in end-to-end solution handling across entire value chain

Due to their decade long business collaboration, ACM decided on SAP and Brightree Solutions Sdn Bhd as the vendor of choice to meet their needs.

ACM chose SAP as they offered superior capabilities in end-to-end solution handling across the entire value chain, expertise in systems for real-time information for decision-making and offered globally proven solutions, said Looi.

In keeping with the strengths of SAP HANA deployments, the SAP HANA database implementation was completed within three months, with SAP S/4HANA Finance taking an additional three months. The solutions implemented so far have positively impacted all business functions throughout the value chain for ACM.

ACM Adopts SAP S/4HANA To Support Regional Expansion

“Although we have only just completed this implementation, we are excited to expect a 20% increase in procurement savings in the future, be provided with the ability to maintain a 30% reduced inventory levels and as a result, reduce uncollectable accounts receivable by up to 50%,” said Looi. “Facing a challenging business environment, these achievements are significant and enable us to compete much more effectively, across the board,” Looi added.

With the new solutions, ACM now has the flexibility to cater to various business scenarios and to fulfil their own customer requirements for faster delivery.  There is greater control through the new highly scalable system that can quickly integrate their subsidiaries and provide easy data access and visibility to the business. Such changes will allow for more frequent reporting, fewer latency periods and faster operations, leading to better informed decisions.

Based on the outstanding results of the SAP implementation, ACM will seek to further create value for its customers this year by implementing SAP S/4HANA Enterprise Management at their overseas plants in the Netherlands and the Czech Republic.

ACM Adopts SAP S/4HANA To Support Regional Expansion

Meanwhile, Brightree Solutions managing partner Phuah Ewe Cheng said: “We are extremely pleased that ACM can now reimagine finance in today’s era of the digital economy, through optimising processes, as well as run on-the-fly analysis, amongst many other innovative business benefits.”

At SAP’s end, managing director Terrence Yong said that through SAP S/4HANA Finance, ACM can now drive massive process and technology simplification with a system that removes data replications, reconciliations, and redundancies.

“To partake of these business benefits, ACM have accelerated their financial transformation, so as to realise greater productivity and efficiencies to support ACM’s planned expansion,” said Yong.

He continued, “SAP is committed to helping enterprises achieve unprecedented business value with innovative use cases in core areas such as finance, to take full advantage of a simplified data architecture and a responsive user experience. With SAP S/4HANA, SAP is helping our customers to evolve in the digital economy with a solution that provides the most value through digitizing end-to-end operations” he added.

 

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