XP Power upgrade and enhance their SAP system
XP Power are a leading provider of power solutions, including AC-DC power supplies and DC-DC converters. XP Power’s focus is on offering total quality at every stage, from in-house design in Asia, Europe and North America through to manufacturing facilities around the world. XP Power has 32 sales offices throughout Europe, North America and Asia.
The Business Challenges
Despite their vast size, XP Power lacked the integrated global operations needed to support their expanding business. XP Power were unable to improve their process efficiency or facilitate currency exchange calculations and re-entry due to their distribution across multiple different platforms. In 2006, XP Power enlisted the help of a third-party service partner to implement a SAP solution that would integrate the operations of 8 forces across Europe. This solution was implemented successfully, but they quickly discovered that transparency was at an all-time low and had noticed deteriorating service levels, thanks in part to improvements promised by service partners that never materialised. There was also a very high risk of bugs and performance problems, as the SAP version being run was no longer supported. This created the following issues:
- No multiple language support
- Restricted access to new technology
- No availability of enhancement packs, which provide a simple way to add features to the SAP system in a non-disruptive way
- Unpredictability and instability within SAP system
- Inefficient handling of inter-company transactions
- Multiple data entry creating errors and inconsistencies
In order to meet the detailed specifications XP Power required, Invenio needed to create a global template, which could be altered for different locations and rolled out across the company quickly and efficiently.
To resolve the immediate issues of outdated, unsupported systems, Invenio upgraded XP Power from SAP R/3 4.7 to ERP 6.0. This brought the company back into regular SAP maintenance cycles and immediately caused a reduction in support costs. Past that point, Invenio could then work towards solving some of the performance and functionality issues within the current system. The team provided a solution that integrated all European offices and supplied one standardised SAP platform for improved sales forecasting and financial management, which was set up as a template and rolled out across all geographical regions using tools, templates and methodologies from the UK system.
The Invenio team were able to work to a slim deadline by adopting an agile project approach with a localisation program. This meant that the rollout was simple, fast and did not impact the business operations of XP Power in other countries.
The SAP upgrade has given us a technology platform which will enable us to deliver innovations to our business. We achieved our technical upgrade on time and within budget. Anne Honeyman, Operations Director, XP Power
Thanks to the introduction of a new, well supported platform, XP Power were able to reinvestigate several operational improvement projects that had been put on the back burner for a long time. This included improving system performance, implementing responsive SAP support and increase general uptime. One of XP Power’s main objectives in this upgrade was to achieve greater visibility of information to assist with tracking and reporting in an ever-changing business environment. This goal has now been realised, along with the following benefits:
- Increased internal visibility of operational processes
- Enhanced return on investment through extended support of SEP ERP 6.0
- Automated accounting, sales and production processes using an integrated enterprise system
faster finance transaction time
reduction in production planning time
improvement in operational performance
There is no doubt that XP Power is now very well prepared for the future. The organisation plans to continue to grow, and with their new IT platform, they have a system that gives them the flexibility and support needed to sustain future growth. With the integration and development capabilities of the SAP solution, XP Power is better equipped than ever to expand new products and services into new geographic territories without worrying about information limitations.
We really liked the honesty and openness of the Invenio team. Rebecca Asquith, SAP Manager, XP Power
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