Transforming the SAP S/4HANA Experience for Foxconn EV Systems

⇨ Foxconn EV Systems faced significant operational challenges due to siloed departments and reliance on manual systems, leading to data quality issues and inefficiencies in inventory management and production planning.

⇨ The implementation of SAP S/4HANA, with a focus on improving existing processes and enhancing integration across various business functions, resulted in a 20% increase in resource utilization and a 50% reduction in response times, significantly boosting productivity.

⇨ The strategic integration of SAP S/4HANA not only streamlined Foxconn's operations but also improved profitability through refined costing methodologies and provided a foundation for future growth with enhanced organizational agility and communication.

Foxconn EV Systems, a manufacturer of electric vehicles (EV), began contract manufacturing for the EV business in Warren, Ohio (US). Foxconn EV Systems struggled with efficiency as business units operated in silos, relying on manual, disparate systems and spreadsheets. This led to major issues with data quality, accuracy, and excess inventory, while disjointed critical processes and workflows across MRP planning, inventory management, purchasing, manufacturing, and finance further compounded the problem.

The lack of an integrated system meant that departments were unable to coordinate effectively, with each using their own spreadsheets to track, plan, and manage inventory and production. Business users were forced to send emails and manually check information before making decisions, lacking a unified view of demand, capacity to produce, and inventory availability. This fragmented approach not only hindered seamless coordination and decision-making but also negatively impacted productivity and the ability to meet promised shipping dates, ultimately affecting the client’s operational excellence and competitiveness. To overcome these business challenges, Foxconn implemented the SAP S/4HANA in early 2023.

Reimagining the SAP Platform

While Foxconn implemented SAP S/4HANA in early 2023 but the adoption faced significant challenges. Foxconn hired a digital leader (Manash Saha) who engaged GyanSys to re-evaluate existing processes and identify critical business needs. GyanSys, serving as the system integrator, conducted a thorough assessment of the previously implemented SAP S/4HANA system with a minimum viable product (MVP) model. Collaborating closely with Foxconn, they reassessed what was working and what needed improvement within the business community. Based on this assessment, GyanSys redefined and implemented new solutions across Procurement, Supply Chain, Production Planning, Finance, and Sales. These solutions were meticulously documented, approved by the business, successfully tested in User Acceptance Testing (UAT), and ultimately deployed live, ensuring a more effective and streamlined operation.

After implementing the SAP S/4HANA revamp project, business users were trained on the new system, quickly recognizing its power, integration, and informational depth. The system delivered most of the standard reports needed, reducing reliance on custom reports and enabling timely decision-making. The introduction of SAP Fiori apps further enhanced the user experience, demonstrating the system’s ease of use and user-friendly interface.

Transforming the SAP Platform Experience

The implementation of SAP S/4HANA at Foxconn EV Systems has delivered substantial benefits, including enhanced visibility and a highly integrated platform across the organization. This upgrade has led to significant improvements, such as a 20% increase in resource utilization within Finance, Planning, and Purchasing, driven by more efficient operations and streamlined workflows. The availability of real-time data has enabled quicker, more informed decision-making, resulting in a 50% reduction in response times across the business. Additionally, a refined costing methodology improved resource allocation for the company and provided deeper insights into production expenses, contributing to a 2% boost in profit margins.

This strategic SAP integration positioned Foxconn EV Systems for future growth as it not only reduced operational costs and optimized budget allocation but also streamlined IT infrastructure by reducing hardware requirements, enhancing overall efficiency and sustainability. The improved system performance and faster response times increased organizational agility, allowing the company to better meet dynamic business demands. From a workforce perspective, the SAP S/4HANA system significantly boosted productivity, fostering easier navigation of workflows and enabling employees to focus on more value-added tasks. This transformation also strengthened teamwork and communication, leading to improved supplier and customer relations through faster and more effective service delivery.