Volvo Construction Equipment

Volvo Construction Equipment is part of the Volvo Group, one of the world’s largest manufacturers of trucks, buses, and construction machinery. The Volvo Group is also a leader in sector of marine and industrial engines and aircraft engine components.
Client
Volvo Construction Equipment
Scope
SAP rollout to a new facility in Russia
Challenge
Implementation of management standards in a new company taking into account the local requirements

International SAP Rollout

In connection with a new investment – the launch of a production plant in Kaluga, Russia – it was necessary to rollout the SAP system taking into account the local requirements. Volvo CE set itself the goal of unifying business processes across the group. This task was entrusted to the Hicron team.

 

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number of projects completed for Volvo CE
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rollouts carried out by Hicron
01 Case study

SAP Rollout o Russia

Read Case Study

One of the most difficult challenges in rollout projects is the need to take into account the legal landscape of the country in which the implementation is to take place. When transferring the model solution to Russia, it was necessary to pay special attention to adjusting the system to the applicable regulations , as example concerning raw material import management. The experience of Hicron consultants in carrying out rollouts and their extensive knowledge on the operation of companies abroad translated into high efficiency of project implementation.

Hicron participated in the transfer of the SAP solution in the areas of sales and distribution, procurement, and materials management to the new Volvo CE factory in Russia. The Volvo CE production plant in Kaluga is a new investment of the Volvo group, and from its very beginning the SAP system has become the basic tool for handling all processes.

Hicron, Volvo IT, and Volvo CE worked on the project. The main task of Hicron consultants was to analyze the processes in the German company and adjust them to the Russian factory in accordance with the provided template. This analysis was also intended to indicate those areas of the system where the template had to be modified to match the local requirements.

The use of the business processes that proved successful in Germany in the Russian factory is of great benefit to Volvo. Thanks to our cooperation with Hicron, in addition to the basic scope of implementation, we identified opportunities to improve the already existing processes. Some of the ideas were implemented as part of the project, e.g. in the area of stock-taking – work that could take a week now takes one day. By saving time, we also save money.
Mona Asplund
IT Project Manager at Volvo CE

Implementation benefits:

  • bypassing the time-consuming processes involved in designing a separate system for the Russian factory
  • guarantee of business development based on proven and best practices tested in the German company
  • identifying opportunities for improvement of already existing processes
  • adjusting the system to local regulations in the field of raw material import and printout formulation
  • automation of sales processes, including improvement of price list management
  • creating a material base that allows goods to be traded between individual facilities and external suppliers
  • minimizing the possibility of errors and mistakes, especially in the handling of sales processes
  • shortening task completion time
  • standardization of processes within the entire Volvo CE group

The transfer of the German solution allowed Volvo CE to skip the time-consuming processes of designing a separate model for the Russian factory. The rollout of the system to Russia was also a guarantee of business development based on proven and best practices tested in the German company.

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