Magnum Tires: Driving operational efficiency with a move to cloud-based solutions
Taking to the road with cloud ERP
Magnum Tires, a large-scale Brazilian tire distributor, wanted to upgrade its legacy ERP systems to improve its operational efficiency. Embarking on the RISE with SAP journey and deploying SAP S/4HANA Cloud Private Edition as well as other cloud-based SAP solutions has enabled the company to increase its daily order processing, among other benefits.
| Industry | Region | Company Size | Partner |
| Consumer products | Pernambuco, Brazil | 1,200 employees | NTT DATA Group Corporation |
increase in revenue.
orders processed daily, up from 500 orders.
Commercial Director, Magnum Distribuidora de Pneus LTDA
Enabling more-efficient processes and better operational support
As the largest distributor of tires and inner tubes in Brazil, Magnum Distribuidora de Pneus LTDA (Magnum Tires) has been in the market for more than 30 years. It specializes in tires for passenger, high-performance, commercial, agricultural, and industrial vehicles. With 52 locations and three sizable distribution centers in the northeast and south of the country, the company provides products and customer support to a diverse clientele.
Magnum Tires continually invests in technology to serve its sales channels nationwide and to simplify its processes. Its legacy ERP systems were characterized by operational bottlenecks, frequent interruptions, and integration issues. This hindered the company in conducting effective financial closing and order processing, for example. To underpin its sustained growth, Magnum Tires wanted a robust system that would allow it to implement its processes more efficiently, provide better operational support, and structure and scale its business as needed.
Commercial Director, Magnum Distribuidora de Pneus LTDA
Adopting cloud-based solutions to advance ERP and sales
Magnum Tires chose SAP S/4HANA Cloud Private Edition, using a greenfield implementation as part of its RISE with SAP journey. The company adopted a clean core approach, creating only 15 customizations to address specific business needs without compromising the integrity of the standard SAP solution configurations.
The tire manufacturer also selected the SAP Sales Cloud, SAP Commerce Cloud, and SAP Emarsys solutions to optimize its sales processes and promote its presence in major marketplaces. SAP Sales Cloud supports its salespeople in efficiently managing their sales and customer relationships. SAP Commerce Cloud allows Magnum Tires to modernize its approach to B2B e-commerce, while SAP Emarsys enables it to deliver highly personalized omnichannel experiences to its customers. In addition, the company deployed the SAP Extended Warehouse Management application to improve its warehouse management and logistical control, allowing better handling of stock and internal processes. Magnum Tires used SAP Integration Suite to integrate the various solutions into its SAP Cloud ERP Private solution.
The business brought in NTT DATA Group Corporation as its ERP implementation partner. The consultancy conducted two important testing cycles during the project, including data cleansing and change management, with NTT initially leading the training sessions. Experts from SAP assisted with project management and incident resolution, providing periodic reports on the IT environment and suggesting preventive actions.
Commercial Director, Magnum Distribuidora de Pneus LTDA
Raising revenue and expanding into new markets
Revenue at Magnum Tires has more than doubled following the cloud ERP implementation. With all employees at Magnum Tires now using SAP S/4HANA Cloud Private Edition, the company has been able to expand its daily processing capacity significantly—from 500 orders to more than 3,000 orders, peaking at nearly 5,000 orders.
By integrating SAP S/4HANA Cloud Private Edition and SAP Sales Cloud, Magnum Tires is benefiting from smoother, more-connected operations. For example, the company is now positioned on e-commerce platforms offered through Mercado Libre Inc. and Magazine Luiza S.A. (Magalu) and is entering the digital market through an e-store.
Magnum Tires attributes a key part of the project’s success to its clean core approach, along with minimizing customizations and using standard SAP solution configurations. This has enabled greater robustness and stability for the business while helping ensure that its processes are implemented uniformly and securely. With a future-proof foundation, the company can also take advantage of easier adoption of new software releases and updates.
Commercial Director, Magnum Distribuidora de Pneus LTDA
Following the thread of innovation toward the latest technologies
Magnum Tires also credits strong strategic communication, training, and early change management as factors in the project’s success, forming a solid foundation for the company’s future innovations. Going forward, it wants to explore the latest functionalities in SAP solutions, including the use of artificial intelligence. With an internal team dedicated to the AI field and regular evaluation of software updates and strategic automations, the company aims to integrate these technologies to further optimize its processes and business opportunities.
Featured partner
Backed by 150 years of history and innovation, NTT DATA Group Corporation provides support for SAP systems and data-center services in more than 50 countries and regions. As a leader in digital transformation and a member of SAP’s global partner network, it offers consulting, design, development, and implementation services for SAP solutions, helping improve management and operational processes for various types of businesses.