Wanhong Shuangxi: Paving the way through digitalization for a small workshop to win the national market
Explore Wanhong Shuangxi’s growth with SAP cloud ERP
Wanhong Shuangxi Group Hebei Co., Ltd. attributes its seven-year transformation from small workshop to market leader to its unwavering commitment to quality. Facing intense national competition, it adopted SAP S/4HANA Cloud, public edition to transform its operations, constructing a robust digital foundation to achieve efficiency and maintain profit margins.
| Industry | Region | Company Size |
| Consumer products | Renqiu, China | >400 employees |
reduction in labor costs for inventory management.
General Manager, Wanhong Shuangxi Group Hebei Co., Ltd.
Struggling to keep pace as orders flood in
Founded in 2016, Wanhong Shuangxi Group Hebei Co., Ltd. specializes in manufacturing next-generation hook-type scaffolding products. With the introduction of mandatory production standards for button-type scaffolding pipes in many regions including Shanghai, Jiangsu, and Zhejiang, Wanhong Shuangxi’s early positioning paid off with a surge in orders.
Responding to buoyant market demand nationally, Wanhong Shuangxi found its digital systems and management capabilities were stuck in past. Previously, the company only tracked inventory by weight, resulting in infrequent inventory checks with difficult-to-trace results. For scaffolding manufacturers, transportation costs significantly impact profit margins. With Wanhong Shuangxi’s expansion in the national market, this challenge became even more critical. To maintain its market standing and optimized profit margins, the company made digital transformation an urgent priority.
Using standardization and efficiency as levers to boost profit margins
With SAP S/4HANA Cloud, public edition as its business technology foundation, Wanhong Shuangxi constructed a robust digital management backbone offering two avenues for targeted profit margin optimization: lean efficiency and standardization for cost savings.
Using the transportation management module in SAP S/4HANA Cloud, public edition, Wanhong Shuangxi could precisely manage transportation costs for the first time. With powerful embedded functionality, the advanced ERP’s transportation management module enabled process standardization, arrival freight settlement, and more to meet diverse business requirements.
Meanwhile, Wanhong Shuangxi standardized product coding across its range and upgraded from weight-based to quantity-based management. This established group-level standard control, offering increased management granularity and cost reduction. In the background, SAP’s cloud customer care team offered project guidance and answered any product related questions, serving as a bridge between Wanhong Shuangxi and SAP S/4HANA Cloud and promptly and efficiently resolving project challenges encountered during implementation.
In addition, localized financial solutions from SAP help ensure digital compliance while driving operational excellence.
General Manager, Wanhong Shuangxi Group Hebei Co., Ltd.
Building a digital scaffold to support rapid growth
Wanhong Shuangxi can now conduct monthly inventory checks, with operational departments able to trace orders down to the unit level across processes. Discrepancies in procurement, sales, and inventory can be quickly located in the system, allowing for in-depth process analysis, operational adjustments, and practical implementation of lean management principles. Data analysis and operational reviews that were previously hindered by data gaps are now enabled through standardization, establishing a corporate-level operational analysis system for the first time.
The challenges in material management due to rapid expansion in recent years have also been addressed through standardization. Previously, the absence of unified coding and system support meant manual data entry often led to multiple codes for the same item, resulting in inaccurate inventory and material wastage. Now, with standardized coding in use across multiple production bases in Hebei, Zhejiang, Suzhou, and nationwide sales offices, inventory management labor costs have fallen by 30%.