FUWO: Breaking into the global electronic vaporizer market by moving from traditional to smart manufacturing
An integrated supply chain
Facing challenges in its global operations and supply chain management, FUWO adopted SAP S/4HANA Cloud Public Edition. With precise data-driven insights and efficient process optimization, the electronic vaporizer maker streamlined the production-to-delivery process, integrated finance and operations management, and enhanced operational efficiency.
| Industry | Region | Company Size |
| Industrial manufacturing | Guangdong, China | >4,500 employees |
improvement in material-demand forecasting accuracy.
increase in on-time delivery rate of customer orders.
enhancement in production scheduling efficiency.
Director of Business Transformation and IT, Guangdong FUWO Intelligent Manufacturing Co. Ltd.
Modernizing operations to maintain a competitive edge
Founded in 2021, Guangdong FUWO Intelligent Manufacturing Co. Ltd. (FUWO) is a young and dynamic manufacturer of electronic vaporizers. With strong technical capabilities and powerful R&D resources, FUWO has already emerged as a leading player, providing products and services to customers in more than 50 countries and regions worldwide.
Unlike other emerging electronic vaporizer suppliers, FUWO has a relatively mature supply chain architecture. From the start, the company quickly built a comprehensive system covering nine major business areas, including production, supply, sales, R&D, and planning, laying a solid foundation for efficient operations. However, as the business expanded, the limitations of the traditional operating model became increasingly apparent. Due to the lack of a unified information platform, many critical processes still relied on manual operations, leading to inefficiencies in management and difficulties in supporting the company’s ongoing growth in a highly competitive market.
In addition, as FUWO expanded into international markets, it began to encounter challenges in cross-border operations. As well as languages such as English and Spanish, the company had to address communication needs in several niche languages, which put a strain on the efficiency and quality of customer service. At the same time, as customer order volumes increased, FUWO needed to monitor exchange rate fluctuations in real time and adjust its pricing strategies to maintain competitiveness and profitability in the global market.
Externally, the industry environment was also changing rapidly. Since 2022, various countries have introduced increasingly stringent regulation of electronic vaporizer products, meaning FUWO had to track and accurately interpret policy changes to ensure legal and regulatory compliance. It also needed to implement robust management processes and end-to-end traceability from raw material procurement to final sales to meet the global market’s higher expectations for compliance.
The combination of internal management shortcomings and the complexity of the external market posed new challenges for FUWO’s operational capacity and management efficiency. The company recognized that relying solely on technology could no longer sustain its competitive advantage. Optimizing management and supply chain processes had become crucial to enhancing brand competitiveness. Only by building a comprehensive, advanced digital management system could FUWO surmount these challenges and drive the transformation from traditional to smart manufacturing.
Director of Finance, Guangdong FUWO Intelligent Manufacturing Co. Ltd.
Streamlining core processes and enhancing cloud systems
After extensively evaluating various ERP solutions both domestically and internationally, the company chose SAP S/4HANA Cloud Public Edition for its rapid deployment capabilities and highly standardized features. After two years of continuous development, FUWO successfully implemented the solution’s core functionality, spanning financial accounting, controlling, production planning, materials management, and sales and distribution.
FUWO streamlined 33 core financial processes, including reimbursements, approvals, and settlements, automating previously manual steps in an integrated information system. Thanks to the smooth integration of SAP S/4HANA Cloud Public Edition with local applications, along with a localized financial solution for China, FUWO was able to connect SAP software with third-party systems such as communication and collaboration platform DingTalk and China Merchants Bank. This helped it automate processes from reimbursement requests and office-automation-system approvals to SAP software—based accounting and bank payments, reducing manual operations and interdepartmental confirmation complexity while significantly improving efficiency and transparency.
As a company that sells millions of products monthly, FUWO must not only manage large order volumes but also respond nimbly to diverse market demands. To optimize supply chain and production management, it needed to implement master production scheduling (MPS) and material requirements planning (MRP). An initial attempt to deploy MPS and MRP functionality within SAP S/4HANA Cloud Public Edition was put on hold due to unresolved internal supply chain issues.
In response, FUWO conducted a comprehensive review of its digital supply chain system, focusing on 25 critical processes, including production scheduling, procurement order execution, payment, and final settlement management. Based on actual operations, it submitted dozens of optimization requests to the team for SAP Services and Support, driving continuous system improvements. With help from these experts, FUWO successfully launched the MPS and MRP functionality, smoothly connecting core supply chain processes and enabling efficient order management and rapid responses to market demands.
SAP’s teams—including technical support experts for SAP S/4HANA Cloud Public Edition, the SAP Globalization and Parter Success Services teams, and experts in public cloud ERP quote-to-cash processes—efficiently addressed product issues and offered enabling support. For instance, they provided localized financial solutions for Chinese users, integrated push-notification functionality in SAP S/4HANA Cloud Public Edition with DingTalk, and implemented VAT solutions within the ERP solution. This support helped FUWO better understand the availability of new localized solutions, laying the foundation for future application use in daily business operations while promoting sustainable development and smooth operations.
Harnessing real-time data to understand a volatile market
By deploying SAP S/4HANA Cloud Public Edition, FUWO has optimized comprehensive processes from production to delivery. Delivery efficiency has significantly improved. This helps the company not only meet the high standards of key clients but also flexibly manage complex multibrand and multibatch orders to provide customers with more precise and efficient services.
In manufacturing, material planning is a critical part of production management, directly affecting production efficiency, inventory costs, and delivery capabilities. In the past, FUWO’s material-demand forecasting relied on manual input, which was not only labor-intensive but also prone to errors, leading to inventory buildups or material shortages. With MPS and MRP, the company has improved material-demand forecasting accuracy, simplifying operations, significantly reducing error rates, preventing inventory waste caused by overpurchasing, and saving hundreds of dollars each month. Additionally, FUWO has greatly reduced the risk of material overuse and shortages, leading to more systematic inventory management and improved resource utilization.
FUWO has also increased the on-time delivery rate of customer orders by automating manual scheduling processes. Luo Jianyong, the company’s director of business transformation and IT, says: “This transformation has not only led to significant improvements in time management but also enabled real-time data sharing, enhanced management, and traceability, providing stronger support for our production scheduling.”
After optimizing the operational process and building a comprehensive finance and operations integration management system, FUWO experienced outstanding results in financial management. In the past, the monthly closing process was cumbersome and time consuming, often causing the finance department to be bogged down with repetitive tasks. Settlement typically took until the 12th to 15th of each month, with frequent delays. With the automation and data integration capabilities of SAP S/4HANA Cloud Public Edition, FUWO has successfully brought the closing time forward to before the 8th of each month. This change has significantly improved financial efficiency and optimized cash flow.
Even more exciting for FUWO is the ability for managers at different levels to access real-time financial reports and operational data, thanks to the robust integration and powerful data analytics capabilities of SAP S/4HANA Cloud Public Edition. This has greatly enhanced data transparency and provided strong support for high-level decision-making. Zhao Ziqiu, the company’s director of finance, comments, “In the electronic vaporizer market, which is sensitive to market changes and highly competitive, real-time data control gives us a critical advantage in decision-making and further strengthens our ability to respond to market fluctuations.”
With continuous innovations in electronic vaporizer technology, FUWO is driving efficiency through digital transformation. Empowered by SAP S/4HANA Cloud Public Edition and supported by SAP’s experts, FUWO is advancing confidently toward the future of Industry 4.0 in its sector.