Climaveneta: Making cloud ERP a competitive advantage from day one at a new plant
Explore Climaveneta’s journey with SAP
Air-conditioning leader Climaveneta wanted its new facility in Vietnam to hit the ground running with lean, transparent, and efficient IT systems. Using SAP S/4HANA Cloud Public Edition, the facility quickly established standardized, smooth processes, setting the stage for the intelligent operations and innovation its customers expect.
| Industry | Region | Company Size | Partner |
| Industrial manufacturing | Shanghai, China | 750 employees | ATS Vietnam Advanced Technology |
reduction in operational costs expected.
rise in employee satisfaction expected.
faster order processing and fulfillment expected.
CFO, Climaveneta Chat Union Refrigeration Equipment (Shanghai) Co. Ltd.
Seizing the opportunity to build a new ERP system from the ground up
Heating, ventilation, and air-conditioning company Climaveneta Chat Union Refrigeration Equipment (Shanghai) Co. Ltd. provides comfort and cooling in diverse locations, from airports and offices to homes and data centers, across China and Southeast Asia.
Part of a larger group based in Italy and owned by Mitsubishi Electric, Climaveneta operates in a highly competitive sector that requires constant evolution. Customers increasingly demand smart and connected systems while placing ever-more value on sustainable and environmentally friendly solutions. Climaveneta sees digital technology and a culture of innovation as vital in addressing these trends.
To better serve its Asian markets, Climaveneta set out to establish a new manufacturing company and plant in Vietnam. In doing so, it sought an ERP foundation that would help it meet the following goals:
Streamline operations and integrate manufacturing processes across procurement, production planning, and inventory management
Enhance visibility and control with real-time analytics and reporting capabilities for robust decision-making
Align processes with the group’s operations in China to enable standardized best practices throughout the organization
Promote effective supply chain management with increased supply chain visibility from raw materials to finished products
Optimize financial processes across budgeting, cost management, and reporting to enable cost savings, improved cash flow management, and sound financial decision-making
Save on IT infrastructure costs by harnessing a cloud approach
CFO, Climaveneta Chat Union Refrigeration Equipment (Shanghai) Co. Ltd.
Making a pioneering move to the cloud
With these goals in mind and after a careful evaluation process, Climaveneta chose SAP S/4HANA Cloud Public Edition for its new Vietnam operation. The cost of the new software was a key consideration. Also important was the potential to reduce IT infrastructure outlay as the first company in the group to embrace the cloud.
In addition, Climaveneta’s Shanghai headquarters, which uses the SAP ERP application, had already decided to move to SAP S/4HANA.
To implement SAP S/4HANA Cloud Public Edition, Climaveneta chose the GROW with SAP solution, which provided a comprehensive offering of solutions, adoption-acceleration services, and community and learning resources to help the company successfully adopt cloud ERP.
Climaveneta also worked with SAP partner ATS Vietnam Advanced Technology on the implementation. ATS collaborated with both the internal IT team and key users to help replicate manufacturing processes used in the Shanghai plant across the new facility. The team’s proactive approach to addressing and resolving issues helped ensure the project remained on schedule despite a heavy workload and coordination issues that necessitated complex problem-solving.
As the new operation had to be ready to start production in eight months, the implementation of SAP S/4HANA Cloud Public Edition required rigorous planning and stakeholder engagement. Best practices that contributed to the project’s success included:
Thorough requirements gathering to enable a clear understanding of business needs and objectives and a tailored, effective solution
Strong leadership support and involvement to facilitate decision-making and accommodate organizational goals
Regular interaction and feedback loops among IT teams, users, and ATS to aid alignment and quick resolution of issues
Reducing costs and running efficient operations
Climaveneta expects to see clear benefits from adopting SAP S/4HANA Cloud Public Edition at its new Vietnam plant, including lower operational costs through improved efficiency and resource optimization. Another anticipated benefit is reduced capital expenditure thanks to the move from on-premise IT infrastructure to cloud solutions.
In addition, quarterly software releases and support from SAP on new features and functionality complement the company’s goal to use technology to enhance manufacturing processes, supply chain management, and operational efficiency. SAP S/4HANA Cloud Public Edition also enables Climaveneta to gather and analyze data to make informed business decisions and stay ahead of industry trends.
The company expects to see the following benefits within the first year of operation:
Fast, accurate monthly financial closing, with a target closing period of four days
15% increase in employee productivity with streamlined processes and automation
Improved employee satisfaction supported by user-friendly interfaces
Reduced cost of sales
Higher customer satisfaction and loyalty thanks to accelerated order processing and fulfilment
Increased procurement efficiency
Enhanced working capital, reduced inventory, and lower logistics and warehousing costs
Smoother management of periodic physical asset inventories for better asset management
Building on cloud ERP to tap into new technologies
Supported by cloud ERP that delivers the latest industry best practices and continuous innovation, Climaveneta now plans to explore the use of intelligent technologies.
Its plans include integrating AI and machine learning capabilities with its new software to help optimize processes, automate tasks, and enable data-driven decision-making, including through better capabilities for analyzing large data sets and predicting trends.
Another planned project is to use the Internet of Things to connect and manage devices and sensors in real time. This will help the company boost visibility into manufacturing processes, monitor equipment performance, and enable proactive maintenance that supports uninterrupted operations.
Climaveneta also wants to use sensor technology to gather granular data on equipment performance, environmental conditions, and product quality within the manufacturing facility. Integrating this data with SAP S/4HANA Cloud Public Edition to monitor key parameters, identify anomalies, and optimize production processes will help enhance efficiency and quality control.
A further initiative involves using advanced analytics and business intelligence tools within the new software to derive actionable insights from operational data. Using predictive and prescriptive analytics, the company can make informed decisions, anticipate market demands, optimize resource use, and drive continuous improvement initiatives across manufacturing.
Predictive maintenance is a key focus at the Vietnamese company. By analyzing equipment performance data in real time, Climaveneta plans to proactively identify maintenance needs, prevent unplanned downtime, and extend the lifespan of critical assets, reducing maintenance costs and enhancing operational reliability.
Featured partner
With 17 years of experience delivering ERP solutions to businesses, ATS Vietnam Advanced Technology provides solutions that help clients go to market efficiently. During this project, ATS used its deep understanding of ERP systems to smoothly integrate SAP S/4HANA Cloud Public Edition into Climaveneta’s operations, helping improve efficiency, data accuracy, and operational performance.