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LEOCH: Modernizing operations on advanced cloud ERP while streamlining the migration using intelligent automation capabilities

Logo of LEOCH International Technology Ltd, an SAP customer

Explore LEOCH’s journey with SAP

LEOCH International Technology Ltd., a global leader in battery power solutions, made the strategic decision to migrate to the cloud, selecting SAP S/4HANA Cloud Private Edition through the RISE with SAP offering. It also used intelligent automation capabilities of the SAP Build Process Automation solution to speed the migration and gain efficiency.

IndustryRegionCompany Size
Industrial manufacturingSingapore13,000 employees
60%

faster material requirements planning processes.

2x

increase in warehouse stocking efficiency.

100%

data processing accuracy.

At LEOCH, the data required for process mining, governance, monitoring, and design largely relies on SAP S/4HANA Cloud Private Edition. The solution also gives us access to granular data for in-depth analysis as well as insights into the optimal flow of operational processes.
Dr. Tao Chen
Member of Executive Management Team, Chief Process and Information Officer, Managing Director of EMEA, LEOCH International Technology Ltd.

Streamlining production and finance for enhanced cost management

A globally recognized leader in power solutions, LEOCH International Technology Ltd. specializes in lead-acid and lithium battery technologies. Ranking among the top 500 private enterprises in China, the company operates in more than 130 countries and actively participates in the formulation of both international and Chinese national standards. With more than 1,000 national patented technologies, LEOCH collaborates with international universities and academic teams to develop its product and service portfolio, which includes network power, transportation and motive power batteries, and energy storage systems.

 

In a fast-evolving market for lead-acid and lithium batteries, rapid technological advancements and changing regulations continue to shape demand for safer, more-efficient, and cost-effective energy storage solutions. In line with this shifting demand, LEOCH needed to refocus its product portfolios and business models but lacked flexibility in its legacy ERP application. The company was challenged by efficiency bottlenecks caused by suboptimal coordination between production and sales. Meanwhile, with its ongoing global expansion, LEOCH faced more complexity in complying with multiple accounting principles, and amid intensified price wars, the company also needed to enhance cost management practices.

Given the rapid changes in the battery industry, we are actively pursuing business innovations and exploring a novel cloud architecture with a clean core so that our innovative ventures don’t disrupt the business.
Timothy Xue
Group IT Director, LEOCH International Technology Ltd.

Investing in a modern approach to galvanize enterprise operations

With its legacy ERP application increasingly unfit for its evolving needs, LEOCH looked to improve efficiency across finance, manufacturing, and sales and services by modernizing its critical processes on advanced ERP in the cloud.

 

Seeking to improve control and scalability for ongoing business expansion, LEOCH made the strategic decision to migrate to SAP S/4HANA Cloud Private Edition through the RISE with SAP offering, supported by SAP Preferred Success services. With advanced ERP functionality, LEOCH could streamline global finance operations, enhance production planning accuracy, and improve cost allocation with the aid of a material ledger.

 

As the managed-cloud offering from RISE with SAP also provides a combination of business process transformation capabilities, industry next practices, and extensibility options, LEOCH made another strategic move. It elected to get help from SAP Preferred Success to deploy the SAP Build Process Automation solution on SAP Business Technology Platform (SAP BTP). Using intelligent automation capabilities would help it streamline the migration to SAP S/4HANA Cloud Private Edition and set a new standard for operational efficiency.

Using SAP Build Process Automation has improved our quality and efficiency in various areas from order processing to reconciliation, sparing employees from time-consuming manual tasks. We look forward to forging ahead using SAP solutions to fulfill other business needs.
Timothy Xue
Group IT Director, LEOCH International Technology Ltd.

Powering data-driven decision-making from connected insights

Thanks to its move to SAP S/4HANA Cloud Private Edition through RISE with SAP, LEOCH optimized and standardized its business operations, bolstering financial efficiency and compliance while laying a robust foundation for future growth. The company streamlined its migration processes using intelligent automation capabilities offered by SAP Build Process Automation, helping it accelerate its implementation time frame by 10% and minimizing the manual workload by 30%.

 

By standardizing material master data and bill of materials for maintenance processes, LEOCH significantly enhanced the accuracy of its raw data and is now using capacity load reports to formulate precise production plans. LEOCH can also perform targeted material requirements planning analysis, optimizing each stage of the production cycle and improving production efficiency. Using the advanced ERP, the company has also introduced standardized processes for hazardous waste procurement, warehouse inventory checks, and other business operations, helping strengthen its environmental compliance credentials.

 

In its finance operations, LEOCH successfully implemented a material ledger using actual inventory values and sales cost data for the first time, while variances are automatically allocated at period-end. This has seen the company reduce the time involved in order reconciliation by a factor of 10, now down to just one minute. LEOCH also activated the profit center module for aggregation at the business-unit level, enabling automated report generation and data analysis.

 

Following the successful move to SAP S/4HANA Cloud Private Edition, LEOCH has broadened its use of enterprise automation capabilities to transform business processes. For example, its transaction verification process is now six times faster than it was previously, and exchange-rate maintenance now takes 10 minutes, down from 48 hours.

Identifying more opportunities for automation

Since successfully migrating to SAP S/4HANA Cloud Private Edition, LEOCH has seized the opportunity to develop next-generation artificial intelligence (AI) use cases for business process automation on SAP BTP. With continued use of SAP Build Process Automation to enhance its business operations, LEOCH is aiming to achieve unprecedented evolution.

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