Automotive supplier OMR Group struggled to manage its international business units as a single entity. How could the company operate as a fully integrated enterprise?
OMR Group engaged IBM Services to design a future-proof business architecture, based on SAP HANA applications, for group-wide planning, management and real-time information services.
Will boostplanning capabilities
Will enhancethe ability to carefully trace products and monitor their quality
Will improvethe management of a diversified business across numerous plants
Business challenge story
Embracing the digital revolutionEven in a very challenging global automotive environment, OMR Group is growing its domestic and international business. However, as the company expands its operations, senior executives realized that the business model itself—particularly around enterprise management—must also evolve, highlighted by the need for international traceability of its products.
Raffaele De Benedetto, CIO at OMR Group, elaborates: “We have been operating numerous plants and offices all around the world for years now, and this has brought about a huge, constant increase in business complexity. As we are looking to further strengthen our international expansion, we are aware that we must be even faster, more agile and more integrated in planning our growth strategy.
“Our current ERP system, which allows us to manage each and every part of our operations, was developed in-house. The system is fairly inflexible with many manual processes, and it is no longer the right platform to support our ambitious growth plans.”
To succeed, OMR Group required a higher degree of visibility over its global operations that could help it to improve its planning capacity, enhance business efficiency, and solve the product traceability challenge.
Preparing for a global roll-out
As a first step, OMR Group identified SAP as the leading vendor of enterprise resource planning solutions for the automotive sector, and opted to deploy SAP ERP, SAP Manufacturing Integration and Intelligence (MII) and SAP S/4HANA®.
Michele Pirlo, Sales Executive at OMR Group, explains: “It was clear right from the beginning that SAP would be the best technology partner for this complex project. The company’s portfolio includes truly revolutionary software like S/4HANA, and we knew we could achieve great things with those solutions.
“In this project, we are also looking forward to deploying SAP MII. We are expecting to be able to connect this software tool directly to our production machines, in order to assist us in the monitoring of product data and, ultimately, to help our C-executives sharpen their planning and decision-making activities.
“With SAP, we will gain the capability to assess the efficiency, reliability and production quality of each machine in real time, and complete performance analysis at the touch of a button.”
To assist in the implementation of the new SAP landscape, OMR Group chose to work with a team from IBM Services, as Michele Pirlo remarks: “We decided to join forces with IBM because they have unmatched skills and expertise in the automotive sector, and they are fully knowledgeable about SAP products. What’s more, we highly appreciate IBM’s can-do attitude, and its ability to tune into our requirements and act as a fully trusted business partner.”
The project is still in the blueprint phase and will go live in two stages—one plant will deploy the SAP solution in July 2017, and the main go-live is scheduled for January 2018.
Raffaele De Benedetto adds: “Carrying out early implementation in one plant will help us to understand exactly how we can use this new wealth of production data, and tailor the complete SAP S/4HANA go-live to ensure maximum benefit.”
Rolling out the SAP solution gradually will enable OMR Group to reduce the complexity of the project. IBM Services will build the solution architecture and implementation plan, and gather the necessary resources to ensure continuous, smooth deployment.
Full speed towards digital reinvention
Once the SAP solution is fully deployed, it will cover the entirety of OMR Group’s business processes, and will be used by 300 users in Italy and hundreds more across the globe. The company expects to be able to design and build common processes and best practices at group level in a fully digitized way, to support planning and decision-making of C-executives to help drive international growth.
Raffaele De Benedetto states: “SAP S/4HANA will deliver greater visibility of the flow of materials throughout the production process and through the various group companies, and allow us to provide our customers with high-quality products much faster than ever before.”
Recent high-profile auto recalls have highlighted the importance of full manufacturing traceability. By implementing integrated SAP solutions, for the first time OMR Group will have the ability to connect production systems right through to delivered products, simplifying and automating this essential task.
Marco Bonometti and Franco Bonometti, Managing Directors at OMR Group, conclude: “Even though we are still in the blueprint phase, we are greatly looking forward to witnessing positive change across the company. We are confident that the SAP solution, implemented with help from IBM, will allow us to improve the customer experience via a truly all-encompassing digital transformation of both customer-facing and back-office processes. With IBM and SAP on our side throughout the journey ahead, we believe that we can succeed.”
About OMR Group
Established in Rezzato, Italy, in 1919, OMR Group is a leading automotive supplier, specializing in mechanical engineering for industrial vehicles. With annual sales of more than EUR 600 million in 2016, and operations in six countries, the company is expanding globally.
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