Ferrotec Malaysia has implemented the cloud-based Grow with SAP ERP solution to integrate and streamline operations at its new RM850 million facility in Kulim.
The new plant, which manufactures precise materials and components for key sectors including semiconductors, automotive and medical devices, initially faced challenges due to a lack of shared IT resources and standardised processes, resulting in a heavy reliance on manual workflows and fragmented data.
To support its advanced manufacturing requirements and rapid expansion, Ferrotec sought a unified system capable of integrating finance, sales, supply chain, and manufacturing within a tight timeframe.
Its choice of Grow with SAP to accelerate its cloud adoption proved immediately successful, delivering measurable performance improvements.
The Southeast Asian manufacturing hub for Tokyo-listed Ferrotec Group has reported 90 percent surge in procurement efficiency, 40 percent improvement in finance productivity, and 50 percent reduction in supply chain process costs. Data accuracy issues have dropped by 80 percent to enable sharper execution and more confident, data-driven decisions.
“Manufacturing advanced components like semiconductor parts demands precision and specialised technology, so our priority was implementing a reliable system to support our finance, sales, supply chain, and manufacturing processes. Today, we’re operating more smoothly and efficiently, with significant productivity gains and lower costs,” said Jason Ong, IT & IS Manager of Ferrotec.
The two-phase implementation was delivered by SAP partner Axxis Consulting for a seamless transition to a unified cloud platform that provides real-time visibility and enhanced agility.
Ferrotec is now planning for extensions for quality management and compliance, and is evaluating other solutions including SAP Business AI and SAP SuccessFactors to further harmonise its business operations.
Entelechy Asia 