When a global rail vehicle manufacturer expanded into Asia, it needed to adapt its proven European warehouse processes to a new regional reality. With ACBaltica’s help, the company successfully rolled out SAP EWM in its new location – streamlining production planning, improving warehouse efficiency, and laying a solid foundation for future growth.
Customer
Our customer is a leading mid-sized global manufacturer specializing in rail vehicles. It is known for its innovative and customized solutions tailored to niche markets – like regional trains, mountain railways, and light rail systems. Differentiating itself with high-quality, tailored products and sustainable technologies – including hydrogen and battery-powered trains – the company successfully competes with global industry giants, maintaining a robust presence in Europe, North America, and beyond.
Challenge
As the company expanded rapidly into the Asian market, it faced significant challenges integrating its proven European processes into a new regional context. Establishing a new plant and warehouse in Asia meant merging the Western operational model with Eastern business practices. This required careful balancing to implement German processes in a new cultural and operational environment. Additionally, communication complexities arose from collaborating teams based in Germany, Spain, and Asia. Technical challenges included adopting batch stock management (previously unused), adjusting serial number accounting processes, implementing local-specific printing forms, and custom PDA development.Solution
Objectives
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Execute the rollout of the European warehouse solution in Asia
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Align local requirements with headquarters’ established processes
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Configure warehouse organizational structure
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Customize warehouse processes (Putaway, Picking, and Internal warehouse movements)
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Customize PDA interfaces and develop bespoke customer transactions
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Optimize the Picking-to-Production workflow
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Improve the Quality Control process during goods receipt at the warehouse
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Implement intra-company international stock transfers
Project scope
The comprehensive scope included:-
Commercial Project Management
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Master data integration from an external PLM system
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Scheduling production activities
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Resource planning aligned with production needs
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Procurement of necessary materials
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Warehouse logistics covering all relevant scenarios
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Stock transfer orders
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Outbound delivery order split
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Production execution
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Managing serializable equipment to track the assembled operations
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Quality control for warehouse and production operations
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Integration with external accounting systems for data replication
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Consolidation and controlling analytics
Technical scope
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Industry: Rail vehicle manufacturing
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Scope of service: Production and warehousing rollout based on German processes
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Location: Kazakhstan
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Project duration: 2 years
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SAP modules: EWM, MM, PP, FI, CO, SD, ABAP Development
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Active warehouse users: 50
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Project team: 14 consultants, 5 developers
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System: SAP S/4HANA 2023
Project results
The project began with a detailed analysis of existing German warehouse processes and Asian-specific requirements, with multilingual consultants from the ACBaltica team bridging communication gaps effectively. Critical solution enhancements included seamless integration between PEO and EWM, customized Production Order staging tailored to local demands, customization of the PDA transaction for goods receipt, creation of an automated batch number, and implementation of a separate serial number process after goods receipt.Resource routing was optimized, limiting simultaneous aisle access to workers with special equipment, enhancing productivity. We leveraged the SAP EWM "Delivery Split for Outbound Delivery Orders" feature to facilitate Production Order management. We also delivered comprehensive training materials and user sessions, accompanied by robust onsite support during all project stages, including pre-project inspections, the go-live phase and beyond, addressing complex operational issues.
Customer benefits
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Optimization of production planning and supply chain management
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Integrated management of procurement activities within one cohesive system across all production locations in different counties
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Enhanced scheduling precision for manufacturing processes
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Complete traceability of individual train structures and component histories
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Optimized international intracompany Stock Transfer processes
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Enhanced speed of Production Order preparation through a tailored consolidation process
The successful implementation not only improved efficiency but also strongly positioned the company for continued growth and adaptability in the Asian market.