Valoworx, tier 1 supplier to global automotive industry, chooses SAP Business One to further cement its market position
Significant growth, the need for stricter controls and a requirement to align with global customers sees locally owned business choose SAP Business One, from 4most.
Situated in Pretoria, Valoworx is an automotive spray painting and assembly supplier to leading automobile manufacturers and other OEMs (original equipment manufacturers). Having begun life as a panel beating operation, the last few years have seen considerable growth.
Significant milestones include its appointment as Tier 1 supplier to a global car brand, the expansion of its services to include injection molding (enabling local content, aka localisation, vital to SA business and the economy), and the securing of a 13,500 m2 facility. These developments have placed Valoworx in the enviable position of local supplier servicing an international marketplace and the only Tier 1 supplier of its kind in South Africa.
But, with expansion and growth comes additional challenges. To meet current operational demands and facilitate its growth trajectory, Valoworx needed improved controls across its entire business, complete integration and the automation of vital processes. "A business operating on an Excel or paper based only system cannot expect to compete in today's marketplace," says Henry Mayers, CEO, Valoworx.
The automotive industry is also just as heavily regulated as any other, with certain legislations and customer specific requirements that need to be complied with. As a Tier 1 supplier, Valoworx receives its production orders electronically via ASN (Advanced Shipping Note). These orders (daily volume) need to be integrated into an automated system capable of producing an advanced shipping notice upon completion of the entire process.
Taking all of this into account, Valoworx's requirement was for a single system capable of meeting this need whilst also able to provide a full end to end automated and integrated technology infrastructure. In short, a solution able to facilitate greater, and tighter, controls over all aspects of its business from operational and production through to finance, HR and logistics, amongst other.
"Industry control measures are also very stringent," continues Mayers. As a Tier 1 supplier, Valoworx's delivery is measured and evaluated according to very specific customer requirements by way of a scorecard (operating on a 12-month cycle). "Any errors on our part, or failure to meet certain requirements, results in penalties that can negatively impact future accreditation as a Tier 1 supplier," stresses Mayers. It is therefore vital not only for Valoworx to ensure it complies, but also to be in a position whereby it is able to respond quickly, and efficiently, in times of crisis.
With a legacy infrastructure extending to Excel and its CX system, Valoworx began an assessment of available platforms in the marketplace. "We wanted a ‘one stop shop', an end to end system capable of providing a holistic solution without any reliance on integration with other third-party tools," continues Mayers.
A strong SAP R3 background, Mayers was pleased to discover SAP Business One, providing the best of SAP but tailored specifically to the small and medium sized business environment. "SAP Business One is a superior product," continues Mayers. "Not only will it provide a complete enterprise management system, but it will do so without any need for us to change any business processes. Instead, SAP Business One is able to be customised to suit our business and our requirements."
Globally proven, best practices and with a track record going back many years, SAP also brings with it peace of mind. "Its reputation precedes itself," adds Mayers. In addition, with the majority of Valoworx's customer base global in nature, the need to be part of the international business environment is key. "It comes down to whether or not our way of doing business instills confidence in our customer base."
With local support critical, and in that the ability to respond quickly in times of crisis, Valoworx is as enthusiastic about its choice of vendor. A leading supplier and implementer of SAP Business One and ERP software technology, 4most instilled confidence right from the very start. "I had a warm feeling from the first meeting," enthuses Mayers.
"One's technology infrastructure is often the backbone upon which a business succeeds or fails. It is not a quick, once off purchasing decision, hence the need to be comfortable with all members of the team," says Marius Fabian, MD, 4most. "It's about building long term business relationships and partnerships, working together to win."
When talking to the future, Valoworx is excited by the opportunity that awaits. "SAP Business One will give us complete control of our business, transforming all internal and external processes from receipt of orders right through to the delivery process and invoicing," continues Mayers. And it is these very controls that will allow Valoworx to continue taking its place in a highly competitive market, thereby helping to protect the sustainability of its business.
But, one of the greatest advantages lies in the implementation of a technology capable of growing and evolving with Valoworx over the coming years, with any future developments and requirements able to be easily accommodated. "Continuous investment, research and development ensures that SAP, and thereby its customers, remains at the forefront of technology," adds Fabian.
"We operate in an industry with absolutely no room for error," stresses Mayers. A single manufactured part holds the power to affect the outcome of a human being's life. "We have absolutely no doubt that SAP Business One will allow us to continue delivering on time, in full and to the desired quality, as we take our business into the future."