Wanhong Shuangxi | Machinery & Industrial Manufacturing SAP S/4HANA Cloud Success Story Machinery & Industrial Manufacturing
Wanhong Shuangxi Group Hebei Co., Ltd.（万鸿双喜） is a major scaffolding equipment manufacturer and service provider in North China, with an annual production capacity of 500,000 tons. The company operates multiple factories and sales regions, facing intense market competition, low product margins, complex multi-unit management (ton vs. piece), and complicated transaction models involving transfers, third-party sales, and outsourced processing.
Challenges
The company struggled with low product margins that were highly sensitive to transportation and raw material costs. Multi-unit management (procurement and sales in tons, inventory in pieces) created significant complexity. Multiple factories and sales entities required accurate profit center analysis, while complex inter-company transactions and outsourced processing settlements made cost control extremely difficult.
Solution
BOS Cloud implemented SAP S/4HANA Cloud Public Cloud with a focus on the building materials industry. The solution enabled transportation management to accurately allocate logistics costs into product costing. It integrated with the BOS middleware platform for automatic workshop reporting and piece-rate wage calculation. A multi-unit management model was established to meet the different unit requirements across procurement, warehousing, production, sales, and finance. PMRP simulation was used to analyze the impact of sales contracts on raw material procurement in real time, helping the company optimize purchasing decisions and improve margins.
Key Results
Strategic: Established an end-to-end digital management system from sales to logistics with real-time finance integration, laying a foundation for scalable growth.
Business: Achieved precise allocation of transportation and raw material costs, directly supporting margin improvement.
Operational: Unified data standards and coding rules across the group, significantly improving management efficiency and data quality.
Technical: Built a scalable, industry-specific solution on SAP S/4HANA Cloud that supports complex multi-factory and multi-mode operations.
