Ferrotec Malaysia has successfully implemented GROW with SAP, a cloud-based ERP, to power its new manufacturing site in Kulim, Malaysia.
Completed in 2024, the Kulim facility is Tokyo-listed Ferrotec Group’s first-ever plant in Southeast Asia, representing an investment of approximately 850 million ringgit.
The plant manufactures precise materials and components that supplies key industry sectors, including semiconductors, automotive products, and medical devices.
As Ferrotec expanded its product lines and relocated several business units to Kulim, the company faced a major challenge: implementing an ERP system able to integrate finance, sales, supply chain, and manufacturing.
Despite its global presence, Ferrotec lacked a unified platform, leaving the new plant without shared IT resources or standardized processes. This resulted in heavy reliance on manual workflows and fragmented data, slowing decision-making and increasing the risk of errors.
To keep operations on track, Ferrotec needed to identify and deploy a solution capable of meeting complex requirements within a tight timeline.
Ferrotec chose GROW with SAP to accelerate its cloud ERP adoption and support future scalability. The impact has been immediate and measurable: procurement efficiency has surged by 90%, finance productivity has improved by 40%, and supply chain process costs have been reduced by 50%.
Data accuracy issues have dropped by 80%, enabling sharper execution and more confident, data-driven decisions.
“With the implementation of GROW with SAP, we established a strong ERP foundation at our new manufacturing site in Malaysia, setting the stage for future growth,” said Jason Ong, IT & IS manager at Ferrotec
“Manufacturing advanced components like semiconductor parts demands precision and specialized technology, so our priority was implementing a reliable system to support our finance, sales, supply chain, and manufacturing processes,” said Ong. “Today, we’re operating more smoothly and efficiently, with significant productivity gains and lower costs.”
With a unified cloud platform, Ferrotec now enjoys faster decision-making, improved transparency, and enhanced agility, supporting its expansion into a new plant and future growth.
Ferrotec is now planning immediate extensions to support advanced quality management and compliance in production. The company is evaluating additional solutions including SAP Business AI, SAP SuccessFactors, SAP Ariba, and SAP Customer Experience to further harmonize business operations.
