SAP Customer Success Story High Tech “Throughout our entire relationship with SAP, we’ve felt that it is genuinely interested in our company and has taken the time to understand our business. The SAP team has not just engaged with us as a typical software vendor, but as a partner with a strong commitment to our success.” Tom Miller, President, Intermec Technologies Corp. INTERMEC TECHNOLOGIES CORP. AT A GLANCE Company Name Intermec Technologies Corp. United States www.intermec.com Industry High tech Key Challenges Integrate sales and operations Improve quality of data and forecast accuracy Upgrade from multiple manual processes Empower the sales force with the tools to increase job efficiency Existing Environment SAP R/3® software for sales and distribution, materials management, production planning, financials, controlling, and strategic enterprise management (now available in mySAP ERP) SAP Business Information Warehouse Various non-SAP legacy systems • mySAP™ CUSTOMER RELATIONSHIP MANAGEMENT AND mySAP ERP SUPPLY DEMAND-DRIVEN AGILITY BY STREAMLINING WAREHOUSE OPERATIONS, BOOSTING SALES, AND ENHANCING CUSTOMER SERVICE INTEGRATED SOLUTIONS DELIVER NEW VISIBILITY • • • • • • • • • • • • • • • • • Implementation Highlights Seamless integration of applications and systems Streamlined knowledge transfer Key Benefits Faster data flow between sales and production operations, enhancing visibility and decision making Lower product costs Streamlined warehouse operations More efficient inventory management Improved customer satisfaction Hardware IBM Operating System IBM AIX Oracle DB Companies worldwide use Intermec’s sophisticated electronics technology to gather data such as production output, inventory levels, replenishment triggers, and sales and distribution volumes. Demand for the company’s products and the inevitable progression of technology require Intermec to integrate and propagate the data that it collects from its own operations and provide real-time access to the field. “We have a large sales force and extensive production facilities,” says Robert Rainier, vice president of operations. “Therefore, the level of communication has to meet or exceed customer expectations – on the production floor, in the warehouse, or with our sales staff. Our goal was to upgrade Intermec’s internal systems to effectively tie it all together so that our production, sales, and marketing people are all working with the same information and striving to meet the same goals.” Based in Everett, Wash., Intermec Technologies Corp., a UNOVA Inc. company, develops and manufactures wired and wireless automated data collection systems, Intellitag® radio frequency identification (RFID) components, mobile computing systems, bar code printers, and label media. A global enterprise with 2,700 employees, the company’s products and services are used in a wide variety of industries to improve productivity, quality, and responsiveness. Implementation Partners SAP® Consulting, part of SAP Customer Services Network Catalyst International Consulting, Inc. Solution and Services Warehouse management functionality of mySAP™ ERP Mobile sales functionality of mySAP Customer Relationship Management Company executives recognized that it was time for a technology upgrade. To enhance communication, Intermec wanted to streamline information availability throughout its sales organization – providing field personnel with access to timely and accurate “Our sales force has immediate access to up-to-date pricing, product information, and order status for their customers. They spend less time looking for transaction data and can devote more time maintaining our relationships with current customers and developing relationships with new customers.” Robert Rainier, Vice President of Operations, Intermec Technologies Corp. Intermec’s manual inventory processes also merited a new approach. A mixed collection of discrete IT solutions required the company to enter the same data multiple times for different applications – a sometimes costly and redundant practice. “Intermec fully understands the downside of manual data entry, so we were ready to automate many of our inventory processes, which we knew would eliminate errors and discrepancies,” says Taylor. “We had SAP solutions in place, along with solutions from other vendors, but integrating all of our processes, including our sales operations, was essential to improving the quality of information and service Intermec brings to customers.” RAPID RESPONSE TO CUSTOMER DEMAND information, including customer data, inventory levels, and schedules. The company also wanted to make sales information available across the extended organization. “We wanted to create a fully integrated team that would allow sales people to collaborate with one another – as well as with our channel partners and other organizations – to outperform customer demand. We like to stay two steps ahead,” says Keven Greenfield, director for sales CRM. Intermec also wanted to refine its forecasting abilities, so that production could be adjusted as demand changed, warehouse space could be better utilized, and the company could make even more accurate commitments to customers. “We had a tool for forecasting, but it was an independent application not connected to any of our systems,” says Greenfield. “We needed a new system to allow sales teams clear visibility into operations. That kind of clarity makes for new opportunities.” In early 2003, Intermec began executing on its plan for change. First, the company elected to consolidate its disparate legacy IT solutions and applications into a single integrated environment, thereby enabling the organization to adapt to changing customer demand and positioning it for growth. Intermec turned to SAP to provide the integration solution. “Typically, we look for a solution partner with a depth of understanding of our goals and one that has solutions to match,” says Taylor. “We knew SAP, since we already had SAP solutions in place, and we knew the integration expertise that they have.” Intermec selected the warehouse management functionality of mySAP™ ERP to integrate its warehouse operations with its enterprise business process structure. The solution is designed to synchronize inventory processes and expedite orders. “We needed to improve efficiency within our own operations,” says Greenfield. “We felt that the SAP solution would deliver streamlined operations and data integration.” With the help of Catalyst International Consulting, Intermec integrated its own automatic data collection technologies with the SAP® solution. “We spent a lot of time developing RF transactions for our own wireless technology, handheld devices, and portable printers,” says Rainier. “The SAP software was invaluable when we needed to customize SAP screens for our own handhelds.” To sustain the strong commitment it had from its existing customers, Intermec evolved to a more customer-oriented approach – one that required enhanced support for the sales force. To meet this goal, Intermec implemented the mobile sales functionality of mySAP Customer Relationship Management (mySAP CRM). “We felt that the mobile sales functionality would enable us to provide superior service to our customers and make our organization even more flexible when responding to customer requests,” Greenfield adds. Intermec offered the solution to approximately 175 sales people and systems engineers in the United States. The mySAP CRM solution, which replaced multiple legacy sales support systems, was implemented with the help of SAP Consulting, part of SAP Customer Services Network. SAP Consulting provided full-time senior-level consultants, including a middleware consultant, as part of the SAP Ramp-Up process. In addition, SAP delivered custom workshops on mySAP CRM and middleware, and provided spot support that helped Intermec close critical issues and meet its launch dates. Additionally, SAP Consulting brought in knowledgeable business intelligence consultants to help the company create decision-support processes. As a result, the project was delivered on time. A MORE FLEXIBLE, RESPONSIVE, AND STREAMLINED ORGANIZATION The solution provides Intermec’s sales force with a single point of access for customer data from all sources across the enterprise. This unified access enables the company to track sales opportunities more effectively and enhance service to its customers. “Our sales representatives can synchronize the data on their laptops daily, pulling in information on customers, order status, discounts, and pricing, while sending data on orders, contacts, and quotes,” says Rainier. “This data is shared among the extended sales team so that everyone in the organization, and in organizations we partner with, has the same information.” The results include increased order accuracy, fewer returns, and a more precise representation of upcoming manufacturing requirements – all of which lower the total cost of production. In addition, mySAP CRM allows Intermec to develop a standardized customer information system, which is expected to reduce costs and fuel revenue growth by increasing the quality of data collected in the field and facilitating information sharing among field sales personnel. “The mobile sales functionality allows us to expand our revenue opportunities and reduce our costs by decreasing “We felt that the mobile sales functionality would enable us to provide superior service to our customers and make our organization even more flexible when responding to customer requests.” Keven Greenfield, Director for Sales CRM, Intermec Technologies Corp. The benefits of both solutions have been dramatic. With mySAP CRM, Intermec’s sales force is empowered to respond more quickly to customer inquiries regarding order status, current pricing, and other data points – enabling faster resolution of issues, improved customer satisfaction, and, ultimately, increased revenue. “Our sales force has immediate access to up-to-date pricing, product information, and order status for their customers,” says Rainier. “They spend less time looking for transaction data and can devote more time maintaining our relationships with current customers and developing relationships with new customers.” inventory and increasing our operational efficiencies,” says Greenfield. “At the same time, we can provide more service to our customers, enhance support for our global accounts, and improve our forecasting.” www.sap.com/contactsap Another key benefit that Intermec immediately realized is full visibility into the sales order process throughout its business. From sales order entry and delivery scheduling to final assembly at the packing station, real-time information is readily available to many departments, including the customer service team. As a result, Intermec has improved its customer responsiveness and the number of same-day shipments – plus it has more flexibility in meeting customers’ day-to-day needs. STREAMLINED WAREHOUSE OPERATIONS The warehouse management functionality of mySAP ERP has already helped Intermec automate and streamline basic warehouse processes – significantly improving productivity while creating corresponding cost savings. At Intermec’s 50,000-square-foot warehouse in Everett, Wash., the company improved materialhandling productivity by 25% while reducing warehouse staff by approximately 15%. This facility houses both finished products for distribution and materials for the company’s demand-flow product assembly lines. With Intermec’s EasyCoder® 3400 fixed printer and PL4 portable printer, workers can print labels at assembly stations or even while moving products to inventory, eliminating errorprone hand keying. “With the bar code printers and the handhelds, such as our T2425 and CK30 devices, our staff can now get items on and off the shelves faster and with fewer trips than before,” says Greenfield. “They don’t have to spend time thinking about where something goes or where it is, because the handheld tells them exactly where to put items or where to go to pick them. When workers put items in inventory, the printers produce the bar codes while the picker is moving to the bin.” Material-handling efficiency has also improved. Before the SAP solution was implemented, all material was placed in a storage location before being shipped or used on a production line. This was true both for material being received and for finished products coming off a production line. With the new solution, material that is received can be taken directly to a production line that needs that material. Finished products can go directly to a shipping dock if there are orders for that product. “Being able to move materials directly to where they are needed clearly saves time and reduces steps,” says Greenfield. “We can get orders out faster by having the products go right to a shipping location. And we improve production by having material delivered right to where it is needed.” CARRYING SUCCESS FORWARD In addition to delivering measurable improvements in efficiency and customer satisfaction, Intermec’s success with SAP solutions allows the company to showcase its own products. The company routinely demonstrates how coupling Intermec products with the sophisticated functionality of SAP solutions has created a singular materials management environment in which products move with ease through production and warehousing operations. Intermec believes that this success is a direct result of SAP’s long-standing commitment to Intermec’s ongoing success. “Throughout our entire relationship with SAP, we’ve felt that it is genuinely interested in our company and has taken the time to understand our business,” says Tom Miller, president of Intermec. “The SAP team has not just engaged with us as a typical software vendor, but as a partner with a strong commitment to our success.” 50 073 199 (05/03) SAP AG. All rights reserved. SAP, R/3, and other SAP and services mentioned © 2005 byas their respective logos are trademarksmySAP, mySAP.com, xApps, xApp, AG in Germanyproductsseveral other countries allherein as well or registered trademarks of SAP and in over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. Printed on environmentally friendly paper. 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