SAP SE today announced that Ferrotec Malaysia has successfully implemented GROW with SAP, a cloud-based ERP offering designed to help fast growing companies using a standardised framework, tools, and guidance 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 MYR 850 million. 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 per cent, finance productivity has improved by 40 per cent, and supply chain process costs have been reduced by 50 per cent. 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 Ferrotec “Manufacturing advanced components like semiconductor parts demands precision and specialised technology, so our priority was implementing a reliable system to support our finance, sales, supply chain, and manufacturing processes. Today, we’re operating more smoothly and efficiently, with significant productivity gains and lower costs.”
“Ferrotec Malaysia chose GROW with SAP to provide it with a comprehensive, cloud-based ERP foundation that streamlines operations, improves efficiency, and enables data-driven decision making,” said Vipin Chandran, Managing Director, SAP Malaysia. We are proud of how our technology is helping businesses across Malaysia modernize and scale with confidence.”
SAP partner Axxis Consulting played a central role in the design and deployment of the GROW with SAP for Ferrotec Malaysia. Working closely with Ferrotec and SAP, Axxis delivered a structured two phase implementation, Phase 1 covering Finance, Procurement, and Supply Chain, followed by Phase 2 enabling Sales and Production. This end-to-end approach ensured a seamless transition to the cloud, equipping Ferrotec with modern digital workflows, real-time visibility, and streamlined processes. 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. SAP continues to drive continuous improvement through MES integrations and operational enhancements.
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.
Source: SAP (Press Release)