ZF Friedrichshafen AG depends on Microsoft Navision to steer their world-class Sales and Service Organization

ZF Friedrichshafen is the world’s largest drive-line, steering and chassis company. Their Sales and Service Organization selected Microsoft Business Solutions—Navision to provide a truly scalable ERP solution throughout Asia and the rest of the world.

Founded in 1915 under the personal guidance of Count Ferdinand von Zeppelin, ZF Friedrichshafen started producing drive shafts for the large rigid airships that bore his name. Over the succeeding years, while maintaining their leadership in gear boxes and transmissions for all kinds of motorised vehicles, they have expanded into other businesses including marine craft and aircraft.

ZF were largely responsible for the adoption of automatic transmissions in automobiles during the 1960/70s and they continue to be at the forefront of drive technology. For example Jaguar Motors’ recently selected their latest 6-speed automatic transmission as well as the “Servotronic2” power steering system for the new “S-type” Jaguar. In addition to designing and building components for major vehicle manufacturers, ZF also provide their transmissions to custom coachbuilders such as SBS Transit in Singapore (for their fleet of buses).

Most of ZF’s products are manufactured in Germany, but as their business expanded, they put in place an extensive world-wide Sales and Service Organization (SSO). Their Asian operation started in Singapore in 1984 and it is now the regional headquarters, managing both their subsidiaries and a chain of dedicated distributors and dealers.

Complex ERP requirements for Sales and Service
Markus Stanger, ZF South-East Asia’s ERP Project Manager said, “The service side of our business is very complex. We have sold and continue to service hundreds of thousands of products, many of which may have life-spans of twenty years or more! (For example bus, lorry and marine parts). These must be tracked by serial number for warranty and service and units may need to be exchanged for remanufactured units with warranty carry-overs”. In 1998, the company decided that they should implement a consistent set of standards and services worldwide and looked for an ERP solution that would enable them to do it. Their manufacturing sites were SAP users, but that was both practically and financially unsuitable for the SSO.

“We knew what we needed – and it was a lot! First of all we wanted a set of comprehensive financials that supported specific countries’ requirements for currency, taxes, legislation and languages. On top of that we wanted a sophisticated CIM suite and the ability to create custom modules. The structure of the SSO also had a big influence on the final choice; it must be scalable for locations from 6 users to over 100. Easy upgrades were a must too. Only Microsoft Business Solutions—Navision could provide all of this - so the choice was made!” said Markus.

So we decided that, in order to unify our business and information structure, a common Enterprise Resource Planning (ERP) system was essential.”

The Australia and New Zealand offices took the initiative to look for a suitable ERP solution and evaluated some internationally known packages operating on both the mid range computers and NT based servers. After careful consideration, Microsoft Business Solutions—Navision financial management solution emerged at the top of the list.

“In the end we decided on the Wintel (i.e. Microsoft-Intel) strategy. The technologies have proven to be robust, highly functional and reliable. In addition, standardising on Microsoft means using Intel-based servers, not the more expensive larger systems that the other solutions would require. Microsoft Navision also takes less time than the other systems to implement, and time was a luxury we did not have,” said Sua.

Implementation of Microsoft Navision began soon after, starting with Australia and New Zealand. Canada and the United Kingdom were next, followed by the countries in Asia, Europe and the Americas, and South Africa. ZF’s strategy is to work with a number of selected Microsoft Certified Business Solutions Partners as needed. ZF’s responsibility is primarily to specify the baseline system and act as the interface between the users and the partners (who provide the coding). They chose a German partner with experience in the services industry to create the initial custom modules and planned to install the first site in the UK.

Asia Deployment
In May 1999, ZF was just starting up their new Hong Kong operation and as they had no previous system, the plan was changed to let them be the launch site. With no need for historic data migration, the system went live very smoothly with on-site support directly from Germany. The Singapore site went live in July 1999 and as the regional headquarters, it is one of the largest sites in Asia with 25 users.

2001 was a busy year, as Markus rolled out the SSO sites in Kuala Lumpur, Beijing, Shanghai, Bangkok, and Taipei. Most of these sites were straightforward to implement as they generally did not have complex legacy systems with databases to migrate. Although ZF have worked with several Microsoft Certified Business Solutions Partners, they selected The Enterprise Solutions Group (ESG) to implement their next major Asian site that was to be in Seoul, South Korea.

Korea set a particular challenge because Markus’ IT team had no-one who could speak the language! ESG had a local office with Microsoft Navision expertise that was able to create the modules for local regulations as well as provide a Korean language pack. In addition, they were able to help the data migration from the earlier system.

ESG is a unique Microsoft Certified Business Solution Partner in Asia in that they have a true regional presence with offices in six countries. Eric Fung, ESG’s Managing Director explained, “At ESG, our mission is to manage global accounts and implementations. Most of our clients are either U.S. or European Fortune 500 sized, multi-nationals, and they come to us to manage world-wide roll-outs. Each of our offices are staffed with consultants that are experienced in local language, local requirements and with Microsoft Navision.”

”We treasure clients such as ZF because our regional presence and structure fits their needs so perfectly,” said Eric.

Looking back, Markus said “Microsoft Navision has really transformed our business! The SSO is the vital link between our factory and the customer. With Microsoft Navision our service business is more accurate and reliable and the sales staff can keep on top of service issues which lead to more satisfied customers. Everything is streamlined and we have been able to provide a consistent set of best practices, regardless of the size of the subsidiary. I am also really pleased that we have been able to do so many roll-outs in different countries so quickly and painlessly.”

ZF Australia joined the Microsoft Navision network in May of 2002 with a large 25 user installation. Kirralea McConnell, Information System Department Supervisor at ZF Australia Pty. Ltd. said, “Our experience with Microsoft Navision after 6 months of installation has given us the opportunity to do so much more when compared to other Business Solutions. We can say this with a lot of enthusiasm because today it is so much easier to navigate around over many complex processes which results in greater work output efficiency. Combine this with Microsoft Navision’s flexibility and we’re able to send out documents on time, especially invoices with goods, which leads to customer satisfaction.”

Simon Tung, Microsoft Business Solutions, Channel Sales Manager, Singapore said, “We are really pleased ZF is a global customer with Microsoft Business Solutions—Navision. The skills developed within ZF as a group are a testimony to the belief in the product and its ability to manage their critical business requirements. Global customers need a special relationship with their technology partner and with Microsoft Business Solutions this is central to how we deliver our solutions - in successful partnership.

Customer Profile
ZF Friedrichshafen is the world’s largest drive-line, steering and chassis company. Their Asia-Pacific operation provides sales and service to their network of regional distributors

Business Situation
ZF needed an ERP system that could scale from 6-100 users, and that was a true international solution. In addition to managing their financials, sales and distribution, it needed to allow easy creation of specialised modules to support their complex service needs.

Solution
Microsoft® Navision

• Financial Management
• Customer Management
• Parts, Service and Warranty management

Benefits

• Standard Solution for worldwide locations
• Custom modules for Service and Warranty
• In-country partners to provide local knowledge and language

Users:

• 15-25 users each in Australia, Korea and Singapore
• 5-10 users each in China, Malaysia, Taiwan and Thailand
• Up to 100 users in European sites

“Microsoft Business Solutions— Navision has really transformed our business!”
Markus Stanger,
ERP Project Manager
ZF South-East Asia’

“Our experience with Microsoft Navision after six months of installation has given us the opportunity to do so much more when compared to other Business Solutions.”
Kirralea McConnell,
Information System Department
Supervisor
ZF Australia Pty. Ltd.