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R&M Rolls Out SAP ERP, Overcomes Obstacles of Local Regulations to Add Value and Optimization 

Based in Switzerland, Reichle & De-Massari (R&M) is one of the world's leading manufacturers and suppliers in innovative cabling systems for data and communication networks. In Brazil, R&M is headquartered in the technological pole located in Minas Gerais and provides infrastructure solutions such as wireline, cellular, 5G and rail networks, fiber, and more.

The Challenge

From the beginning, the team understood that the success of this project was not only dependent on complying with Brazilian regulations, but also complying with the operating model required by the R&M group. By listing the business structure requirements, understanding the needed inputs and outputs, and focusing on R&M's strategic objectives, Avvale developed a plan to meet R&M’s needs. This implementation was integrated with R&M's broader processes, which allowed the group to standardize its business processes, while respecting local country requirements. 

Due to this solution, R&M simplified their processes and some tasks were even automated. Some of these processes included administrative, accounting, and cost closing. Another benefit is the increased accuracy and reduced time to meet R&M's requirements. Moreover, data can be shared in real time within the same platform with the head office in Switzerland. As a result, the group reporting system has the most recent data and reports are generated according to the approved standards. Avvale implemented the SAP modules Sales (SD), Purchasing and Inventory Management (MM), Production (PP), Finance and Accounting (FI), and Controlling and Cost Management (CO) with integrations to external systems (Fiscal). The development of every project phase was done in conjunction with R&M to ensure compliance and minimum impact on the day-to-day business. Avvale also scheduled training sessions for users to understand how to use the new system. 

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The Approach

Avvale collaborated with the local teams to develop compliance to global processes in a consistent manner. The implementation of SAP and integration with R&M's broader processes allowed the group to standardize its business processes, while respecting local country requirements. 

Avvale implemented the SAP modules Sales (SD), Purchasing and Inventory Management (MM), Production (PP), Finance and Accounting (FI), and Controlling and Cost Management (CO) with integrations to external systems (Fiscal). The development of every project phase was accomplished with R&M to ensure compliance and minimum impact on the day-to-day business. The change management process required users to be trained using the new processes and transactions in the system.

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The Impact

R&M has implemented integrated end-to-end processes, benefiting the company with global production alignment, increased inventory control accuracy and ease of information tracking, global compliance and best practices, increased planning capacity, real-time access to business information, online integration of accounts payable and receivable with banks, automated bank conciliation, real-time fiscal obligation availability, cohesive production planning among global offices, improved sales process from pre-sales to client product delivery, automation of credit analysis process, and eased tax process management through automation. Despite facing challenges such as the pandemic and difficulty in understanding Brazilian legislation, R&M and Avvale completed the 100% online implementation in five months.

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