Supporting fast-growing demand in e-mobility

Phoenix Contact E-Mobility is a leader in the fast-growing e-mobility market, with a broad portfolio of electric charging technology for both vehicle charging interfaces and charging infrastructure. The company’s rapid growth put significant pressure on their supply chain planning and production processes. In addition, new production sites in China and Poland introduced high complexity. 

With these developments, the e-mobility leader recognized the need for an end-toend planning solution to support its growth plans and reduce operating costs. Ensuring high customer service levels, and particularly delivery reliability, required a new way of planning with greater supply chain stability. Phoenix Contact E-Mobility also sought to improve cross-functional alignment ensure accurate demand forecasting, and attain seamless integration between departments to optimize production and avoid delays. 

“Scaling our production while maintaining operational stability is essential to meeting the growing needs of our customers”, explained Christoph Paetzold, S&OP Process Owner at Phoenix Contact E-Mobility.

Implementing SAP IBP for end-to-end S&OP excellence 

To address these challenges, Phoenix Contact E-Mobility partnered with 4flow to design and implement a robust sales and operations planning (S&OP) process, enabled by SAP Integrated Business Planning (IBP). The cloudbased solution provided a digital twin of the supply chain network to enable synchronized planning cycles across multiple functions. 

To pave the way for the transformation, the project was structured in two distinct phases:

Phase 1: S&OP operationalization and data management 

The project kicked off with a strategy workshop, where the management team identified key challenges and assessed the maturity of the current planning processes. Design principles for S&OP were defined and tailored to the requirements at Phoenix Contact E-Mobility. 

In this phase, the project team also developed functional requirements for SAP IBP, addressed data dependencies and quality issues, and created an implementation roadmap. 4flow and Phoenix Contact E-Mobility designed a streamlined end-to-end S&OP process and orchestrated alignment between departments on a monthly basis. Additionally, the joint team established KPIs to track business performance as the new S&OP processes were implemented. 

Phase 2: S&OP implementation 

This phase focused on the deployment of SAP IBP and change management. As a first step, 4flow supported Phoenix Contact E-Mobility to set up SAP IBP, providing end-to-end visibility of the supply chain to support planning. The platform also enables testing of various scenarios. 

In terms of change management, training materials were created for over 100 stakeholders. Phoenix Contact E-Mobility provided regular updates during companywide meetings to ensure buy-in across its team. 

4flow facilitated the first S&OP cycles, supporting Phoenix Contact E-Mobility to refine the process through continuous feedback and improvement. Responsibilities were gradually transferred to the S&OP experts at Phoenix Contact E-Mobility, to pave the way for sustainable process management. These initial cycles stabilized the supply chain, ensuring better forecast accuracy and operational efficiency.

“With an agile methodology and strong collaboration with 4flow, we implemented a globally standardized framework for S&OP at Phoenix Contact E-Mobility, fully integrated into our ERP landscape,” explains Björn Austermeier, Senior Director Global Production at Phoenix Contact E-Mobility. 

Enhanced operational stability and future-ready processes

Thanks to the new S&OP system, Phoenix Contact E-Mobility achieved major improvements in supply chain transparency and responsiveness. The monthly S&OP meetings allowed teams to align on demand forecasts, capacity planning and inventory levels. This alignment reduced overstocks and increased production efficiency. The seamless integration between SAP IBP and the ERP system also led to fast response times and more data-driven decision-making.

“Our S&OP processes are optimally supported by SAP IBP. 4flow helped us translate our business requirements into IT requirements and ensured the platform’s successful configuration. Thanks to 4flow’s deep understanding of our S&OP process, our employees were excellently prepared for the change with customized training sessions”, said Julia Stallmann, Global Supply Chain Manager at Phoenix Contact E-Mobility and Global Key User IBP & SAP for the project. 

The early S&OP cycles provided important insights, leading to continuous improvements in planning accuracy and supply chain stability. They also enabled Phoenix Contact E-Mobility to realize cost reductions through optimized resource allocation and minimized excess inventory. 

With streamlined supply chain processes and an S&OP system, Phoenix Contact E-Mobility is prepared to meet the growing demands of the global e-mobility market and remain a leader in its industry. 

“Our supply chain is more resilient and responsive thanks to our new S&OP processes. We’ve seen immediate improvements in forecast accuracy and collaboration across departments. 4flow has truly transformed the way we plan and execute our operations. The 4flow team impressed us with their expertise and structured approach. Their high degree of professionalism, combined with a hands-on mentality, allowed Phoenix Contact E-Mobility to achieve a level of success in our S&OP process that we wouldn’t have reached on our own“, reported Christoph Paetzold, S&OP Process Owner at Phoenix Contact E-Mobility. 

“Phoenix Contact E-Mobility demonstrated an exceptional commitment to innovation throughout the project. Their proactive approach and openness to collaboration allowed us to implement a highly effective S&OP system tailored to their growth. The results speak for themselves – improved operational stability, greater forecast accuracy, and enhanced supply chain transparency. This project is a prime illustration that a well-executed methodology and close partnership can lead to transformative results”, said Malte Vogt, Vice President at 4flow consulting.

At a glance

Customer: Phoenix Contact E-Mobility

• Global leader in e-mobility technology

Project scope:

• S&OP process design and implementation using SAP IBP to streamline supply chain processes and meet the growing needs of the global e-mobility market

Results:

• SAP IBP implemented as an S&OP platform
• End-to-end transparency and collaborative, proactive planning
• Monthly S&OP cycles enable clear alignment across Sales, Demand, Supply, and Production
• Data quality improvements and automated planning processes enhance decision-making and flexibility