The deal between IDS Scheer and Handan Steel is part of a total investment of 13.8 million EUR including hardware, software and service. IDS Scheer faces the challenge of modeling multifold company processes and then implementing them into different modules of the SAP ERP System. The first project phase with a volume of 2.9 million EUR will end in 2005. By end of 2006 the different tasks of the project shall be completed.

The ERP part of the project with Handan Iron and Steel Co., Ltd. is divided in three phases. The initial stage includes the modeling of general planning processes such as finance and quality management and the implementation into the respective SAP modules, same applies for the processes with respect to equipment maintenance. Handan Steel will implement SAP APO modules, which is a big challenge due to that it is the first time for Chinese steel industry.

The second stage will start in 2006. Apart from the optimization of the management model of the first stage it focuses on topics such as human resource management, project management and further development of supply chain management.

In a third step IDS Scheer consultants will concentrate on the further improvement of customer relationship management and supplier management but also on the necessary data mining technology that will support the management of Handan Steel to make strategic decisions.
There were several reasons why Handan chose IDS Scheer to be the project partner: For more than a decade IDS Scheer disposes of the specific industry know-how and has already concluded other steel projects in China. In 2004, a project with Bao Steel Group went live successfully. Moreover, Handan has recognized IDS Scheer as a worldwide specialist for Business Process Management (BPM) that is at the same time an authorized global business partner of SAP. Moreover, IDS Scheer disposes of its own BPM Software, ARIS, which guarantees a high quality and process oriented implementation of SAP products.

The general manager of Handan Iron and Steel Group, Mr. Yifang Wang, said, “I believe, with the joint efforts, our corporation will bring a new era. The informatization of Handan Iron and Steel Co., Ltd will exceed other leading iron and steel companies in China, and even become a model project in China as well as the world.”

Mr. Herbert Kindermann, member of the Executive Board of IDS Scheer in charge of internationalization, said, “The success of Handan project is of great significance for the development of our company on the Chinese market. This project has top priority and we will mobilize our global resources to guarantee its success.”